KERC Issues Draft Karnataka Electricity Regulatory Commission (Electricity Supply) Regulations, 2026

The Karnataka Electricity Regulatory Commission (“KERC”) vide notification dated 14.08.2026 has invited stakeholder comments on the Draft Karnataka Electricity Regulatory Commission (Electricity Supply) Regulations, 2026 (“Draft ESR”)¹. The Draft ESR are aimed at streamlining electricity connections and related consumer services across the State and consolidate several existing regulations into a single framework governing supply of electricity in the State. Stakeholders may submit their comments on the Draft ESR within 30 days from the date of notification in the Gazette.

The key highlights the Draft ESR are as follows:

1. Applicability: The Draft ESR shall extend to the whole of the State of Karnataka and shall be applicable to all the distribution licensees operating within the State and to all consumers and applicants for supply of electricity, unless otherwise specifically provided.
2. Classification of supply and connection procedure: The Draft ESR classifies supply to consumers/applicants by voltage level into three categories i.e., Low Tension, High Tension and Extra High Tension based on contracted or sanctioned load. The Draft ESR prescribe a time bound, online procedure for new and additional connections, along with the documentation, power sanction, service line execution and commissioning of supply, with defined timelines for the licensee depending on the nature of works required.
3. Metering, billing and disconnection: Every new connection requires a meter conforming to Central Electricity Authority (Installation and Operation of Meters) Regulations, 2006. The Draft ESR prescribe the billing cycle and bill contents, treatment of disputed or defective-meter bills, delayed payment charges, and the procedure for disconnection and reconnection, along with recourse to the Consumer Grievance Redressal Forum and Electricity Ombudsman.
4. Security deposit: The licensee may require security from a person seeking supply, towards dues for electricity supplied and for provision of line, plant or meter. The Draft ESR set out the basis for computation, periodic review, refund and interest payment on such security.
5. Unauthorised use and theft of electricity: The assessment for unauthorised load, misuse of electricity and unauthorised extension of supply is twice the applicable tariff, capped at 12 months’ back-billing where the period of such use cannot be determined. The Draft ESR provides for provisional and final assessment orders, followed by appeal before the Appellate Authority as per Section 127 of the Electricity Act, 2003 (“EA 2003”). The Government may accept from any consumer who has committed an offence of theft of electricity, a sum of money by way of compounding of offences as per Section 152 of the EA 2003.
6. Power to amend, remove difficulties and relax: The KERC may issue directions for effective implementation of the Draft ESR, remove any difficulty arising in giving effect to its provisions, and add to, vary, alter, modify, amend or repeal any provision at any time in accordance with the EA 2003.
7. Power to amend, remove difficulties and relax: The KERC may issue directions for effective implementation of the Draft ESR, remove any difficulty arising in giving effect to its provisions, and add to, vary, alter, modify, amend or repeal any provision at any time in accordance with the EA 2003.
8. Repeal and Savings: Upon coming into force, the Draft ESR repeals the (a) KERC (Electricity Supply) Code, 2004; (b) KERC (Recovery of Expenditure for Supply of Electricity) Regulations, 2004; (c) KERC (Interest on Security Deposit) Regulations, 2005; (d) KERC (Procedure for filing Appeal before the Appellate Authority) Regulations, 2005; (e) Conditions of Supply of Electricity of Distribution Licensees in the State of Karnataka, 2006; and (f) KERC (Security Deposit) Regulations, 2007, together with amendments thereto.
9. Interpretation: In the event of any question relating to the interpretation of these regulations, the decision of the KERC shall be final and binding, subject to the provisions of the EA 2003

Footnote

^{1 Draft Karnataka Electricity Regulatory Commission (Electricity Supply) Regulation, 2026}

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