གློག་མེ་མཚམས་འཛིན་དབང་འཛིན།

Electricity Regulatory Authority

Ministry of Energy and Natural Resources

Distribution Code Regulation 2025

 Electricity Regulatory Authority
Ministry of Energy and Natural Resources
Foreword

With the establishment of the Electricity Regulatory Authority (ERA), erstwhile

Bhutan Electricity Authority (BEA), under the Electricity Act of Bhutan 2001, a
foundation for the regulatory framework for the electricity sector was instituted.
In keeping with this mandate, the first Distribution Code Regulation was issued in
2008 to guide the distribution licensee and ensure a consistent approach to electricity
distribution.

Since then, the Distribution Code Regulation has undergone several revisions to
keep pace with the sector’s evolving needs, including grid expansion, integration of
renewable energy, and improvements in service reliability. The Distribution Code
(Amendment) Regulation 2022 was part of this ongoing effort to strengthen the
regulatory framework and support Bhutan’s energy security objectives.

Building on these efforts, a second amendment was undertaken to address emerging

challenges such as increasing demand, integration of distributed energy sources,
aging infrastructure and power quality concerns. The amendment aimed to improve
operational efficiency, and ensure the framework remains responsive and relevant to
current sector developments. It also aimed to strengthen mechanisms for addressing
consumer concerns by ensuring timely and effective resolution of grievances, thereby
enhancing accountability and improving overall service delivery with the electricity
sector. The Distribution Code Regulation 2025 had incorporated all these aspects to
facilitate seamless and efficient operation of the electricity sector.

We are pleased to present the amended regulation, which reflects our ongoing
dedication to support the electricity sector through adaptive and progressive
regulatory measures.

We sincerely thank all stakeholders for their valuable contributions and look forward
to your ongoing support in its implementation.
 Table of Contents
CHAPTER 1 PRELIMINARY.............................................................1
Title and Commencement.....................................................................1
Scope.....................................................................................................1
Objective...............................................................................................1
Revocation............................................................................................2
Dispensation..........................................................................................2
Unforeseen Circumstances...................................................................2

CHAPTER 2 CONDITIONS OF SUPPLY.....................................3

Objective...............................................................................................3
Scope.....................................................................................................3
Connection Application Procedure.......................................................4
Connection Agreement.........................................................................5
Connection Point and Boundaries.........................................................6
Technical Requirement of Connected Equipment................................7
Notification to Customers.....................................................................7
Disconnection of Supply.......................................................................8
Connected Plant Restrictions................................................................9
Interface with Embedded Generators...................................................12
Operational Labelling...........................................................................12
Temporary Power Supply.....................................................................12

CHAPTER 3 ASSET MANAGEMENT..............................................14

Objective...............................................................................................14
Asset Management Practices................................................................14
Maintenance of Substation and Distribution Lines...............................15
Consumers’ Electrical Installation and Equipment..............................15
Licensee’s Equipment on Consumer’s Premises..................................16
Distribution Performance Report..........................................................16
Inventory Management.........................................................................16

CHAPTER 4 DISTRIBUTION OPERATING CODE.......................18

Introduction............................................................................................18
Objectives..............................................................................................18
Distribution Operating Procedure..........................................................19
 System of Supply...................................................................................19
Quality of Supply...................................................................................20
Load Balancing......................................................................................21
Demand Forecasting..............................................................................21
Outage Planning for Maintenance.........................................................23
Contingency Planning and Disaster Management.................................25
Load Shedding.......................................................................................26
Metering.................................................................................................27
Protection System..................................................................................29
Safety Coordination...............................................................................31
Human Resource Development.............................................................33
Complaint Handling...............................................................................33
Geographical Information System (GIS) Based Mapping of Distribution
Infrastructure and Consumer Connections............................................34

CHAPTER 5 EMBEDDED GENERATION......................................36

Objective...............................................................................................36
Connection Agreement.........................................................................36
Supply Frequency.................................................................................36
Coordination and Compliance of Embedded Generators.....................36
Negative Sequence Voltage..................................................................37
Fault levels............................................................................................37

CHAPTER 6 GUARANTEED SERVICE LEVEL............................38

Objective...............................................................................................38
Requirement to Meet Service Levels....................................................38
Quality of Supply: Voltage Variations.................................................38
Communication of Applicable Charges for Connection.......................38
Installation of Supply............................................................................39
Restoration of Supply...........................................................................39
Reconnection........................................................................................39
Consumer Bill Complaint.....................................................................39
Consumer Charter.................................................................................40
Other Services.......................................................................................40
Contact Center Operation for Consumer Service.................................41
Reliability Indices.................................................................................41
Exemptions...........................................................................................42
 Determination of Compensation...........................................................43

CHAPTER 7 RIGHTS AND OBLIGATIONS...................................44

Licensee’s Obligations..........................................................................44
Licensee’s Rights..................................................................................46
Consumer’s Obligations.......................................................................46
Consumer’s Rights................................................................................47
Confidentiality......................................................................................47

CHAPTER 8 SAFETY INCIDENT REPORTING............................49

Introduction...........................................................................................49
Incident and Serious Safety Incident Reporting...................................49
Incident Reporting................................................................................49
Serious Safety Incident Reporting........................................................50

CHAPTER 9 MISCELLANEOUS.......................................................52
Dispute Resolution................................................................................52
Non-compliance....................................................................................52
Cyber Security......................................................................................52
Electric Vehicle Supply Equipment......................................................52
Amendment...........................................................................................52
Definitions and Abbreviation................................................................52
Schedule 1: Compensation for Failure to Meet Guaranteed Service Level
for LV and MV Consumers..................................................................61
Schedule 2: Compensation for Failure to Meet Guaranteed Service Level
for HV Consumers................................................................................65
 CHAPTER 1
PRELIMINARY

Title and Commencement

1. This Regulation is called the Distribution Code Regulation 2025;
and
2. This Regulation comes into force from April 21, 2025.

Scope
3. The provisions of this regulation shall be applicable to the users of
the distribution system as detailed, except where an exemption is
granted by the Electricity Regulatory Authority.

4. The guaranteed service level specified in schedule II of this

regulation shall apply to HV consumers directly connected to the
transmission system and must be complied by the licensee.

5. This regulation shall extend to the whole of the Kingdom of

Bhutan.

Objective
6. The objective of this regulation is to define and standardise the
following activities so that these are undertaken in a safe, reliable,
and efficient manner:
(1) The planning of a distribution system to meet present and future
load demand;
(2) The operation, and maintenance of a distribution system by the
licensee;
(3) The distribution of electricity by licensee for supply to its customers
by deploying required equipment and network installations
comprising the distribution system;
(4) The connection of a customer’s electrical installation to the
distribution system of a licensee;
(5) The connection of embedded generator to the distribution system
of licensee;
(6) The guaranteed service level to be maintained by licensee; and

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 (7) Distribution of electricity by a designated user receiving single-
point supply from the licensee to other establishments under his
jurisdiction.

Revocation
7. This regulation revokes and supersedes the Distribution Code
(Amendment) Regulation 2022.

Dispensation
8. Nothing contained in this regulation shall have effect, in so far as it is
inconsistent with the provisions of the Electricity Act of Bhutan 2001
and regulations framed under the law.

Unforeseen Circumstances
9. If circumstances not envisaged by the provisions of this regulation
arise, the licensee shall, to the extent reasonably practicable, consult
with all affected users to reach an agreement for the further course
of action. If agreement between the licensee and affected users is not
reached in the time available, the licensee shall follow a prudent course
of action and provide the reasoning thereof, keeping the nature of
unforeseen circumstances and the technical parameters of the affected
user’s system in mind. Under such an event, the affected users as the
case may be, shall comply with the instructions given by the licensee,
which shall be communicated in writing. The licensee shall inform the
Authority about all such cases and request for incorporation of any
changes during future revisions.

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 CHAPTER 2
CONDITIONS OF SUPPLY

Objective
10. The objectives of this section are:
(1) To ensure that the technical, design, and operational criteria
specified in this regulation are fully complied with for new
connections or augmentation of existing connections with the
distribution system;
(2) To establish the general requirements and compliance for all users
seeking to connect to the distribution system or seeking to modify
an existing connection with the distribution system;
(3) To specify the technical arrangements required at the interface
boundary between the distribution system and the user’s equipment
that are applicable at all voltage levels;
(4) To ensure that a new connection to the distribution system neither
exerts any adverse effect on the existing users nor shall a new
connection suffer adversely due to use of the distribution system
by existing users;
(5) To specify the requirements that are applicable to all existing
or prospective users, including, but not limited to, embedded
generators and prosumers; and
(6) To facilitate data exchange between the users who are connected
to the distribution system.

Scope
11. The conditions of supply shall apply to the following users:
(1) Consumers;
(2) Embedded Generators;
(3) Prosumers;
(4) Generation Licensee; and
(5) Distribution Licensee.

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Connection Application Procedure
12. Application for connection
(1) An applicant seeking connection to distribution system or an
existing user seeking modification to an existing connection shall
submit an application for connection to the licensee.
(2) For medium and low voltage consumers, the application shall be as
per the procedures and formats prescribed in the applicable terms
and conditions for supply of electricity issued by the licensee for
these consumers.
(3) For other users, the application shall be as per procedures and
formats to be specified by the licensee.

13. Data Requirement

(1) Any person or entity seeking connection to licensee’s distribution
system or any existing user seeking modification in an existing
connection shall furnish data in formats prescribed by licensee.
Incomplete and insufficient data submitted by the applicant,
unless corrected, shall entitle the licensee to withhold the grant of
connection or any modification to an existing connection as may
be applied for.
(2) An embedded generator shall provide to the licensee information
on the generating plant and the proposed interface arrangements
between the generating plant and the distribution system. The
embedded generator shall furnish the information for each
generating unit in the format specified by licensee along with the
application for connection with distribution system.
(3) A prosumer shall provide technical details in the prescribed format
of licensee for installation, interconnection, and metering of grid-
interactive distributed energy resource systems (DERs) to be
installed at their premises to enable licensee to conduct a technical
feasibility study as will be required.
(4) The licensee, when necessary, shall ask for any additional
information as may be necessary to permit a full assessment of
the effect of the applicant’s load on the distribution system. Such
additional information, if necessary, shall also be furnished by
an embedded generator and prosumer to enable assessment by
licensee of the effect of the connection and interface arrangements
on the distribution system. The applicant, embedded generator,
and prosumer, as the case may be, shall submit such additional
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 data to licensee within the prescribed time.
Connection Agreement
14. The applicant seeking a new connection or requesting modification
for a connection shall enter into an agreement with the licensee in the
prescribed format.

15. Prosumers interested in installing and generating electricity from DERs

installed in their premises shall be required to enter into a prosumer
agreement. This shall be developed by licensee as per extant regulations
in force, specifying therein technical standards and safety requirements
for installation and interconnection arrangements, metering and billing
arrangements, and dispute resolution mechanisms.

16. Embedded generators to be connected to distribution system are required

to enter into a connection agreement with the licensee, giving the terms
and conditions for connection to and use of distribution system.

