HPERC Proposes New Distribution Performance Standards To Enhance Consumer Service And Compensation

The Himachal Pradesh Electricity Regulatory Commission (HPERC) issued a draft notification on September 23, 2025, proposing amendments to the state’s Distribution Performance Standards. These proposed rules, named the Himachal Pradesh Electricity Regulatory Commission (Distribution Performance Standards) (Third Amendment) Regulations, 2025, aim to update the 2010 regulations in line with the central government’s Electricity (Rights of Consumers) Rules, 2020, and its subsequent amendments. The main goal is to improve consumer satisfaction with the services provided by electricity distribution licensees.

The draft amendments introduce several key changes to enhance service reliability and provide clear compensation standards for service delays. One significant addition is the definition of “Hilly Areas/terrain,” which will include all regions above 1,000 meters above mean sea level. This definition will guide the application of the regulations in difficult terrains. The amendments also clarify how Reliability Indices should be followed, specifically referencing Item 4 of the Schedule to the regulations.

A major focus of the draft is compensation for service delays. Licensees are now required to set up an online facility where consumers can register compensation claims within 30 days of the regulations being notified. They must also ensure this information reaches consumers through mass media, electricity bills, SMS, emails, and the company website.

The revised Guaranteed Standards of Performance detail timelines and compensation amounts for specific services. For meter testing and checking, service must be completed within five days. If the licensee fails to meet this deadline, consumers are entitled to a minimum compensation of Rs. 80 per day of delay. For replacing defective, stopped, or burnt Low Tension (LT) meters, timelines differ by area and fault attribution. In urban areas, replacements not caused by consumer faults, such as tampering or unauthorized load, must occur within 24 hours, with compensation of Rs. 150 per day for delays. In rural and remote areas, the replacement period is extended to 72 hours, with the same compensation for default. High Tension (HT) consumers must receive meter replacements within 24 hours for non-attributable faults, with compensation of Rs. 400 per day for any delay.

The draft also specifies compensation for temporary power supply delays. Low Tension temporary connections, where no distribution mains extension is needed, must be provided within 48 hours of application and payment. Defaults in this timeline will result in compensation of Rs. 200 per day.

System reliability is another key focus of the amendments. Licensees are now mandated to provide a 24×7 power supply to all consumers. Reliability will be measured based on both sustained and momentary interruptions. A new metric, the Momentary Average Interruption Frequency Index (MAIFI), has been introduced to track interruptions lasting less than five minutes. The MAIFI calculation, based on the IEEE Standard 1366 of 2003, will help monitor the average number of brief interruptions per consumer, ensuring more accurate measurement of power quality.

Consumers and other stakeholders have 30 days from the publication of the draft in the Rajpatra to submit objections or suggestions to the Secretary of HPERC. These amendments aim to bring more transparency, accountability, and efficiency in electricity distribution services, especially in hilly and challenging areas of the state.

The proposed changes are expected to strengthen consumer rights, improve service reliability, and ensure fair compensation for delays, reflecting HPERC’s commitment to modernizing electricity distribution and enhancing overall consumer satisfaction.