The Conditions of
Supply of Electricity of Distribution Licensees in the State of Karnataka (CoS)
were notified in the Karnataka Gazette on 17th June, 2006, and subsequently
Nine (9) amendments were issued from time to time. The Additional Chief
Secretary, Commerce and Industries Department, GoK, vide D.O. Letter No:
KUM/DD-7/295/2021-22 dated: 12.01.2022 requested Additional Chief Secretary
Energy to propose for the amendment of KERC Regulations for exempting the
Industries from producing the Occupancy Certificate (OC), while availing the
electricity connection. The Additional Chief
Secretary, Energy Department, GoK, vide letter No: ENERGY/148/VSC/2022
dated:30.3.2022 has requested the Commission to verify under prevailing Rules
and Act to provide the electricity connection for both residential and
commercial buildings without insisting for Occupancy Certificate (OC), as approved
by the GoK and recommendations made in the Proceedings of the meeting of the
Urban Development Department held on 24.01.2022 regarding Occupancy Certificate
and for providing power supply for buildings within BBMP limits. In this regard, the
Commission directed the Energy Department, GoK to follow the procedure for
amendment of Conditions of Supply. Further, Karnataka
Small Scale Industries Association (KASSIA) vide its letter No:
KASSIA/KERC/2022/10383 dated:04.04.2022 requested the Hon'ble Chief Minister of
Karnataka, to exempt the industries from providing Occupancy Certificate for
obtaining the electricity supply connection. Accordingly,
Bangalore Electricity Supply Company Ltd., (BESCOM), has filed a Petition vide
OP 11/2022 and MESCOM & other ESCOMs have filed a Petition vide OP No.
12/2022 before the Commission under Clause 46 of the CoS, read with Clause 11
of the KERC (General and Conduct of Proceedings), Regulations, 2000 for
deletion of the Clauses 8.11, 9.07(4) and 4.10(6) (C) of CoS in respect of OC. The ESCOMs in their
Petitions have stated the following: Monitoring the
requirement of OC is the responsibility of the concerned authorities such as
Municipal Corporations and the Respondent Urban Development Department and the
onus of ensuring that the applicants possess occupancy certificate cannot be
trusted upon the distribution licensees in the presence of Authorities that are
responsible to monitor the same. Section 43 of the
Electricity Act, 2003, specifies that, it is the duty of the distribution
licensee to supply electricity to the premises within one month of receipt of
application requiring supply of electricity. The said Section further
contemplates penalizing the distribution licensees, if they fail to supply
electricity. Furthermore, Section 44 creates an exception to the duty to supply
electricity, only if the distribution licensee is prevented from doing so on
account of storms, cyclones or occurrences beyond its control. Wherefore, it is
clear that the Electricity Act, 2003 creates a right in favour of the
Applicants in availing electricity as a matter of right and creates a universal
supply obligation on the distribution licensee. It is stated that,
creating an obligation to produce the OC to avail supply of electricity defeats
the very purpose of the Section 43 and Section 44 of the Act. It is the duty of
distribution licensee to ensure that electricity is supplied on request and not
to insist on the production of OC, for the purpose of granting permanent
electricity connection. It is further
submitted that the State of Karnataka is a power surplus state, due to this,
demand falls short of supply of power, which results in large amount of
stranded capacity in the State. When the demand falls short of supply, the SLDC
(State Load Dispatch Centre) ought to give backdown instructions to the power
plants to decrease the generation and injection of power into the grid to
ensure grid safety and security. In case the
requirement of OC is dispensed with, the ESCOMs will be in a position to
service a large number of consumers and thus supply a larger quantity of power.
This will enable ESCOMs to use more energy from all its contracted generators
and help in mitigating the backdown instructions to the thermal stations. Although, the said
instructions by SLDC are given in the interest of grid security, the ESCOMs
have to pay the conventional generators, fixed charges even for the energy that
is not drawn, as the ESCOMs have entered into several power purchase
agreements. The distribution companies have entered into long term PPAs with
several thermal stations, which results in unavoidable payment of fixed charges
which would consequentially increase the tariff for the exiting consumers. The above can be
avoided by balancing the demand and supply of power. As power supply is not
granted to new consumers for want of OC, the demand in the State has further
come down. If the requirement of OC is dispensed with, the energy industry in
the state will be benefited as the ESCOMs will not have to incur losses on
account of payment of fixed charges due to backing down of thermal stations, as
a result, such losses will not be passed onto to the consumers. In conclusion, the
ESCOMs have stated that the proposed amendments to CoS will benefit the
consumers at large, the ESCOMs and also the generators in the state. The Commission after
hearing the Petitions filed by the ESCOMs, has decided to hold pubic
consultation. Considering the
above, the draft Conditions of Supply of Electricity of Distribution Licensees
in the State of Karnataka (CoS) (Tenth Amendment) 2022 were notified on
12.05.2022 vide Notification No. KERC/01/DDD/22-23/167 inviting
comments/views/suggestions/objections from the stakeholders, general public and
interested persons, on or before 30th May 2022. The draft Amendments were also
hosted on the Commission's website www.karunadu.karnataka.gov.in/kerc and
published in the newspapers for the information of public/interested persons. The Commission
received comments/suggestions/views/objections from the stakeholders. The
Commission has also held a 'Public Hearing' on 23.06.2022 in the matter. The gist of the rival
contentions made out from the comments/suggestions/views/objections received
from the stakeholders and the submissions made by them in the public hearing
may be stated as follows: Several stakeholders
insisted for removal of the production of 'Occupancy Certificate' for service
connections, contended that it was for the concerned Municipal Authority to
enforce the provisions of the Municipalities/Corporation Act, and the bye-laws
framed thereunder against the unauthorized cons tractions or deviation of
Sanctioned Plan and the same was not within the domain of the Electricity Act.
