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India central: 6 energy policy briefs

The energy policies moving India central’s power markets, one brief each: the problem, the mechanism, the market effect, who gains and who pays, where it stands on the path to binding law, and the official text.

CERC directions on market coupling of power exchanges (Petition 8/SM/2025, July 2025)

India central · Central Electricity Regulatory Commission · order · 2025

Where it stands: Directions issued July 2025; draft Power Market (Second Amendment) Regulations 2026 published April 2026 and heard June 2026; not yet notified or implemented

CERC directed in July 2025 that bids from all three power exchanges be pooled and cleared as one day-ahead market, targeting January 2026; that target was missed, and CERC's April 2026 draft Power Market regulations now make Grid-India the sole market coupling operator with the go-live date to be notified, which would end IEX's near-monopoly on price discovery and create a single national day-ahead price.

The problem

India has three power exchanges but the Indian Energy Exchange clears more than 90 percent of day-ahead volume, so liquidity, and therefore price discovery, sits on one private platform while the other two struggle. The Power Market Regulations 2021 provided for market coupling, and the Ministry of Power pushed CERC to implement it so that a single clearing price could underpin the planned national market, security-constrained economic dispatch and derivatives.

What it does

After a 2023 discussion paper, a shadow-pilot study by Grid-India in 2024 and hearings, CERC issued directions on 23 July 2025 (suo motu Petition 8/SM/2025) for the coupling of the day-ahead market (the integrated DAM, including the green DAM) across IEX, PXIL and HPX, targeting January 2026. Under coupling, all buy and sell bids from the three exchanges are aggregated and cleared by a single market coupling operator to produce one market clearing price and volume, with each exchange continuing to onboard members and settle. The July 2025 directions envisaged the exchanges acting as coupling operator in rotation with Grid-India as back-up and auditor, but the draft CERC (Power Market) (Second Amendment) Regulations 2026, published on 17 April 2026 and heard on 10 June 2026, designate Grid-India as the sole market coupling operator through a dedicated cell and leave the effective date of coupling to be notified separately, with Grid-India to draft the coupling procedure within six months of notification. Real-time and other segments may be coupled from dates notified later. APTEL disposed of IEX's appeal against the directions on 13 February 2026, holding that IEX was not a person aggrieved, with liberty to challenge the regulations once made.

Market effect

A single coupled price removes the small but real price differences between exchanges and concentrates liquidity, which improves the reference price for bilateral contracts, for the green DAM premium and for any future electricity derivatives on the commodity exchanges. It also strips IEX of the network effect that let it dominate volumes and charge full transaction fees: IEX's share price fell sharply on the order, and exchanges will compete on fees and services rather than liquidity. For discoms and traders the day-ahead price becomes more robust and harder to influence, and the coupled DAM is the building block for a unified national market with security-constrained economic dispatch. Real-time market coupling, once done, would extend this to intraday balancing. The change is structural rather than directional for price levels; the main risks are further slippage of the go-live date, operational disruption during the transition and litigation once the regulations are notified.

Key numbers

Directions issued
23 July 2025 (suo motu Petition 8/SM/2025)
Go-live for coupled DAM
Targeted January 2026; not achieved, effective date to be notified after the regulations are made
IEX day-ahead share before coupling
About 99 percent of volume (October 2025)
Coupling operator
Grid-India as sole operator (draft regulations, 17 April 2026); round-robin with the exchanges dropped

Who gains and who pays

  • Indian Energy Exchange (costs): Loses liquidity advantage and pricing power; competes on fees and members.
  • PXIL and HPX (gains): Access to the pooled order book on equal terms.
  • Grid-India (obligation): Designated sole market coupling operator in the draft regulations; must build the coupling cell, algorithm and settlement interface.
  • Discoms, traders and open-access consumers (gains): One national day-ahead price and deeper liquidity.
  • Renewable and storage sellers in the green DAM (gains): Consolidated green market improves price discovery for the green premium.

Implementation

The January 2026 target was not met. CERC's draft Power Market (Second Amendment) Regulations 2026 (comments to 5 June 2026, public hearing 10 June 2026) create the market coupling operator framework; as of September 2026 the regulations had not been notified and the day-ahead market is still cleared separately by each exchange. Once notified, CERC must separately notify the coupling date and Grid-India must prepare the coupling procedure within six months. Real-time market coupling follows later, and the Ministry of Power has linked coupling to the one-nation-one-grid-one-price objective and to electricity derivatives.

