Kerala Electricity Minister K. Krishnankutty on Monday informed the Assembly that certain proposals in the Draft National Electricity Policy, 2026, are likely to adversely impact Kerala’s power supply model and social circumstances.
Replying to questions in the House, Mr. Krishnankutty said the proposals to promote competition in electricity supply and allow multiple distribution licencees in a supply region would have negative impact on consumers in the State.
The policy proposals for reducing cross-subsidies and exempting distribution licensees from the Universal Service Obligation would lead to tariff hikes, he said. Mr. Krishnankutty said proposals such as encouraging private participation in power transmission and distribution, unbundling the State Transmission Utility (STU) and the State Load Dispatch Centre (SLDC) are against the interests of these public sector entities.
The Union Ministry of Power had released the Draft National Electricity Policy (NEP) 2026 in January for public consultation with stakeholders. The policy, once finalised, would replace the existing NEP notified in 2005.
State’s feedback
According to Mr. Krishnankutty, the Kerala government and the Power department were in the process of preparing the State’s feedback on the draft policy. He told the Assembly on Monday that the State’s feedback would seek to protect its interests and that of electricity consumers. The special circumstance of the State, consumer protection and continuation of the cross- subsidy system would figure high on the State’s priorities, according to him.
Published – February 23, 2026 08:09 pm IST
