Month in a Minute: Top Headlines from the Indian Renewable Sector in February 2026

IEX Power Trade Surges 30% YoY to 12,550 MU in February

Daily News Wrap-Up: Top Five States for Solar Open Access Installations

POWERGRID Floats Tenders to Set Up 300 MW/600 MWh Battery Storage Systems

Project Finance Brief: Arevon Energy Secures $183 Million for Solar Project

Funding and M&A Roundup: SolarAfrica Energy Secures $39 Million

UltraTech to Procure Solar Power from AMPIN SPV’s 30 MW Project

Bihar Announces Generic Renewable Energy Tariffs for FY 2026

Rooftop Solar Installations Under PM Surya Ghar Reach 3 Million

Terra Clean Issues Tender for 291 Transformers for Renewable Energy Projects

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					</table>The Kerala State Electricity Regulatory Commission (<a href="https://www.erckerala.org/" target="_blank" rel="noopener">KSERC</a>) has approved the billing procedure for the implementation of the smart prepaid metering system for government consumers availing electricity supply at the low tension (LT) level.
The Commission permitted Kerala State Electricity Board (<a href="https://kseb.in/ksebhome" target="_blank" rel="noopener">KSEB</a>) to adopt the proposed billing procedures for LT government consumers under Phase I of the smart prepaid metering rollout.
However, the Commission directed KSEBL to file a separate petition for approval of the capital investment plan and related details for Phase II and other consumer categories.
Background 
KSEBL filed a petition seeking approval for the billing procedure, meter rent, and the methodology for levying and adjusting the security deposit for smart prepaid meters for government consumers.
It proposed implementing smart prepaid metering in two phases with an estimated cost of ₹9.31 billion (~$102.44 million).
Phase I covers approximately 300,000 connections, including government consumers, HT consumers, feeder meters, and distribution transformer meters. The Commission had earlier approved ₹1.95 billion (~$21.46 million) for Phase-I implementation.
KSEBL submitted that the smart prepaid metering initiative is aligned with the distribution sector reforms of the Ministry of Power.
The state utility noted that all government offices provided with smart meters would transition to prepaid mode with effect from March 01, 2026.
As of January 1, 2026, there were 172,724 LT government consumers across various tariff categories proposed to be covered under this billing procedure.
KSEBL said the installation of smart prepaid meters for HT consumers will be completed by August 2026 at the earliest.
KSEBL argued that the existing billing framework was designed for post-paid consumers and did not address the operational and accounting requirements of prepaid supply.
It proposed daily provisional billing through the meter data management system, monthly final billing with reconciliation, wallet-based recharge through the KSEB mobile application, and automated disconnection and reconnection mechanisms.
Proposed Billing Procedure
<ul>
<li>Final monthly bills will be calculated by the distribution licensee in accordance with the applicable tariff schedule for the respective category of consumer and the relevant provisions of the Supply Code or other applicable regulations.</li>
<li>If the final monthly bill amount at the month&#8217;s end is less than the total amount deducted under the provisional daily billing, the differential will be credited to the consumer’s account within one day of the generation of the final monthly bill.</li>
<li>If the final monthly bill amount at the month&#8217;s end exceeds the total amount deducted under the provisional daily billing, the difference will be debited from the consumer’s account after generation of the final monthly bill and will be adjusted from the next recharge.</li>
<li>The distribution licensee should upload the consumer&#8217;s final bill to its website upon expiry of the billing period and inform the consumer immediately upon generation of the final bill.</li>
<li>The disconnection process will be initiated when the consumer’s prepaid account balance becomes zero or negative. For government consumers, there will not be any disconnection for the initial three months from the date of prepaid conversion. Before the disconnection, a grace period of up to 24 hours may be given, during which the consumer may recharge to avoid disconnection.</li>
<li>The consumer under disconnection can recharge their prepaid account with an amount sufficient to cover outstanding dues, any other applicable charges, and the minimum recharge amount during the disconnection period (up to a maximum of six months) for reconnection.</li>
</ul>
KSEB stated that the proposal was revenue-neutral and did not introduce any new charges but only altered the timing and mode of recovery of approved charges.
Commission’s Analysis 
The Commission observed that KSEB may adopt the proposed billing procedure for government consumers at the LT level.
However, regarding meter rent, it stated that a broader decision would be taken during the appraisal of billing procedures for the entire state.
Until further orders, KSEB was allowed to levy meter rent as approved in the tariff order dated December 5, 2024.
The Commission also clarified that consumers may purchase their own smart prepaid meters in accordance with CEA specifications. Such consumers would be exempt from the security deposit and meter rent.
The regulator directed KSEB to file separate petitions for approval of the capital investment plan and related matters for Phase II and other consumer categories before extending the system beyond LT government consumers.
In October last year, KSERC <a href="https://www.mercomindia.com/kerala-upholds-levy-of-fixed-charges-on-domestic-rooftop-solar-prosumers" target="_blank" rel="noopener">upheld</a> KSEB’s decision to levy fixed charges on domestic solar prosumers under net-metering arrangements. The order clarified that there is no illegality in KSEBL’s current billing practice of collecting fixed charges based on total consumption, which includes grid imports, self-generation consumed at the premises, and banked energy.
Subscribe to Mercom’s real-time <a href="https://www.mercomindia.com/product/mercoms-renewable-energy-regulatory-updates" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.

Kerala Approves Smart Prepaid Billing for Government Consumers

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					</table>The Rajasthan Electricity Regulatory Commission (<a href="https://rerc.rajasthan.gov.in/" target="_blank" rel="noopener">RERC</a>) has notified the Second Amendment to the Electricity Supply Code and Connected Matters Regulations, 2025, introducing significant changes to the rules governing the recovery of dues from permanently disconnected consumers, timelines for the restoration of supply, and connection charges for loads up to 150 kW.
The amended regulations apply to all distribution licensees (including deemed licensees) and consumers across the state.
The Commission has mandated stricter procedural safeguards before recovery of dues and has rationalized connection charges based on distance from the existing three-phase Low Tension (LT) network, while also clarifying when consumers will be treated as ‘new applicants’ after prolonged disconnection
Background 
The amendments modify provisions of the RERC (Electricity Supply Code and Connected Matters) Regulations, 2021, framed under Sections 43 to 48, 50, 55, 56, and 181 of the Electricity Act, 2003. The Supply Code governs the release, disconnection, restoration, and charging of electricity connections across consumer categories, including domestic, non-domestic, agricultural, and industrial users.
One of the key issues addressed by the amendment concerns the recovery of outstanding dues for permanently disconnected connections.
Another area requiring regulatory clarity was the time period within which consumers can seek restoration of supply, after which connections are deemed permanently disconnected and treated as fresh applications.
Additionally, the Commission revised Schedule I of the Supply Code to introduce a new category of standardized connection charges (Schedule-I, 2A) for applicants located within a defined distance of an existing 24-hour three-phase LT network, differentiated by consumer category and load size.
Recovery of Dues 
RERC amended Regulation 11.7(d) to require that outstanding dues of a permanently disconnected connection can be recovered from another existing or new connection of the same owner or occupier only after issuing a 30-day notice.
Distribution licensees must provide consumers with an opportunity for a personal hearing.
Time Limits Under the revised Regulation 11.8(b), applications for restoration of supply will be considered:
<ul>
<li>Within two years from disconnection for HT/EHT consumers</li>
<li>Within five years for all other consumers</li>
</ul>
After expiry of these periods, the connection will be treated as disconnected, and any further request for supply at the same premises will require a fresh application.
Connection charges up to a load of 150 kW would apply to domestic and non-domestic applicants whose premises fall within 300 meters of an available 24-hour supply three-phase LT network, and to industrial and mixed-load applicants whose premises fall within 200 meters of an available 24-hour supply three-phase LT network.<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/02/RERC-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-89866 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/02/RERC-1.png" alt="REREC Order" width="886" height="742" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/02/RERC-1.png 886w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/02/RERC-1-300x251.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/02/RERC-1-768x643.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/02/RERC-1-650x544.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/02/RERC-1-624x523.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/02/RERC-1-600x502.png 600w" sizes="auto, (max-width: 886px) 100vw, 886px" /></a>
Other Points
Where installation of an 11 kV oil switch is required under the rules, the equipment will be provided by the applicant. In such cases, the applicable charges will be ₹24,000 (~$262.69) instead of ₹90,000 (~$985.11) and ₹34,000 (~$372.15) instead of ₹100,000 (~$1,094) for domestic and non-domestic (DS/NDS) connections with contract demand exceeding 50 kVA.
The Right-of-Way (RoW) for laying LT or HT cables and for the erection of DP sets will be arranged by the applicant.
Domestic and non-domestic premises located beyond 300 metres, and industrial or mixed-load premises located beyond 200 metres, from an existing 24-hour three-phase LT network will be released only after recovery of charges in accordance with the RERC Electricity Supply Code Regulations, 2021.
Connections with a load exceeding 150 kW will also be governed by the applicable provisions of the Supply Code.
These provisions will not apply to premises located in developer-developed colonies or plotted developments where pro rata charges are recovered under Regulation 7.6, to multi-storey buildings where electrification is mandatory under Regulation 7.5(i), or to private industrial areas where electrification or pro rata charges are already applicable under the regulations.
Where the connected load exceeds 112 kW or the contract demand exceeds 50 kVA, industrial connections will be released on the HT supply.
For all other consumer categories, connections with contract demand above 50 kVA will also be released on the HT supply.
Connections in multi-storey buildings in electrified areas with an estimated design demand exceeding 50 kVA, as well as cases of flatted developments requiring multiple connections, will be governed by the applicable provisions of the RERC Supply Code.
Recently, RERC <a href="https://www.mercomindia.com/rajasthan-regulator-proposes-demand-flexibility-dsm-regulations" target="_blank" rel="noopener">issued</a> the draft RERC (Demand Flexibility/Demand Side Management) Regulations, 2026, proposing a comprehensive regulatory framework to integrate demand-side resources into the state’s power system.
Subscribe to Mercom’s real-time <a href="https://www.mercomindia.com/product/mercoms-renewable-energy-regulatory-updates" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.

RERC Revises Power Connection Charges, Supply Rules for High-Demand Consumers

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