Summary：**Government set to reveal game‑changing power policy draft in August****Introduction** The Ministr

referrerpolicy="no-referrer"
style="max-width:100%;height:auto;display:block;margin:0 auto;">

**Government set to reveal game‑changing power policy draft in August**

**Introduction**
The Ministry of Power is preparing to unveil a draft electricity policy that could reshape how India consumes and pays for energy. Slated for cabinet review in August, the proposal targets a steady rise in per‑capita electricity use by 2030 and again by 2047. Officials say the move is designed to match growing industrial demand while keeping the grid financially sustainable.

**Key Developments**
According to ministry sources, the draft introduces two core mechanisms. First, retail tariffs would be tied to the consumer price index, allowing automatic adjustments that reflect inflation without frequent political interventions. Second, fixed‑cost recovery would shift from energy‑based charges to demand charges, meaning consumers pay more for the capacity they reserve rather than the kilowatt‑hours they actually use. The policy also outlines incentives for renewable integration, grid modernization, and time‑of‑day pricing to flatten peak loads.

**Industry Analysis**
Analysts note that linking tariffs to inflation could reduce regulatory lag, a long‑standing complaint of distribution companies (discoms) that struggle to recover costs when wholesale prices fluctuate. Demand‑charge models, already successful in parts of Europe and the United States, encourage efficient use of infrastructure and may deter wasteful consumption during off‑peak hours. However, consumer groups warn that higher fixed charges could disproportionately affect low‑income households unless safeguards such as lifeline subsidies are built in. Renewable developers welcome the policy’s emphasis on storage and smart‑grid investments, viewing them as essential for absorbing intermittent solar and wind output.

**Future Outlook**
If cleared by the cabinet, the draft will undergo public consultation before final notification, likely by year‑end. Implementation will be phased, with pilot demand‑charge schemes in select