Concerns

  • Operational and settlement risk during transition to the coupled clearing
  • Litigation by IEX over the order and the coupling design
  • Exchange competition weakening if fees converge to zero
  • Design of real-time market coupling and interaction with SCED
  • Whether coupling delivers lower prices or merely redistributes exchange revenue

Dates to watch

  • 2026-H2: Notification of the Power Market (Second Amendment) Regulations 2026 and the day-ahead coupling date
  • 2027: Grid-India coupling procedure (within six months of notification) and first coupled day-ahead operation; later decision on real-time coupling

Sources

Checked against sources on .

Draft Electricity (Amendment) Bill, 2025

India central · Ministry of Power · consultation · 2025

Where it stands: Draft bill published for public consultation; not yet approved by Cabinet or introduced in Parliament

The Ministry of Power's October 2025 draft would phase out cross-subsidies for manufacturing, railways and metro railways, let multiple distribution licensees share one network, force cost-reflective tariffs on a clock and create a national Electricity Council; it is a consultation draft, not yet introduced in Parliament, and every previous attempt since 2014 has lapsed.

The problem

India's distribution companies (discoms) lose money on regulated tariffs, delay payments to generators and load industrial consumers with cross-subsidies of 20 to 60 percent above cost, which pushes industry toward captive plants and open access. State commissions often defer tariff orders for political reasons. Earlier attempts (Bills introduced in 2014 and 2022 that lapsed, and 2018 and 2020 drafts never introduced) proposed similar fixes and died in the face of state objections, farmer protests over subsidy removal and worker opposition to privatisation.

What it does

The draft bill published for public comment on 9 October 2025 proposes to amend the Electricity Act 2003 to: require state commissions to reduce cross-subsidies progressively and eliminate them for manufacturing enterprises, railways and metro railways within five years of commencement; allow multiple distribution licensees in the same area with non-discriminatory access to the incumbent's network rather than duplicate wires; require tariffs to be cost-reflective and tariff petitions to be decided within a time limit, with suo motu determination if a discom fails to file; create a national Electricity Council chaired by the Union Power Minister with state ministers to coordinate policy; strengthen enforcement of renewable purchase obligations with penalties; and expand the powers of regulatory commissions and the Appellate Tribunal. The text remains a draft; introduction requires Cabinet approval and passage by both Houses.

Market effect

If enacted as drafted, industrial tariffs fall toward cost and residential and agricultural tariffs rise or are funded by explicit state budget subsidies, which shrinks the arbitrage that drives industrial open access and captive generation and would change demand on the power exchanges. Network sharing by multiple licensees would create retail competition in cities and give private discoms (Tata Power, Adani, Torrent) entry without buying utilities. Cost-reflective, time-bound tariffs improve discom cash flow and reduce the payment risk priced into generator PPAs and into bank lending for renewables. RPO enforcement with penalties would firm up demand for renewable and storage procurement. In the near term the effect is expectational: the bill has not been introduced, and state pushback is the main risk, so markets should treat it as an option on reform rather than a change in rules.

Key numbers

Draft released for comment
9 October 2025 (Ministry of Power)
Cross-subsidy elimination
For manufacturing enterprises, railways and metro railways within five years of commencement (draft)
Previous attempts
2014 and 2022 Bills introduced and lapsed; 2018 and 2020 drafts never introduced
Legislative requirement
Passage by Lok Sabha and Rajya Sabha; Presidential assent

Who gains and who pays

  • State governments and state discoms (costs): Lose tariff discretion and cross-subsidy revenue; must fund subsidies from budgets.
  • Industrial and commercial consumers (gains): Cross-subsidy phase-out lowers tariffs; retail choice through network sharing.
  • Private distribution companies (gains): Entry into new areas without building parallel networks.
  • Generators and renewable IPPs (gains): Better discom credit and enforced RPOs.
  • Agricultural and low-income consumers (mixed): Protected by direct subsidies in principle; exposed if state budgets fall short.

Implementation

The Ministry of Power collected comments through late 2025 and told the Lok Sabha on 29 January 2026 that the bill was still at the consultation stage; it was not listed for the Budget or Monsoon sessions of 2026. The next steps are Cabinet approval, introduction in Parliament (earliest the Winter Session of 2026) and likely referral to the Standing Committee on Energy, then passage. Given the history, the timing is uncertain; if enacted, the Ministry would frame Rules and CERC and state commissions would amend tariff and open-access regulations over one to two years.

