Government amends Electricity (Rights of Consumers) Rules

GS Paper III

News Excerpt

The Government of India has approved amendments to the Electricity (Rights of Consumers) Rules, 2020.

More details on the news:

  • The Union Minister for Power and New & Renewable Energy stated that these amendments will further reduce the timeline for getting new electricity connections and that they simplify the process of setting up rooftop solar installations.
  • The amendments will empower consumers living in multistoried flats in choosing their connection type and ensure separate billing for common areas and back-up generators in residential societies, thus enhancing transparency.
  • The amendments also provide for check meters to be installed by Distribution Company in case of consumer complaints, to verify electricity consumption.

Rooftop Solar Systems

  •  Rooftop Solar Systems are ideal for harnessing the sun’s energy by converting it into electric power.
  • This can be done by adding an interface known as an inverter to convert the DC power generated by the solar panels on the rooftop to AC power as most appliances/devices run on AC.

Types of solar systems

1. On-grid systems: In this, the rooftop solar system is integrated with the main grid supply. This system allows power to be used from the grid supply only when the rooftop solar system is unable to supply the required power.

  • Significance: This system can efficiently supply power without using grid supply saving expenses otherwise incurred on using power from the grid
    • This system can earn revenues as any excess power generated can be fed to the grid for which DISCOMs pay compensation using ‘net metering’.

2. Off-grid systems:The second one is the off-grid system in which the rooftop solar system is not linked to the main grid. This system can run on its own with its own battery.

  • Significance:This system is very useful when there is no grid supply or when the supply is very erratic with frequent breakdowns.

3. Hybrid systems:The third one is the hybrid system in which both on-grid and off-grid systems work in tandem. 

  • Significance: In this type of system, though a battery is used, the advantage here is that after the battery is fully charged the excess power generated is fed to the grid which generates additional revenues for the consumer.

Details about amendments to the Electricity (Rights of Consumers) Rules, 2020

  • Facilitating Easier and Faster installation of Rooftop Solar Systems
    • Faster Installation: Amendments have been made in the Rules, to facilitate faster installation and enhance the ease of setting up Rooftop Solar PV systems at the premises of prosumers.
    •  Exemption for Feasibility Study: Exemption has been given for the requirement of technical feasibility study, for systems up to a capacity of 10 kW. For systems of capacity higher than 10 kW, the timeline for completing the feasibility study has been reduced from twenty days to fifteen days.
    •  Mandated Distribution System: It has now been mandated that the distribution system strengthening necessary for rooftop solar PV systems up to 5 kW capacity will be done by the distribution company at its own cost.
    •  Reduced Commissioning Timeline: The timeline for the distribution licensee to commission Rooftop Solar PV systems has been reduced from thirty days to fifteen days.
  • Separate Connections for Electric Vehicle Charging Stations
    • Consumers can now obtain separate electricity connections for charging their Electric Vehicles (EVs).
    • This aligns with the country's goal of reducing carbon emissions and reaching Net Zero by the year 2070.
  • New connections and change in existing connections to be obtained faster
    • The time period for obtaining a new electricity connection under the Rules has been reduced from seven days to three days in metropolitan areas, from fifteen days to seven days in other municipal areas, and from thirty days to fifteen days in rural areas.
      • However, in rural areas with hilly terrain, the time period for new connections or for modifications in existing connections will remain thirty days.
    • Additional Rights for Consumers in Residential Colonies and Flats
      •  Enhanced Consumer Choice: Provisions have been introduced in the Rules, to enhance consumer choice and promote greater transparency in metering and billing.
      • Choice for Owners: Owners residing in co-operative group housing societies, multi-storied buildings, residential colonies, etc., will now have the option to choose from the distribution licensee either individual connections for everyone or a single-point connection for the whole premises. 
      • Separate Metering, Billing, and Collection Processes: 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.
  • Mandatory Additional Meter in cases of Complaints
    • Swift Resolution through Additional Meter Installation: In cases where consumers raise complaints about meter reading not aligning with their actual electricity consumption, the distribution licensee is now required to install an additional meter within five days from the date of receipt of the complaint.
    • This additional meter will be used to verify the consumption for a minimum period of three months, thus reassuring consumers and ensuring accuracy in billing.

Conclusion:

The recent amendments to the Electricity (Rights of Consumers) Rules, 2020, herald positive changes, reducing timelines for new connections and simplifying rooftop solar installations. Empowering consumers with choices, enhanced transparency, and prompt complaint resolutions, these amendments mark a significant stride towards consumer-centric electricity services in India.

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