Further, they contended that denial of electricity supply to an occupant of a
building would amount to denial of essential service to such occupants.
According to them, electricity is an essential commodity which cannot be
refused on the ground of non-production of 'Occupancy Certificate'. On the
other hand, some of the stakeholders insisting for retaining of the provisions
for production of the 'Occupancy Certificate' for service connection, contended
that removal of such provision would lead to construction of buildings in
rampant violation of the building by-laws, thereby it would encourage them to
violate the provisions of law. The Commission is of
the view that there is a universal obligation on the part of the Distribution
Licensees to supply electricity on request, by the owner or occupier of any
premises on such terms & conditions as stipulated in the relevant
provisions of the Electricity Act, 2003 and the Regulations framed thereunder.
For curbing the construction of unauthorized buildings, the concerned local
bodies will have to take action under the respective enactments. The
Electricity Act and the Regulations cannot be used for curbing violations under
other laws. For curbing such activities, the concerned officials have to take
proper actions as provided under different enactments. Providing an essential service
to the consumer is more essential, as obligated under the Electricity Act 2003. The Commission has
carefully considered the comments/views/suggestions/objections received from
the stakeholders and in order to comply with the duty to supply electricity
under Section 43 of the Electricity Act, 2003 read with Clause 46 of CoS
(Removal of Difficulty), has decided to amend the Conditions of Supply
suitably. Now, therefore, in
exercise of the powers conferred by Section 16 of Electricity Act, 2003(Central
Act No. 36 of 2003), the Clause 46 of CoS and all powers in that behalf the
Karnataka Electricity Regulatory Commission hereby makes the following
amendments to clauses 9.07(4), 8.11 and 4.10(6)(C) of the Conditions of Supply
of Electricity of Distribution Licensees in the State of Karnataka (CoS), 2006: (a) This may be called as
the Conditions of Supply of Electricity of Distribution Licensees in the State
of Karnataka (CoS) (Tenth Amendment), 2022. (b) It shall come into
force from the date of its publication in the Official Gazette of the Karnataka
State and all pending applications for supply/additional supply of electricity
for which power sanction is communicated/work order issued shall be processed
as per these amended conditions of Supply (CoS) without insisting for fresh
applications. (c) It shall apply to all
the Licensees engaged in the business of distribution of electricity and the
consumers of electricity in the State of Karnataka. In the Conditions of
Supply of Electricity of Distribution Licensees in the State of Karnataka, the
existing Clause mentioned in the Column -2 of the table below shall be
substituted by the Clause mentioned in the Column -3, namely,- Sl. No. Column 1 Column 2 Column 3 Clause No. As existing As amended/Inserted (1) 9.07 (4) The Applicant shall furnish the
Occupancy Certificate from the Competent Authority, before commencement of
supply of electricity including to any additional floors or additional built-up
area to an existing building/complex. Explanation: For the purpose of
this Sub-Clause, Occupancy Certificate means, the Occupancy Certificate, or
such other certificate by whatever name called, issued by authority
permitting occupation of any building, as provided under local laws, which
has provision for civic infrastructure such as water, sanitation and
electricity. Deleted (2) 8.11 The servicing of the installation of
the Applicant shall be earned out on production of the copy of the Occupancy
Certificate, the approval of his installation by the Electrical inspectorate
and also "Test and Commissioning Certificate" of the equipment installed
as required by the Licensee. Explanation: The Occupancy
Certificate means, the occupancy certificate, or such other certificate, by
whatever name called, issued by the competent authority, permitting
occupation of the building, as provided under local laws, which has provision
for infrastructure such as water, sanitation and electricity and further such
occupancy certificate shall also be furnished for servicing of any additional
floors or additional built-up area to the existing building. The servicing of the instaliation of
the Applicant shall be carried out on production of the copy of the approval
of his installation by the Electrical Inspectorate and also "Test and
Commissioning Certificate" of the equipment installed as required by the
Licensee. (3) 4.10 CRITERIA FOR ARRANGING POWER SUPPLY
UNDER EASE OF DOING BUSINESS (EODB); CRITERIA FOR ARRANGING POWER SUPPLY
UNDER EASE OF DOING BUSINESS (EODB); 1. XXX 1. XXX 2. xxx 2. xxx 3. xxx 3. xxx 4. xxx 4. xxx 5. xxx 5. xxx 6. The Applicant shall mandatorily
furnish the following documents while seeking power supply under
EODB; 6. The Applicant shall mandatorily
furnish the following documents while seeking power supply under
EODB; a) Proof of identity, b) Proof of ownership, c) Occupancy Certificate, a) Proof of identity, b) Proof of ownership, 7. xxx 7. xxx 8. xxx 8. xxx 9. xxx 9. xxxCONDITIONS OF SUPPLY OF ELECTRICITY OF
DISTRIBUTION LICENSEES IN THE STATE OF KARNATAKA (COS) (TENTH AMENDMENT), 2022
PREAMBLE