KERC Simplifies Power Reconnection, Clarifies Infrastructure Charges, And Removes Contract Demand Limits In Karnataka

The Karnataka Electricity Regulatory Commission (KERC) has issued an order addressing three important issues related to electricity supply in the state. The first concerns the reactivation of installations that were disconnected in structurally intact premises. Until now, consumers whose power supply agreements were terminated had to go through a lengthy process of reapplying, even if the original building and infrastructure were intact. The Commission observed that this created unnecessary hardship, especially when the consumer only needed reconnection without making any structural changes. To address this, KERC has decided that such installations can be reactivated if the consumer agrees to pay the full security deposit and clear all outstanding dues, including fixed charges for the inactive period. This move is expected to simplify the process while ensuring financial responsibility.

The second issue relates to the levying of development and infrastructure charges by distribution companies. Consumers had raised concerns during public hearings that these charges were being wrongly applied to the entire requisitioned load rather than the assessed load, which was against the existing norms. KERC clarified that development charges for electric lines or plants should only be levied on the assessed load, as defined in the regulations. If the applicant or developer has not laid the required electric line or plant up to the point of connection, charges will apply accordingly. However, service line costs will be applied only beyond the assessed load up to the requisitioned load. If both assessed load and requisitioned load are the same, service line charges will not be applicable. The order also makes provisions for cases where consumers request additional load or new connections within the premises, ensuring charges are applied fairly as per the regulations.

The third issue deals with the permissible limit of Contract Demand (CD) for high-tension consumers. A representation was made seeking an increase in the CD limit at the 33 kV supply level from 10 MVA to 20 MVA due to practical difficulties in availing a supply at 110 kV. After examining technical feasibility, KERC has decided to remove the specified CD limits at 33 kV, 66 kV, and 110 kV levels, provided that technical conditions such as voltage regulation, transformer capacity, and line loadings are within permissible limits. To ensure system stability and cost recovery, augmentation charges will be levied on consumers drawing higher demand. The charges are set at Rs 8 lakh per MVA for demand above 7,500 kVA at 33 kV, Rs 9 lakh per MVA for demand above 20,000 kVA at 66 kV, and Rs 10 lakh per MVA for demand above 35,000 kVA at 110 kV. Importantly, any augmentation charges collected at 66 kV and above will be transferred to the transmission licensee.

This order represents an effort by KERC to streamline procedures, bring clarity in the application of charges, and create more flexibility for industrial and commercial consumers. It balances consumer convenience with financial and technical accountability, ensuring that the state’s power system remains both efficient and fair. The Commission has also directed that necessary amendments to the relevant regulations be carried out following due procedure.