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Ensuring accountability in the new Electricity Rules, 2020

Ensuring accountability in the new Electricity (Rights of Consumers) Rules, 2020

Union Ministry of Power has promulgated rules laying down the rights of power consumers in the country. Many states in India are not able to provide a quality supply of electricity, specifically to rural and small consumers. The rules provide the consumer with the rights of power. It is expected that the new Electricity (Rights of Consumers) Rules, 2020 will protect and empower electricity consumers’ rights. 

Key Features of the new Electricity Rules 2020

  • State Electricity Regulatory Commissions to fix average number and duration of outages per consumer per year for DISCOMs. (A power outage is the loss of the electrical power network supply to an end user.)
  • Only two documents for connection up to load of 10 kw and no estimation of demand charges for loads up to 150 kw to expedite giving connection.
  • Not more than 7 days in metro cities, 15 days in other municipal areas and 30 days in rural areas, to provide new connection and modify existing connection. 2 to 5% rebate on serving bills with delay of sixty days or more.
  • Option to pay bills in cash, cheque, debit cards, net banking etc but bills of Rs. 1000 or more to be paid online.
  • Recognition to the emerging category of consumers known as “Prosumers”.They will have right to produce electricity for self-use and inject excess in the grid using same point of connection up to limits prescribed by the SERC.
  • Consumer Grievance Redressal Forum with 2-3 representatives of consumers at various levels starting from Sub-division for ease of consumer grievance redressal.

What are the limitations of the new Electricity Rules 2020?

  • Discoms are unable to provide quality supply. Reason for this is not a lack of rules or regulations but the lack of accountability mechanism to enforce them. For instance, many rights provided in rules 2020 already exists in Standards of Performance (SoP) of various State Electricity Regulatory Commissions (SERCs). 
  • The past efforts such as the draft National Tariff Policy, the proposed Electricity Act amendments, or various committee processes did not address the accountability concerns. 
  • It is also doubtful that how Discoms will automatically compensate its consumers in the event of failure of power supply. Because, till now the availability of power supply is not monitored properly. 
  • Compensating consumers in the event of failure of power supply has serious financial implications. For example, In August 2020 rural areas received only 20 hours of supply. If existing regulations are followed it would cost hundreds of crores to discoms. 
  • The new rules dilute the progressive mechanisms that exist in a few States. For example, As per the new rules faulty meters should be tested within 30 days of receipt of a complaint. 
  • The rules that the Consumer Grievance Redressal Forum should be headed by a senior officer of the DISCOMS company is a regressive provision. Because it will reduce the number of cases that are decided in favour of consumers.  
  • Some provisions are confusing and requires clarity. For example, The rules guarantee net metering for a solar rooftop unit less than 10 kW. But it is not clear whether solar rooftop unit above 10 kW can also avail net metering.

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