New Dehi: Union Minister Manohar Lal on Wednesday said cost-reflective tariff concept to reduce discoms’ losses is introduced in Electricity Amendment Bill, which is likely to come up for discussion and passage in the forthcoming Budget Session.

The cost-reflective tariff assumes significance in view of the long history of debt-ridden and loss-making power distribution companies (discoms) in the country.

Addressing the first annual conference of All India Discoms Association (AIDA), ‘EDICON 2026’, Lal said discoms are an important component of the electricity supply value chain which involves generation, transmission and distribution.

He stated that discoms provide B2C service and hence they are the first one to receive the complaints of customers directly for quality of service as well as other issues.

“We are bringing a provision of cost-reflective tariff to reduce loss of discoms. This will factor in all expenses (on power supply) in the power tariff which will reduce the losses to discoms…the bill is likely to come in this session (budget) of Parliament. We will try to build consensus on this for smooth passage,” he said.

He also talked about the draft National Electricity Policy 2026 which also provides for cost-reflective tariff for reducing losses and debt of discoms.