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Rules to protect Consumer Rights in the Power Sector – EQ Mag Pro

Rules to protect Consumer Rights in the Power Sector – EQ Mag Pro


Part VI of the Electricity Act, 2003 provides for Consumer protection: Standards of performance. Section 57 of the Electricity Act, 2003 states:

  • The Appropriate Commission may, after consultation with the licensees and persons likely to be affected, specify standards of performance of a licensee or a class of licensees.
  • If a licensee fails to meet the standards specified under subsection (1), without prejudice to any penalty which may be imposed or prosecution be initiated, he shall be liable to pay such compensation to the person affected as may be determined by the Appropriate Commission: Provided that before determination of compensation, the concerned licensee shall be given a reasonable opportunity of being heard.
  • The compensation determined under sub-section (2) shall be paid by the concerned licensee within ninety days of such determination.”

In order to make its implementation more effective, Ministry of Power notified Electricity (Rights of Consumers) Rules, 2020 on 31.12.2020 under Electricity Act, 2003. These rules emanate from the conviction that the power systems exist to subserve the interests of consumers and protect their rights to get the reliable services and quality electricity.

Implementation of these Rules shall ensure that new electricity connections, refunds and other services are given in a time bound manner. Willful disregard to consumer rights would result in levying penalties on service providers. The rules have become operational w.e.f. date of notification i.e. 31.12.2020.

This information was given by Shri R. K Singh, Union Minister for Power and New and Renewable Energy in a written reply in Rajya Sabha today.

Anand Gupta Editor - EQ Int'l Media Network