The Ministry of Power has proposed a new consumer-centric framework that could allow multiple electricity suppliers to operate on the same distribution network, giving consumers the freedom to choose their electricity provider. The proposal, based on a parallel distribution licensing model, is intended to improve service quality, encourage competition and make better use of existing power infrastructure.

Under the proposed framework, existing distribution companies (DISCOMs) will continue to own, operate and maintain the electricity distribution network. New distribution licensees will be permitted to supply electricity using the same infrastructure by paying regulated wheeling charges, eliminating the need to build duplicate networks.

The proposal was discussed during a meeting of the Consultative Committee of the Ministry of Power, chaired by Union Power Minister Manohar Lal. The government believes that allowing multiple suppliers to compete for consumers could lead to improved customer service, greater operational efficiency and more innovative electricity offerings while preserving network reliability.

Officials said the framework seeks to modernise India’s power distribution sector by separating the supply business from network ownership. Consumers would benefit from increased choice, while new suppliers could enter the market without making large investments in distribution infrastructure. The proposal also aims to optimise the utilisation of existing assets and promote healthy competition in the electricity sector.

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The draft framework will undergo further consultations before any policy changes are finalised. If implemented, the reform could mark a significant shift in India’s electricity distribution landscape by giving consumers greater flexibility in choosing their power supplier while supporting a more competitive and efficient power market.

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