"One Nation One Electricity Bill" is a concept aimed at unifying electricity billing across India, simplifying the process for consumers by consolidating multiple electricity bills into a single national bill. This idea is related to the broader initiative of "One Nation One Grid One Price," which seeks to integrate India's power grid to facilitate seamless power trading, improve grid reliability, and reduce regional disparities in electricity costs
. The core objective of this initiative is to create uniformity in power procurement costs across states by standardizing interstate generation costs and transmission charges. This would help in reducing the variation in electricity tariffs that currently exist due to factors like state-specific policies, geographical differences, consumer mix, and distribution costs
. However, achieving a uniform retail tariff for all states remains challenging because intra-state generation, transmission, and distribution costs vary and are under state jurisdiction
. The proposal envisions that by making the ex-bus power purchase cost and interstate transmission charges uniform, a significant portion (70-80%) of the average cost of supply can be standardized, paving the way for near-uniform tariffs. Yet, complete uniformity is complicated by constitutional, economic, and political factors, including the need to respect state autonomy and address the financial health of state distribution companies (Discoms)
. In summary, "One Nation One Electricity Bill" aims to:
- Simplify electricity billing by consolidating charges into a single bill nationwide.
- Promote uniformity in power purchase costs by integrating the national grid and standardizing interstate tariffs.
- Reduce regional disparities in electricity pricing while acknowledging state-specific factors that affect final retail tariffs.
- Enhance transparency and efficiency in the electricity market, benefiting consumers and utilities alike.
This initiative is part of India's broader efforts to modernize and unify its power sector, though it requires careful balancing of federal and state interests and infrastructural adjustments to be fully realized
