Mumbai, July 25 -- The framework aims to spur competition by letting new entrants access existing networks through regulated wheeling charges.
India is moving to give households and businesses the freedom to choose their electricity supplier, echoing the telecom model. The proposal was discussed at the Ministry of Power's Consultative Committee meeting on Friday.
"The Electricity Act, 2003, had successfully introduced competition in generation, transmission and trading, while distribution remains the only major segment where competition continues to be limited," Union Power Minister Manohar Lal told members.
He added that as India advances towards its Viksit Bharat (Developed India) 2047 vision, "consumers will increasingly expect reliable, affordable and high-quality electricity supply comparable to global standards."
The framework seeks to enable competition without duplicating networks. Existing licensees would continue to own and operate infrastructure, while new entrants could use the same network by paying regulated wheeling charges. State regulators would oversee implementation to ensure fairness and non-discriminatory access.
"Consumers would have the freedom to choose their electricity supplier, similar to the choices available today in sectors such as telecommunications and aviation," Lal said. He pointed to Mumbai, where supplier choice has been available for years under the Maharashtra regulator.
The proposal protects incumbent utilities and employees, while requiring all licensees to meet universal service obligations. Regulators would prevent cherry-picking of profitable consumers.
Members of Parliament offered suggestions on the framework. Minister of State for Power Shripad Yesso Naik thanked them for their inputs and reaffirmed the government's commitment to reforms that "place consumers at the centre of India's power sector while ensuring efficiency, transparency and sustainable growth."
Published by HT Digital Content Services with permission from Infrastructure Today.