The Ministry of Power has released draft amendments to the Electricity (Rights of Consumers) Rules proposing a range of changes affecting electricity connections, billing safeguards, rooftop solar frameworks, grievance redressal mechanisms, and demand response programs.

The proposed amendments are intended to improve service delivery standards, address operational and financial challenges faced by electricity distribution companies (DISCOMs), and support the integration of renewable energy into the power system while strengthening consumer protection provisions.

The draft has been circulated for stakeholder comments until April 11, 2026, and is proposed to come into force on October 1, 2026.

Connection Timelines

One of the key changes in the draft rules concerns the time DISCOMs must allow for new electricity connections or modifications to existing ones once an application is complete.

The draft proposes that connections should be provided within 3 days in metropolitan and municipal corporation areas, 7 days in other municipal areas, 15 days in rural areas, and 30 days in hilly areas.

Hilly areas include the states of Arunachal Pradesh, Himachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, and Uttarakhand, as well as the Union Territories of Jammu and Kashmir and Ladakh.

The change also seeks to ensure that municipal corporation areas, which, in several cases, are not formally classified as metropolitan areas despite having comparable infrastructure and population density, are covered by the shorter service timelines.

Automatic Review of Electricity Bills

The draft amendment introduces provisions requiring DISCOMs to automatically review cases in which electricity consumption appears unusually high or low relative to past usage.

A review would be triggered when consumption during a billing cycle exceeds five times the average consumption of the previous six billing cycles or falls below one-fifth of that average, or any other limits that may be determined by the state commission based on consumption patterns.

Such cases must be examined and resolved within 30 days of the bill’s generation. To prevent consumer hardship during the review process, the rules specify that electricity supply should not be disconnected if the consumer continues to pay charges based on the average consumption of the previous six billing cycles until the issue is resolved.

The provision would come into effect within six months of the rules being notified, or earlier if the DISCOMs complete the necessary system arrangements.

Time-of-Day Tariff Framework

The draft also revises provisions governing Time-of-Day tariffs, under which electricity prices vary by time of consumption.

The peak-period tariff for commercial and industrial consumers should not be less than 1.20 times the normal tariff, while the peak-period tariff for other consumers should not be less than 1.10 times the normal tariff. Tariffs during solar hours must be at least 20% lower than the normal tariff for that consumer category.

The Time-of-Day tariff will apply to the energy charge component of the normal tariff. In addition, the duration of peak hours should not exceed the duration of solar hours notified by the state commission or the State Load Despatch Centre.

For consumers equipped with smart meters, Time-of-Day tariffs would take effect on the date specified by the state commission or upon completion of the smart meter rollout, but not later than April 1, 2028.

Revised Rooftop Solar Framework

 The amendments propose changes to the provisions governing rooftop solar and other distributed renewable energy systems installed by consumers, often referred to as prosumers.

The rules specify that arrangements for net metering, gross metering, net billing, or net feed-in should comply with regulations issued by the state regulator. Metering charges may be levied progressively based on the imputed cost of energy storage and network loss adjustments as determined by the commission.

For prosumers operating under net-billing or net feed-in arrangements, state commissions may introduce Time-of-Day tariffs to encourage the use of energy storage to use stored solar power or to feed electricity into the grid during peak hours.

In addition, DISCOMs may install solar energy meters to measure the gross solar electricity generated by grid-connected rooftop solar systems for renewable purchase obligation accounting, if required.

The draft rules also allow state commissions to permit gross-metering arrangements for prosumers who wish to sell all electricity generated from their rooftop systems to the DISCOMs. In such cases, the Commission would determine the applicable generic tariff for gross-metering in accordance with tariff regulations.

The accompanying policy rationale notes that rooftop solar consumers use the distribution network both to export electricity during solar generation periods and to draw electricity during non-solar hours, which has implications for network usage and cost recovery.

The Ministry had earlier urged all states to scrap separate net-metering contracts for residential rooftop solar consumers and adopt a digital agreement as part of the online application process.

Energy Storage for Large Prosumers

Another provision introduced in the draft allows state commissions to mandate the installation of energy storage systems of appropriate capacity for prosumers whose installed renewable energy generation capacity exceeds 500 kW.

The measure reflects the increasing deployment of distributed renewable energy and the role that energy storage can play in supporting reliable supply during non-solar hours and improving system flexibility.

Consumer Grievance Redressal

The proposed framework provides for a forum consisting of a chairperson and not more than three members, including consumer representatives. These forums may handle different categories of grievances depending on their nature and the level of resolution required.

The rules state that grievances should ordinarily be resolved within 45 days of receipt. If a consumer is not satisfied with the decision of a district or municipal forum, the consumer may approach the company-level forum within 90 days before seeking relief from the electricity ombudsman.

DISCOMs will also be required to publicize the location of the forum office, contact details, and grievance registration procedures through print and electronic media, notice boards, and electricity bills.

Demand Response

The draft introduces a new provision enabling the implementation of demand response programs in the electricity sector.

Under the proposed Rule 17, state commissions would specify a regulatory framework for demand response, including eligibility criteria for demand response providers, incentives for participating consumers, software and system requirements, communication protocols, and procedures for measurement, verification, and financial settlement.

Demand response programs enable electricity consumers to adjust their usage in response to price signals or incentives, helping DISCOMs manage demand more efficiently and support the integration of variable renewable energy.

Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.