17. Licensee and the user shall be responsible for compliance with safety as
indicated in the connection agreement.

18. The connection agreement shall lay down the terms and conditions
for connection to and use of the distribution system. The connection
agreement shall include (but not limited to), as appropriate, the
following terms and conditions:
(1) A condition requiring both parties to comply with the Distribution
Code Regulation;
(2) Details of connection, technical requirements, and commercial
arrangements, including the schedule of tariff for access to and
use of the distribution system;
(3) Details of any capital expenditure arising from necessary
reinforcement or extension of the system and demarcation of the
same between the concerned parties;
(4) Site responsibility schedule; and
(5) Minimum requirement on protection for safe and reliable operation
of the distribution system.

19. In addition to the above terms and conditions, the licensee shall also
ensure the following in the connection agreement for maintaining an
efficient, coordinated, and reliable supply of electricity:
(1) Compliance with guaranteed service level; and
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 (2) Compliance with safety and other related provisions.
20. Site Responsibility Schedule
For each new connection with distribution system or modification
of an existing connection required, licensee shall prepare a site
responsibility schedule indicating the following for each item of
equipment installed at the connection site as per the format specified
by the licensee:
(1) The ownership of equipment;
(2) The responsibility for control of equipment;
(3) The responsibility for maintenance of equipment;
(4) The responsibility for operation of equipment;
(5) The coordinator at the site; and
(6) The responsibility for all matters relating to safety of persons at
the site.

Connection Points and Boundaries

21. In accordance with Grid Code Regulation 2024, licensee shall comply
with connection condition and meet the minimum technical requirements
for connection to the transmission system and also develop standard
procedures for carrying out operational activities at the connection site.
The boundary between the transmission system and distribution system
shall be as defined in the Grid Code Regulation 2024.

22. Voltage for interconnection of generators with distribution system

shall be 33/11/6.6 kV or as agreed to with licensee. The connection
point shall be mutually agreed between the generating station and the
licensee. Generator shall maintain all the terminals, communication,
and protection equipment provided in the switchyard of the generating
station.

23. The provision, ownership, operation, and maintenance of the metering

system between generation licensee and licensee at interconnection
point shall be as per metering section of this regulation. The licensee
shall maintain all electrical equipment and other assets from the gantry
onwards.

24. The provision, ownership, operation, and maintenance of the metering

system between the user and licensee at connection point shall be

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 indicated in the connection agreement enumerated in metering section.

25. The point of commencement of supply of energy to a consumer shall be

at the incoming terminal of the cut-out or other isolating device installed
by the consumer as per the terms and conditions of the electricity supply
for low and medium voltage consumers issued by licensee.

26. The point of commencement of supply by an embedded generator

to licensee shall be at the incoming switchgear installed as per the
interconnection arrangement made with the licensee.

Technical Requirements of Connected Equipment

27. The equipment connected to the distribution system shall meet the following
requirements:
(1) All equipment connected to the distribution system shall be of
such design and construction as to satisfy the requirements of the
codes and relevant international standards;
(2) Installation and commissioning of all electrical equipment works
shall comply as per standard rules and practices;
(3) For each new connection, licensee shall specify the connection
point and the voltage of supply, along with the metering and
protection requirements;
(4) Insulation levels of the users’ equipment shall conform to
applicable standard or code;
(5) Protection and metering of the connected equipment shall be in
accordance with metering and protection system section of this
regulation; and
(6) All electrical equipment, including conductors, cables and other
components, installed at the premises of LV & MV consumers
shall also comply with relevant international standards.

Notification to Customers
28. If licensee becomes aware of its failure to comply with any obligation
under this regulation, which can reasonably be expected to have a
material or adverse impact, it shall:
(1) Inform the customer likely to be adversely affected by the non-
compliance at the earliest but not later than five (5) days;

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 (2) Undertake an investigation of the non-compliance as soon as
practicable but in any event within twenty (20) days; and
(3) Advise the customer of the steps it is taking to comply.

29. The licensee becomes aware of a breach of this regulation by a customer,

which can lead to a material or adverse impact, licensee shall notify the
customer in writing of:
(1) Details of the non-compliance and its implications, including any
(2) Impact on the licensee and other customers;
(3) Actions that the customer could take to remedy the non-compliance;
(4) A reasonable time period in which compliance must be
demonstrated; and
(5) Any consequences of non-compliance if not remedied within such
reasonable period.

Disconnection of Supply
30. Licensee shall not disconnect supply to a customer’s premises unless in
situations outlined herein under:
(1) The customer has not fulfilled an obligation to comply with this
regulation as notified under section 29 within the reasonable notice
period thereof;
(2) The customer fails to comply with the notice or enters into an
arrangement to comply but fails to comply with that arrangement;
and
(3) The customer fails to pay the bill within the specified period after
serving a disconnection notice.

31. Safety and Emergency

(1) A licensee may disconnect supply to a customer’s premises
immediately if continuation of supply otherwise would pose safety
hazards to life and property, or potentially endanger or threaten
to endanger the safety of any person or the environment, or an
element of the environment, or if there is otherwise an emergency.
(2) The licensee may disconnect instantly the supply to a customer’s
premises in the case of an emergency, or where there is a need to
reduce the risk of fire where relevant regulations require.
(3) In non-emergency situations, including potential safety risks that
do not require immediate action, licensee must not disconnect a

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 customer’s supply address unless the licensee has:
(a) Given the customer written notice of the reason;
(b) Allowed the customer five (5) days from the date of receipt of
the notice or ten (10) days from the issue of notice; and
(c) At the expiration of another five (5) days as provided in section
31. (3) (b) of this regulation, served notice of its intention to
disconnect the customer. (the period of five (5) days is to be
reckoned from the date of receipt of the notice or ten (10) days
from issue of the notice whichever is earlier.)

32. Customer’s Request

The licensee shall disconnect supply to a customer’s premises if the
cutomer has requested disconnection and has notified the licensee.
Such notice shall be served to licensee at least five (5) days in advance,
subsequent to which the licensee shall disconnect the supply as stipulated
under the applicable terms and condition of supply of electricity.

33. Illegal Use of Electricity

A licensee may disconnect supply to a customer’s premises immediately
after serving the disconnection notices if:
(1) The supply and sale of electricity to a customer’s electrical
installation is used for any purpose other than that specified in the
connection agreement;
(2) Customer takes at his premises electricity supplied to another
premises or supply address;
(3) A customer tampers with, or permits tampering with, the meter or
associated equipment; or
(4) Any unauthorized use of electricity or tapping of electricity lines
is noticed.

Connected Plant Restrictions

34. Safety
(1) Any equipment of the users including but not limited to underground
and overhead lines switchgear, transformers and meters, internal
cables and wiring, etc., shall strictly conform to safety standards
in respect of established quality norms of manufacture and testing
practices, erection and location of installation, and earthing of the
installation.
(2) The consumers shall comply with Safety Code (Amendment) 2021
9
 and Safety Regulations 2008 and their subsequent amendments
issued by the Authority.
35. Insulation
The users’ systems must be designed with a proper basic insulation
level conforming to laid-down specifications as applicable. Insulation
of all components in service must have adequate dielectric strength
for withstanding the system operating voltages at all times as well as
transient faults occurring in the electrical system.

36. Clearances
Any and all overhead lines erected, underground lines laid, equipment
installed, and facilities set up must have adequate horizontal and vertical
clearances with respect to ground and with respect to one another as
provided in the Safety Code (Amendment) 2021.

37. Earthing
All components of users’ systems must be properly earthed as per
applicable rules and international standards. Earthing arrangements
shall be compatible with short-circuit ratings specified for individual
equipment, including components and accessories, if any, and carried
out as per established design principles. Metallic supports of overhead
lines and cable sheaths and shields of underground cables shall also be
earthed appropriately in accordance with design specifications. Good
utility practice shall be adopted for the earthing of all such equipment
of users to be connected to distribution system.

38. Motor Starters

The starters provided for the motors of the users shall be of such type
and design that the starting current is less than six times the full-load
current.

39. Access to Licensee

The licensee and its authorized representative(s) shall have the right to
inspect the equipment and installations of the user to ensure conformity
with standards and specifications before charging the user’s system and
also carry out inspections periodically. The users shall facilitate access
to the authorized representative of the licensee for the purpose of:
(1) Inspecting, testing, repairing, or altering the electric supply lines,
meters, fittings, works and apparatus for the supply of electricity
belonging to the licensee; or

10
 (2) Ascertaining the amount of electricity supplied or the electrical
quantity contained in the supply; or
(3) Removing where a supply of electricity is no longer required, or
where the licensee is authorised to remove and disconnect such
supply, including any electric supply lines, meters, fittings, works,
or apparatus belonging to the licensee; or
(4) As necessitated by the licensee for the performance of his duty.

40. Unintended and Unscheduled Back-Energisation

The users shall take adequate precautions to ensure that no part of the
distribution system is energized by the user’s system or from another
source via the user’s system unless the licensee has a connection
agreement with the user to such effect or as an exceptional arrangement,
requisitions such supply in writing. The protection and control
equipment of the user’s systems shall be so designed as to prevent back-
energisation of the distribution system.

41. Harmonic Current

Licensee shall incorporate a suitable clause in the connection agreement
for restricting the harmonic injection by the users into distribution
system. The maximum total levels of harmonic distortion at any
connection point on the distribution system from all sources shall not
exceed:
(1) Total harmonic distortion of 5% at 33 kV, 11 kV, and 6.6 kV; and
(2) Total harmonic distortion of 8% at 415 V and below.

42. Voltage Flicker Generated by Users

Licensee shall incorporate a suitable clause in the connection agreement
to restrict the current fluctuations in the user’s electrical system, leading
to the occurrence of voltage flicker in distribution system.

43. Power Factor

Low power factor results in underutilization of capacities of equipment,
overhead lines and cables of the licensees and generators. The connection
agreement shall specify the limit of power factor of the loads connected
to the distribution system, and all such loads shall maintain at all times

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 a power factor of 0.85 and above.
Interface with Embedded Generators
44. If licensee has an interface with any embedded generator, the licensee
and the concerned owner of the generating unit shall also abide by the
following provisions:
(1) Generating units up to five (5) MW
The owner of the generating unit shall provide suitable protection
at the interface to protect his system from any damage due to
normal and abnormal conditions in the distribution system. The
owner shall install an appropriate metering arrangement for the
reactive energy exchanged, in addition to metering section. The
frequency variations shall be conforming to the provisions of the
Grid Code Regulation 2024 in case the generating units are kept
synchronized with the transmission system.
(2) Generating units of above five (5) MW
The owner of the generating unit shall provide suitable capacitors
to compensate the reactive power drawl and enter into a connection
agreement with the licensee.

Operational Labelling
45. The licensee and each user of the distribution system shall be responsible
for providing and maintaining clear, unambiguous signs and labels
indicating the numbering and names of equipment or apparatus and
circuits at the substations and connection sites. Each piece of equipment
such as a transformer, circuit breaker or an isolator shall be labelled by
a unique number.

