Time to cut litigation, review excessive regulation in power sector: Secy

Power secretary calls for cutting litigation and reviewing excessive regulation as India pushes ahead with power sector reforms and regulated competition

It is time to cut unnecessary litigation in the power sector, as many issues are hotly contested, and review areas with excessive regulation, power secretary Pankaj Agarwal said on Sunday.

 

“The Prime Minister has himself expressed concern, asking how litigation can be reduced and whether alternative mechanisms can be explored,” he said, speaking at the inauguration of a Centre of Excellence (CoE) for regulatory affairs in the power sector at IIT Delhi.

 

“I would urge the CoE to examine which areas can be deregulated and where regulation may currently be excessive,” he said. Speaking at the same event, power minister Manohar Lal emphasised the deregulation of the sector, saying while some regulations are necessary, others are overlapping, which causes delays and increases costs.

 

He said the sector should not be burdened by regulations, but all essential reforms and regulations should be in place as the sector is becoming increasingly competitive. “Instead of following others’ rules, we should make our own rules that are suitable for us,” he said.

 

The CoE, jointly established by IIT Delhi, the Central Electricity Regulatory Commission (CERC) and the Grid Controller of India, is expected to be a national hub for regulatory research, capacity building, advisory support and knowledge dissemination. CERC chairperson Jishnu Barua, also present at the event, said regulations cannot rely simply on experience or intuition. “They must rest on rigorous analysis, robust data and cutting-edge research,” he said.

 

In his speech, Agarwal stressed that the country faces an “energy trilemma” of ensuring energy security, affordability and sustainability, all at the same time. He said the CoE will provide the government with valuable policy guidance to help address this trilemma.

 

“The Prime Minister has introduced several major reforms. At this pace, we should also be able to move swiftly on the Electricity Amendment Bill and the electricity policy,” Agarwal added.

 

The Electricity (Amendment) Bill, 2025, expected to be tabled in the upcoming Budget session of Parliament, proposes the introduction of regulated competition in the power distribution sector, allowing multiple distribution licensees to operate in the sector.

 

The Bill also proposes to rationalise electricity costs, reduce hidden cross-subsidy, introduce provisions for energy storage systems and establish an electricity council for Centre–state coordination. It also promises to protect subsidised tariffs for farmers and low-income households.