Electricity Consumer Rights — India Shines

Photo by Linh Ha on Unsplash

For the first time in the Indian Electricity Industry history, the consumers have been empowered with well-deserved rights. Electricity supply has remained the monopoly service under the licensed distribution companies for a long, whether government or private. Despite being a paying entity, consumer has always remained at the mercy of distribution companies.

The consumers have no alternative as they have no option of choosing their electricity supplier. But with the notification of “The Electricity (Rights of Consumers) Rules, 2020 (available here), by the Union power ministry, there seems to an end to consumers’ plight through provisions of rights and obligations.

The rules have been notified under the provision of the Electricity Act 2003. These rules ensure the rights of consumers and mandate standards of services such as round-the-clock electricity supply. The rules also provide penalties for power distribution firms if they do not maintain mandated standard of services.

As per rules, “Consumer means any person who is supplied with electricity for his own use. “ The relevant clauses of the rules are explained below:-

1. Obligations of Distribution licensees — Distribution companies, are duty-bound to supply electricity on request made by an owner or occupier of any premises in line with the provisions of the Act.
2. Release of new connection and modification in existing connection — The rules mandate transparent, simple, and time-bound release of new connections with online application provision.
3. Metering arrangement — A consumer has the option to purchase its own meter or take it from the distribution company. Provision of Testing of meters and replacement of defective or burnt or stolen meters is also there.
4. Billing and Payment — Bills have to has full details of the tariff. Consumers have the option of paying bills online or offline. 2% to 5% rebate provision has been made in case of the delay in raising the bill.
5. Disconnection and Reconnection — Reconnection to be done immediately after payment of full dues.
6. Reliability of supply — The distribution licensee shall supply 24x7 power to all the consumers. The distribution company shall inform the details of scheduled power outages to the consumers. In case of an unplanned outage or fault, immediate intimation shall be given to the consumers. The intimation may be through SMS or by any other electronic mode, along with an estimated time for restoration.
7. Consumer as Prosumer — Consumer can also produce electricity by installing rooftop solar plants. Distribution companies to adjust the electricity generated by the Consumer in their bills.
8. Standards of Performance of licensee — Compensation amount to be paid to the consumers by the distribution licensees for violation of standards of performance to be specified by the commission.
9. Compensation Mechanism — Provision of automatic compensation to the consumers if the distribution company could not perform as required.

As per rules, the distribution company will be evaluated on the following parameters:-

• No supply to a consumer beyond a particular duration, to be specified by the commission;
• Number of interruptions in supply beyond the limits as established by the commission;
• Time taken for connection, disconnection, reconnection, shifting;
• Time taken for change in consumer category, load;
• Time taken for change in consumer details;
• Time taken for replacement of defective meters;
• Time period within which bills are to be served;
• Time period of resolving voltage related complaints; and
• Bill related complaints.

The notification of Rights of Consumer Rules 2020 is a welcome step in improving consumer services by evaluating the distribution company’s performance.