Temporary Power Supply

46. Service lines for temporary power supply shall be laid by the
licensee wherever possible and the cost incurred in providing, laying,
maintaining, and removing such service lines shall be paid by the user.
The licensee, however, at its sole discretion, may allow the user to lay,
maintain, and remove such service line at his cost, using the user’s own
material.

47. The user will be required to pay energy charges and all other charges
as per the norms fixed by the licensee for such temporary power supply
under its miscellaneous charges as issued by the Authority from time

12
 to time.

48. The customer shall apply for the renewal of a temporary power supply
before its expiration if an extension is required beyond the two (2) year
period. Unless otherwise approved by the licensee, the temporary power
supply shall be defined as installations intended for removal within a
period not exceeding two (2) years.

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 CHAPTER 3
ASSET MANAGEMENT

Objective
49. The objective of this section is to ensure that good asset management
practices are adopted by the licensee in order to enable asset creation in
conformity with quality standards, maximise asset life, and encourage
improvement and innovation in distribution services.

Asset Management Practices

50. A licensee shall endeavour to:
(1) Assess and record the nature, location, condition, useful or residual
life, and performance of its distribution system assets;
(2) Develop and implement plans for the acquisition, creation,
operation, maintenance, refurbishment, repair, and disposal of its
distribution system assets, and also propose plans for augmentation
and establishment of transmission connections serving the
distribution system, by implementing the following measures:
(a) Establishing standard operating procedures (SOPs) and
undertaking root cause analysis of failures to ensure reliable
distribution system operations;
(b) Adopting condition monitoring practices and drawing up
schedules for preventive, condition-based, and predictive
maintenance to minimise the risks associated with the failure or
reduced performance of distribution assets;
(c) Adopting suitably N-1 or N-2 criterion for the design of
distribution system, as the case may be, in order to ensure that
supplies to critical consumer installations are restored with
minimum or no interruptions and loss of load in the event of
failure of one or more network components;
(d) Optimising network configurations for serving load demand
and taking into account distribution losses to minimise costs to
consumers; and
(e) Complying with the laws and other performance obligations
which apply to the provision of distribution services, including
those contained in these regulations.

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 (3) Develop, test, simulate, and implement contingency plans to deal
with events which have a low probability of occurring, but are
realistic and have a substantial impact on supply to consumers.

Maintenance of Substation and Distribution Lines

51. Licensee shall coordinate the maintenance works of all substations
with the operation of the transmission system to which the distribution
system, or part thereof, is connected, so as to ensure coordinated,
reliable, and secure electricity supply.

52. Licensee shall prepare a maintenance schedule for various line and
substation equipment installed in distribution system.

53. The maintenance schedule shall have the following components:

(1) Planned schedule for inspection;
(2) Planned schedule for preventive, condition-based, and predictive
maintenance; and
(3) Planned schedule for refurbishing, overhaul, or replacement.
54. Licensee shall carry out annual preventive maintenance works on
all equipment such as power transformers, distribution transformers,
voltage transformers, current transformers, circuit breakers, and isolator
switches, and the details of maintenance works carried out shall be
entered in a register.

55. Apart from annual maintenance, the licensee shall carry out inspections
at regular intervals on all 33kV, 11kV, and LV lines.

Consumers’ Electrical Installation and Equipment

56. A consumer shall endeavour to:
(1) The electrical installation and any equipment within the premises:
(a) Complies with the Distribution Code Regulation;
(b) Complies with the Internal House Wiring Rules and Regulations,
where applicable; and
(c) Is maintained in a safe condition.
(2) Operation of protection equipment is effectively coordinated with
the distribution system.
(3) The distribution system and the reliability and quality of supply to
other users are not adversely affected by his actions or due to any
equipment of his electrical installation.
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 (4) Use of electricity supplied is in accordance with the tariff category
for which the connection has been provided.
(5) Supply of electricity to his electrical installation is not used by any
other person except in accordance with the Act.
(6) Meter is not bypass or tampered.

Licensee’s Equipment on Consumer’s Premises

57. A consumer must:
(1) Not interfere with the licensee’s system, including any of the
licensee’s equipment and its components installed in or on the
consumer’s premises; and
(2) Provide and maintain in its premises the agreed facility required
by the licensee to protect any equipment of the licensee.

58. A consumer must provide to the licensee and its authorised

representatives convenient and unhindered access:
(1) To the licensee’s equipment for any purposes associated with the
supply, metering, or billing of electricity; and
(2) To the consumer’s electrical installation for the purposes of
inspection or testing for assessing whether the consumer is
complying with this regulation and disconnecting supply if
events of non-compliance with this regulation are evidenced and
subsequent reconnection of supply after removal of the cause of
such non-compliance.

59. In cases other than emergencies, a licensee shall endeavour to access a

consumer’s premises at a time which is reasonably convenient to both
the consumer and the licensee.

Distribution Performance Report

60. Licensee shall submit a performance report to the Authority annually as
per the requirements of Regulatory Reporting Regulation 2025.

Inventory Management
61. Licensee shall identify the inventory of materials and their components
along with stock of critical apparatus and their spare parts that are to
be kept in stock so that on the occurrence of line faults or equipment

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 failure of predictable nature, rectification measures including repair and
replacement works can be commenced on an immediate basis.

62. Licensee shall maintain a list of stock of identified spares and spare
parts that are necessary in the course of regular maintenance works to
be conducted on switchgear, protective relays, transformers, metering
equipment, line hardware and insulators and other apparatus used in the
operation of the distribution system.

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 CHAPTER 4
DISTRIBUTION OPERATING CODE

Introduction
63. This section contains the rules, procedures, and practices to be followed
by the licensee and users of the distribution system for safe, reliable,
and efficient operation of the distribution system. Operational matters
pertaining to interfaces between distribution and transmission systems
shall conform to the Grid Code Regulation 2024.

64. The following aspects of distribution system operation are covered in

this section:
(1) System of supply;
(2) Quality of supply;
(3) Load balancing;
(4) Demand forecasting;
(5) Outage planning for maintenance;
(6) Contingency planning and disaster management;
(7) Demand management and load shedding;
(8) Metering;
(9) Protection system;
(10) Safety coordination;
(11) Human resource development;
(12) Complaint handling; and
(13) Geographical Information System (GIS) based mapping of
distribution infrastructure and consumer connections.

Objectives
65. The objective of distribution operating code is to achieve the following:
(1) To establish rules, procedures, and arrangements for safe, stable
and efficient operation of the distribution system;
(2) To enable licensee to coordinate and integrate the operation and
maintenance with other users, connected to distribution system;
(3) To ensure safety of persons and properties while work is being
done on the distribution system; and

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 (4) To provide for the exchange of information.

Distribution Operating Procedure

66. To ensure compliance with the provisions of this regulation, licensees
shall develop and maintain distribution operating code and furnish
copies to the Authority.

System of Supply
67. The declared frequency of AC supply is 50 Hz.

68. The declared voltage of AC supply is as follows:

System of Supply Voltage Level Limits of Variation

Single Phase: 230 V between
phases and neutral
LV ±6%
Three Phase: 400 V between
Phases

MV 66 kV, 11kV, 33kV ±10%

69. The voltage variation limits at the interface between the distribution
and transmission systems shall comply with sections 81, 82, and 83 of
the Grid Code Regulation 2024.

70. The system of supply shall be determined by the licensee depending on

the contract demand of the consumer and shall normally be as follows:

Contract Demand Supply system

≤ 10 kW Single phase, 230V

>10kW & ≤30kW 3 phase, 400V through direct connected meter

3 phase, 400V through direct connected or CT

>30kW & ≤100kW
connected meter

>100kW & ≤300kW 3 phase, 400V through CT connected meter

19
 >300kW & ≤3MW 6.6kV, 11kV or above through CT/PT connected meter

>3MW & ≤15MW 33kV or above through CT/PT connected meter

* The contract demand in case of LV consumer is the estimated demand based on the
information given on the nameplate of appliances and the rated loads, and number of
power, lighting and fan points, furnished by the consumer duly verified by the licensee.
(At the time of application for new connection or for increase or decrease in demand,
unless such demand is warranted to be furnished by the consumer for appropriate
customer categorization, based on the tariff schedules, revised from time to time by the
Authority.)

71. The licensee may, however, at its discretion, also supply at any other
voltage depending on system availability as well as adaptability in
accommodating the load requisitions of consumers.

Quality of Supply
72. Supply Frequency
(1) The system operator shall coordinate for maintaining the system
frequency between 49.9 Hz to 50.05 Hz as per Grid Code
Regulation 2024; and
(2) The licensee shall comply with the directions of system operator
in its endeavour to maintain the system frequency.

73. Supply Voltage

(1) Licensee must to maintain a nominal voltage level at the point
of supply to the consumer’s electrical installation, subject to
tolerance limits stated in section 68;
(2) Licensee shall endeavour to control voltage in distribution system
within the allowable tolerance of its variations unless such
variations are beyond the control of the licensee; and
(3) Licensee must monitor and record steady state voltages and
variations at each zonal substation in its distribution system where
such voltage limitations are not applicable.

74. Power Factor

(1) The consumers shall maintain an average power factor of not less
than 0.85;
(2) Licensee reserves the right to refuse to supply an apparatus, or
20
 undertake any installation at a consumer’s premises where in its
opinion the average power factor of the installation is less than
0.85;
(3) Licensee shall take power factor improvement measures at strategic
points in distribution system by carrying out system studies and
installing the required reactive power compensation equipment;
(4) When required by the licensee, the consumer shall take reasonable
time, not exceeding three (3) months, to take such effective steps
as to raise the average power factor of installation to a value not
less than 0.85. Notwithstanding this provision, the licensee in the
interest of system regulations, may at its discretion, disconnect the
supply till such remedial measures are taken by the user without
giving notice; and
(5) If the consumer fails to take the necessary corrective actions, the
licensee reserves the right to disconnect the supply at its discretion
without prejudice to the right to impose penalties or take actions
under the relevant provisions and agreements.

Load Balancing
75. Licensee shall ensure that the load imbalance between phases in
distribution system does not exceed five percent (5%) at the point of
commencement of supply.

76. The consumer taking three phase supply shall balance the connected
load in such a way that the difference in the loading of each phase does
not exceed five percent (5%). In other words, the maximum permissible
difference of loads between phases shall be five percent (5%).

77. In case of continued imbalance in the operating loads for three-phase

consumers, licensee may at its discretion, notify the consumer to ensure
proper balancing of the operating loads within a stipulated period,
failing which licensee, at its sole discretion, may discontinue the supply
till remedial action is taken by consumer.

Demand Forecasting
78. Licensee shall consolidate the requirement of loads to be served in the
entire distribution system and undertake detailed load forecasting study
for a period of three (3) years for submission to the Authority under the
‘Demand Forecasting Report’ (DFR).

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79. The DFR shall be submitted to the Authority at the end of the year for
review.

