After bringing about a single slab system for electricity charges in the LT category, the Karnataka Electricity Regulatory Commission (KERC) has directed electricity supply companies (escoms) to allow LT residential consumers to avail multiple electricity connections in their residential premises. The order was issued on March 26 following complaints from many consumers that escoms are not sanctioning multiple connections.
“The Commission, in its 2024 tariff order, introduced a single slab for energy charges, allowing LT residential consumers to avail multiple connections to their premises as per their requirements,” a senior KERC official said.
Peer-to-peer solar transactions might cost participants
To provide consumers an incentive to invest in renewable energy, the KERC had notified draft regulations for ‘Peer to Peer Solar Energy Transactions’ earlier this year. According to the draft regulations, consumers who had installed rooftop solar power systems could sell solar power to anyone according to the tariff fixed by the Commission through blockchain technology. Previously, the consumers were allowed to sell solar energy only to escoms.
Experts think that the system might lead participants to bear additional charges while selling electricity.
“According to KERC’s Terms and conditions for Green Energy Open Access Regulations, 2022, the consumers who will participate in this peer-to-peer transactions will also have to bear transmission and wheeling charges, cross-subsidy charges and a few other charges. More importantly, they would have to pay 9% electricity tax on grid supply unit rates,” said M. G. Prabhakar, former member of KERC advisory committee.
He suggested that the Commission consider exempting participants from these additional charges, like in Delhi where this transaction method has been implemented, to encourage such transactions. Mr. Prabhakar also said that the KERC had not considered the fact that under Section 14 of Electricity Act 2003, it is mandatory to get a distribution license to sell electricity in Karnataka.
A public hearing on the matter will be held by KERC on March 28 at 11 a.m. where interested consumers can submit their views, suggestions, and comments.
