The Indian Chamber of Commerce and Industry, Coimbatore (ICCIC) has submitted detailed comments and recommendations to the Ministry of Power on the proposed Electricity (Amendment) Bill, 2025.

The submission follows Notification No. 42/6/2011-R&R (Vol.–IX) dated 9th October 2025, issued by the Ministry, which aims to improve efficiency, cut technical and commercial losses, and expand consumer choice.

The recommendations were submitted to Manish Mishra, Director (Reforms and Regulation – I), Ministry of Power.

ICCIC said it welcomes the Bill, which seeks to bring competition into electricity supply, improve accountability among distribution licensees, and strengthen financial discipline, while ensuring continued protection for agricultural and low-income consumers.

Below are the Chamber’s major comments and suggestions:

  1. Section 43 – Obligation to Supply

The Bill proposes that distribution licensees will not be obligated to supply electricity to consumers with a maximum demand of over 1 MW.

ICCIC’s View:
If this exemption applies, demand charges should not be collected, as the consumer is not using the licensee’s mandated supply. Charging demand fees in such cases goes against the purpose of the exemption and would place an unnecessary burden on large consumers opting for alternative power sources.

  1. Rationalisation of Demand Charges for Manufacturing Units

Current HT agreements require industries to pay demand charges based on either recorded demand or 80–90% of sanctioned demand, whichever is higher.

ICCIC’s Request:
If recorded demand stays below 80% of sanctioned demand for more than three months, demand charges should be limited to 80%.

The Chamber says this is needed because:

  • Charges must reflect actual usage (proportionality).
  • Industries face difficult economic conditions beyond their control.
  • High fixed charges can force shutdowns and job losses.
  • Unfair contract terms should be corrected under a regulated system.
  • It supports national goals like Make in India and Ease of Doing Business.
  1. Section 112 – Appellate Tribunal

The increase in APTEL members from 3 to 7 is appreciated.

ICCIC’s Request:
Regional APTEL benches should be set up in Coimbatore, Bengaluru, and Hyderabad to reduce case delays and improve access to justice.

  1. Section 9 – Captive Generation

The Bill allows the “Appropriate Government” to set eligibility rules for captive plants.

ICCIC’s Request:
Replace “Appropriate Government” with “Central Government” to avoid differing interpretations across states.

  1. Section 18 – Amendment of Licence

The Bill proposes removing clause (b) of sub-section (2).

ICCIC’s View:
Clause (b) should remain to maintain procedural consistency and protect both licensee and consumer rights.

  1. Section 61 – Tariff Regulations

The Bill aims to remove cross-subsidies for Railways, Metro Railways, and manufacturing units within five years.

ICCIC’s Request:
The change must be clearly reflected in audited accounts, and earlier ARR filings should be reviewed to ensure compliance.

  1. Section 64 – Tariff Orders

The Bill allows the Commission to determine tariff suo moto if a licensee fails to file on time.

ICCIC’s Request:
No more than two consecutive suo moto tariff orders should be allowed, to ensure accountability.

  1. Section 73 – Functions of the Authority

A new clause proposes cybersecurity requirements for power systems.

ICCIC’s Suggestion:
A dedicated committee should be formed to monitor cybersecurity risks in coordination with national agencies.

  1. Section 92 – Proceedings of the Commission

The Bill proposes a 120-day deadline for disposal of proceedings.

ICCIC’s Request:
The limit should be reduced to 90 days, with any delays explained in writing.

  1. Section 126 – Unauthorised Use of Electricity

The assessment period is proposed to be limited to 12 months before inspection.

ICCIC’s Suggestion:
All distribution transformers should be mandatorily metered and remotely monitored to quickly detect unauthorised usage.

  1. Section 164 – Telegraph Authority Powers

The Bill clarifies entry rights for repair or removal of electric lines.

ICCIC’s Request:

The right of entry should extend up to 2 metres from the electric line for safety and maintenance.

ICCIC praised the Ministry of Power for initiating comprehensive reforms through the Electricity (Amendment) Bill, 2025.

The Chamber stated that its suggestions aim to strengthen the law, protect consumers, promote efficiency, and support balanced growth in the power sector.

It expressed confidence that the Ministry will give due consideration to its recommendations.