The Kerala State Electricity Regulatory Commission (KSERC) has proposed that distribution licensees such as the Kerala State Electricity Board (KSEB) introduce an “automatic compensation mechanism” as part of their performance standards for paying compensation to consumers.
The recommendation on an “automatic compensation mechanism” is part of the proposed amendments to the KSERC (Standards of Performance of Distribution Licensees) Regulations introduced in 2015. The standards prescribe a minimum level of performance specified for services provided by a licensee to consumers and compensation to be paid in the event of a breach.
In six months
The mechanism should be put in place within six months from the date of notification of the regulations, the draft KSERC (Standards of Performance of Distribution Licensees) (First Amendment) Regulations 2026 said.
Initially, the automatic mechanism will be applicable to a range of performance parameters. The licensee is obliged to ensure a “progressive and gradual increase in the number of parameters” over time. “The consumer will be automatically compensated without the need to make any claim, upon automatic identification of default in the performance of the distribution licensee in relation to the specified parameters,” the proposal states. The commission plans to hold a public hearing (online mode) on the proposal on February 25.
Time limit
Among other things, the bill suggested adjusting compensation rates and deadlines for handling complaints. For example, the draft proposes that the compensation payable to consumers for non-resumption of supply in case of a normal insurance call within the prescribed time limit from ₹25 to ₹100.
For restoration of supply during normal outages, the proposal proposes that the deadline be set at four hours in urban areas and six hours in rural areas from the time of registration of the complaint. In “difficult” areas, according to the proposal, supply should be restored within eight hours. In the event of faults in outdoor lines or outdoor cables, the period for restoring supply is set at six hours, eight hours and 12 hours in urban, rural and difficult areas from the time of the fault.
Published – 06 Feb 2026 20:41 IST