UPSC Prelims Practice Questions — Draft Electricity (Amendment) Bill, 2025 Intends to Remove Wasteful Duplication in Building Distribution Network

Q1. The Electricity Act, 2003 — the parent statute the Draft Electricity (Amendment) Bill, 2025 seeks to amend — consolidated and repealed several earlier enactments. With reference to the enactments so repealed, which of the following is NOT correctly listed?

  1. Indian Electricity Act, 1910
  2. Electricity (Supply) Act, 1948
  3. Electricity Regulatory Commissions Act, 1998
  4. Indian Telegraph Act, 1885
  • A. 1 and 2
  • B. 2 and 3
  • C. 3 only
  • D. 4 only

Q2. With reference to the provisions of the Draft Electricity (Amendment) Bill, 2025, which of the following is NOT correctly described?

  1. Every discom must provide open and non-discriminatory access to its network to other discoms.
  2. SERCs may exempt discoms from the obligation to supply consumers whose maximum demand exceeds one megawatt.
  3. Cross-subsidies on manufacturing enterprises, railways and metro railways are to be fully eliminated within five years.
  4. The requirement of holding a distribution licence is abolished, permitting any entity to supply power without a licence.
  • A. 1 only
  • B. 2 and 3
  • C. 4 only
  • D. 1 and 4

Q3. In the context of the Draft Electricity (Amendment) Bill, 2025, the placement of 'Electricity' in the Concurrent List of the Seventh Schedule implies which one of the following?

  • A. Both Parliament and State Legislatures are competent to legislate on it, and in case of repugnancy a Union law generally prevails.
  • B. Only Parliament is competent to legislate on it, the States having no competence.
  • C. Only State Legislatures are competent to legislate on it, Parliament having no competence.
  • D. Neither can legislate on it without prior Presidential assent in every instance.

Q4. The 'Cross-Subsidy Balancing Fund' that was proposed in the Electricity (Amendment) Bill, 2022 is best described as which one of the following?

  • A. A fund into which a discom with surplus cross-subsidy deposits its excess, used to finance the cross-subsidy deficits of other discoms.
  • B. A central fund to compensate discoms for aggregate technical and commercial losses arising from network sharing.
  • C. A fund to reimburse renewable generators for penalties levied on discoms for RPO non-compliance.
  • D. A consumer-welfare fund financed by the cross-subsidy surcharge collected from open-access consumers.

Q5. In the Draft Electricity (Amendment) Bill, 2025 released by the Ministry of Power, the proposed 'Electricity Council' is best described as which one of the following?

  • A. An advisory and coordinating body chaired by the Union Minister of Power, with the power ministers of States and Union Territories as members.
  • B. A statutory regulator that replaces the Central Electricity Regulatory Commission in fixing tariffs.
  • C. An appellate authority hearing appeals against SERC orders on wheeling charges.
  • D. A dispute-resolution tribunal adjudicating cross-subsidy disputes between distribution companies.

Q6. In the context of electricity distribution reforms in India, the term 'non-discriminatory open access' refers to which one of the following?

  • A. The right of an eligible consumer or licensee to use the transmission or distribution network of a licensee on payment of specified charges, without the network owner discriminating between users.
  • B. The right of every household to a fixed minimum quantum of free electricity irrespective of location.
  • C. The unrestricted export of surplus rooftop-solar power to the grid at a uniform national feed-in tariff.
  • D. The obligation of a distribution licensee to supply electricity to every consumer in its area within a fixed time.