New rules to compensate consumers for power cuts and defective meters

To ensure better quality of electricity supply to consumers, Union power minister RK Singh on Monday announced the promulgation of the ‘Rights of Consumer Rules, 2020’ which lays down performance parameters for electricity distribution companies (discoms).

If the specified service standards are not met, discoms will have to pay compensation for power users. State electricity regulatory commissions (SERCs) will have to notify updated ‘standards of performance’ for discoms within 60 days and specify compensation amounts that consumers would receive as per the new rules. The parameters for which consumers would be eligible for compensation include unsatisfactory supply duration, number of power cuts, time taken by discoms to provide new connections and replace defective meters.