Electricity Meter Overcharging – Legal Option Available

The electricity meter measures the amount of energy consumption, maximum demand and other electrical parameters of applicable tariffs and is used to determine the monthly bill by the distribution companies. However, due to some technical fault or malafide tampering with the meter by the distribution companies or their agents, the meter may show more energy consumption than the actual one. This overcharging is in violation of the provisions of the Electricity Act, 2003.

Rights of Consumers in regards to Electricity Meters

·         Conditions and Procedure for getting a new connection, disconnection, reconnection, change in load or name or tariff;

·         Correctness of meters;

·         Tariff schedule and other schedule of charges;

·         Consumers can purchase meters from the distribution company or any certified meter supplier by the Central Electricity Authority;

·         Consumers can get their meter tested for accuracy of reading by making a request to the distribution company and upon payment of testing charges;

·          Consumers also have the right to receive such test report within two months from the date of request for testing;

·         Right to receive original bills;

·         Right to receive a rationalization of the basis of calculation of the bill.

Consumer Service Centre

To get any information or to lodge complaint in regards to any matter such as “overcharging on electricity meters”, consumers under the Electricity Act, 2003 can personally visit or communicate with the Consumer Service Centres established by the Electricity Distribution Companies.

Important Things to Remember

·         Make a representation before the State Electricity Board to affix a new meter;

·         Before disconnecting the electricity supply, 15 days prior notice has to be given in writing to the consumer;

·         File a complaint for overcharging on electricity meter before the Consumer Grievance Redressal Forum;

·         Consumer can make a demand for the copies of the rules and regulations for redressal of grievances while paying for photocopy charges;

·         Consumer can also demand the postal address, e-mail, telephone numbers and fax of the Internal Grievance Redressal Cells, Consumer Grievance Redressal Forums and Electricity Ombudsman;

·         If the problem is not resolved by the Forum, a writ for mandamus before the High Court is the next option.

Statutory Law References

Sec. 42 & 56 of the Electricity Act, 2003

Landmark Judgments

Western Electricity Supply Co. of Orissa Ltd & Ors. v. M/s Baba Baijanath Roller and Flour Mill P. Ltd. CIVIL APPEAL No . 4023 of 2014 (Arising out of Special Leave Petition (Civil) No. 3396 of 2011)

M/S.Godrej & Boyce Mfg.Co.Ltd vs The Deputy Chief Engineer WP(C).No. 1945 of 2011(P) (Kerala HC)

N. Mohamed Kani  v. The Secretary W.P.No.24536 of 2013 (Madras HC)

Electricity Act -2003

Earlier in India, the electricity supply industry was governed and regulated by the Indian Electricity Act 1910, Electricity Act 1948 and the Electricity Regulatory Commission Act 1998. These three Acts were not able to cater to the changing times of industrialization, globalization, the economic needs of the increasing population coupled with the power sector reforms across various states and therefore, Parliament passed the Electricity Act in the year 2003.

Electricity Act, 2003 (Purpose)

The Electricity Act, 2003 was enacted to take care of the needs of the power sector in the areas of generation, transmission, distribution and trading of electricity. This Act applies to the whole Indian territory except Jammu & Kashmir. It was enacted so as to supplement the development of the electricity sector while promoting competition in the sector. It aims to protect the consumers and rationalizing the electricity tariffs.

Significant features of the Act

·         Provision for private Transmission licenses;

·         No license for generation of electricity (except hydro-projects);

·         Distribution licensees can undertake generation;

·         Transmission utility at both central and state level;

·         Establishment of Central Electricity Authority (CEA), Central Electricity Regulatory Commission (CERC), State Electricity Regulatory Commission (SERC), Central Advisory Committee (CAC) & State Advisory Committee (SAC);

·         Establishment of fund at both central and state level;

·         Captive generation is permitted by a group of people to meet their own needs;

·         Open access may be permitted by the SERC in distribution in phases;

·         Introduction of Multi-Year Tariffs;

·         Direct nexus between the consumer and the generating company or a trader;

·         Provision for transfer scheme;

·         Metering of electricity is mandatory;

·         Caps put on trading margins;

·         Generation and distribution to be allowed in rural and remote areas;

·         Establishment of Appellate Tribunal to adjudicate upon the issues faced by the consumers;

·         Penalties and punishments have been prescribed for offences including but not limited to the theft of electricity, stolen property, damaging work, etc.;

·         Jurisdiction of Civil court is excluded for speedy disposal of electricity disputes;

·         National Electricity Policy and Tariff Policy to be tabled out by the Central Government;

·         Establishment of special courts for speedy trials;

·         There is also provision for arbitration to avoid consumption of time and resources.

Landmark Judgments

Tata Power Company Vs Maharashtra Electricity Regulatory Commission 2009 ELR (SC) 246

Brihanmumbai Electric Supply & Transport Undertaking (BEST) v. Mahrashtra Electricity Regulatory Commission (MERC) & Ors. CIVIL APPEAL NO.4223 OF 2012

U.P Power Corporation Ltd. & Others v. Anis Ahmad (2013) 8 SCC 491

T.N. Generation & Distribution Corporation v. PNP Power Gen Co. CIVIL APPEAL NO. 4126 OF 2013

M/s. Sesa Sterlite Ltd Vs. Orissa Electricity Regulatory Commission & Ors. CIVIL APPEAL NO. 5479 of 2013

Hindustan Zinc vs Rajasthan Electricity Regulatory Commission CIVIL APPEAL NO.4417 OF 2015