Cost-Reflective Tariffs

The Ministry of Power (MoP) has circulated the Draft Electricity (Amendment) Bill, 2025, proposing major changes to the Electricity Act, 2003. The key objective is to enforce cost-reflective tariffs, aiming to strengthen the financial health of the power sector, particularly distribution utilities. The proposed amendments aim to address financial losses in the distribution sector, estimated at over Rs 6.9 lakh crore. A central reform requires Regulatory Commissions to determine cost-reflective tariffs. Supported by the 2025…