Concerns

  • State opposition on federalism grounds and the Concurrent List balance
  • Political cost of raising agricultural and residential tariffs
  • Privatisation fears among discom employees and unions
  • Whether network sharing works without stranding incumbent discoms
  • Risk the bill lapses again, as in 2014, 2020, 2021 and 2022

Dates to watch

  • 2026-Q4: Winter Session of Parliament: possible introduction of the bill
  • 2027: Standing Committee on Energy report if the bill is introduced and referred

Sources

Checked against sources on .

Carbon Credit Trading Scheme (CCTS) and the Indian Carbon Market

India central · Ministry of Power and Bureau of Energy Efficiency · notice · 2023

Where it stands: Scheme notified 2023; final 2025-26 and 2026-27 targets for seven sectors (490 entities) notified October 2025 to January 2026; CERC trading regulations February 2026; iron and steel targets in draft

India's compliance carbon market, notified in June 2023 under the Energy Conservation Act, sets emissions-intensity targets for seven heavy-industry sectors (490 plants) from 2025-26 with credits to be traded on the power exchanges under CERC rules notified in February 2026; power generation is excluded for now, so the scheme's electricity effect runs through industrial demand and the offset mechanism rather than plant dispatch.

The problem

India needed a domestic carbon price to meet its 2030 target of a 45 percent cut in emissions intensity, to respond to the EU's Carbon Border Adjustment Mechanism, and to channel finance into industrial decarbonisation. The existing Perform, Achieve and Trade scheme traded energy-saving certificates with weak prices and limited coverage; a GHG-based scheme with intensity targets and a tradable credit was the chosen replacement, built on the 2022 amendment to the Energy Conservation Act.

What it does

The Carbon Credit Trading Scheme was notified by the Ministry of Power on 28 June 2023, with the Bureau of Energy Efficiency as administrator, a National Steering Committee for the Indian Carbon Market, CERC as regulator of trading and Grid-India as registry. The compliance mechanism sets greenhouse-gas emission-intensity targets (tonnes CO2e per unit of output) for obligated entities; entities beating their target earn carbon credit certificates and those missing it must buy certificates or pay a penalty. Final greenhouse gas emission intensity targets for 2025-26 and 2026-27 were notified on 8 October 2025 (aluminium, cement, chlor-alkali and pulp and paper, 282 plants) and 13 January 2026 (petroleum refining, petrochemicals, textiles and secondary aluminium, 208 more), covering seven sectors and about 490 obligated entities; draft targets for iron and steel followed on 26 June 2026. Thermal power remains under PAT and outside the compliance mechanism for now. An offset mechanism lets non-obligated projects (renewables with storage, green hydrogen, afforestation, efficiency) earn credits under approved methodologies, and CERC notified its regulations for the purchase and sale of carbon credit certificates on 27 February 2026, with the Indian Carbon Market portal launched in March 2026.

Market effect

Because power plants are excluded, the scheme does not yet change merit order or wholesale prices directly. Its electricity effect is indirect: intensity targets for steel, aluminium and cement raise the value of buying green power through open access and of captive renewables, since scope-2 emissions count toward intensity, which adds demand to the corporate PPA and green DAM markets. The offset mechanism creates a second revenue stream for renewable-plus-storage and green hydrogen projects if the methodologies allow it. A domestic carbon price also builds the compliance infrastructure that would allow the power sector to be added later, and gives Indian exporters a price that may be creditable against the EU CBAM from 2026. Price levels are unknown until the first compliance year settles; early expectations are modest given target stringency.

Key numbers

Scheme notified
28 June 2023 (S.O. 2825(E))
Final targets notified
8 October 2025 and 13 January 2026 for 2025-26 and 2026-27
Sectors in the first phase
Seven sectors, about 490 obligated entities; iron and steel targets in draft (June 2026); power excluded
Trading rules
CERC carbon credit certificate regulations, 27 February 2026
National target context
45 percent cut in emissions intensity by 2030 versus 2005

Who gains and who pays

  • Energy-intensive industries (steel, cement, aluminium, refineries) (obligation): Must meet intensity targets or buy credits from 2025-26.
  • Renewable, storage and green hydrogen developers (gains): Offset credits and stronger corporate demand for green power.
  • Power exchanges (IEX, PXIL, HPX) (gains): New tradable instrument under CERC oversight.
  • Thermal power generators (mixed): Outside the compliance mechanism for now; likely future inclusion.
  • Bureau of Energy Efficiency and Grid-India (obligation): Administer targets, verification and the registry.

