Eninrac Insights: The recent amendments to the Madhya Pradesh Electricity Supply Code introduce significant changes affecting multiple stakeholders, including residential consumers, commercial and industrial users, distribution licensees (DISCOMs), builders, and regulators. These amendments aim to improve regulatory clarity, enhance financial accountability, and promote efficient power usage. However, they also introduce cost implications and stricter compliance measures.
A. Residential Consumers (Low-Tension - LT)
Key Amendments:
- Sanctioned Load vs Connected Load: Domestic consumers can have a connected load exceeding the sanctioned load, but billing will follow tariff orders.
- Billing Changes: Fixed charges for residential consumers will now be determined by the tariff orders of respective years.
- No Refund for Contract Demand Reduction: If a consumer reduces their sanctioned load or contract demand, they will not be eligible for a refund on new connection or supply-affording charges.
Impact:
- Positive: Greater clarity in load definitions, allowing consumers flexibility in connected load.
- Negative: Increased financial burden as fixed charges will be aligned with tariff orders, possibly leading to higher electricity bills.
- Negative: No monetary relief if a consumer reduces their sanctioned load but later requires an increase, as fresh supply-affording charges will be applicable.
B. Commercial & Industrial Consumers (High-Tension & Extra-High-Tension - HT & EHT)
Key Amendments:
- Defined Contract Demand: Contract demand must be as per an agreement with the licensee.
- Billing on Sanctioned Load Basis: For non-domestic LT consumers, fixed charge billing is now based on sanctioned load instead of connected load.
- Charges for Excess Consumption: If a consumer exceeds their sanctioned load or contract demand, additional billing will apply as per tariff orders.
- Supply Voltage Norms: Standardized voltage limits for different contract demands have been introduced, with some flexibility for deviations.
Impact:
- Positive: Clearer regulations on contract demand, ensuring businesses align their power usage with agreements.
- Positive: Potential flexibility in supply voltage norms, allowing businesses to negotiate favourable terms with DISCOMs.
- Negative: Higher fixed costs as billing are based on sanctioned load rather than actual usage.
- Negative: Penalties for exceeding contract demand, making energy planning and load management critical for industries.
C. Builders, Developers & Societies
Key Amendments:
- Formal Recognition as "Applicants": Builders, developers, and societies are now recognized as official applicants for new electricity connections.
- Smart Meter Regulations: Consumers with smart meters must have sanctioned load enhancements if technically feasible.
Impact:
- Positive: More structured process for applying for electricity connections, making approvals and responsibilities clearer.
- Positive: Encourages energy efficiency in housing and commercial projects through better planning of sanctioned loads.
- Negative: Higher costs for infrastructure if smart meter users require automatic sanctioned load enhancements.
D. Distribution Licensees (DISCOMs)
Key Amendments:
- More Control Over Load Sanctioning: DISCOMs can approve or reject sanctioned load requests based on technical feasibility.
- Voltage Supply Standardization: New voltage limits for different contract demands have been introduced.
- Contract Demand Regulations: Enforces stricter compliance on contract demand agreements.
Impact:
- Positive: Better grid stability through controlled load sanctioning and supply voltage management.
- Positive: Improved revenue assurance through stricter billing policies and sanctioned load enforcement.
- Positive: Potential increase in smart meter adoption, leading to improved energy efficiency and demand-side management.
- Negative: Higher administrative burden due to increased monitoring and compliance tracking.
E. Smart Metering Consumers
Key Amendments:
- Mandatory Load Enhancement for Smart Meters: Consumers using smart meters will have their sanctioned load enhanced automatically if feasible.
- Impact on Tariffs: Fixed charge billing for domestic consumers will be aligned with tariff orders
Impact:
- Positive: Encourages demand-side management, as consumers may optimize usage to avoid higher costs.
- Positive: Greater transparency in billing, reducing disputes and unauthorized power usage.
- Negative: Potential increase in electricity bill due to automatic sanctioned load enhancement
