Rule to compensate consumers for gratuitous load shedding must be implemented by state power regulators: RK Singh

Pre-paid meters are expected to increase billing and collection efficiency of discoms.

State power regulators must ensure consumers are compensated by distribution companies (discoms) for gratuitous load shedding, Union Minister for Power and New & Renewable Energy R.K. Singh said on October 4.

"The Electricity (Rights of Consumers) Rules provide for penalties for gratuitous load shedding. These rules must be implemented," he said in a review meeting with power regulators from the Central, State and Joint Electricity Regulatory Commissions.

During the meeting, the minister for power expressed concern about the increase in pendency of cases in some Commissions and advised them to dispose of long-pending cases on priority.

He urged the regulators to ensure that the tariff is cost-reflective, covering the entire cost of service of discoms. He pointed out that the government of India has made energy audit compulsory. "This shall be monitored, as it will help in identifying areas of leakage / theft of power and help in reducing AT&C losses. The trajectories for reduction of AT&C losses should be realistic," Singh said.

The ongoing rollout of pre-paid meters in the country is expected to increase billing and collection efficiency of discoms, resulting in improvement in their financial health. Further, this will also reduce the working capital requirements of discoms, due to upfront payment by consumers.

The Union minister stressed that while the decision to provide subsidy to a particular category of consumers is the prerogative of the state government, as regulators, it is incumbent upon the state electricity regulatory commissions to ensure that the discoms get the subsidy amount from the state government.

"State governments are free to declare subsidies but they have to be paid for. Power is not free and it has to be paid for. Development of the country is not possible without availability of power. Power supply has to be 24x7," he said.

Singh highlighted that the difference between a developed and developing/under-developed country is the load shedding/blackouts in the case of the latter category. The Regulators assured to follow suggestions by the Minister for maintaining a conducive regulatory ecosystem to develop a financially viable and environmentally sustainable power sector, the Ministry of Power said in a statement.