The Karnataka Electricity Regulatory Commission (KERC) has directed the State Load Dispatch Centre (SLDC) to initiate legal action against independent power producers (IPPs) that have failed to comply with the Commission’s directions regarding the installation and maintenance of Automatic Meter Reading (AMR) facilities.
The order was issued by the Commission from its Bengaluru office and was signed by Chairman P. Ravi Kumar, Member (Legal) H.K. Jagadeesh, and Member Jawaid Akhtar. The move follows the continued non-compliance of several power generators with KERC’s earlier directives aimed at improving metering, billing accuracy, and energy accounting across the state.
In its previous order, KERC had assigned Karnataka Power Transmission Corporation Limited (KPTCL) the responsibility of implementing and maintaining AMR systems for all power generators. The objective was to enable seamless transfer of metering data to the SLDC, ensuring accurate energy accounting and transparent billing. Under the approved framework, KPTCL was authorised to install the required equipment and recover the installation, communication, and infrastructure costs from the respective generators. The Commission had also directed generators to accept energy bills generated through AMR data, while KPTCL was required to carry out spot inspections twice every year to maintain billing accuracy.
To implement the project, SLDC and KPTCL floated a tender and awarded the contract for AMR installation and its Comprehensive Annual Maintenance Contract (AMC) to M/s NSOFT (India) Services Pvt. Ltd. The project was planned under a deposit contribution mechanism, requiring generators to pay the applicable charges.
However, progress reports submitted before the Commission showed poor compliance by power generators. Of the 79 new generator installations, 67 generators have not paid the mandatory charges for AMR installation. In addition, 940 out of the state’s 1,710 generators have failed to pay the Comprehensive AMC charges required for maintaining the AMR system.
Taking serious note of these defaults, KERC observed that the non-payment amounts to a violation of its regulatory orders. The Commission has therefore instructed the SLDC, acting as the nodal agency, to file petitions against the defaulting generators under Section 142 of the Electricity Act, 2003, which deals with non-compliance of Commission orders.
The latest directive highlights KERC’s determination to strengthen digital metering infrastructure, improve operational transparency, and ensure that all power generators comply with regulatory requirements to support an efficient and accountable electricity sector in Karnataka.
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