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Kerala commission eases electricity connections for residents of delayed housing projects

#Law & Policy#India#Kerala
Synopsis

The Kerala State Electricity Regulatory Commission (KSERC) has amended the Kerala Electricity Supply Code to assist residents of indefinitely delayed or abandoned apartment and villa projects. The amendment allows these residents to apply for individual electricity connections at a reasonable cost. KSERC's decision aims to address issues where developers failed to complete projects or disputes hindered access to electricity. The order outlines a cost-sharing model, with expenses calculated based on connected load and shared proportionally among beneficiaries. The licensees will maintain the internal distribution network and can recover costs through annual accounts until all beneficiaries contribute.

The Kerala State Electricity Regulatory Commission (KSERC) has introduced amendments to the Kerala Electricity Supply Code, offering relief to residents of unfinished or indefinitely stalled apartment and villa projects. This change permits residents of such projects to apply for individual electricity connections at a reasonable cost.


According to KSERC's order, individual beneficiaries in residential colonies or villa projects where construction was abandoned before completion, delayed indefinitely, or tied up in disputes with developers are now allowed to directly approach the electricity provider. This applies even to projects under review by the Kerala Real Estate Regulatory Authority (K-RERA) or its appellate tribunal, or those that have failed to meet timelines specified by K-RERA.

The amendment follows numerous complaints from residents struggling to access electricity due to the inability to cover the significant costs that developers were expected to bear upon project completion. KSERC directed the licensees to review applications and calculate expenses based on the connected load. Residents or their collective associations will be required to pay a proportional share of these expenses to secure the service connection.

For distribution system upgrades or internal network construction, costs will be recovered from other residents as they apply for connections, ensuring equitable cost-sharing among all beneficiaries. Additionally, licensees are permitted to claim incurred expenses in their annual accounts until outstanding costs are fully recovered.

KSERC further clarified that the internal distribution network, including transformers, switchgear, and underground cables, must be maintained by the licensees. These maintenance expenses can also be reflected in their annual accounts.

This progressive move by KSERC aims to alleviate the difficulties faced by residents of delayed or abandoned real estate projects, providing them with a viable solution for essential utilities.

KSERC's decision is a significant step towards addressing the struggles of residents in delayed housing projects across Kerala. By amending the supply code, the commission empowers affected residents to secure electricity connections without depending entirely on stalled developers. The cost-sharing framework ensures fairness while encouraging timely applications from all beneficiaries. Additionally, the maintenance responsibility assigned to licensees guarantees long-term system reliability. This amendment not only resolves an immediate challenge but also sets a precedent for addressing utility-related issues in stalled real estate projects, ultimately benefiting residents and supporting urban development.

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