Centre approves new amendments to electricity rules to further expand energy access

New Delhi, Feb 24: In a move that could help improve electricity access, especially in the Northeast and hill states, the centre has cleared key amendments to the Electricity (Rights of Consumers) Rules, 2020. 

The amendments are expected to reduce the time taken to get new electricity connections, enable consumers living in multistory buildings to choose connection types and allow for faster installation of rooftop solar units, the Ministry of Power & New and Renewable Energy said in a statement on Friday.

“These amendments will further reduce the timeline for getting new electricity connections and simplify the process of setting up rooftop solar installations,” noted Raj Kumar Singh, Union Minister for Power & New and Renewable Energy.

This is the fourth time the rules have been revised in keeping with the government’s vision of improving electricity access in India, the world’s third-largest energy consumer after China and the US.

The period for obtaining a new electricity connection under the Rules has been reduced to three from seven days in metropolitan areas, seven to 15 days in other municipal areas and to 15 from 30 days in rural areas.

In rural areas with hilly terrain, the period for new connections or modifications to existing connections will remain 30 days. 

The revised provisions seek to enhance consumer choices as well as promote greater transparency in metering and billing.

Residents of cooperative group housing societies, multistoried buildings and residential colonies will now have the option to choose either individual connections or a single-point connection for the whole premises from the distribution company (discom). The exercise of the option will be based on a transparent ballot to be conducted by the discom.

Parity has also been brought into the tariff charged to consumers who get electricity supplied through single-point connections and to those who avail of individual connections.

Metering, billing, and collection will be done separately for individual electricity consumption sourced from the distribution licensee, individual consumption of backup power supplied by the residential association and electricity consumption for common areas of such residential associations, which is sourced from the distribution licensee.

The rules notified in December 2020, are based on the conviction that power systems exist to serve consumers and that consumers have rights to get reliable services and quality electricity. These include time-bound delivery of new electricity connections, refunds and other services, and discouraging disregard for consumer rights through penalties on service providers and payment of compensation to consumers.

Consumer First Approach

If the consumer complains about the meter reading not aligning with their actual electricity consumption, the discom is now required to install an additional meter within five days from the date of receipt of the complaint. This will be used to verify the consumption for a minimum period of three months, thus reassuring consumers and ensuring accuracy in billing.

These amendments are also aimed at facilitating faster installation and enhancing the ease of setting up rooftop solar photo voltaic (PV) systems on the premises of prosumers.

Exemption has been given for the requirement of the feasibility study for systems up to a capacity of 10 (kilowatt) kW. For systems of capacity higher than 10 kW, the timeline for completing the feasibility study has been reduced to 15 from 20 days. In case the study is not completed within the stipulated time, approval will be deemed to have been given.

Moreover, the distribution system strengthening necessary for rooftop solar PV systems of up to 5 kW capacity will be done by the discom at its own cost.

The timeline for the distribution licensee to commission rooftop solar PV systems has been reduced to 15 from 30 days.

This will particularly benefit states like Assam, which will be making the installation of rooftop solar on all new buildings constructed this year mandatory through legislation.

“Improving electricity access in far-flung areas such as the Northeast was getting defeated due to operational and procedural challenges. The discoms have now been given a clear timeframe to deliver services to ensure that consumers get faster access to renewable energy sources like solar,” Brajesh Singh, Country President at the global advisory Arthur D Little, told The Assam Tribune.

The Northeast has historically reported the lowest per capita consumption of electricity. In FY2021-22, the figure was 426 kilowatt hours (kWh), substantially less compared to the national average of 1,255 kWh, according to data from the regulator, the Central Electricity Authority (CEA).

Consumers will also be able to obtain separate electricity connections for charging their electric vehicles (EVs).