80. The DFR shall include realistic demand forecast as specified in Grid
Code Regulations 2024 to enable effective management of the power
system by system operator and be as per the provisions mentioned in
this section.

81. The DFR must include the following planning information for each
distribution zone for the forthcoming three (3) year period:
(1) The forecasted number, type, and load of new connections by
customer category including new MV consumers who will be
supplied in each distribution zone;
(2) The forecasted demand growth in terms of both energy and peak
demand; and
(3) A plan for meeting forecasted demand to be met by facilitation of
embedded generators as well as system and network augmentation,
upon assessment of net load in distribution system after accounting
for increasing renewable energy penetration and deployment of
grid-interactive DERs.

82. The basis of demand estimation shall be on following inputs:

(1) Historical information;
(2) Typical requirement of MV and estimated demand of LV
consumers on the basis of relevant load data and/or hourly load
curves subject tomodifications dependingupon the communications
received from such consumers. Licensee may also identify such
major consumers who only shall be required to furnish data
pertaining to their installations to the licensee on demand for the
purpose of demand estimation;
(3) Availability of embedded generators and prosumers to assess net
load demand and construction of hourly and diurnal load curves;
(4) A safety margin to factor in contingencies; and
(5) Estimation of system losses.

83. Licensee shall consolidate the requirement for the entire distribution
system and shall furnish the same to system operator as specified in
Grid Code Regulation 2024.

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84. Licensee shall prepare and maintain adequate historical data and shall
use scientific techniques and methods for demand estimation and
forecasting by carrying out deterministic and probabilistic studies.

85. In the event any unforeseen event causes change in the demand to be
served in the entire distribution system or at a particular interconnection,
necessitating revision of forecasted demand and projected net loads, the
revised values shall be promptly intimated:
(1) By users to the licensee of increase or decrease in demand;
(2) By embedded generators to licensee of increase or decrease in
generation;
(3) By prosumers to licensee of increase or decrease in export and
import of energy; and
(4) Licensee to system operator of net load requirements.

86. The DFR shall also contain the following investment information for
each distribution zone for the forthcoming three (3) year period:
(1) Estimate of investments in network augmentation to meet present
and projected load demand;
(2) Investments in network automation and smart grids to improve
efficiency of network operations;
(3) Investments in resilient network infrastructure and technologies
that can better withstand severe weather-related incidents and
minimise outage periods for critical network sections;
(4) Investments in smart meters at feeder, distribution transformer
and consumer ends to improve energy accounting, metering and
billing efficiencies; and
(5) Investments in operational systems and processes to promote
integration of DERs.

Outage Planning for Maintenance

87. Outage planning by licensee shall be coordinated with both the work
plan of transmission operation and instructions of system operator as
per provisions specified in Grid Code Regulation 2024 to minimise
supply interruptions.

88. The outage program shall contain identification of equipment and

distribution lines of distribution system operating at voltage level of 11

23
 kV and above that are proposed to be taken out of service, along with
information on date of start of outage, duration of outage and estimated
quantum of load curtailment during outage.

89. Before any distribution lines or equipment of 11 kV and above are

taken out of service, the licensee shall inform the transmission function
even though the same is already included in the approved outage plan.

90. The above procedure shall not apply under the following circumstances:
(1) In cases where the estimated drawl at connection point is not
affected;
(2) Actions taken to deal with emergency situations to protect
equipment and associated components from damage;
(3) In case of unforeseen emergency situations requiring isolation of
equipment or distribution lines to prevent safety hazard to life and
property; and
(4) Disconnection to be affected on any user’s installation due to
non-compliance with or violation of agreement. In such cases the
system operator shall be informed wherever the load to the extent
of two (2) MW or more is affected.

91. Planned outage of power system for maintenance purposes shall be

intimated to the public through advertisement in the national newspaper
or other media appropriate not less than two (2) days in advance.

92. Outage of User’s Plant

(1) All users shall submit their tentative outage plans in advance
to licensee. The MV consumers, embedded generators and
prosumers shall each indicate three preferred options of the
date of commencement of outage. Licensee shall endeavour to
harmonize the outage plan of its distribution system elements so
as to synchronise with user’s planned outages, and the integrated
outage plan shall be communicated to the users. Licensee
shall endeavour to accommodate the first preference dates of
outage commencement of the users. The licensee may convene
coordination meetings with the users before finalizing the outage
plan.
(2) As specified in Grid Code Regulation 2024, embedded generators
having their generating units synchronised with transmission

24
 system are also required to follow instructions of system operator
for coordinating their outage plans.

Contingency Planning and Disaster Management

93. A contingency situation may arise in the event of a total or partial
blackout in the transmission system due to electrical faults, system
disturbances or adverse weather impacts. During such events, licensee
shall render assistance in system restoration activities by providing
services as specified in the Grid Code Regulation 2024.

94. A contingency may also arise on a part of the distribution system

due to localised faults, any equipment or line breakdown or weather
disruptions. It may also occur due to malfunctioning or breakdown of
the apparatus of the transmission at the point of interconnection.

95. Licensee shall develop plans and the procedure for recovery of
sections of the distribution system facing outage during contingency
situations and ensure full restoration of the affected loads in the shortest
possible time. As specified in Grid Code Regulation 2024, licensee
shall finalise such plans for supply restoration after partial or total
outages in distribution system in coordination with system operator.
The procedure shall be regularly updated with change in distribution
network configuration and also made available on the website of
licensee.

96. Licensee shall provide all assistance for the development of the overall
contingency plans for the transmission systems.

97. In cases of failure of the apparatus of the transmission system leading

to curtailment of supply to licensee’s distribution system, licensee
shall immediately contact the authorised person at the substation of the
transmission operation and assess the probable period of restoration and
restriction of load drawl from the affected substation. On the occurrence
of such event, licensee shall examine the feasibility of serving critical
loads in distribution system from alternative sources so as to minimise
the interruption of supply and also, draw up a plan for curtailing non-
essential loads as will be necessary and inform the affected users in
writing.

98. Licensee shall prepare a disaster management plan to deal with outages
in the distribution system caused by extreme weather-related events and

25
 prioritise restoration efforts to minimise downtime in sections of the
network serving critical loads.

99. The plan shall include comprehensive risk assessment to identify

vulnerable areas and critical public infrastructure, such as hospitals,
emergency services, public water and sewage works, etc., that may
be impacted by such events and clearly lay down the procedure to be
followed for reporting supply outages affecting such establishments and
undertaking their restoration on a priority basis. All efforts shall be made
to avoid hazards to public safety arising from electrical installations
which are damaged, disturbed, or dislodged due to weather-induced
impacts.

100. Detailed plans and procedures including the disaster recovery plan for
restoration after partial or total blackout of each distribution zone or
part thereof, connected to the transmission system shall be finalized by
licensee in coordination with the system operator. The procedure shall
be reviewed and revised annually.

Load Shedding
101. Temporary load shedding may be resorted to for maintaining the load-
generation balance as advised by the system operator. This may also
be necessary due to unanticipated loss of any circuit or equipment, or
any other unforeseen operational contingency like any overloading of
line(s) or transformer(s).

102. Licensee shall estimate loads that may be shed in discrete blocks at each
connection point or in the overall area of supply and inform consumers
accordingly. Upon receipt of such intimation, affected consumers
shall cooperate with the licensee in this regard and draw up plans for
reducing their load demand as and when directed by licensee. Licensee
shall work out the sequence of load shedding operations and provide
the load shedding program to the system operator as per the provisions
specified in Grid Code Regulation 2024. In case of automatic load
interruption through operation of under frequency relays installed in
the distribution system as specified in Grid Code Regulation 2024, the
circuits and the quantum of load to be interrupted in discreet blocks,
along with corresponding relay settings, shall be coordinated with the
system operator and persons in charge of the substations of the licensee
as necessary.

26
103. In the event prolonged interruptions in supply are unavoidable, licensee
shall submit a detailed program for planned load shedding indicating
the affected areas, quantum of loads to be interrupted, and timing of
proposed load shedding for approval of the Authority. On receiving
approval, licensee shall publish the program in the national newspaper
and other appropriate media. Licensee shall seek approval from the
Authority for any deviation from the approved load shedding program.

104. If the duration of unplanned load shedding in any part of the distribution
system exceeds 60 minutes, the affected consumers at MV levels and the
essential services such as public hospitals, public water works, sewage
works, etc., shall be intimated over the telephone or mobile or SMS or
email or other electronic communication medium wherever possible.

Metering
105. This section specifies the procedure for metering in distribution system
for operational as well as tariff and commercial purposes.

106. Operational Metering

(1) The minimum requirement of operational metering at licensee’s
66kV/33kV or 66kV/11kV or 33kV/11kV substations and
transformers shall be as follows:
(a) 66/33/11 kV bus voltage;
(b) 66/33/11 kV incoming or outgoing current in each phase and
each circuit or feeder;
(c) Primary and secondary currents in each phase of every
transformer; and
(d) Facility to record energy in MWh and MVARh and preferably
frequency at a predefined interval at the point of connection
with the transmission system by deploying electronic meters,
wherever possible.

(2) General
(a) Licensee shall develop a SOP specifying actions for
maintenance and upkeep of meters of all categories, including
their testing and calibration as per relevant international
standards at periodic intervals, and corrective measures,
including their replacement or upgrade, as necessary; and

27
 (b) Licensee shall deploy meters employing the latest technology
and a smart system to bring operational efficiency and
accuracy.

107. Tariff and Commercial Metering:

(1) Tariff metering conforming to relevant international standards
shall be provided at the connection points between the user’s
system and the distribution system and shall be governed by the
provisions in the agreement with the user.
(2) All the meters, instrument transformers (CT/PT), metering
cubicles, and testing procedures shall conform to the relevant
international standards as specified by the Authority.
(3) All the meters and instrument transformers used in conjunction
with commercial (tariff) metering shall also be of appropriate
accuracy class and conform to the codes and relevant international
standards. The rating shall be suitable for catering the burdens of
lead wires and metering.

108. General Requirements of Metering Arrangement

(1) At each connection point with an embedded generator or the
transmission system, the licensee should meter the following
quantities: active energy import, active energy export, reactive
energy import, and reactive energy export.
(2) Arrangements for metering, billing, energy accounting, and
energy settlements for prosumers shall be in accordance with the
provisions laid down in the prosumer agreement to be entered into
between licensee and prosumer.
(3) Each metering point associated with the determination of energy
exchanged with generation licensees and transmission system
shall be provided with both main and check meters. The standard
of accuracy of these meters shall conform to the relevant codes
and international standards.
(4) In case of electronic energy metering systems, data collection
devices shall be used to integrate pulses from meters over each
integration period, store values, and transmit the same to the data
collection system of the licensee. Data shall be collected from
both the main and check metering schemes.
(5) Voltage failure relays shall be provided to initiate an alarm on loss
of one or more phases of the voltage supply to the meter.
28
 (6) Main and check meters shall be provided at all connection points
with an embedded generator. All the meters shall be tested and
calibrated according to the guidelines provided in the relevant
codes and international standards at least once a year. Records of
these calibrations and tests shall be maintained for reference.
(7) In accordance with Grid Code Regulation 2024, the system
operator shall formulate a metering scheme and procedure covering
summation, collection, and processing of tariff meter readings
at various interconnection sites in consultation with generation
licensees and the licensee, encompassing both transmission and
distribution systems.
(8) The ownership, responsibility of maintenance, and testing of these
meters shall be as mutually agreed to between the users and the
concerned licensees.

