Overview of Delhi Electricity Regulatory Commission (Compensation to Victims of Electrical Accidents) Regulations 2024

The Delhi Electricity Regulatory Commission (‘DERC’) has enacted the Delhi Electricity Regulatory Commission (Compensation To Victims Of Electrical Accidents) Regulations, 2024  (‘Regulations’), which prescribes the procedure for the assessment of compensation and the quantum of compensation in relation to loss of life and injuries sustained by human beings or animals due to electrical accidents attributable to the negligence of a licensee or a generating company (licensee). These Regulations are a significant step towards ensuring accountability of the licensees as well as providing relief to victims and their families.

The Regulations address a critical shortfall in the Delhi Electricity Regulatory Commission (Supply Code and Performance Standards) Regulations, 2017, which did not include any provisions for compensation of victims in such accidents.

Notably, the High Court of Delhi in the case of Common Cause v Govt. of NCT & Ors. had observed that incidents of electrocution were increasing despite licensees stating that they were in complete compliance with all safeguards in place.

The Court went on to lay down guidelines for the DERC to follow in order to curb instances of injury due to electrocution. The Court also obligated the licensees to take urgent cognizance of cases of electrocution and to provide compensation to the dependents of the deceased in case of lapses on their part in maintaining the prescribed safety measures.

Hence, in view of the exiguity in the earlier regulations for provisions relating to the compensation of victims of electrocution or electrical accidents, the DERC formulated the said Regulations after consulting and responding to the stakeholders’ concerns.

Responsibilities of Generating Companies and Licensees [Regulations 4 and 5]

The Regulations hold the licensees responsible for maintaining high safety standards to prevent electrical accidents. They are required to undertake all necessary steps to protect animals, birds and humans from any electrical mishap. Non-compliance with these measures would obligate licensees to compensate for the loss of human or animal life and/ or injury to persons as a consequence of an electrical accident.

Quantum of Compensation [Regulations 6 and 10]

The Regulations entitle victims to claim compensation under the Regulations, in addition to and without affecting their rights to recover compensation under any other laws or contracts.

A compensation of ₹7,50,000 is mandated to be provided in the event of a fatal electrical accident resulting in loss of human life. While in case, of a victim suffering from more than 60 per cent disability, a compensation of ₹5,00,000 is to be provided; a sum of ₹1,00,000 is mandated to be awarded to a person in case he/she suffers from a disability ranging between 40 per cent to 60 per cent, subject to a certification by a civil surgeon.

Moreover, additional reimbursements up to ₹25,000 for hospitalisation exceeding a week and ₹10,000 for hospitalisation up to a week have also been mandated to be provided, subject to submission of relevant bills.

Notably, the Regulations also place a statutory obligation to compensate for the loss of animal life due to such accidents. It distinguishes between milch animals, draught animals and poultry by creating sub-categories to allocate different quantums of monetary compensation.

Claim Procedure [Regulations 13 to 16]

A person affected by the occurrence of the accident can inform the licensee and/or an electrical inspector. Other than the independent intimation of the electrical accident, the licensee must report any such accident to the electrical inspector of the concerned area. The electrical inspector, within 30 days of the receipt of a report of the electrical accident, is under an obligation to conduct an inquiry and submit a detailed report to the licensee. Additionally, the Regulations also allow the dependents of the deceased victim or the injured victim himself to claim compensation by making a representation before the licensee within 90 days of the occurrence of the accident. A licensee may award compensation in accordance with the Regulations.

The concerned authority, within 30 days of the receipt of the report, will pass orders determining the quantum and recipient of the compensation in accordance with the Regulations. The concerned authority is mandated to communicate the final order to the concerned person and the DERC within seven (7) days of passing the order. A licensee has to provide the stipulated compensation within fifteen (15) days from the date of the passing of the final order, failure of which renders it liable to pay a penalty at the rate of 10 per cent per annum from the date of the final order till the receipt of the payment by the victim/ their legal representatives.

Dispute Resolution Procedure [Regulation 17]

If a person is aggrieved by the final order or the compensation granted by the concerned authority or by the non-redressal of his representation before the concerned authority, he can file a complaint before the Consumer Grievances Redressal Forum (CGRF). The order passed by  CGRF is amenable to an appeal before the ombudsman, as per DERC (Forum for Redressal of Grievances of the Consumers and Ombudsman) Regulations, 2018.

The Regulations represent a significant step towards protecting and compensating victims of electrical accidents/ mishaps occurring due to negligence of the licensees. The Regulations not only reinforce the importance of adhering to safety standards by the licensees but also underscores the DERC’s commitment to safeguarding public welfare in the face of electrical hazards.

However, in terms of the quantum of compensation as prescribed under the Regulations, the authors believe that civil courts have often awarded relatively higher compensations in such accidents, in comparison to the compensation provided under the Regulations. Further, the Regulations are silent with respect to the provision of any reliefs to victims who have suffered disability below 40 per cent. Consequently, such victims may remain ineligible for claiming compensation under the Regulations, despite their sufferance from an electrical accident.

About the authors: Ishwar Ahuja is a Principal Associate and Bhairavi SN is a Senior Associate at Saga Legal.

Sanya Jain, a fourth-year student at Jindal Global Law School, Sonepat, who is currently interning at Saga Legal assisted in this article.

Disclaimer: The views and opinions expressed in this article are those of the author(s) alone. The contents of the aforesaid article do not necessarily reflect the official position of Saga Legal. The readers are suggested to obtain specific opinions/ advice with respect to their individual case(s) from professional/ experts and not to use this article in place of expert legal advice.

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