Power Sector Overhaul: Key Changes in Draft National Electricity Policy 2026

The Ministry of Power extends feedback deadline on Draft National Electricity Policy 2026, enhancing grid resilience and tariff structure. The policy addresses discom debt, tariffs, and cross-subsidisation, aiming for competition and consumer-centric service. Originally, comments were due by February 19; the new deadline is March 19.

The Ministry of Power has announced a one-month extension for stakeholders to submit comments on the Draft National Electricity Policy 2026. The original deadline of February 19 has been postponed to March 19 due to requests for more time to review the policy's provisions.

The National Electricity Policy 2026 targets significant issues within the power sector, such as high discom losses, non-cost-reflective tariffs, and high cross-subsidisation. The draft also introduces measures to enhance competition, grid resilience, and consumer-oriented services.

This extension follows numerous reforms achieved since 2005, although challenges remain, particularly in the distribution sector. The Ministry aims to ensure the integration of renewable energy and better regulatory mechanisms to benefit various consumer groups.