Draft NEP 2026 proposes indexed power tariffs, curbs cross-subsidies
New Delhi: The ministry of power on Wednesday released the draft National Electricity Policy (NEP) 2026, proposing automatic annual tariff revisions linked to a suitable index if state regulators fail to issue tariff orders, exemption of cross-subsidies for the manufacturing sector and railways, renewable energy capacity addition through market-based mechanisms and captive power plants, and a strong regulatory framework to prevent collusion, gaming and market dominance.
Inviting stakeholder feedback, the ministry said the proposed policy aims to transform the power sector in line with the government’s vision of Viksit Bharat by 2047. Once finalised, the policy will replace the existing NEP notified in 2005.