Protection System
109. No component of any electrical equipment shall be allowed to remain
connected to the distribution system unless it is covered by appropriate
protection aimed at clearing electrical faults and isolation of the
affected equipment with reliability, selectivity, speed, and sensitivity.
Suitable protection coordination shall be maintained between the
operations of transmission and distribution systems in accordance with
the Grid Code Regulation 2024. Licensees shall coordinate with the
operating personnel of transmission function to ensure correct and
appropriate settings of protection to achieve instantaneous, effective,
and discriminatory isolation of faulty line(s) or equipment.

110. The settings of protective relays for 33kV, 11kV, and 6.6 kV lines
shall be such that a fault in any section of the network is localised and
promptly isolated, i.e., it should not affect the operation of the upstream
system. Operating personnel of transmission function shall notify the
initial settings at the points of interconnection with distribution system
and keep licensee informed from time to time of any subsequent
changes made in the settings. Routine checks on the performance of
the protective relays shall be conducted and any malfunction shall be
noted and corrected as soon as possible. The malfunctions, changes in
the system configuration, if any, and revised settings of relays shall be
discussed and finalized in the meetings of power system coordination
committee.

29
111. All generating units and all associated electrical equipment of the
generation licensee connected to the distribution system shall be
protected by adequate protection, as per relevant codes and relevant
international standards, so that the system does not suffer due to any
disturbances originating at the generating unit.

112. Distribution system: For power transformers of MV class in the

distribution system, differential protection shall be provided for 10
MVA and above, along with backup time lag over current and earth
fault protection. Transformers of 1.6 MVA and above but less than 5
MVA shall be protected by time lag over current and earth fault relays.
In addition, all power transformers shall be provided with gas-operated
relays, winding, and oil temperature alarm and or trip protection.

116. Distribution lines: All the 33kV, 11kV, and 6.6 kV lines at
connection points shall be provided with a minimum of overcurrent
and earth fault relays as follows:
(1) Plain radial feeders: Non-directional time lag over current
and earth fault relays with suitable settings to obtain
discrimination between adjacent relay settings; and
(2) Parallel or ring main feeders: Directional time lag over
current and earth fault relay.

113. Licensee shall develop SOP detailing the inspection, testing, and
calibration as per relevant international standards to be undertaken at
periodic intervals for the full range of protective relays installed in the
distribution system.

114. Licensee shall follow a phased program of introducing numeric relays,

starting with critical electrical installations to enable high precision in
fault detection and multiple protection functions in a single device to
improve reliability.

Safety Coordination
115. The objective of safety coordination is to enforce principles of safety
as prescribed and to devise codes and practices to implement the same.

116. All adequate protection shall be provided against fire hazards to

30
 all equipment and circuits in the distribution system to ensure fire
protection.

117. Licensee and users of the distribution system shall observe safety
rules and precautions when work is to be carried out on any apparatus,
switchgear, or circuits in any part of the distribution system or users’
system.

118. There shall be coordination between personnel of the licensee and its
users for carrying out work on any apparatus, switchgear, or circuits
belonging to either party at the point of connection.

119. Users receiving single point supply from licensee and engaged in
distribution of electricity to establishments under their jurisdiction shall
be required to develop operational and safety rules applicable to their
system, including all equipment and circuits, generally conforming to
Safety Regulation 2008 and Safety Code (Amendment) 2021, and as
will be prescribed by licensee.

120. Licensee and users of the distribution system shall observe safety
rules and precautions when work is to be carried out on any apparatus,
switchgear, or circuits in any part of the distribution system or users’
[Link] provisions of the Grid Code Regulations 2024 issued by
the Authority shall be followed at connection or interface points in
coordination with the operating personnel of transmission operations.

121. Licensee and users of the distribution system shall observe safety
rules and precautions when work is to be carried out on any apparatus,
switchgear, or circuits in any part of the distribution system or users’
[Link] and users of the distribution system shall observe
safety rules and precautions when work is to be carried out on any
apparatus, switchgear, or circuits in any part of the distribution system
or users’ system.

122. Licensee and users of the distribution system shall observe safety
rules and precautions when work is to be carried out on any apparatus,
switchgear, or circuits in any part of the distribution system or user’s
system. Licensee and users of the distribution system shall observe
safety rules and precautions when work is to be carried out on any
apparatus, switchgear, or circuits in any part of the distribution system
or users’ system. Licensee and all users having a common electrical
interface with the distribution system shall designate suitable persons to

31
 be responsible for safety coordination. These persons shall be referred to
as safety and control persons. Their designations and telephone, mobile,
or email ID shall be exchanged between all the concerned persons. Any
change in the list shall be notified promptly to all concerned.

123. The disconnecting device or devices at each electrical interface, which

shall be capable of effectively disconnecting the system of licensee and
other users and earthing the respective system at the control boundary
shall be identified andmarked by the licensee and respective user, and
shall be maintained in good order at all times. Such disconnecting
devices shall be provided with electrical and mechanical interlocks to
prevent inadvertent switching operations by unauthorized persons.

124. Whenever any consumer or user receiving a single point supply and
distributing electricity has installed an emergency power supply system,
either an electronic system with storage batteries or with generators, the
arrangement shall be such that the same cannot be operated without
clearly isolating the system from the licensee’s supply mains. The
responsibility of making the required arrangement for isolation from
supply mains shall be of the consumer, and this shall be part of the
electrical layout submitted to licensee for his approval. The possibility
of back energisation of the distribution system from any of the devices,
or any of the conductors, including the neutral conductor, shall be
clearly ruled out. Provided that grid-synchronized generation shall be
exempted from the above provisions.

125. Permission in writing shall be issued by the appropriate persons

being deployed at the electrical interface(s) to their counterparts for
carrying out work on any apparatus, switchgear, and circuits beyond
the electrical interface(s). Such permission shall be framed as a work
permit, the format for which shall be prepared by the licensee.

126. The system of work permit shall be observed for carrying out any
maintenance work beyond the electrical interface and shall be duly
authorized by the designated person(s). The line shall not be energized
back without the return of the work permit after completion of
maintenance work.

127. The procedures and checklist shall be issued to all concerned by licensee
for implementation.

128. Licensee shall prepare a safety manual incorporating all safety rules

32
 and safety precautions applicable to its distribution system and the
user’s system and circulate the same among all users for compliance.

Human Resource Development

129. The licensee shall ensure the availability of adequately trained and
qualified employees to meet operational, maintenance, and service
quality standards.

130. Licensee shall ensure comprehensive training and capacity building for
all employees to enhance their proficiency in system planning, design,
construction, operation, and maintenance of the distribution system,
incorporating modern and latest technologies and safety measures in
distribution system.

131. Licensee and users of the distribution system shall observe safety
rules and precautions when work is to be carried out on any apparatus,
switchgear, or circuits in any part of the distribution system or users’
[Link] shall be responsible for equipping its officers and
employees with knowledge of the guaranteed service level of this
regulation.

132. The licensee in coordination with the operating personnel of

transmission function and the system operator shall organize an annual
training program for capacity building of its operators, including mock
simulation exercises, in order to address situations of supply failure in
distribution system attributable to outages in transmission system.

Complaint Handling
133. Licensee shall set up a comprehensive complaint management system
to record both supply and billing-related complaints received. The
system shall include tracking the complaint at every stage till they are
resolved and closed.

134. Licensee shall set up appropriate channels for the consumers to register
their complaints in one of the following manners:
(1) Through in-person representation at licensee’s designated offices.
(2) By e-mail to a dedicated email address.
(3) Online through links provided on licensee’s website.
(4) Over the telephone at customer service unit or contact centres (for
supply and billing-related complaints).

33
135. Licensee shall give wide publicity in the national newspaper and
electronic media providing full details for the facilitation of complaint
registration by consumers, and also display the information at licensee’s
website.

136. A docketed system of recording complaints shall be ensured by licensee

to enable their end-to-end tracking. The following specific nature of
complaints under supply and billing shall be recorded and these records
shall be submitted to the Authority annually.
(1) Number of voltage related complaints received from consumers,
remedial measures, and time to remedy;
(2) Number of fuse-off calls or supply complaints resolved with
respect to number of calls or complaints received and average time
of restoration;
(3) Percentage of billing complaints resolved with respect to number
of complaints received and average time of closing complaints;
and
(4) Number of new connections provided to consumers vis-à-vis
number of new requisitions for supply.

137. The licensee shall implement a multi-tier system that enables customers
to seek alternative redressal mechanism and advance their supply and
billing-related complaints to a higher authority within the organization
if they find the initial response unsatisfactory.

Geographical Information System (GIS) Based Mapping of

Distribution Infrastructure and Consumer Connections
138. The licensee shall implement geographical information system (GIS)
for mapping, geo-referencing, and visualization of distribution assets
and consumer connections to enhance operational efficiency, improve
planning, and streamline work management practices.

139. The adoption of GIS or GPS-based information systems shall be carried

out in phases to progressively map key distribution infrastructure and all
consumers, ensuring their indexation with reference to the distribution
network.

34
 CHAPTER 5
EMBEDDED GENERATION

Objective
140. The objective of this section is to set out the technical compliances to
be met by an embedded generator.

Connection Agreement
141. Licensee must ensure that its distribution system has adequate capacity
of receiving supply of electricity from an embedded generator connected
to its distribution system.

142. The embedded generator shall enter into a connection agreement

with the licensee on the terms and conditions of scheduling, dispatch,
connection and disconnection as stipulated by the licensee.

Supply Frequency
143. An embedded generator must ensure that its generating units are
capable of continuous uninterrupted operation at the system frequency
of 50 Hz and variations in accordance with the provisions in the Grid
Code Regulation 2024.

Coordination and Compliance of Embedded Generators

144. An embedded generator must ensure that its generating units, and any
equipment related thereto or installed therein, that is connected to a
distribution system complies with this regulation and is maintained in
a safe condition.

145. An embedded generator must ensure that protection equipment

is effectively coordinated with the electrical characteristics of the
distribution system and reactive power compensation shall be in
compliance with Grid Code Regulation 2024 and reflected in the
connection agreement if the generating units are synchronised with the
transmission system.

146. An embedded generator must have:

(1) An excitation control system including voltage regulator;
(2) A governor system responsive to system frequency changes;

35
 (3) Safe shutdown arrangement without affecting external electricity
supply;
(4) Appropriate restart arrangement following loss of external
electricity supply;
(5) Response to disturbances; and
(6) Appropriate nameplate with its rating and features.

Negative Sequence Voltage

147. An embedded generator must ensure that its unit’s contribution to
the negative sequence voltage at the point of connection between the
embedded generator and the distribution system is less than 1%.

