NATIONAL ELECTRICITY POLICY

Under the provisions of section 3(1) of the Electricity Act, 2003, the Central Government is required to prepare the National Electricity Policy for development of the power system based on optimal utilization of resources. The Policy has been evolved after extensive consultations with the States, other stake holders, the Central Electricity Authority and after considering the advice of the Central Electricity Regulatory Commission.

The National Electricity Policy is one of the key instruments for providing policy guidance to the Electricity Regulatory Commissions in discharge of their functions and to the Central Electricity Authority for preparation of the National Electricity Plan. The Policy aims at accelerated development of the power sector, providing supply of electricity to all areas and protecting interests of consumers and other stakeholders keeping in view availability of energy resources, technology available to exploit these resources, economics of generation using different resources, and energy security issues.