Power play: Will states accept the concept electricity bill 2025?

Copyright © HT Digital Streams Limit all rights reserved. To improve competitiveness, the concept electricity bill is proposing 2025 to enable multiple distributors to provide the existing network in the same area. (Reuters) Summary An earlier version of the draft electricity bill, set in 2022, has expired due to a lack of consensus. If state governments do not accept the new version, the bill may become ineffective, as electricity is a simultaneous topic. The Comprehension of Electricity (Amendment) 2025, released by the Ministry, can boost renewable energy (re) and distribution companies (Discoms). An important proposal is the requirement that state discovery comply with renewable purchasing obligations (RPOs) set by the central government and paid a fine in the case of deficiency. RPOs are now accounting for 30% of the total power obtained, and it is estimated to rise to 43% by the financial year 2030 (FY30). The bill also empowers the central electricity regulatory commission to introduce market -based instruments to improve trade in re. This will help to meet discoms from the market without entering into binding, long-term power purchase agreements. To improve the competitiveness, the bill proposes to enable multiple distributors to provide in the same area using the existing network. It removes a clause in an earlier bill that required them to build their own networks, which boosts private distributors such as Tata Power Co. Ltd. and CESC Ltd. The removal of cross-subsidy charges can still be a significant resistance to the richtly to eliminate the negotiation of sectors, the transport sector, and to relieve the negotiation of sectors, such as agriculture. In that case, discoms, which experience financial tensions with a cumulative loss of nearly £ 7 trillion from FY25, will need support of state governments to satisfy their financing gap. “By giving a clear timeline, the 2025 Bill directly increases the industrial competitiveness, but it can also impede diskomfinance, as quotes are an important income component in their ARR (total revenue requirement),” antique stock broker noted in a October 13 report. If state governments do not accept the provisions, the bill may become ineffective, as electricity is a simultaneous topic. The earlier bill, which was introduced in 2022, expired especially due to a lack of consensus. The proposal to establish an electricity council consisting of central and state ministers, similar to the Council for Goods and Services (GST), can nevertheless help to give a consensus on the long -term reforms. Meanwhile, demand for power increased by 3.4% year-on-year in the September quarter (Q2FY26) after falling 1.3% in Q1FY26 as a result of an early monsoon, according to Nuvama Institutional Shares. Sharp 19% growth in re -generation in the Q2 harmed the thermal demand, which fell by 1.5%. Nuvama predicted that companies focused on thermal arousal within its coverage would report the total Q2 EBITDA (earnings before interest, tax, depreciation and amortization) of barely 2% year-on-year. The bill, if approved, can put these businesses further under pressure. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More topics #electric Read next story