Seeking comments on draft Electricity (Rights of Consumers) Amendment Rules, 2026 – reg. – EQ

Summary:

—

Here is a clause-by-clause breakdown of the key amendments:

#### 1. New Connection Timelines (Amendment to Rule 4)
– **Proposal:** Reduces the timeline for new electricity connections or modifications in **Municipal Corporation areas** to **3 days**, aligning them with existing timelines for Metropolitan areas.
– *Municipal Areas:* 7 days
– *Rural Areas:* 15 days (30 days for specified hilly terrains)
– *If infrastructure extension is needed:* 90 days.
– **Business Implication:** This is a significant **”Ease of Doing Business”** reform. Businesses setting up operations in large cities that are not officially “Metropolitan” (e.g., many state capitals) will now get power connections much faster, reducing project setup times and costs.

#### 2. Automatic Billing Anomaly Detection (Amendment to Rule 6)
– **Proposal:** Mandates DISCOMs to identify and resolve cases where a consumer’s monthly bill is abnormally high (over 5 times the 6-month average) or abnormally low (under 1/5th of the 6-month average) within 30 days.
– **Safeguard:** DISCOMs cannot disconnect supply if the consumer continues to pay the average bill while the issue is being resolved.
– **Business Implication:** This protects commercial and industrial users from severe cash flow disruptions caused by erroneous high bills. It forces DISCOMs to improve their billing systems and customer service, reducing the administrative burden on businesses to fight incorrect bills.

#### 3. Time of Day (ToD) Tariff – Revised Deadlines (Amendment to Rule 8A)
– **Proposal:** Extends the deadline for implementing ToD tariffs to align with smart meter rollout.
– **Commercial & Industrial (C&I) consumers (>10 kW):** Must be implemented by **April 1, 2027**.
– **All other consumers (excluding agriculture):** Must be implemented by **April 1, 2028**.
– **Tariff Structure:**
– **Peak Hours:** Tariff will be at least 1.2x (C&I) / 1.1x (others) the normal rate.
– **Solar Hours:** Tariff will be at least **20% less** than the normal rate.
– **Business Implication:** This is a major operational and financial signal for businesses.
– **Energy-Intensive Industries** can significantly lower costs by shifting operations to the cheaper “solar hours.”
– It incentivizes investment in automation and flexible manufacturing processes.
– It creates a clear price signal to reduce load during expensive peak hours, helping the grid manage demand.

#### 4. Rooftop Solar & Net Metering Reforms (Amendment to Rule 11)
This is a critical amendment for the solar industry and large power users.
– **Net Metering Charges:** State Commissions can now levy a **”net metering charge”** for systems above 5 kW to recover the costs of grid usage and storage. Systems up to 5 kW are exempt.
– **Metering Options:** For loads up to 500 kW, net metering is the default if regulations don’t specify otherwise. For higher loads, net-billing or net feed-in applies.
– **Energy Storage Mandate:** State Commissions **may mandate** energy storage systems for renewable projects with a capacity **exceeding 500 kW**.
– **Business Implication:**
– **For Solar Companies:** The market may shift towards larger systems with storage (hybrid solutions) and a potential increase in gross/billing metering projects.
– **For Large Consumers (e.g., factories, malls, large offices):** Installing rooftop solar beyond 500 kW may now require a battery storage system, increasing upfront capital costs but providing energy independence and backup. The new net metering charge will also alter the financial payback calculations for systems above 5 kW.
– **For DISCOMs:** This helps recover fixed network costs from prosumers and reduces cross-subsidy burdens.

#### 5. Consumer Grievance Redressal Forum (CGRF) Overhaul (Amendment to Rule 15)
– **Proposal:** Standardizes the grievance redressal structure to just **two tiers**:
1. **District/Municipality Level Forum** (First point of contact)
2. **Company Level Forum** (Appellate level before the Ombudsman)
– **Timelines:** Grievances must be resolved within **30-45 days**. Consumers get 90 days to appeal a decision.
– **Digital Push:** Mandates a web portal and mobile app for online submission, virtual hearings, and tracking.
– **Business Implication:** A simpler, faster, and more transparent process for resolving disputes related to billing, new connections, or power quality. The digital tracking provides better accountability from DISCOMs.

—-

For more information please see below link: