UPERC issues a set of consumer-friendly guidelines to stop harassment

An OTP-based complaint resolution system, stricter billing protocols, improved compensation guidelines and measures to prevent overcharging on single-point connections are among the set of consumer-friendly guidelines issued by the Uttar Pradesh Electricity Regulatory Commission, aimed at improving transparency, accountability and service quality in the energy sector.

The guidelines are part of the commission’s latest tariff decision, in which the energy regulator has opted to keep electricity tariffs unchanged for the fifth consecutive year.

OTP SYSTEM

Consumers will now receive an OTP on their registered mobile numbers after filing a complaint. The complaint will be closed only if the OTP is provided after satisfactory resolution, thus curbing false complaint closures.

BUILDERS told not to pay too much

The commission has cracked down on builders who overcharge for single-point connections. Builders must align their billing with the commission’s approved rates and publish the invoices. Non-compliance will result in fines, with energy companies ordered to create a dedicated website to ensure transparency.

COMPENSATION GUIDELINES ON ACCOUNTS

UPERC has ordered power companies to provide detailed instructions on how consumers can claim compensation for service interruptions or accidents, including web links, based on electricity bills.

RESPONSIBILITY

Energy companies are now allowed to send bills via email, WhatsApp or other digital platforms. However, each invoice must contain complete billing information and bear the signature of an authorized representative to avoid disputes and ensure liability.

MANDATORY DISCLOSURE

Power companies must publish the details of electricity accidents and compensation payments on their websites, including the amount paid out and the timeline of each case, for public scrutiny.

THREE-PHASE CONNECTIONS

The commission has introduced new provisions allowing consumers with a connected power between 3 kW and 5 kW to opt for three-phase connections. This decision, aimed at improving internal load management and phase balancing, comes in response to growing consumer awareness and rising demand for electricity across the state.

In May 2024, peak power demand in Uttar Pradesh exceeded 30,000 MW, largely due to increased use of air conditioning among domestic consumers, who account for nearly 50% of the state’s total load. As living standards rise, consumers increasingly demand uninterrupted power supply with improved quality.

Previously, only connections with a load greater than 5 kW were eligible for three-phase meters, as required by the state’s electric utility law. However, during public hearings, many consumers asked for the possibility of installing three-phase meters even for loads below the 5 kW threshold.

RECORD PEAK DEMAND

The commission noted that the state’s power demand exceeded 30,000 MW in May 2024, largely due to increased use of air conditioners among domestic consumers. This trend reflects higher living standards and rising consumer expectations for uninterrupted and high-quality power supply.

NEW RULES FOR AUTOMATIC TAX REVISION

In response to complaints about arbitrary increases in sanctioned tax, the commission has aligned its provisions with the Electricity (Rights of Consumers) Amendment Rules, 2023. Any automatic tax revision will now follow a structured mechanism, ensuring fairness and transparency.

Several consumers complained that power distribution companies were arbitrarily increasing their sanctioned taxes.

The Commission has brought these revisions in line with the Electricity (Rights of Consumers) Amendment Rules, 2023, notified on June 14, 2023, which sets out a framework for automatic tax adjustments when a consumer’s demand exceeds the contractual limit.

To address these concerns in a transparent manner, the Commission has included new provisions in the General Terms and Conditions of the Tariff Schedule. These guidelines ensure that any increase in the sanctioned tax will be done systematically, according to the prescribed mechanism.

The revised rules are intended to prevent arbitrary increases in taxes while promoting fair practices so that consumers stay informed and only pay for the taxes they actively use.