MoP Releases Draft Electricity Consumer Rights Rules 2026, Proposes Demand Response, ToD Tariffs

The Ministry of Power has released the draft Electricity (Rights of Consumers) Amendment Rules, 2026, proposing a series of reforms aimed at improving consumer services, strengthening grid stability, and facilitating higher integration of renewable energy.

The Ministry circulated the draft rules to government departments, regulators, power utilities, industry bodies, and consumer groups, seeking feedback within 30 days, by April 11, 2026. The amendments, to be notified under the Electricity Act, 2003, are proposed to come into force from October 1, 2026.

Among the key proposals is the introduction of a framework for Demand Response programmes, enabling consumers to shift electricity usage during peak demand periods through price signals or incentives, helping distribution companies manage load and integrate renewable energy more efficiently.

The draft rules also propose revisions to the net metering framework for rooftop solar. State electricity regulators may allow net-metering up to 500 kW, while systems above 5 kW could attract net-metering charges based on storage costs and network losses. Additionally, renewable energy installations above 500 kW may be required to install energy storage systems.

Further, the Ministry has proposed Time-of-Day (ToD) tariffs for commercial and industrial consumers with demand above 10 kW from April 1, 2027, while other consumer categories (except agriculture) will shift to ToD tariffs by April 1, 2028, depending on smart meter deployment.

To improve consumer services, the amendments mandate faster electricity connections—within three days in metropolitan and municipal corporation areas, and introduce automatic review mechanisms for abnormal electricity bills, ensuring billing anomalies are resolved within 30 days.

The rules also propose streamlining Consumer Grievance Redressal Forums (CGRFs) into a two-tier structure at the company and district/municipality level, enabling faster resolution of consumer complaints.

According to the Ministry, the proposed changes aim to strengthen consumer rights, enhance grid flexibility, and support India’s growing renewable energy integration.