UPSC Prelims Practice Questions — ELECTRICITY AMENDMENT BILL, 2025

Q1. In the context of the Electricity Act, 2003, the term 'unbundling' of State Electricity Boards refers to which one of the following?

  • A. Separating the generation, transmission and distribution functions of the erstwhile State Electricity Boards into distinct entities
  • B. Merging the State and Central regulatory commissions into a single national regulator
  • C. Removing the requirement of a licence for setting up thermal generating stations
  • D. Transferring electricity subsidy amounts directly into consumers' bank accounts

Q2. Which of the following pre-existing laws was/were repealed and consolidated by the Electricity Act, 2003? 1. The Indian Electricity Act, 1910 2. The Electricity (Supply) Act, 1948 3. The Electricity Regulatory Commissions Act, 1998 4. The Damodar Valley Corporation Act, 1948 Which of the above is/are correctly identified?

  1. The Indian Electricity Act, 1910
  2. The Electricity (Supply) Act, 1948
  3. The Electricity Regulatory Commissions Act, 1998
  4. The Damodar Valley Corporation Act, 1948
  • A. 1, 2 and 3
  • B. 2, 3 and 4
  • C. 1 and 4 only
  • D. 1, 2, 3 and 4

Q3. Under the Seventh Schedule of the Constitution of India, the subject 'Electricity' is placed exclusively in which one of the following?

  • A. The Union List
  • B. The State List
  • C. The Concurrent List
  • D. The residuary field reserved for Parliament

Q4. With reference to the legislative and constitutional placement of 'Electricity' in India, consider the following: 1. Both Parliament and State Legislatures are competent to make laws on electricity. 2. Electricity is enumerated as Entry 38 of the Concurrent List. 3. In case of repugnancy, a State law on electricity prevails over a Union law within that State even without the President's assent. 4. The Central and State Electricity Regulatory Commissions derive their powers from the Electricity Act, 2003. Which of the above is/are correctly identified?

  1. Both Parliament and State Legislatures are competent to make laws on electricity.
  2. Electricity is enumerated as Entry 38 of the Concurrent List.
  3. In case of repugnancy, a State law on electricity prevails over a Union law within that State even without the President's assent.
  4. The Central and State Electricity Regulatory Commissions derive their powers from the Electricity Act, 2003.
  • A. 1, 2 and 3
  • B. 1, 2 and 4
  • C. 2, 3 and 4
  • D. 1, 3 and 4

Q5. With reference to the draft Electricity (Amendment) Bill, 2025 and its predecessor drafts, consider the following statements: 1. Unlike the Electricity (Amendment) Bill, 2022, the 2025 draft omits the Cross-Subsidy Balancing Fund mechanism. 2. It was the Electricity (Amendment) Bill, 2022 that first mandated the sharing of distribution networks among discoms in a given area. 3. The 2025 draft, like every earlier draft, grants distribution licensees complete freedom to fix their own tariffs. Which of the statements given above is/are correct?

  1. Unlike the Electricity (Amendment) Bill, 2022, the 2025 draft omits the Cross-Subsidy Balancing Fund mechanism.
  2. It was the Electricity (Amendment) Bill, 2022 that first mandated the sharing of distribution networks among discoms in a given area.
  3. The 2025 draft, like every earlier draft, grants distribution licensees complete freedom to fix their own tariffs.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q6. Under the draft Electricity (Amendment) Bill, 2025, when one distribution licensee uses the network of another distribution licensee to supply power, the charges for such use are to be determined by which one of the following?

  • A. The Central Electricity Regulatory Commission (CERC)
  • B. The concerned State Electricity Regulatory Commission (SERC)
  • C. The Central Electricity Authority (CEA)
  • D. The proposed Electricity Council

Q7. The proposed Electricity Council under the draft Electricity (Amendment) Bill, 2025 is to be chaired by which one of the following?

  • A. The Union Minister of Power
  • B. The Union Power Secretary
  • C. The Chairperson of the Central Electricity Authority
  • D. The Chairperson of the Central Electricity Regulatory Commission

Q8. As envisaged in the draft Electricity (Amendment) Bill, 2025, how many broad functions are assigned to the proposed Electricity Council (advising governments on policy, facilitating consensus on reforms, and coordinating implementation)?

  • A. Two
  • B. Three
  • C. Four
  • D. Five

Q9. The successive draft amendments to the Electricity Act, 2003 in the years 2014, 2020 and 2022 were floated/introduced by which one of the following Union ministries?

  • A. The Ministry of New and Renewable Energy
  • B. The Ministry of Power
  • C. The Ministry of Heavy Industries
  • D. The Ministry of Coal

Q10. The 'Cross-Subsidy Balancing Fund' proposed in the Electricity (Amendment) Bill, 2022 was intended to do which one of the following?

  • A. Pool the cross-subsidy surplus of one distribution licensee to finance the cross-subsidy deficits of other discoms
  • B. Transfer electricity subsidies directly into the bank accounts of farmers and low-income consumers
  • C. Provide a payment-security deposit for power generators against default by discoms
  • D. Meet the shortfalls of distribution companies in fulfilling their Renewable Purchase Obligations

Q11. With reference to tariff determination under the draft Electricity (Amendment) Bill, 2025, consider the following statements: 1. Regulatory Commissions may determine tariffs suo motu, effective from 1st April each year. 2. The draft empowers distribution licensees themselves to fix cost-reflective tariffs without the approval of the Regulatory Commission. 3. State Electricity Regulatory Commissions will continue to determine tariffs and issue licences for intra-State activities. Which of the statements given above is/are correct?

  1. Regulatory Commissions may determine tariffs suo motu, effective from 1st April each year.
  2. The draft empowers distribution licensees themselves to fix cost-reflective tariffs without the approval of the Regulatory Commission.
  3. State Electricity Regulatory Commissions will continue to determine tariffs and issue licences for intra-State activities.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q12. The draft Electricity (Amendment) Bill, 2025 expands the Renewable Purchase Obligation to cover 'non-fossil sources' and proposes statutory recognition of energy storage; this thrust towards non-fossil-based electricity is explicitly aligned with which one of the following national vision frameworks?

  • A. Viksit Bharat @ 2047
  • B. The Panchamrit commitments announced at COP26
  • C. The Jawaharlal Nehru National Solar Mission, 2010
  • D. The Atmanirbhar Bharat Abhiyan