Explainer: Why employees are opposing Electricity Amendment Bill-2025

The opposition to the Electricity Amendment Bill-2025 is not only limited to power sector employees but farmers, trade unions, and consumers are also opposing it. Recent strikes, meetings and even dharnas by power sector and farmer unions has brought the Bill back to public focus.What is the Bill all about?The Ministry of Power released the draft of the Electricity (Amendment) Bill, 2025, in October 2025, claiming that it proposes major reforms in India's power sector, aiming to introduce competition by allowing multiple electricity suppliers in the same area shared network, cost-reflective tariffs, and gradual removal of cross-subsidies.Why employees are opposing it?Employees claim that the proposed Electricity (Amendment) Bill, 2025, poses serious risks to farmers, consumers, power sector employees, and the federal structure of the country. The Bill primarily promotes privatisation of electricity distribution, job loss, outsourcing and restructuring, weakens social protections in the power sector and centralises decision-making powers. They fear after privatization, power sector will be dominated by large private players and are concerned over shifting from public service to profit-driven sector.The removal of cross-subsidy within a time span will lead to a sharp increase in electricity tariffs for agricultural consumers. Allowing multiple distribution licensees in the same area will result in private companies choosing only high-paying consumers, leaving public DISCOMs with loss-making consumers.Gradual elimination of cross-subsidy will cause significant tariff increases for domestic consumers, particularly low-income households. Electricity may become market-driven rather than service-oriented, undermining universal access.What are the fears of power sector?Private distribution companies are unlikely to serve rural and low-revenue agricultural areas, affecting reliable supply to villages. Increased power tariffs may lead to higher cost of agricultural production, ultimately affecting food prices.Electricity is a Concurrent Subject under the Constitution, but the Bill increases Central Government control over state electricity policies. The creation of a new central body National Electricity Council and expanded rule-making powers will reduce the autonomy of state governments. States may lose flexibility in determining tariffs, subsidies and distribution policies according to local needs.What power sector experts are warning about?The reform process in any sector is structured within the same framework overcoming administrative hurdles to improve systems through identification of bottlenecks, stakeholder engagement, and implementation of targeted changes. Power sector reforms aim to improve operational efficiency, financial stability, and reliability of electricity supply through restructuring, and affordable electricity for consumers. But the electricity amendment bill is pushing reforms only for industrial consumers who are ready to grab the infrastructure of state discoms without any financial investment. On paper, the promises look good but practically these are tilted towards privatisation.

Explainer: Why employees are opposing Electricity Amendment Bill-2025

Aman Sood

Tribune News Service

Explainer: Why employees are opposing Electricity Amendment Bill-2025

Aman Sood

Tribune News Service

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