Implementation

Detailed procedures for accreditation of verifiers, the registry and trading rules have been issued in stages: final targets for seven sectors were notified in October 2025 and January 2026, CERC's trading regulations on 27 February 2026 and the Indian Carbon Market portal in March 2026. The first compliance year (2025-26) closed on 31 March 2026; the first issuance and trading of compliance credits follows verification, and no official record of a first trade had been published as of September 2026. Final targets for iron and steel are due after the 60-day objection window on the June 2026 draft. Offset methodologies have been published for several project types. Check the Bureau of Energy Efficiency's carbon market pages for target notifications and the trading start.

Concerns

  • Target stringency too weak to create a meaningful price
  • Exclusion of the power sector limiting coverage
  • Verification and registry integrity
  • Interaction with PAT certificates and the transition of existing obligations
  • Recognition of Indian credits under the EU CBAM

Dates to watch

  • 2026: First verified compliance results for 2025-26 and initial certificate trading
  • 2026-H2: Final greenhouse gas emission intensity targets for iron and steel (draft of 26 June 2026)

Sources

Checked against sources on .

CERC Connectivity and General Network Access (GNA) Regulations, 2022

India central · Central Electricity Regulatory Commission · regulation · 2022

Where it stands: Regulations in force since October 2023; amendments and waiver phase-out ongoing

From October 2023 India replaced point-to-point long-term transmission access with general network access: generators get connectivity on readiness rather than a PPA, drawee entities buy a quantum of access to the whole inter-state grid, and the renewable transmission-charge waiver phases out from July 2025.

The problem

Under the old Long-Term Access and Medium-Term Open Access regime a generator needed a signed PPA and a specific injection-to-drawal path to get transmission access, so renewable projects in Rajasthan and Gujarat could not connect until buyers were found, while discoms with changing contracts held stranded access. Transmission planning was tied to contracts, not to physical need, and the waiver of inter-state transmission charges for renewables had no end date, socialising costs.

What it does

The CERC (Connectivity and General Network Access to the inter-State Transmission System) Regulations, 2022, notified in June 2022 and effective 1 October 2023, decouple connectivity from contracts: a generator or storage project obtains connectivity to the inter-state system on showing land, financial closure or bank guarantee milestones, and can inject up to its connectivity quantum. Drawee entities (discoms, large consumers, traders) obtain General Network Access for a quantum of MW against the whole grid, paying monthly transmission charges on that quantum under the Sharing of Inter-State Transmission Charges Regulations, with temporary GNA for short-term needs. Renewable generators with GNA-RE arrangements have their access covered by the drawee's GNA. Transmission planning by CTUIL is based on GNA applications rather than PPAs. The Ministry of Power's ISTS charge waiver for renewables and storage was extended to projects commissioned by 30 June 2025, after which the waiver falls by 25 percentage points a year to zero for later projects.

Market effect

Connectivity on readiness let renewable developers build in resource-rich states ahead of PPAs, which is one reason India's solar and wind additions accelerated to about 30 GW a year by 2025, and it made hybrid and storage projects easier to site at existing substations. GNA charging by quantum makes transmission a fixed cost for discoms and open-access consumers regardless of source, which improves the economics of buying from the exchanges and of switching suppliers. The phase-out of the ISTS waiver from July 2025 raises delivered renewable costs by roughly 0.3 to 0.5 rupees per kWh over the phase-out, which shows up in SECI and state auction tariffs and in the value of projects that met the June 2025 commissioning deadline. Transmission congestion is now planned against declared access, so the GNA pipeline is a leading indicator of where the grid will be built.

Key numbers

Effective date
1 October 2023
ISTS charge waiver for renewables
Full waiver for projects commissioned by 30 June 2025, then phased out by 25 points a year
Access basis
Connectivity on readiness milestones; GNA by MW quantum
Annual renewable additions in 2025
About 30 GW

Who gains and who pays

  • Renewable and storage developers (gains): Connectivity without a PPA; waiver deadline created a 2025 commissioning rush.
  • Discoms and large open-access consumers (mixed): Pay for GNA quantum rather than specific paths; more flexibility, fixed charges.
  • Central Transmission Utility (CTUIL) and Power Grid (obligation): Plan and build against GNA applications; manage connectivity queues.
  • Existing long-term access holders (mixed): Converted to GNA with transitional provisions.
  • Consumers paying ISTS charges (gains): End of open-ended renewable waiver reduces socialised costs.

