Power Ministry proposes amendments to electricity consumer rights rules

The Ministry of Power (MoP) has issued a draft of the Electricity (Rights of Consumers) Amendment Rules, 2026, seeking stakeholder comments by April 11, 2026. The amendments are proposed to take effect from October 1, 2026. According to the draft, the changes aim to update India’s consumer protection framework in the electricity sector by addressing billing irregularities, revising tariff timelines, simplifying grievance redressal, and introducing a regulatory framework for demand response programmes.

The draft proposes a revised timeline for providing new electricity connections in urban areas. Municipal corporation areas would be treated at par with metropolitan areas, requiring distribution licensees to provide new or modified connections within three days. At present, several large cities that are not officially classified as metropolitan areas fall under a seven-day connection window. The existing timelines for other areas would remain unchanged. Rural consumers would continue to receive connections within fifteen days, while hilly terrain states, including Himachal Pradesh, Uttarakhand, Jammu & Kashmir, and Ladakh, would have a thirty-day deadline.

The proposed amendments also revise the rollout schedule for Time-of-Day (ToD) tariffs in view of delays in smart meter deployment. Commercial and Industrial consumers with a maximum demand above ten kilowatts would be required to shift to ToD tariffs by April 1, 2027. All other consumers, except agricultural users, would transition by a date determined by the respective State Commission, but not later than April 1, 2028. The draft specifies that tariffs during peak hours for Commercial and Industrial consumers would be at least 1.20 times the normal rate. Tariffs during solar hours would be set at a minimum of twenty percent below the normal tariff for applicable consumer categories.

The draft rules also introduce provisions allowing State Electricity Regulatory Commissions (SERCs) to levy net-metering facility charges on rooftop solar systems exceeding five kilowatts. Systems with capacity up to five kilowatts would remain exempt. For larger installations, charges could be imposed progressively, based on imputed storage costs and adjustments for network losses. SERCs may also require installation of energy storage systems for prosumers whose renewable generation capacity exceeds 500 kilowatts.

A new provision in the draft rules addresses abnormal electricity bills. Distribution licensees would be required to automatically review any billing cycle where recorded consumption exceeds five times, or falls below one-fifth, of the average consumption of the previous six billing cycles. Such cases would need to be resolved within thirty days. During the review period, supply could not be disconnected if the consumer continues paying charges based on the six-cycle average.

The amendments also propose restructuring the Consumer Grievance Redressal Forum (CGRF) framework. The current multi-tier structure, covering sub-division, division, circle, zone, and company levels, would be replaced by a two-tier arrangement consisting of company-level and district or municipality-level forums. Each forum would include a chairperson and up to three members, including consumer representatives. Complaints would ordinarily be resolved within thirty days and no later than forty-five days. Distribution licensees would also be required to establish or upgrade digital platforms, including web portals and mobile applications, to enable online filing of complaints, virtual hearings, and grievance tracking.

In addition, the draft rules introduce a formal definition of “Demand Response” and propose a new Rule 17 requiring SERCs to establish a regulatory framework for its implementation. The framework may cover eligibility conditions for Demand Response Providers, incentives for participating consumers, communication and technical requirements, and procedures for measurement, verification, and settlement of payments.

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