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.

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