New Delhi, Oct. 30 -- In a bid to allay concerns over a potential increase in tariffs for farmers and impact on operations of state-run power distribution companies (discoms) due to the proposed Electricity (Amendment) Bill 2025, the power ministry on Thursday said the changes would only bring in "fair competition" and reduce the cost of power supply.

It said the new bill will not erode the autonomy of states, and would in fact preserve federal balance.

In the draft bill to amend the Electricity Act 2003, released earlier this month, the power ministry proposed a slew of reforms, including giving more teeth to state electricity regulatory commissions to fix tariffs on their own bypassing the state discoms and ending cross-subsidies, whi...