The Indian government recently publicized the Electricity (Rights of Consumers) Rules, 2020, which are designed to enable electricity consumers in India to enjoy a reliable and steady supply of power. As per India’s constitution, electricity falls under the Concurrent List or List-III (Seventh Schedule), granting the central government the legal authority to legislate on it.
Key Elements of the New Rules
The new rules delve into diverse areas of power supply including roles of distribution licensees, conjunction with metering systems, intricacies of releasing new connections and altering current ones, mechanisms for grievance resolution and compensations. The aim is to make energy providers more accountable to consumers, breaking down monopolistic tendencies and offering customers more options. Penalties will be imposed on non-compliant firms, with the amount credited into the consumer’s account.
Implications of the Rules on Ease of Doing Business
The introduction of these rules marks a significant step towards enhancing ease of doing business across the country. They’re structured in such a way that services like signing up for new electrical connections, receiving refunds, among others, have a time-bound delivery schedule.
Specifics of the Rules
The rules mandate each electricity distributor to process any requests made by premise owners or occupiers for a power supply, following the Act’s provisions. Consumers are given the right to expect minimum service standards from their distributors.
New Connections and Adjustments
Transparent, straightforward, and time-specific procedures are outlined. For applicants, online application methods are provided—an effort to hasten the connection process. Within metro cities, new connections and modifications should be completed within seven days, 15 days in other urban areas, and a maximum of 30 days in rural regions.
Metering Arrangements
No connection is to be granted without a meter. The meter can either be a smart prepayment meter or a standard prepayment meter. Provisions are also made for testing meters, as well as for replacing faulty, burned, or stolen units.
Payment Options
In terms of bill payment, transparency is stressed on the applicable consumer tariff and bills. Consumers are given the choice to pay bills virtually or manually, with provisions for advanced bill payments.
Reliability of Supply
Distribution licensees have an obligation to supply power round-the-clock to all consumers. Nonetheless, lower hours of supply may be identified for particular categories, like agricultural consumers. Mechanisms for monitoring and restoring outages should be established by distributors.
Consumer’s Status
Prosumers, namely consumers who also produce electricity like households with rooftop solar panels, maintain their rights to set up Renewable Energy generation units.
Performance Standards
The performance standards for distribution licensees will be declared, including compensation procedures for standards’ violation.
Compensation Mechanism
Automatic compensation will be paid to consumers for violations that can be remotely monitored.
Customer Service Centers
A centralised, toll-free, 24/7 call center will be established by every distribution licensee.
Grievance Redressal Mechanism
Consumer Grievance Redressal Forums will include representatives from both consumers and prosumers. It is structured in multiple layers for convenience, increasing the number of representatives from one to four. The resolution time will be specified by the licensee, with the maximum timeline for grievance redressal capped at 45 days.
