The Andhra Pradesh Electricity Regulatory Commission (APERC) has introduced the draft Third Amendment to the Andhra Pradesh Electricity Regulatory Commission (Security Deposit) Regulation, 2004. This amendment comes after several revisions to the original regulation since its first notification on May 17, 2004. The amendment reflects the changes brought about by the bifurcation of the undivided Andhra Pradesh state and the subsequent formation of the new APERC for the residual state of Andhra Pradesh, effective from August 1, 2014.
The amendment comes as a response to the Central Electricity Authority (CEA) regulations and the Ministry of Power’s (MOP) directives regarding the installation and operation of Smart Meters. The CEA introduced changes to its 2006 regulations, which mandate that all new consumer meters must be Smart Meters with prepayment capabilities. The regulations also required that existing meters be replaced with Smart Meters by a specified deadline. In 2022, the CEA updated these regulations, further clarifying that in areas with a communication network, Smart Meters must be used, and where no communication network is available, installation of prepayment meters conforming to Indian Standards will be allowed.
APDISCOMs (Andhra Pradesh Distribution Companies) also requested amendments to the General Terms and Conditions of Supply (GTSC) and other relevant regulations in light of the installation of Smart Meters. After reviewing these requests, along with the amendments to the CEA regulations and MOP notifications, the APERC decided to revise the existing regulations to align with these developments.
The new regulation, referred to as the Third Amendment, applies to the entire state of Andhra Pradesh and will come into effect once published in the Andhra Pradesh Gazette. One of the key changes is related to the requirement of Consumer Security Deposits (CSD) for new connections. Under the amended regulation, consumers who opt for a new connection with a prepaid Smart Meter will not be required to deposit a security amount. This change aligns with Section 47 of the Electricity Act, 2003, which addresses the conditions for security deposits in electricity supply.
For existing consumers who are transitioning to the new smart prepaid metering system, the CSD will be adjusted against any outstanding dues to the Distribution Licensee. If there are any remaining dues after adjustment, the balance will be credited to the consumer’s e-wallet linked to the prepaid meter. This is intended to ease the transition for consumers while ensuring that any outstanding dues are cleared in a manner consistent with the new metering system.
The Commission has stated that this amendment aims to simplify the process of installing and operating Smart Meters across the state while aligning with national standards and timelines for Smart Meter implementation. This regulation also highlights the state’s commitment to modernizing its electricity grid by ensuring that smart metering technologies are adopted in a timely and efficient manner, providing benefits to both consumers and distribution companies. The amendments reflect an effort to enhance transparency, efficiency, and consumer convenience in the state’s electricity supply system.
The APERC expects these changes to streamline operations, reduce manual intervention, and offer consumers greater control over their electricity usage through the convenience of prepaid Smart Meters. The full implementation of this amendment will likely contribute to better overall management of electricity distribution in the state of Andhra Pradesh.
