A contentious proposal within the draft Electricity (Amendment) Bill, 2025, to establish a national ‘Electricity Council’ has ignited significant debate, particularly among states like Kerala, regarding its potential impact on their autonomy.
This draft legislation, currently shared with state governments for their feedback, mandates the creation of this Central Council.
Kerala’s Electricity Minister, K. Krishnankutty, has voiced strong objections, comparing the proposed body to the Goods and Services Tax (GST) Council. He fears it could strip states of their existing powers over electricity matters. In his critique of the draft Bill, delivered on October 11, 2025, Krishnankutty warned that its provisions would not only pave the way for increased privatization in power distribution but also grant the central government greater control over critical decisions, including electricity tariff settings.
As outlined in the draft Bill, the proposed Council’s primary role would be to “advise Central and State governments on policy measures, foster consensus on reforms and coordinate the implementation of such reforms” to achieve the broader goals of the Electricity Act. This new body is envisioned through a new sub-section under Section 166 (1) of the existing Electricity Act. It would be chaired by the Union Power Minister, with State Power Ministers serving as members, and the Union Power Secretary acting as its Convener.
Previously, Section 166 (1) of the Electricity Act, 2003, merely provided for a ‘Coordination Forum.’ This forum’s purpose was to ensure the “smooth and coordinated development of the power system nationwide,” comprising members from the Central Electricity Regulatory Commission, Central Electricity Authority, and representatives from power generation and transmission companies. The new proposal significantly expands upon this older, more limited framework.
Kerala has a history of strong opposition to amendments to the Electricity Act, consistently arguing that such changes undermine the interests of ordinary citizens. In August 2021, the Kerala Assembly unanimously passed a resolution against the Electricity (Amendment) Bill, 2021, emphasizing that electricity falls under the concurrent list (Entry 38 in List III of the Constitution’s Seventh Schedule), implying shared legislative powers between the Centre and states.
Minister Krishnankutty confirmed on Saturday that the state government plans a thorough review of the new draft and will formally submit its detailed feedback to the Centre. He firmly reiterated Kerala’s established position: the state intends to keep its power distribution sector firmly within public ownership.