October 15, 2025

A new storm is brewing in India's power sector! The Draft Electricity (Amendment) Bill, 2025 has caught the sharp eyes of trade unions and electricity employees' federations, who warn it's bad news for public power and security. The Centre of Indian Trade Unions (CITU) slammed the Bill saying it allows private companies to enter with multiple licenses in the same area. Using the existing public power network, private firms could pick only the rich, high-paying customers. Meanwhile, public power companies, called Discoms, would be stuck with rural and domestic users who pay less. "This will cripple public finances, destroy cross-subsidies, and increase tariffs," said CITU General Secretary Tapan Sen. He called smart meters, which the government promotes, a tool to push this privatization secretly. The Electricity Employees’ Federation of India (EEFI) raised a big security red flag. Usually, the Central Government’s nod was mandatory for power licenses in defence areas. But the Bill wipes out this no-objection rule. EEFI's General Secretary Sudip Dutta warned, "Entrusting the supply of power to installations of strategic significance with private licensees may jeopardise national security." EEFI revealed a surprising confession from the government's own note. Despite 22 years since the Electricity Act, 2003 and many reforms, Discoms are still bleeding financially! Losses skyrocketed from ₹26,000 crore to a staggering ₹6.9 lakh crore. The Bill also allows customers with large power needs (above 1 MW) to move to private suppliers. This means public Discoms lose big-money customers but still must keep backup power for them. This double burden is a huge financial hit on state utilities. Another shocker is the plan to remove cross-subsidies completely in five years. Cross-subsidy means richer users help pay for electricity to poor homes, farmers, and small businesses. Dutta said, "Cross-subsidies are not inefficiencies — they are a social necessity. Millions depend on affordable electricity." CITU agrees. Sen said the Bill treats electricity like a "tradable commodity" rather than a basic human need. "Such deregulation will lead to price volatility, unreliable supply, and weakening of public control over energy security," he warned. But hold on, there’s more! The Bill gives the Central Government strong powers over state energy rules, even on renewable targets, threatening India’s federal structure. CITU slammed it as "a direct assault on the federal character of the Constitution," especially hurting states already struggling financially. Finally, EEFI pointed out that new rules let the Centre make unlimited regulations without parliamentary checks — a worrying move away from transparency. This fiery debate started on October 15, 2025, and it’s clear the power battle in India is just getting juicier. Will the government listen to these voices or charge ahead? Only time will tell!

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Tags: Electricity amendment bill 2025, Power sector, Private players, Discoms, Cross-subsidy, Central government,