Summary - Power Distribution in India 2026

The power distribution sector is at a critical crossroads, with rising electricity demand, the emergence of new loads, rapid renewable energy integration as well as the need to improve sector performance on operational and financial fronts.
During FY2025, at the national level the AT&C losses stood at 15.04 per cent from 15.97 per cent in the previous year. The financial performance of the discoms has also improved, with the distribution utilities for the first time recording a positive combined PAT of Rs 27.01 billion in FY2025 (as against losses of Rs 270 billion and Rs 604 billion recorded during FY2024 and FY2023 respectively). However, the financial performance continues to vary significantly across states.
The Revamped Distribution Sector Scheme (RDSS) continues to lead initiatives to modernise the segment, with its implementation period extended by two years, up to March 2028. Under the scheme, smart meter installation has picked up pace. As of August 2026, over 65 million smart meters have been installed and over 195 million meters have been sanctioned, as against the overall target of 250 million smart meters.
On the reforms front, one of the key developments has been the introduction of the draft electricity (amendment) bill 2025, which proposes significant changes in the sector to bring competition and support cost-reflective tariffs. Among other things, the bill proposes to facilitate regulated competition in electricity distribution (allowing multiple licensees to operate in the same area, using shared distribution networks) and phase out cross-subsidies for industries.
Notably, parallel licensing is emerging as an important area of interest for private sector participation. Private players are seeking parallel distribution licence in various areas of Maharashtra, Haryana and Karnataka. The power ministry’s consultative committee has been in discussion for a consumer-centric framework of parallel licensing.
The digitalisation of utility operations is gaining momentum, helping utilities improve operational efficiency and customer service. AI-based solutions are increasingly being used for asset and load management, predictive maintenance, fault detection, demand response, theft detection and customer engagement. Big data analytics and large language models are further supporting better decision-making and helping utilities improve the overall performance.
Going forward, to address the sector’s operational and financial challenges and meet its emerging needs, there is a need to ensure costreflective tariff, timely and adequate tariff revisions, regular disbursement of government dues and subsidies, capacity building of discom personnel, and accelerated investments in AI, automation, network modernisation and cybersecurity.

The mission of the conference is to discuss key trends and developments in the power distribution segment, deliberate upon the evolving requirements of utilities and evaluate the policy and reforms in the segment. The conference will also highlight the best practices, new initiatives and future plans of public and private discoms. It will also provide a platform to showcase new and promising technology trends, solutions and use cases.