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Tariff to cross-subsidy: Govt plans big power reform push

Mint Chennai

|

October 11, 2025

The power ministry has proposed a slew of reforms in the sector through a draft of amendments to the Electricity Bill, 2003. Among key proposals is giving more teeth to state electricity regulatory commissions to fix tariffs on their own and ending cross-subsidies.

- Rituraj Baruah

The proposals aim to plug “mounting” losses in the power sector and boost economic growth.

The ministry circulated the draft Electricity Amendment Bill 2025 on Thursday, seeking feedback from stakeholders within 30 days.

Currently, power distribution firms propose tariffs to the commission for a fiscal year. The ministry noted delays in revision by the discoms while proposing to give power to the regulator to revise tariffs.

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