Mon Feb 23 14:39:43 UTC 2026: ### Kerala Voices Concerns Over Draft National Electricity Policy 2026
The Story:
Kerala Electricity Minister K. Krishnankutty informed the Assembly on Monday, February 23, 2026, that the Draft National Electricity Policy (NEP) 2026 contains proposals that could negatively impact Kerala’s power supply model and social circumstances. The Minister highlighted concerns about promoting competition in electricity supply, allowing multiple distribution licensees, reducing cross-subsidies, and exempting licensees from the Universal Service Obligation, all of which could lead to tariff hikes for consumers in the state. The state government is preparing feedback on the draft policy to protect its interests and those of electricity consumers.
Key Points:
* The Draft National Electricity Policy 2026 was released in January by the Union Ministry of Power for public consultation.
* K. Krishnankutty stated that proposals promoting competition and multiple distribution licensees could negatively impact Kerala consumers.
* The policy proposals for reducing cross-subsidies and exempting distribution licensees from the Universal Service Obligation could lead to tariff hikes.
* Kerala’s feedback will prioritize consumer protection and the continuation of the cross-subsidy system.
Key Takeaways:
- The Draft National Electricity Policy 2026 is facing pushback from at least one state government due to concerns about its potential impact on local consumers and existing power structures.
- The core conflict revolves around the tension between promoting competition and ensuring affordable electricity for all consumers, especially those who benefit from cross-subsidies.
- This situation highlights the challenges of implementing a uniform national policy in a country with diverse regional needs and priorities.
First Piper 