Fault levels
148. Licensee shall ensure that the fault level contributed by the embedded
generator shall not exceed the short circuit rating and withstand
capabilities of the connected equipment of distribution system.

36
 CHAPTER 6
GUARANTEED SERVICE LEVEL

Objective
149. The objective of this section is to specify the minimum guaranteed
service level that are required to be provided by licensee. These service
levels shall serve as guidelines for licensee to operate the distribution
system for ensuring efficient, reliable, coordinated, and economical
system of electricity distribution and supply. licensee shall endeavour
to undertake measures in order to progressively provide enhanced
guaranteed service level.

Requirement to Meet Service Levels

150. Licensees shall maintain the guaranteed service level as specified in
this section provided that any time limits set out herein shall refer to the
maximum time permitted for performing the activities to which they
relate.

151. Any failure by licensee to maintain the guaranteed service level specified
herein shall render the licensee liable to payment of compensation to a
consumer claiming such compensation under the provisions of the Act.

Quality of Supply: Voltage Variations

152. Except with the written consent of the consumer or with prior sanction
of the Authority, licensee shall not permit the voltage at the point of
supply to vary from the declared voltage in accordance with section 68.

153. In case of complaint raised by consumer on voltage variation, licensee

shall rectify the complaints with the time limits or otherwise pay the
compensation in accordance with schedule I of this regulation.

Communication of Applicable Charges for Connection

154. Licensee on receiving an application for electricity connection shall
communicate the applicable charges to be borne by the applicant,
within the time limit mentioned in schedule I of this regulation, failing
which compensation as outlined therein shall be payable by licensee to
consumer.

37
Installation of Supply
155. Licensee on receiving an application for electricity connection shall
give supply of electricity to such premises in accordance with the time
limits to be met under different situations as mentioned in schedule I of
this regulation, failing which compensation as outlined therein shall be
payable by licensee to consumer.

Restoration of Supply
156. In case of supply disruptions, licensee shall restore power supply in
urban and rural areas within the time limits mentioned in schedule I of
this regulation, failing which compensation as outlined therein shall be
payable by licensee to consumer.

157. The period of interruption as a result of any scheduled outage shall be

specified in a public notice identifying the discreet blocks of affected
loads, provided that such scheduled outage shall not normally exceed
twelve (12) hours on any day.

Reconnection
158. Where licensee has disconnected supply to a consumer for a period of
not more than six (6) months, and if such consumer subsequently pays
all amounts due and payable to the satisfaction of the licensee or, in
case of a dispute, pays such amounts under protest, the licensee shall
reconnect supply within the time limits mentioned in schedule I of this
regulation. Provided that where the period of disconnection exceeds six
(6) months, an application for reconnection of supply shall, after either
payment of amounts due or upon settlement of dispute, be treated as a
fresh application for supply of electricity under the provisions of the
Act.

159. Schedule I outlines the compensation to be paid by licensee to the

consumer if the licensee fails to meet the time limits for supply
reconnection as outlined therein for urban and rural consumers.

Consumer Bill Complaint

160. Licensee shall resolve the billing complaint regarding electricity bills
within the time limits mentioned in schedule I of this regulation, failing
which compensation as outlined therein shall be payable by licensee to
consumer.

38
Consumer Charter
161. Where licensee makes an appointment with a customer, he shall
keep this appointment in good faith and not fail to be present at the
appointed place and time unless there is a valid reason, failure to keep
such appointment shall render the licensee liable to pay compensation
to consumer, as mentioned in schedule I.

162. Every authorised representative of the licensee shall visibly display

his name tag and, if so, required by a consumer, produce for scrutiny,
proof of identity and authorization of the licensee for the purpose of any
interaction with a consumer.

163. Licensee shall maintain, in every specified division within the area of
supply, at least one consumer service center which shall be open for
not less than eight (8) hours a day, on all days of the week, for essential
services to be provided to consumers and with a facility for collection
of payments from consumers.

164. Besides this regulation, any other approved terms and conditions
of supply along with the prevailing approved tariff schedule shall be
made available on demand by licensee to any consumer on payment of
reproduction charges, at any of the offices or consumer service centres
of the licensee.

Other Services
165. An authorised representative of the licensee shall undertake reading of
each consumer’s meter in accordance with the time limits mentioned in
schedule I of this regulation.

166. Any change of name or change of tariff category shall be effected by

licensee in accordance with the time limits mentioned in schedule I of
this regulation.

167. Where the consumer applies for closure of account with the licensee,
the licensee shall, subject to satisfactory resolution of all amounts due
from the consumer, repay all outstanding amounts due to the consumer
in accordance with the time limits mentioned in schedule I of this
regulation.

168. Schedule I outlines the compensation to be paid by licensee to the

consumer if the licensee fails to meet the respective timelines outlined
therein.
39
Contact Center Operation for Consumer Service
169. The response time to telephone calls and the call abandonment rate at
the contact center shall comply with the threshold limits specified in
schedule I of this regulation, failing which compensation as outlined
therein shall be payable by licensee to consumer.

Reliability Indices
170. Licensee shall calculate the reliability of distribution system on the
basis of number and duration of sustained interruptions in a year, using
the following indices:
(1) System average interruption frequency index (SAIFI);
(2) System average interruption duration index (SAIDI);
(3) Customer average interruption duration index (CAIDI);
(4) Customer average interruption frequency index (CAIFI); and
(5) Momentary average interruption frequency index (MAIFI).

171. Provided that while calculating the above indices, the following types
of interruptions shall not be taken into account:
(1) Scheduled outages;
(2) Momentary outages of a duration of less than five minutes;
(3) Outages due to failure of the grid;
(4) Outages due to reasons described in section 178; and
(5) Outages due to reasons described in section 30, section 31, section
32 and section 33.

172. Licensee shall calculate the reliability of distribution system for

momentary interruptions of less than five (5) minutes, using momentary
average interruption frequency index (MAIFI).

173. Licensee shall submit annual outage plan by end of the year for the
activities to be carried out in following year and the actual outage plan
executed in that year at the beginning of the next year.

174. Licensee shall calculate the reliability indices for each distribution zone:
(1) Including all types of outages;
(2) As per section 170 and section 172; and
(3) For only planned or schedule outage.
40
175. Licensee shall maintain all types of power outages data for each
distribution zone.

176. Licensee shall upload monthly information on reliability indices

determined as per section 174 on its website and also submit the same
to the Authority on quarterly basis.

177. The Authority shall fix standards of reliability to be achieved by the

licensee and licensee shall comply with these standards which will be
updated by the Authority periodically.

Exemptions
178. These guaranteed service levels shall not apply where, in the opinion
of the Authority, licensee is prevented from meeting his obligations
under this regulation because of adverse impacts produced by cyclones,
earthquakes, floods, storms, war, riots, strikes, landslides, fires, or any
other occurrences which are either beyond the control of the licensee,
or for reasons not attributable to or caused by him. On the occurrence
of such events, licensee shall notify the Authority in writing furnishing
details as per section 179 and seek relaxation of its obligations to
maintain the service standards during the period of such occurrence
and covering the affected distribution zone. Licensee may also seek
such exemption in the event the operations of the distribution system
are adversely affected on the occurrence of an incident or serious safety
incident restricting the licensee’s capability to discharge its obligations
under this regulation. Such relaxation shall not be excused from failure to
maintain the guaranteed service level under this regulation in situations
where such failure can be attributed to negligence or deficiency or lack
of preventive maintenance of the distribution system or failure to take
reasonable precaution on the part of the licensee.

179. Licensee may submit an application to the Authority for relaxation of

the guaranteed service level, detailing:
(1) The description of the interruption and reasons why the licensee
considers it ought to be relaxed; and
(2) Evidence of the impact of the interruption on the licensee’s
reliability performance or guaranteed service level.

180. The Authority may by general or special order, exempt the licensee
from any or all of the guaranteed service level for such period and for
such part of the distribution system as may be specified in the said order.
41
Determination of Compensation
181. Where licensee finds that it has failed to meet any of the guaranteed
service level. specified under this regulation, either of its own knowledge,
or upon written claim filed by an affected consumer, licensee shall be
liable to pay such consumer and all other consumers similarly affected,
such compensation as has been determined by the Authority and
enumerated in schedule I of this regulation for each situation of service
default or non-compliance by licensee.

182. If licensee fails to meet the standards specified in schedule I of this

regulation, without prejudice to any penalty which may be imposed, he
shall be liable to pay such compensation to the affected consumer(s).

183. The payment of such compensation shall be made by licensee within

thirty (30) days of a direction issued by the Authority.

184. Failure by the licensee to pay the compensation in accordance with

section 181 shall constitute a dispute, which shall be dealt with in
accordance with the procedure set out in the Electricity Regulatory
Authority Dispute Settlement Rules and Regulations 2025 as amended
from time to time.

185. A customer seeking compensation for damages must submit a written

claim to the licensee within six months from the date of the incident.
The claim must be supported by a technical report providing evidence
of the damage.

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 CHAPTER 7
RIGHTS AND OBLIGATIONS

Licensee’s Obligations
186. Licensee shall develop and maintain an efficient, economical and a
coordinated distribution system in its area of supply.

187. Licensee shall arrange to supply electricity on receipt of application

from an applicant.

188. Licensee shall develop a standardised format of customer Charter,

which shall be handed over to consumer at the time of connection to the
distribution system. licensee shall also review and submit the charter to
the Authority:
(1) at least once every five (5) years; and
(2) as and when requested.

189. Licensee’s customer Charter must summarize all current rights,

entitlements and obligations of licensees and consumers relating to the
supply of electricity, including:
(1) The identity of the licensee;
(2) The licensee’s guaranteed service level; and
(3) Other aspects governing the relationship between licensee
and consumers under this regulation and other relevant codes
and regulations approved by the Authority.

190. Licensee shall notify consumers of the details of scheduled power

outages and in case of unplanned outages or faults provide immediate
intimation to consumers through SMS or by any other electronic mode
along with estimated time for restoration.

191. Licensee shall also provide information on reliability and continuity

of supply, including wherever applicable an explanation for any
interruption of supply (whether planned or unplanned but excluding
breakdowns) to all consumers either over telephone, via text messages
or in writing and also through his website. If the consumer requests
such information or explanation in writing, such request shall be
complied with within twenty (20) days of the request. In the event of

43
 any planned interruption of supply in the service area, licensee shall
at least two (2) days in advance inform through local newspapers or
though text message or email about the affected area, brief reasons for
the interruptions, discreet blocks of loads to be interrupted and tentative
duration.

192. If licensee is required to undertake specific tests as applicable on the

request of the customer to determine the quality of supply, the licensee
may levy charges for this service in accordance with its approved
statement of charges.

193. If the results of the test under section 192 show that the licensee is not
complying with his obligations under this regulation, licensee must take
appropriate remedial action and the charges levied by it for carrying out
the tests shall be refunded.

