In a major victory for electricity consumers, the Electricity Regulatory Commission (ERC) has issued a landmark directive ordering Power Distribution Companies (Discoms) to compensate consumers who were issued exorbitant and inflated power bills due to technical glitches or administrative errors. The Commission emphasized that the “harassment” caused by erroneous billing must be addressed through financial redressal rather than mere corrections.
The Commission’s Directive The order came after a series of complaints from residents across the region who received bills several times higher than their actual consumption.
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The Compensation: The Commission has mandated that if a bill is found to be more than [Omitted – usually 2x or 3x] the average consumption of the previous year without a valid reason (like a faulty meter), the Discom must pay a penalty/compensation to the consumer for the mental agony and time lost.
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No Disconnection: Discoms have been strictly instructed not to disconnect the power supply of any consumer who has challenged an “abnormally high” bill until the grievance is officially resolved by the Consumer Grievance Redressal Forum (CGRF).
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Interest on Overpayment: If a consumer has already paid the inflated amount to avoid disconnection, the Discom is now required to refund the excess amount with interest (calculated at the prevailing bank rate) in the subsequent billing cycle.
Fixing Responsibility The Commission also took a tough stance on the “casual approach” of billing agencies and field staff. It directed the Discoms to:
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Internal Audit: Conduct an internal audit of all billing software to identify bugs that lead to sudden spikes.
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Accountability: Identify and penalize officials or private contractors responsible for manual reading errors or delayed entry of meter data.
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Smart Metering: Accelerate the rollout of smart meters to eliminate human intervention in the billing process.
How to Claim Compensation Consumers who believe they have been wrongly billed can now approach the Sub-Divisional Officer (SDO) or file a complaint online. If the issue isn’t resolved within 15 days, the consumer is eligible to approach the Commission for the mandated compensation.
Consumer rights activists have welcomed the move, stating that it will force Discoms to be more diligent. “For too long, the burden of proof was on the consumer. Now, the Discoms must pay for their mistakes,” said a spokesperson for a local Residents’ Welfare Association (RWA).
