Over 900 Karnataka generators fail to pay AMR maintenance charges
The Karnataka Electricity Regulatory Commission (KERC) has directed the State Load Despatch Centre (SLDC) to initiate proceedings under Section 142 of the Electricity Act, 2003, against power generators that have failed to comply with the Commission’s directions regarding the installation and maintenance of Automatic Meter Reading (AMR) facilities.
The order, issued on July 10, 2026, follows continued non-compliance with KERC’s January 1, 2025, directive mandating AMR deployment across generating stations and requiring generators to bear the associated installation and maintenance costs.
Compliance status
Data submitted by the SLDC and Karnataka Power Transmission Corporation Limited (KPTCL) indicates that implementation has remained substantially below the levels envisaged by the Commission.
Of the 79 new AMR installations identified, 67 generators have not remitted the required charges. In addition, under the Comprehensive Annual Maintenance Contract (AMC) covering 1,710 generators, 940 entities have not paid the applicable maintenance charges.
According to the Commission, the non-payment of installation and AMC costs has delayed implementation of the AMR programme and resulted in non-compliance with its earlier directions.
Earlier directions
In its January 1, 2025, order, KERC had directed all Independent Power Producers (IPPs) to install AMR facilities. Where generators failed to undertake the installation, KPTCL was authorised to carry out the work and recover the costs from the respective entities.
The Commission had also assigned KPTCL responsibility for maintaining AMR systems and the associated communication infrastructure required for transmitting metering data to the SLDC.
Further, generators were directed to accept energy bills prepared on the basis of AMR data, while KPTCL was required to conduct spot inspections every six months to verify meter accuracy. The entire implementation exercise was originally scheduled to be completed within two months of the order.
Penal proceedings
Observing that a large number of generators had not complied with the requirements, KERC has now directed the SLDC to file petitions under Section 142 of the Electricity Act, 2003.
Section 142 empowers electricity regulatory commissions to impose penalties for contravention of statutory directions and orders. The provision allows for penalties of up to Rs 1 lakh for each violation, with additional penalties of up to Rs 5,000 per day in cases of continuing non-compliance.
The Commission’s latest order signals a shift from administrative directions to enforcement measures in an effort to ensure implementation of the AMR framework.
Importance of AMR
Automatic Meter Reading systems play a critical role in electricity sector operations by enabling accurate energy accounting, supporting deviation settlement mechanisms and facilitating real-time monitoring of power flows across the grid.
Delays in the deployment of AMR infrastructure can affect metering accuracy, settlement processes and the overall efficiency of system operations.
The Commission’s decision to invoke penal provisions is expected to reinforce compliance requirements for generators and may serve as a precedent for the enforcement of other regulatory obligations within the power sector.
The featured photograph is for representation only.
