A proposal in the draft Electricity (Amendment) Bill, 2025, for establishing an ‘Electricity Council’ at the national level has sparked debate over its implications for States including Kerala.
According to the draft, which has now been circulated among the States for their views, the Centre must establish the Council.
Electricity Minister K. Krishnankutty has expressed concern that such a body, which he likened to the Goods and Services Tax (GST) Council, could take away the powers of States in matters related to electricity. While objecting to the provisions of the draft Bill on Saturday (October 11, 2025) on the grounds that they would pave way for privatisation in power distribution, Mr. Krishnankutty had expressed a concern that an Electricity Council would increase the Centre’s controls in crucial issues including the determination of power tariffs.
According to the draft Bill, the proposed Council would “advise Central and State governments on policy measures, facilitate consensus on reforms and coordinate the implementation of such reforms” for achieving the objectives of the Electricity Act. The draft Bill proposes a new sub-section under Section 166 (1) of the Electricity Act for the establishment of the Electricity Council. The Union Power Minister will chair the council. State Power Ministers will be its members. The Union Power Secretary will be its Convener.
Section 166 (1) of the Electricity Act, 2003, only dealt with the constitution of a ‘Coordination Forum’ by the Centre for the “smooth and coordinated development of the power system in the country.” This forum had as its members of the Central Electricity Regulatory Commission, Central Electricity Authority, and representatives of power generating companies and transmission licensees.
In recent years, Kerala has vehemently opposed proposals for amending the Electricity Act on the grounds that they are against the larger interests of the common people. Unanimously passing a resolution against the Electricity (Amendment) Bill, 2021, in August 2021, the Kerala Assembly had observed that electricity is a concurrent subject at Entry 38 in List III of the Constitution’s Seventh Schedule.
Mr. Krishnankutty had said on Saturday that the State government would examine the draft closely and convey its opinions to the Centre. He had, however, reiterated the government’s declared stand that Kerala would continue to maintain power distribution in the public sector.
Published – October 12, 2025 08:11 pm IST
