AERC Proposes Major Electricity Supply Code Reforms To Simplify New Power Connections In Assam

The Assam Electricity Regulatory Commission (AERC) has proposed important changes to the Assam Electricity Regulatory Commission (Electricity Supply Code) Regulations, 2017, with the aim of making the electricity connection process faster, simpler, and more consumer-friendly. The draft of the eighth amendment was issued on June 22, 2026, under Regulation No. 280/2007/Pt-III/01. The proposed changes are also expected to improve the ease of doing business and revise the financial framework related to consumer load security deposits.

The amendment has been proposed following a petition filed by the Assam Power Distribution Company Limited (APDCL). According to APDCL, the existing rules require several field inspections and contractor-certified test reports before a new electricity connection is approved. These procedures increase compliance costs, create additional administrative work, and delay the release of electricity connections. The proposal follows recommendations made by the Deregulation Cell of the Cabinet Secretariat, Government of India, and directions from the Power Department of the Government of Assam.

One of the major changes proposed is to simplify the application process for new electricity connections. Under the revised Regulation 4.1.1, consumers will have the option to submit a self-declaration instead of the traditional contractor-certified test report. Through this declaration, the applicant will confirm that the internal wiring has been tested by a licensed electrical contractor and is safe for electricity supply. In addition, under Regulation 4.1.3, consumers opting for a fixed-cost electricity connection may no longer require an initial site inspection. However, APDCL will retain the authority to reject an application and refund the payment within 60 days if any information provided in the self-declaration is found to be incorrect.

The draft amendment also proposes changes in the calculation of charges for new electricity connections. For loads up to 30 kW, consumers choosing the fixed-cost option will pay standard processing and installation charges along with fixed infrastructure costs if the connection requires an extension beyond 30 metres from the existing electricity network. The standard cost for a single-span low-tension extension has been proposed at Rs. 47,271 in rural areas and Rs. 63,954 in urban areas. Fixed charges have also been suggested for higher connected loads. Consumers, however, can still choose the existing actual cost-based method instead of the fixed-cost option. The fixed-cost system will not apply to projects involving railway crossings, highways, forests, wetlands, or other technically complex locations, where physical inspections and technical feasibility studies will continue to be mandatory.

Another important proposal relates to the interest paid on consumer load security deposits. APDCL has suggested replacing the existing SBI Base Rate with the RBI Bank Rate for calculating interest on these deposits, stating that security deposits are meant to protect against payment defaults rather than function as loans.

The Commission conducted a public hearing on June 10, 2026, and has invited comments, objections, and suggestions from stakeholders. Interested parties can submit their feedback to AERC by July 10, 2026, before the draft amendment is finalized.