Rural smart metering enforced, urban communitization repealed
The Department of Power, Government of Nagaland, has introduced sweeping reforms in electricity governance through two notifications dated August 27, 2024, and a subsequent directive on October 8, 2024. The reforms include significant amendments to rural electricity regulations and the formal repeal of communitization in urban power management.
According to the notifications, the “Additional Conditions of Supply of Electricity to Villages (First Amendment) Rules, 2024″ have come into force with immediate effect. These rules were issued under Section 55 of the Indian Electricity Act, 2003, Rule 5 of the Electricity (Rights of Consumers) Rules, 2020, and the Nagaland Electricity Regulatory Commission (Supply Code) Regulations, 2012, following State Cabinet approval on August 23, 2024.
Key changes introduced
End of Single Point Metering (SPM): Clause (ii) of Rule 4 under Chapter II of the original 2002 rules has been substituted to discontinue billing under Single Point Metering. In line with the Centre’s mandate for 100% smart metering of both Distribution Transformers and consumers, the SPM will now serve solely as a reference meter for online energy audit and accounting.
Reduced tariff benefit: The benefit offered under clause (iii) of Rule 4 has been revised. The earlier provision of at least 20% benefit on the lowest tariff rate has now been reduced to 10%.
Household-level smart meter billing: Rule 7 of Chapter III has been amended to state that all domestic consumers shall be billed through readings from individual post-paid smart meters installed by the Department of Power.
Derecognition of semi-communitized peri-urban areas: A new Rule 12 under Part IV declares that all existing communitized or semi-communitized villages and sectors contiguous to Municipal and Town Councils shall cease to exist under the old communitized structure.
These reforms align Nagaland’s rural electricity system with national standards for smart metering and energy accountability.
Urban communitization model repealed
In a separate notification issued under the Nagaland Communitization of Public Institutions and Services Act, 2002, the State Government has repealed the Nagaland Communitization of Electricity Management in Urban Areas by Urban Electricity Management Board Rules, 2004. The repeal took effect from the date of the notification—August 27, 2024.
Officials from the Department of Power stated that the repeal and amendments are part of broader efforts to modernize electricity governance and eliminate inefficiencies across rural and urban areas.
Implementation underway
On October 8, 2024, the Department of Power issued another notification informing all concerned Executive Engineers across the state about the amendments to the Model Rules for Village Electricity Management Board (VEMB) and other regulatory changes.
The directive, issued by Er. Wabangmeren Jamir, Chief Engineer (D&R) and Head of Department, instructed officers in all districts—including Dimapur, Chümoukedima, Kohima, Peren, Phek, Wokha, Mokokchung, Changtongya, Kiphire, Mon, Tuensang, and Zunheboto—to coordinate with their respective District Administrations and Village Councils to raise awareness on the amended rules and the updated conditions of electricity supply.
The notification reiterated the repeal of the 2004 urban communitization rules and noted that the changes follow:
· Notification from the Ministry of Power, Government of India,
· Approval by the State Cabinet on August 23, 2024, and
· Admittance by the 14th Nagaland Legislative Assembly session on August 27, 2024.
The Department affirmed that these reforms are part of the state’s efforts to ensure 100% smart meter installation across all consumer households.
“All concerned Executive Engineers (Electrical) are hereby directed to coordinate with the respective District Administrations and the Village Councils for sensitization and awareness of the amendments in the model rules for VEMBs,” the notification stated.
It further added that printed copies of the “Model Rules for Village Electricity Management Board (First Amendment)” are being prepared and will be distributed shortly.
The October 8 notification emphasized compliance and concluded: “Should any clarification arise, the Head Office may be contacted for assistance and further advice.”
Summary of changes
· Amendment of: Nagaland Communitisation of Electricity Management in Villages by Village Councils Rules, 2002
· Amendment of: Additional Conditions of Supply of Electricity to Villages, 2002
· Repeal of: Nagaland Communitisation of Electricity (Management in Urban Areas by Urban Electricity Management Board) Rules, 2004