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MoP has issued a draft proposal for amendment of Electricity Act 2003, where a focus has been put on enactment of enforcement of contract, this would avoid renegotiation of PPA and strength of contracts will enable investment in the electricity sector. Also maintaining a payment security mechanism will protect sanctity of the contracts.  Centre may also come up with National Renewable Energy Policy for the promotion of electricity generation from renewable energy. Also Hydro purchase obligation shall be made mandatory for states to procure power from Hydro stations.

As per tariff policy an attempt should also be made to progressively reduce open access surcharge and cross-subsidies. The amendment also emphasizes that the tariff has to reflect the cost of the supply of electricity, and cross-subsidies and surcharges levied on industrial consumers should be reduced.

Tariffs determined through competitive bidding, the appropriate commissions have to adopt the tariff on time, which is not late than 60 days else it will be deemed to have been adopted. Also, distribution companies (DISCOMs) can engage franchisees or sub-distribution licensees to distribute electricity on their behalf in a particular area within its area of supply.