New Delhi, Jan. 22 -- Electricity bills for consumers across India could begin rising automatically every year starting next fiscal, regardless of political reluctance at the state level.

The Union power ministry has proposed index-linked tariff revisions in its draft National Electricity Policy (NEP) released on Wednesday, to force cost-reflective pricing if state electricity regulatory commissions (SERCs) fail to act. The nature and methodology of the index will have to be devised by the SERCs under the draft policy.

Further, the NEP said that an increase in power purchase cost-by distribution companies or discoms-must be automatically passed through to consumers on a monthly basis. The ministry has recommended setting up stabilizatio...