Implementation

The regulations are in force and CERC has amended them several times to handle connectivity for storage, hybrid projects, the conversion of legacy access and bank-guarantee rules. The Detailed Procedure is maintained by CTUIL. The waiver phase-out is administered through the Ministry of Power's orders and CERC's sharing regulations. Watch CTUIL's connectivity application queue and CERC's amendment notices for changes to bank-guarantee and milestone requirements.

Concerns

  • Connectivity hoarding by projects that meet paper milestones but do not build
  • Transmission build lagging connectivity grants in Rajasthan and Gujarat
  • Rising delivered renewable costs as the waiver phases out
  • Complexity of transitional provisions for legacy access holders
  • Stranded transmission if GNA applications are withdrawn

Dates to watch

  • 1 July 2026: Next 25-point step-down in the ISTS charge waiver for later-commissioned renewables
  • 2026: CERC amendments on connectivity for storage and hybrid projects

Sources

Checked against sources on .

Electricity (Late Payment Surcharge and Related Matters) Rules, 2022

India central · Ministry of Power · rule · 2022

Where it stands: Rules in force and enforced automatically; instalment plans largely completed

The rules that fixed India's generator receivables problem: legacy discom dues were converted into up to 48 instalments and any new default triggers automatic loss of short-term market access, cutting overdue dues from about 1.4 trillion rupees in mid-2022 to a small fraction within two years.

The problem

By June 2022 discoms owed generators roughly 1.4 trillion rupees in overdue bills, with some states more than a year behind. Generators (NTPC, Adani, Tata and renewable IPPs) carried the working-capital cost, banks priced it into project finance, and the Ministry's earlier PRAAPTI portal only made the problem visible. Regulators could not enforce payment discipline because discoms were state-owned and politically protected.

What it does

Notified on 3 June 2022 under section 176 of the Electricity Act, the rules allowed discoms to clear dues outstanding on that date in up to 48 equal monthly instalments with late payment surcharge frozen, provided instalments were paid on time; a missed instalment reinstated the surcharge and accelerated the balance. For new bills, the surcharge is set at the SBI marginal cost of funds rate plus a margin. The enforcement mechanism is regulation of power supply: if a discom's dues are more than two and a half months overdue, Grid-India (through the PRAAPTI system) automatically bars it from buying in the short-term market and on power exchanges, and after longer defaults its long-term contracted supply is progressively curtailed. Generators may sell the curtailed power in the market. The Ministry later added rules on subsidy payment discipline and on the automatic pass-through of fuel cost adjustments.

Market effect

The rules worked: overdue legacy dues fell by more than 90 percent within about two years as states paid instalments to keep exchange access, and current bills are now largely paid on time. That removed a major credit risk from generator balance sheets, lowered the risk premium in renewable auction tariffs and bank lending, and made the exchanges a disciplinary tool because losing access during a peak season is politically costly for a state. For traders the rule creates predictable episodes when a defaulting state is barred from the day-ahead market, which affects demand and prices in that region. The automatic fuel-cost pass-through reduced disputes between generators and discoms and sped tariff adjustment for imported coal and gas. Discom losses themselves remain, so the rules treat the symptom; the 2025 amendment bill targets the cause.

Key numbers

Legacy dues at notification
About 1.4 trillion rupees (June 2022)
Instalment window
Up to 48 monthly instalments
Automatic market bar trigger
Dues overdue beyond two and a half months
Reduction in legacy dues
More than 90 percent within about two years

Who gains and who pays

  • Generators and renewable IPPs (gains): Receivables cleared and new bills paid on time; lower working-capital cost.
  • State discoms (obligation): Must pay on schedule or lose exchange and contracted supply access.
  • Grid-India and power exchanges (obligation): Enforce access bars automatically through PRAAPTI.
  • State governments (costs): Must fund discom payments and subsidies on time.
  • Lenders to the power sector (gains): Lower credit risk on discom-backed PPAs.

