Aditya Singhania on Electricity Rules 2023 in Saur Energy

Electricity (Rights of Consumers) Amendment Rules, 2023 – Empowering Consumers and Fostering Efficiency in the Electricity Sector

To strengthen consumer rights in the electricity sector, the Central Government has exercised its powers under the Electricity Act, 2003 (36 of 2003) to introduce the Electricity (Rights of Consumers) Amendment Rules, 2023. These rules, set to come into force upon publication in the Official Gazette, aim further to enhance the Electricity (Rights of Consumers) Rules, 2020.

The Electricity (Rights of Consumers) Amendment Rules, 2023, encompass fundamental changes that introduce significant provisions in smart metering, penalty imposition, and time-of-day (ToD) tariffs. This article explores the critical aspects of the amendment, highlighting the government’s commitment to empowering consumers and ensuring a more inclusive and efficient electricity ecosystem. Amended below are some of the critical points.

Remote Meter Reading for Smart Meters: The new rules mandate remote reading of smart meters at least once daily, eliminating the need for manual meter readings and saving consumers time. Additionally, authorised representatives of distribution licensees will read other pre-payment meters once every three months. Consumers can access their energy consumption data through various channels, including websites, mobile applications, and SMS. Additionally, consumers with pre- payment meters will have data access to track their daily consumption and regularly check their balance.

Fair Billing Practices: Penalties based on maximum demand recorded by smart meters will no longer be imposed retrospectively, ensuring acceptable billing practices.

Access to Real-Time Consumption Data: If the maximum demand recorded by smart meters exceeds the sanctioned load, the billing cycle will be adjusted accordingly, for which the consumers will be promptly informed of the changes through short message services or mobile applications. The revised sanctioned load will be calculated based on the lowest monthly maximum demand for increases, while reductions will follow procedures issued by regulatory commissions.

Time-of-Day Tariff Benefits: The amendment introduces the Time-of-Day-Tariff (ToD) concept, benefiting consumers with smart meters. The ToD pricing will affect Commercial and Industrial (C&I) consumers with a maximum demand exceeding 10 kW starting from April 1, 2024. ToD pricing will be implemented from April 1, 2025, for all other consumers, excluding agricultural consumers. These staggered timelines ensure a smooth transition to ToD pricing and provide ample time for consumers to adjust their electricity usage patterns accordingly.

Once smart meters are installed, ToD pricing will be implemented immediately for consumers with these advanced meters. During peak hours, ToD rates for Commercial and Industrial (C&I) consumers will be set at a minimum of 1.2 times the standard tariffs. The ToD rates will be at least 1.1 times the standard tariffs for other consumers. This differential pricing structure encourages consumers to shift their electricity usage to off-peak hours, optimising energy resource utilisation and reducing strain on the power grid during peak demand periods.

The tariff for “SOLAR HOURS” will be a minimum of 20% lower than the standard tariff applicable to each respective category of consumers. The duration of peak hours, during which ToD rates are in effect, will not exceed the duration of “SOLAR HOURS” as determined by the State Load Dispatch Centre (SLDC). The term “SOLAR HOURS” refers to a specific eight-hour duration in a day specified by the State Commission. This provision encourages consumers to take advantage of lower tariffs during the specified “SOLAR HOURS,” promoting the utilization of solar energy and incentivizing the adoption of clean and sustainable power sources.

Transparent Tariff Display and Notifications: The amendments require distribution licensees to display tariff details on their websites and notify consumers of any changes well in advance. This transparency lets consumers stay informed about the applicable rates and plan their energy consumption accordingly.

Navitas Solar, a renowned manufacturer of solar modules, views the Rights of Consumers Amendment Rules, 2023, as a progressive step towards modernising the power sector by embracing smart grid technologies. These amendments have been formulated to promote the adoption of smart grid technology, implement TOD pricing mechanisms, foster the widespread utilisation of renewable energy sources and showcase the government’s unwavering dedication to empowering consumers, encouraging transparency, and optimising energy consumption. By strengthening consumer rights and promoting efficiency in the power sector, these rules aim to revolutionise how electricity is consumed and managed.