Lok Sabha Question No. 1556 (UNSTARRED), answered on 2016-11-24
Subject: Compensation to Power Consumers
Ministry: POWER
Asked by: PANKAJ CHOWDHARY

## GOVERNMENT OF INDIA

## MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.1556 TO BE ANSWERED ON 24.11.2016

## COMPENSATION TO POWER CONSUMERS

†1556.  SHRI PANKAJ CHAUDHARY:

Will the Minister of POWER be pleased to state:

- (a) whether there is any provision to provide compensation to the affected power consumers  by  Power  Regulatory  Commissions  in  the  country  under  Section  57  of Electricity Act, 2003 (consumer protection performance of licensee) on being failed to fulfil  performance  standards  laid  down  for  various  operational  power  distribution licensees in States and if so, the details thereof;
- (b) if  so,  the  details  of  the  compensation  been  provided  under  the  Act,  by  Power Regulator  to  affected  power  consumers  during  the  last  three  years  and  the  current year, State/UT-wise;
- (c) whether  any  further  amendments/  provisions  are  proposed  to  be  made  in  the Electricity  Act,  2003  to  protect  consumers  from  frequent  power  cuts,  low  voltage power  supply,  burning  of  transformers  and  delays  in  replacing  them,  losses  due  to faulty transmission wire and burning home appliances due to high voltage; and
- (d) if so, the details thereof and if not, the reasons therefor?

## A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, COAL, NEW & RENEWABLE ENERGY AND MINES

( SHRI  PIYUSH GOYAL )

(a) & (b) : As  per  provisions  contained  in  section  57(1)  of  the  Electricity Act,  2003,  Appropriate  Commission  may,  specify  standards  of  performance  of  a licensee or a class of licensees. The Act also provides for payment of compensation by a licensee in case of non-compliance of standards specified by the  Appropriate  Commission.    The  relevant  provisions  of  the  Act  are  given  at Annex. As  per information  made  available  by  Forum  of  Regulators  (FOR) Secretariat,  in  pursuance  to  these  provisions,  most  of  the  State  Electricity Regulatory  Commissions  (SERCs)  and  Joint  Electricity  Regulatory  Commissions (JERCs)  have  notified  the  standards  of  performance  along  with  schedule  of penalty/compensation  by  a  distribution  licensee  to  the  person  affected  by  nonfulfilment of the performance standards laid down.     Since Power distribution falls under the jurisdiction of the respective States and is  regulated by SERCs/JERCs, the Union Government has no direct role in the functioning of the same.

- (c) & (d) : As express provisions already exist under section 57 of the Electricity Act, 2003, and as such no further amendments/provisions are proposed to be made in relevant provisions of the Electricity Act, 2003 in this regard.

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## ANNEX

## ANNEX REFERRED TO IN REPLY TO PARTS (a) & (b) OF UNSTARRED QUESTION NO. 1556 TO BE ANSWERED IN THE LOK SABHA ON 24.11.2016.

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## Relevant provisions of the Electricity Act, 2003

## Section 57:

- (1) The  Appropriate  Commission  may,  after  consultation  with  the  licensees and persons likely to be affected, specify standards of performance of a licensee or a class of licensees.
- (2)    If a licensee fails to meet the standards specified under sub-section (1), without prejudice to any penalty which may be imposed or prosecution be initiated,  he  shall  be  liable  to  pay  such  compensation  to  the  person affected as may be determined by the Appropriate Commission:

Provided that  before  determination  of  compensation,  the  concerned licensee shall be given a reasonable opportunity of being heard.

- (3)    The  compensation  determined  under  sub-section (2)  shall  be  paid  by  the concerned licensee within ninety days of such determination.

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