New Delhi: Electricity consumers across India may have to prepare for regular changes in their power bills, as the central government moves closer to introducing a new tariff system that allows yearly revisions.

According to policy discussions currently under way, the Government of India through the Ministry of Power has proposed changes under the draft National Electricity Policy 2026. One of the key ideas in the draft is to revise electricity tariffs every year instead of keeping them unchanged for long periods.

Officials involved in the policy process say the move is aimed at addressing the growing financial stress faced by power distribution companies. In many states, electricity rates are not updated on time even when fuel prices, maintenance costs, and operational expenses increase. This has led to heavy losses for distribution companies and delayed payments to power producers.

Under the proposed system, state electricity regulators would be expected to announce revised tariffs annually. If a revision is delayed, an automatic adjustment linked to cost factors such as inflation and fuel prices could come into effect. This would ensure that utilities recover their costs without long gaps between revisions.

For consumers, this could mean more frequent changes in electricity bills. However, government sources stress that the idea is not to introduce sudden or steep hikes, but to make pricing more predictable and transparent. Instead of occasional sharp increases after years of delay, smaller adjustments could happen each year depending on actual costs.

The draft policy also talks about reducing cross subsidies, where some consumer groups pay higher tariffs to support others. Over time, tariffs are expected to move closer to the real cost of supplying electricity, while direct government support may be used to protect vulnerable households.

At the same time, the government is pushing for lower generation costs through better fuel management and a larger share of renewable energy. Officials believe that increased use of solar and wind power, along with improved efficiency, can help limit the burden on consumers in the long run.

The National Electricity Policy 2026 is still in the draft stage and has been opened for public and stakeholder consultation. Any final decision on tariff reforms will be taken after reviewing feedback from states, industry players, and consumer groups.

For now, the proposal signals a shift toward regular and rule based electricity pricing, a change that could reshape how Indian households and businesses plan their energy expenses in the years ahead.