Karnataka sees regulatory crackdown on billing errors
ECONOMY & POLICY

Karnataka sees regulatory crackdown on billing errors

The Karnataka Electricity Regulatory Commission (KERC) has taken a significant step to address the ongoing issues faced by Open Access (OA) consumers in Karnataka regarding inaccurate and delayed electricity bills. It has been noted that for a considerable time, OA consumers have struggled with financial difficulties due to discrepancies in their billing. The electricity supply companies (ESCOMs) in the state have been issuing initial bills without factoring in OA or wheeled energy, only to later revise them, causing confusion and hardship.

In response, KERC has issued a suo-motu order to rectify this situation, which mandates a more accurate and streamlined billing process. From 1st August 2023, all meter readings at both injection and drawal points must be conducted using Automated Meter Reading (AMR) systems. This automated process will directly transfer data to billing software, enabling the automatic generation of bills, significantly reducing errors and speeding up the billing process.

Understanding that full automation might take some time, KERC has also set out interim measures to ensure billing accuracy. Monthly, authorised representatives from the company and ESCOM will download meter data at the injection point at midnight on the last day of the month, record the readings, calculate the energy and reactive power consumed, and sign a joint statement. This statement, along with an allocation statement, must be submitted by the second day of every month to prevent billing delays.

The order also clarifies how to treat net energy injected by the generator. If the injected energy exceeds the OA consumer?s total consumption, the entire consumption is treated as "wheeled energy," with any surplus considered "banked energy." Conversely, if the injected energy, along with banked energy, is less than the total consumption, the excess is billed at the applicable tariff.

An energy specialist at the Institute for Energy Economics and Financial Analysis (IEEFA), Charith Konda, noted that the State Commission has made a positive step with this order, building on its previous directives to ensure accurate billing for OA consumers in Karnataka. The order's clear timelines for the distribution companies to collect and report meter data aim to prevent delays and streamline the billing process.

KERC?s order further directs ESCOMs to adhere strictly to these guidelines, prohibiting them from issuing bills without properly accounting for OA or wheeled energy. OA consumers are not required to pay bills that do not consider these factors, and ESCOMs cannot disconnect electricity for non-payment of such bills.

This intervention by KERC is expected to bring much-needed relief to OA consumers, ensuring timely and accurate billing, thus reducing disputes and financial burdens. The focus on automation and clear interim process guidelines highlights KERC?s commitment to transparency and efficiency in the energy sector, marking a significant move towards a more automated and reliable billing system for OA consumers.

The Karnataka Electricity Regulatory Commission (KERC) has taken a significant step to address the ongoing issues faced by Open Access (OA) consumers in Karnataka regarding inaccurate and delayed electricity bills. It has been noted that for a considerable time, OA consumers have struggled with financial difficulties due to discrepancies in their billing. The electricity supply companies (ESCOMs) in the state have been issuing initial bills without factoring in OA or wheeled energy, only to later revise them, causing confusion and hardship. In response, KERC has issued a suo-motu order to rectify this situation, which mandates a more accurate and streamlined billing process. From 1st August 2023, all meter readings at both injection and drawal points must be conducted using Automated Meter Reading (AMR) systems. This automated process will directly transfer data to billing software, enabling the automatic generation of bills, significantly reducing errors and speeding up the billing process. Understanding that full automation might take some time, KERC has also set out interim measures to ensure billing accuracy. Monthly, authorised representatives from the company and ESCOM will download meter data at the injection point at midnight on the last day of the month, record the readings, calculate the energy and reactive power consumed, and sign a joint statement. This statement, along with an allocation statement, must be submitted by the second day of every month to prevent billing delays. The order also clarifies how to treat net energy injected by the generator. If the injected energy exceeds the OA consumer?s total consumption, the entire consumption is treated as wheeled energy, with any surplus considered banked energy. Conversely, if the injected energy, along with banked energy, is less than the total consumption, the excess is billed at the applicable tariff. An energy specialist at the Institute for Energy Economics and Financial Analysis (IEEFA), Charith Konda, noted that the State Commission has made a positive step with this order, building on its previous directives to ensure accurate billing for OA consumers in Karnataka. The order's clear timelines for the distribution companies to collect and report meter data aim to prevent delays and streamline the billing process. KERC?s order further directs ESCOMs to adhere strictly to these guidelines, prohibiting them from issuing bills without properly accounting for OA or wheeled energy. OA consumers are not required to pay bills that do not consider these factors, and ESCOMs cannot disconnect electricity for non-payment of such bills. This intervention by KERC is expected to bring much-needed relief to OA consumers, ensuring timely and accurate billing, thus reducing disputes and financial burdens. The focus on automation and clear interim process guidelines highlights KERC?s commitment to transparency and efficiency in the energy sector, marking a significant move towards a more automated and reliable billing system for OA consumers.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code