Power Ministry Pushes Deadline for Draft National Electricity Policy 2026 Feedback to March 19, 2026

The Ministry of Power has extended the deadline for stakeholders to submit comments on the Draft National Electricity Policy (NEP) 2026 to March 19, 2026. The earlier deadline had been set for February 19, as per PTI reports. 

The extension was announced in a notification issued on February 25. According to the ministry, several stakeholders requested additional time to review the draft policy and provide their feedback. The ministry has allowed a further month for responses to be submitted. 

Policy Update After Nearly 2 Decades 

The proposed policy seeks to update the framework guiding India’s electricity sector. The existing National Electricity Policy was notified in 2005, and the sector has seen several changes since then, including expansion in generation capacity and wider access. 

Despite these developments, the government has stated that structural issues remain, particularly in the distribution segment. Financial stress among distribution companies continues to be a concern in several states. 

Financial Stress in Distribution Companies 

Many power distribution companies, commonly referred to as discoms, continue to report high operational losses and rising debt. A key factor behind this has been the gap between the cost of supplying electricity and the tariffs charged to consumers. 

The draft policy refers to the issue of non-cost-reflective tariffs, where the price charged to a consumer category is lower than the average cost incurred by utilities for generating, transmitting, and distributing electricity. 

Cross-Subsidy in Electricity Tariffs 

Electricity pricing in India also includes cross-subsidisation, a system in which certain consumers pay tariffs above the cost of supply. The additional revenue helps subsidise electricity for other groups. 

Industrial and commercial consumers, along with higher-income households, generally pay higher tariffs. These tariffs help support lower electricity prices for agricultural users and lower-income households. 

Renewable Integration and Grid Stability 

The draft policy also addresses the need to prepare the power system for a higher share of renewable energy, particularly solar and wind. As these sources are variable, the document refers to steps aimed at improving grid resilience. 

It also mentions measures related to competition in the electricity sector, demand-side management, and services focused on consumers. 

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Conclusion 

The Draft National Electricity Policy 2026 is currently under consultation. With the deadline now extended to March 19, stakeholders have additional time to study the document and submit their comments before the policy moves towards finalisation. 

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