Centre releases draft rules to set performance parameters for power distribution companies

Union Power Ministry has released a draft Electricity (Rights of Consumers) Rules proposing a set of performance parameters for electricity distribution companies (discoms), failing which these entities will have to pay compensation for power users.

Interestingly, Tangedco was one of the few discoms to implement the Consumer Charter under the Electricity Act 2003 providing a synopsis of rights of consumers of electricity but various provisions allowing the consumers to seek compensation was seldom implemented. The draft Electricity (Rights of Consumers) Rules, 2020 seek to specify time limits for the discoms for giving new electricity connections, and addressing grievances including the common ones like delayed and accumulated bills, faulty meters etc entitle consumers to get rebates on power bills which are not served in time and other compensation from discoms which fail to timely address grievances.

As per the new rules, state electricity regulators will have to notify updated ‘standards of performance’ for discoms and specify compensation amounts that consumers would receive if the standards are not met. The parameters for which consumers would be eligible for compensation include unsatisfactory supply duration, number of power cuts, time is taken by discoms to provide new connections and replace defective meters. “It is the right of the consumer to have minimum standards of service for the supply of electricity from the distribution licensee as per the rules laid down,” the draft of the rules stated.

Retired Tangedco executive engineer and founder of Citizen’s Contribution in Democracy S Neelakanta Pillai objected to section 10 (3) (b) of the draft rules providing six months for the utility to implement the compensation mechanism under standards of performance stating that the provision was not something new.

“This is not a new section. It has been derived during 2003 in the Electricity Act itself and the distribution standards of performance regulation have also been delivered during 2004 by the TNERC. What is the need for giving six more months?” he wrote to the ministry.

He also noted that the TNERC and Tangedco have failed to introduce auto compensation to the consumers for failing to meet the standard of performance.

The parameters for which consumers would be eligible for compensation include unsatisfactory supply duration, number of power cuts, time is taken by discoms to provide new connections and replace defective meters