KERC Proposes Amendment to Enhance Consumer Grievance Redressal Mechanism in Karnataka

Introduction

The Karnataka Electricity Regulatory Commission (KERC) has issued a draft amendment to the KERC (Consumer Grievance Redressal Forum and Ombudsman) Regulations, 2004.^[1] This proposed amendment, known as the Third Amendment Regulations, 2025, aims to enhance the consumer grievance redressal process in Karnataka by making it more efficient and accessible. By proposing the establishment of additional forums and incorporating digital solutions, the KERC intends to provide quicker resolution to consumer complaints and improve overall accountability within the electricity distribution sector.

Explanation (Key Points)

Expansion of Consumer Grievance Redressal Forums (CGRFs)

• Currently, each Electricity Supply Company (ESCOM) is required to establish a CGRF in every revenue district under its jurisdiction.
• The amendment proposes the establishment of an additional CGRF at the corporate level for each ESCOM.
• The corporate-level forum will provide consumers an option to escalate grievances that remain unresolved at the district level within 60 days.

Structure and Composition of Corporate-Level CGRFs

• The new forum will consist of four members, including:
• A Chairperson, an officer of the ESCOM not below the rank of Chief Engineer.
• One officer not below the rank of Superintending Engineer.
• A representative for “prosumers” (individuals who both consume and inject electricity into the grid), nominated by the licensee.
• One member with expertise in electricity, consumer affairs, or law, nominated by KERC.

Digital Interfaces for Accessibility

• To facilitate smooth grievance escalation, the amendment mandates the creation of a digital interface for consumers.
• This system will allow automatic escalation of complaints to the corporate-level CGRF if unresolved within the stipulated 60 days.

Timeline for Grievance Resolution

• The corporate-level CGRF is required to resolve complaints within 30 days of receipt, ensuring faster grievance redressal.

Enhanced Consumer Representation

• The inclusion of a “prosumer” representative in the corporate CGRF acknowledges the evolving role of consumers in the electricity sector, particularly those involved in renewable energy generation.

Remuneration and Tenure for Members

• Members of both district-level and corporate-level CGRFs will now receive monthly honorariums and sitting fees, along with travel and dearness allowances, aligning with the standards for Class I government officers.
• Non-official members and prosumer representatives will serve a term of three years.

Alignment with Updated Consumer Standards

• The proposed amendment aligns grievance redressal mechanisms with the KERC (Rights of Consumers Relating to Supply of Electricity, Standards of Performance (SoP) and Allied Matters) Regulations, 2022, ensuring consistency across the rules & regulations.

Conclusion

The KERC’s draft amendment is a progressive step towards strengthening the consumer grievance redressal system in Karnataka. By establishing corporate-level forums, integrating digital solutions, and improving consumer representation, the amendment addresses the growing complexity of consumer needs and the demand for efficient dispute resolution. Public comments on the draft are invited by February 10, 2025, signaling KERC’s intent to involve stakeholders in the regulatory process. If implemented effectively, these changes could set a benchmark for other states in enhancing electricity consumer protection mechanisms.

^[1] https://kerc.karnataka.gov.in/uploads/media_to_upload1737438924.pdf