Implementation

The instalment window has largely run its course and the automatic regulation-of-power mechanism operates continuously through PRAAPTI and Grid-India. Occasional bars on individual state discoms are published. Amendments in 2023 and 2024 tightened subsidy-payment and fuel-cost pass-through rules. The rules remain in force and are cited as the model for enforcing renewable purchase obligations under the amendment bill.

Concerns

  • Discoms cutting supply or delaying other creditors to keep exchange access
  • Underlying tariff and subsidy gaps left unresolved
  • Regional price effects when a large state is barred from the market
  • Legal challenges by states to the automatic curtailment of contracted supply
  • Sustainability once instalment plans end

Dates to watch

  • 2026: PRAAPTI monthly dues reports and any regulation-of-power notices

Sources

Checked against sources on .

Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022

India central · Ministry of Power · rule · 2022

Where it stands: Rules in force; state regulations largely aligned; disputes on charges continue

Central rules that cut the open-access threshold for buying green power from 1 MW to 100 kW, deem approval within 15 days, cap increases in cross-subsidy surcharge and require banking, creating the corporate renewable PPA market that now accounts for gigawatts a year of contracts.

The problem

Commercial and industrial consumers wanted to buy renewable power directly to cut costs and meet corporate targets, but state commissions set high open-access thresholds, added surcharges and delayed approvals to protect discom revenue. The result was a patchwork in which open access worked in a few states (Karnataka, Maharashtra, Gujarat) and not elsewhere, holding back corporate PPAs.

What it does

Issued by the Ministry of Power under section 176 of the Electricity Act on 6 June 2022 and amended in 2023, the rules bind state commissions to allow green energy open access for any consumer with contracted demand or sanctioned load of 100 kW or more (aggregated across a single entity's premises), with applications deemed approved if not decided within 15 days. Discoms must offer a green tariff to consumers who do not want to contract directly. Banking of green energy must be allowed at least on a monthly basis, with charges capped. The cross-subsidy surcharge for green open access is capped so it cannot rise more than 50 percent above the level set in the year access was granted, and additional surcharge is not applicable to consumers who were not previously served by the discom for that load. Captive green plants and green hydrogen or ammonia producers get further relief. State commissions were to amend their regulations within a set time, and most had done so by 2024.

Market effect

The rules made a national corporate PPA market possible: C&I consumers contract wind, solar and hybrid supply through developers such as ReNew, Amp, Cleanmax and Ampin, bilateral and group-captive structures have grown to several gigawatts a year, and the green tariff gives discoms a way to keep customers. Because the surcharge is capped and banking is guaranteed, the delivered cost of open-access renewables undercuts industrial tariffs in most states by 1 to 3 rupees per kWh, which pulls the most profitable load away from discoms and increases their pressure to reform tariffs (the driver behind the 2025 amendment bill). It also created steady demand for round-the-clock and storage-backed supply to manage banking limits. State commissions still set the actual charges, so state-by-state variation persists and some states have used additional surcharges and banking restrictions to slow migration.

Key numbers

Open-access threshold
100 kW (from 1 MW)
Deemed approval
15 days
Cross-subsidy surcharge cap
No more than 50 percent above the year-of-grant level
Notified
6 June 2022; amendments 2023

Who gains and who pays

  • Commercial and industrial consumers (gains): Access to cheaper green power at 100 kW and above with predictable charges.
  • Renewable developers and C&I aggregators (gains): Large addressable market for corporate PPAs and group captive projects.
  • State discoms (costs): Loss of high-margin industrial load and cross-subsidy revenue.
  • State electricity regulatory commissions (obligation): Must align regulations; retain discretion on charge levels.
  • Storage and hybrid project developers (gains): Banking limits create demand for firmed supply.

Implementation

Most state commissions issued conforming green open-access regulations in 2023 and 2024, though with differing banking charges and surcharges. Disputes over additional surcharge and banking restrictions have gone to APTEL. The 2025 draft Electricity (Amendment) Bill would go further by phasing out cross-subsidies for industry. Track state-level regulations and APTEL judgments, since the central rules set floors that states implement unevenly.

Concerns

  • Discom financial stress as industrial load migrates
  • State-level dilution through banking charges and additional surcharges
  • Grid management of large volumes of banked energy
  • Curtailment of open-access renewables during low demand
  • Legal challenges to the central rules' binding effect on state commissions

Dates to watch

  • 2026: State commission tariff orders setting green open-access charges for FY2026-27

Sources

Checked against sources on .