194. On request by a consumer, the licensee must provide the consumer

or the consumer’s licensed electrical contractor with reasonable
information on licensee’s requirements in relation to any proposed new
electrical installation of the consumer or changes to the consumer’s
existing electrical installation, including appropriate advice about
supply extensions, if required.

195. Licensee shall provide application tracking mechanism based on the

unique registration number through web-based application or mobile
app or through SMS or by any other mode.

196. Licensee shall provide access to various services such as application

submission, monitoring status of application, payment of bills, status
of complaints raised, etc. to consumers through multiple channels and
through his area-wise designated offices.

197. Licensee shall publish the guaranteed service level along with
compensation structure on its website or on the notice board at all its
offices.

198. The procedure for registration of complaints by consumers shall be

displayed by licensee on the notice board of its offices or publish on its
website, along with the facilities available for receiving complaints and
their resolution.

44
199. Licensee is obligated to acknowledge any consumer complaints and
ensure that appropriate measures are taken for their resolution.

200. Licensee shall take adequate measures to create consumer awareness

regarding the existing services provided and use of any new technology
apparatus such as smart meters.

Licensee’s Rights
201. Licensee shall charge a reasonable security deposit from the applicant
who requires new connection for electricity supply.

202. Licensee shall charge from an applicant requiring supply of electricity

any expenses to be reasonably incurred in providing any electric line
or electrical equipment, or component thereof, used for the purpose of
giving that supply.

203. Charges as applicable shall also be levied by licensee towards expenses

to be reasonably incurred in alteration to or shifting of supply in a
premises as may be requisitioned by consumers.

204. Licensee shall charge a penalty from the consumer, who has been
found to be involved in unauthorized use of electricity and offences, in
accordance with the Act.

Consumer’s Obligations
205. A consumer must inform licensee as soon as practicable if there is any:
(1) Proposed change to wiring or any equipment in the consumer’s
electrical installation which may affect the quality of the supply of
electricity to any other person;
(2) Change affecting access to the licensee’s equipment located at the
consumer’s supply address;
(3) Major change to the quantum of electricity likely to be used by the
consumer at the consumer’s supply address; and
(4) The user on request from the licensee, shall provide details of
loads connected or planned to be connected to the distribution
system which are required for the purpose of the distribution
system planning. The licensee shall assist the LV consumers to
furnish the information required, such as:
(a) The location or address of the consumer at which the loads
are connected or proposed to be connected;
45
 (b) Expected maximum demand in kVA or kW;
(c) Existing load in kWh and kVARh;
(d) Existing peak loads; and hourly load profile in kW or kWh;
(e) Anticipated new loads;
(f) Any proposed changes in load scheduling; and
(g) Annual planned outages programme.

Consumer’s Rights
206. The consumer has the right to a minimum guaranteed service level to be
maintained by licensee for supply of electricity.

207. A consumer having concerns related to supply of electricity to his

premises (such as interruptions, voltage variations, delays in connection
or reconnection services, etc, or being aggrieved by billing discrepancies
or errors, incorrect meter readings, non-receipt of bills, disputes over
charges, etc.,) has the right to approach the licensee and register his
complaints.

208. Where licensee has failed to maintain the guaranteed service

level specified in this regulation, the consumer is entitled to claim
compensation as per the provisions of this regulation.

209. Where damage or loss is caused to the customer by the negligence of

the licensee in the course of its operations, the customer has the right to
payment of fair and adequate compensation by the licensee as will be
determined by the Authority, in accordance with provisions of the Act.

210. Where licensee defaults in its obligation to provide a supply of

electricity to a customer, the customer shall have the right to appeal to
the Authority.

Confidentiality
211. Licensee shall ensure that any classified information obtained as a result
of his activities shall not be revealed to anyone, except for persons who
are authorised to receive such information. Licensee shall also ensure
that such information is not used for conducting any other activities,
other than the licensed activity except:
(1) With the prior written consent of the person or business entity to
whose affairs the information relates;

46
(2) If the information is already known to the public;
(3) If the licensee is required or permitted to disclose the information
to comply with the license conditions, under the order of the
Authority or in terms of any effective legislation; and
(4) When the information is required to be disclosed in the normal
course of performing licensed activity.

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 CHAPTER 8
SAFETY INCIDENT REPORTING

Introduction
212. This section covers the procedure of incident or serious safety incident
reporting in the event of its occurrence in distribution system by any
user to licensee and by licensee to user and to the Authority.

Incident and Serious Safety Incident Reporting

213. If any serious safety incident occurs in connection with the distribution
system or supply or use of electricity in or in connection with, any
part of the electric lines or electrical equipment of any person and the
serious safety incident results or is likely to have resulted in loss of
human or animal life or in any injury to a human being or an animal,
the licensee shall give notice of the occurrence and of any such loss or
injury actually caused by the serious safety incident to all concerned in
such form and within such time as may be prescribed by the Authority.

214. The Authority may, if it thinks fit, by order appoint an electrical

inspector to inquire and report:
(1) As to the cause of any serious safety incident affecting the safety of
the public, which may have been occasioned by or in connection
with the distribution, supply, or use of electricity; or
(2) As to the manner and extent to which the provisions of the Act or
Rules and regulations made hereunder or of any licensee, so far
as those provisions affecting the safety of any person, have been
complied with.

215. Licensee, consumers, and agreed parties shall provide access to

information and entry to the premises for investigating the serious
safety incident by the Inspector appointed by the Authority.

Incident Reporting
216. Licensee shall send a preliminary report to the Authority of all the
significant incidents in the licensee’s area of supply, which result in
an interruption to service or substantial damage, within one week of its
occurrence, followed by a detailed report within one month.

217. Licensee and users shall establish a format and procedure for the
exchange of information.
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218. The users shall furnish information to licensee regarding any major
incident occurring in their system promptly.

219. The major incidents that would affect the distribution and supply system
are:
(1) Major breakdowns in the distribution system having a supply
interruption for more than 12 hours at a stretch;
(2) Major breakdowns in lines or cables, or equipment; and
(3) Any other incident which the licensee may consider worth
reporting with regard to the safe and reliable operation of the
distribution system.

Serious Safety Incident Reporting

220. All reportable incidents occurring in the lines and equipment of 33 kV
and below substations shall be promptly reported orally by the licensee
whose equipment has experienced the incident, to all other significantly
affected users identified by the licensee as well as to the operating
personnel of transmission function and the Authority. If the reporting
incident is of significant nature, the written report shall be submitted to
the Authority within two (2) hours duly followed by a comprehensive
report within five (5) working days of the submission of the initial
written report.

221. Operating personnel of transmission function may call for a serious

safety incident reporting from and seek a report from licensee on any
reportable serious safety incident affecting other users and particularly
in the case of such user whose equipment might have been a source of
the reportable serious safety incident. The format for such a report shall
typically contain the following:
(1) Location of the incident or serious safety incident;
(2) Date and time of the incident or serious safety incident;
(3) Equipment, or any component thereof involved;
(4) Supplies interrupted and the duration wherever applicable;
(5) Amount of generation loss, wherever applicable;
(6) System parameters before and after the incident (voltage,
frequency, load, generation, etc.,);
(7) Network configuration before the outage due to an incident or a
serious safety incident;

49
 (8) Relay indications and performance of protection;
(9) Brief description of the incident or serious safety incident;
(10) Estimated time of return to service;
(11) Any other relevant information;
(12) Suggested remedial measures;
(13) Recommendations for future improvement; and
(14) Name and designation of the reporting person.

222. The serious safety incident reporting format submitted by the licensee
report shall contain sufficient detail to describe the event to enable the
recipient to assess the implications and risks arising out of the same.
The recipient may ask for clarifications and additional information
wherever necessary, and it is obligatory that the licensee and reporting
users shall put their best efforts and provide all the necessary and
reasonable information.

223. In case of a request by either party, the oral report shall be written down
by the sender and dictated by way of a telephone or mobile message or
sent by e-mail to the recipient. In case of an emergency, the report can
be given only orally and followed by written confirmation.

50
 CHAPTER 9
MISCELLANEOUS

Dispute Resolution
224. Any dispute between the licensee and users arising from the enforcement
of the provision of this regulation shall be dealt in accordance to the
Dispute Settlement Rules and Regulations 2025.

Non-compliance
225. The licensee and users shall comply with the provisions of this
regulation. Any non-compliance shall lead to the imposition of fines,
penalties, and sanctions by the Authority.

Cyber Security
226. The licensee and users connected to the distribution system must have
cybersecurity measures for the protection and resilience of critical
information infrastructure.

Electric Vehicle Supply Equipment

227. The licensee shall facilitate the safe and reliable integration of EV
charging infrastructure into the distribution network while ensuring
compliance with applicable codes and safety requirements.

Amendment
228. The Authority may amend this Distribution Code Regulation as and
when required.

Definitions and Abbreviations

229. For the purpose of this regulation, any word or expression used to which
a meaning has been assigned in the Electricity Act of Bhutan, 2001,
shall have that meaning, unless explicitly indicated in this regulation.
The following words and expressions shall have the meaning ascribed
to them:
(1) “Act” means the Electricity Act of Bhutan, 2001;
(2) “Apparatus” means any and all of the electrical plant and
equipment and will comprise all machines, fittings, structures,
accessories, and appliances, including meters, which use electricity
for functioning;

51
(3) “Application” means an application complete in all respects in the
appropriate format, as required by licensee, along with documents
showing payment of necessary charges and other compliances;
(4) “Applicant” means any person or entity who files an application
form with licensee for supply of electricity, increase or decrease
in sanctioned load or contract demand, transfer or change in
name, change in title or mutation of premises or property where
supply is provided, change in consumer category, disconnection
or restoration of supply, or termination of agreement, shifting of
connection or any other services as the case may be, in accordance
with the provisions of the Act, and rules and regulations made
thereunder;
(5) “Area of Supply” means the area within which licensee is
authorised by the license to supply electricity;
(6) “Authorised Representative” refers to all officers, staff or
representatives of licensee, discharging functions under the
general or specific authority of the licensee;
(7) “Average Power Factor” means the power factor measured
based on the average over a period and to be calculated as a ratio
of kilowatt hour and kilovolt-ampere hour during the same period;
(8) “Circuit” means an arrangement of conductor(s) for the purpose
of carrying electrical energy and forming a system or branched
system;
(9) “Complaint” means any grievance made by a consumer with
regard to supply and billing of electricity by the licensee, provided
that, grievance falling within the purview of tampering with or
unauthorised use of supply, and recovery of charges initiated or
penalties imposed as a consequence is excluded;
(10) “Conductor” means any wire, cable, bar, tube, rail or plate used
for conducting energy and electrically connected to the distribution
system;
(11) “Connection Point” means a point at which a user’s electrical
system is connected to the licensee’s distribution system;
(12) “Consumer or Customer” means any person who is supplied with
electricity for his own use by the licensee or by any other person
engaged in the business of supplying electricity to public under
52
 the Act or any other law for the time being in force and includes
any person whose premises are for the time being connected with
the distribution system of the licensee for the purpose of receiving
supply of electricity;
(13) “Customer Average Interruption Duration Index” or
“CAIDI” means the average interruption duration of sustained
interruptions determined in accordance with section 170 for
those consumers who experienced interruptions during the
reporting period, determined by dividing the sum of all sustained
consumer interruption durations, in minutes, by the total number
of interrupted consumers for the reporting period, or by using the
following equation:
CAIDI = ∑ Total Customer Interruption Durations / Total
Number of Customer Interruptions
CAIDI = (Σ Ri x Ni) / (Σ Ni) = SAIDI / SAIFI
Where:
“Ri” is the restoration time for interruption event “i”;
“Ni” is the number of consumers who experienced a sustained
interruption in interruption event “i” during the reporting
period;
(14) “Customer Average Interruption Frequency Index” or
“CAIFI” means the average interruption frequency of the sustained
interruptions determined in accordance with section 170 for those
consumers who experienced interruptions during the reporting
period, determined by dividing the total number of all consumer
interruptions by the total number of consumers interrupted for the
reporting period, or by using the following equation:
CAIFI = ∑ Total Number of Customer Interruptions/ Total Number
of Customers Interrupted;
(15) “Day” means a working day, other than a Saturday or Sunday, or
a public holiday;
(16) “Disconnection” means the physical separation or remote
disconnection of a consumer from the distribution system of the
licensee;

