Pune: Proposed Electricity Act Changes Could Raise Power Bills, Encourage Monopoly – Analysts

Pune, 9th January 2026: Proposed amendments to the Electricity Act could encourage monopoly by select companies and lead to a 30–40 percent increase in electricity tariffs, former electricity regulator Jayant Deo said on Wednesday. Energy analyst Shantanu Dixit, however, said the amendments contain some positive reforms but require further changes from a consumer perspective.

Speaking at a discussion on “The Electricity (Amendment) Bill, 2025 and Its Implications,” organised by The Institution of Engineers, Deo warned that the proposed changes dilute the core principle of the Electricity Act, 2003—affordable electricity for all. He said tariffs for ordinary consumers could be linked to the cost structure of large buyers, while additional wheeling charges ranging from 50 paise to ₹1.50 per unit and higher fixed charges—rising from the current ₹400–₹500 to ₹1,000–₹1,200—could significantly increase monthly bills. A possible hike in electricity duty from the present 16 percent to 20–25 percent would further add to the burden, he added.

Dixit said the amendments propose several practical reforms, including the introduction of parallel licences to promote competition in power distribution. He also welcomed provisions for stricter contract enforcement and the setting up of special courts to resolve disputes, but stressed that the bill still needs to be more consumer-friendly.

The discussion reflected contrasting views on the proposed bill, with concerns over rising costs and potential monopolies weighed against expected gains from competition and structural reforms in the power sector.