53
(17) “Distribute” means to distribute electricity to customer’s point of
supply using a distribution system;
(18) “Distribution system” means any system consisting mainly of
cable, service lines and overhead lines, electrical plant and meters
having design voltage of 33 kV and below owned or operated
by a licensee for distribution or for retail supply and used for
the transportation of electricity from a transmission system or
generating sets or other points to the point of delivery to consumers,
and includes any electrical plant and meters owned or operated by
the licensee in connection with the distribution of electricity. The
distribution system shall not include any part of a transmission
system, except where used for the supply of electricity to a single
consumer or group of consumers;
(19) “Distributed Energy Resource System (DERs)” means the grid
interactive power generation and storage solutions originating
from renewable energy sources including the power system
installed on consumer or prosumer premises and connected to the
distribution system of the licensee;
(20) “Distribution Zone” means electrical distribution system where
electricity is distributed from substations to consumers through
localised medium and low voltage networks;
(21) “Earthing” means connection of the electrical equipment with
the general mass of earth as to ensure at all times an immediate
discharge of energy to earth without risk to life and property in the
event of a fault or short circuit in the electrical system;
(22) “Electricity Regulatory Authority (ERA)” or “Authority”
means the authority of that name established pursuant to part 2 of
the Act;
(23) “Embedded Generator” means a generator which is embedded
within and connected to a distribution system;
(24) “Emergency” means a situation due to the actual or imminent
occurrence of an unforeseeable event or incident which either
disrupts or has the potential to disrupt supply of electricity to
consumers, or endangers or threatens to endanger the safety or
health of any person, or destroys or damages, or threatens to
destroy or damage, any property;

54
(25) “Flicker” means the impression of unsteadiness of visual
sensation induced by a light stimulus whose luminance or spectral
distribution fluctuates with time;
(26) “Generation Licensee” means a person who has obtained a
license for generation of electricity pursuant to part 3 (section 22)
of the Act;
(27) “Grid Code Regulation 2024” means a document describing the
approach and the responsibilities for planning and operation of
power system issued by the Authority in pursuant to section 89 of
the Act;
(28) “Harmonic” means the sinusoidal component of a periodic wave
either voltage or current waveform having a frequency that is an
integer multiple of the fundamental frequency of 50 Hz;
(29) “High Voltage Consumer” means any consumer who is directly
connected to the transmission system at 66 kV;
(30) “International Standard” means a globally recognized set of
technical guidelines, specifications, or best practices established
by international standardization bodies such as the International
Electrotechnical Commission (IEC), Institute of Electrical and
Electronics Engineers (IEEE), International Organization for
Standardization (ISO), and others;
(31) “License” means a license issued under the provisions of part 3 of
the Electricity Act of Bhutan 2001;
(32) “Licensee” means any person issued with a license under the
provisions of part 3 of the Act, and in terms of this regulation, shall
signify transmission and distribution licensee who has obtained a
license to distribute electricity pursuant to section 11 of the Act;
(33) “Load Shedding” means deliberate switching off of electrical
loads at distribution level based on system requirement;
(34) “Low Voltage” means voltage not exceeding 400 Volts between
phase to phase for three phase supply or 230 volts between phase
to neutral in case of single-phase supply;
(35) “Medium Voltage” means voltages of 6.6 kV, 11 kV and 33 kV;
(36) “Meter” means a set of integrating instruments used to measure and/
or record and store the information regarding amount of electrical
55
 energy supplied or the quantity of electrical energy contained in
the supply, in a given time, which includes whole current meter
and metering equipment, such as current transformer, capacitor
voltage transformer or potential or voltage transformer with
necessary wiring and accessories including for communication
and also includes pre-payment meters, special energy meters, etc.;
(37) “Momentary Average Interruption Frequency Index” or
“MAIFI” means the average frequency of momentary interruptions
per consumer occurring during the reporting period and leading
to outage duration of less than 5 minutes, and is determined
by dividing the sum of all number of consumers momentary
interruption by the total number of consumers using the following
equation:
MAIFI= ∑i Mi × Ni ⁄ NT
Where:
“Mi” is the number of momentary interruption events “i”
“Ni” is the number of consumers who experienced a
momentary interruption in an interruption event “i” during
the reporting period; and
“NT” is the total number of consumers of the licensee;
(38) “Power Factor” means the ratio of active power (kW) to apparent
power (kVA) and is expressed as the cosine of the electrical angle
between the voltage and current vectors in an AC electrical circuit;
(39) “Planned or Schedule Outages” means annual outage plan
taken up for operational and maintenance work for upkeep of the
distribution system that requires supply to the electrical system to
be interrupted;
(40) “Prosumer” means an electricity consumer that produces part of
electricity needs from DERs installed in his premises and uses
the distribution system to inject surplus production for sale and to
withdraw electricity from the same distribution system when self-
production is not sufficient to meet own needs; being connected
to and having the electrical interface with distribution system.
prosumers are also users within the meaning of this Distribution

56
 Code Regulation and governed by the applicable provisions;
(41) “Prosumer Agreement” means an agreement between a prosumer
and the licensee for connection to distribution system providing
terms and conditions for sale and purchase of power to and from
the distribution system;
(42) “Premises” means land, building or infrastructure or part or
combination thereof in respect of which a separate meter or
metering arrangements have been made by licensee for the supply
of electricity;
(43) “Rural Area” means any area that is not an urban area;
(44) “Serious Safety incident” means an incident arising from the
design, construction, operation or maintenance of an electric
power plant or equipment that:
(a) Results in the death of any person;
(b) Results in an injury to any person which results in
disability; and
(c) Causes damage to property other than property belonging
to a licensee;
(45) “System Average Interruption Duration Index” or “SAIDI”
means the average duration of sustained consumer interruptions
(determined in accordance with section 170 per consumer
occurring during the reporting period, determined by dividing the
sum of all sustained consumer interruption durations, in minutes,
by the total number of consumers using the following equation:
SAIDI= ∑(Ri * Ni) / NT
where:
“Ri” is the restoration time for interruption event “i”;
“Ni” is the number of consumers who experienced a sustained
event “i” during the reporting period; and
“NT” is the total number of consumers of the licensee.
(46) “System Average Interruption Frequency Index” or “SAIFI”
means the average frequency of sustained interruptions determined
in accordance with section 170 per consumer occurring during the

57
 reporting period, determined by dividing the total number of all
sustained consumer interrupted by the total number of consumers
using the following equation:
SAIFI= Ni / NT
Where:
“Ni” is the number of consumers who experienced a sustained
interruption in interruption event “i” during the reporting
period; and
“NT” is the total number of consumers of the licensee;
(47) “System Operator” means the authorised person (s) whose
function is defined under section 39 of the Act;
(48) “Temporary Power Supply” means an electricity supply
required by a person or an entity for meeting the temporary needs
of power supply for construction purposes, fairs, exhibitions,
musical concerts, congregations, temporary sheds, labour camps,
fuel stations, municipal worker camps, transit camps, emergency
shelters, etc.;
(49) “Transmission System” means an electricity network operating
at a nominal voltage of 66 kV and above or as deemed by the
Authority to be a part of the transmission network;
(50) “Unplanned Interruptions” means the loss of electrical power
to one or more customer that does not result from planned outage;
(51) “Urban Area” means any area within a proclaimed municipality;
(52) “User” means any person or entity having an electrical connection
to the distribution system and shall imply to include generation
licensee, embedded generators, consumers, and prosumers; and
(53) “Voltage” means the difference of electric potential measured in
volts between any two conductors or between any part of either
conductor and the earth;

Words or expressions used in this regulation but not defined herein

shall have the meanings assigned to them in the Act or rules or
regulations framed thereunder.

58
230. Abbreviations
The following abbreviations shall have the meaning ascribed to them:
(1) “AC” means alternating current;
(2) “ERA” means Electricity Regulatory Authority;
(3) “CAIDI” means customer average interruption duration
index;
(4) “CAIFI” means customer average interruption frequency
index;
(5) “CT” means current transformer;
(6) “DERs” means distributed energy resource system;
(7) “DFR” means demand forecasting report;
(8) “DPR” means distribution performance report;
(9) “EV” means electric vehicle;
(10) “HP” means horse power; “HV” means high voltage;
(11) “kW” means kilowatt;
(12) “kWh” means kilowatt hour;
(13) “kVAR” means kilovolt ampere reactive;
(14) “kVARh” means kilovolt ampere reactive hour;
(15) “kV” means kilovolt;
(16) “kVA” means kilovolt ampere;
(17) “LV” means low voltage;
(18) “MAIFI” means momentary average interruption frequency
index;
(19) “MV” means medium voltage;
(20) “PT” means potential transformer;
(21) “SAIDI” means system average interruption duration index;
and
(22) “SAIFI” means system average interruption frequency index.

59
Schedule 1: Compensation for Failure to Meet Guaranteed Service
Level for LV and MV Consumers

a. Quality of Supply: Voltage Variations

Situation Standard Compensation Rates
Time taken to rectify voltage 2 days for urban
complaint without need for any areas and 4 days
network reinforcement (voltage Nu. 470 shall be paid to
for rural areas
variation outside the limit) each affected customer
Time taken to correct voltage per 24 hours of the
3 months for urban default
complaint which requires net- areas and 6 months
work reinforcement after com- for rural areas
pletion of detail assessment

b. Communication of Applicable Charge for Connection

Communica-
tion of Charges ofCommunication
Charges (With- Compensation
Situation (Within the in the Period) for Rates
Period) for rural areas
Urban Areas
Where supply can be 1 day from the 2 days from the
provided by extending date of receipt date of receipt of
the service cable from of complete complete applica-
existing distribution application tion
networks
Where supply requires
extension of LV distri-
bution system Nu. 470 shall
be paid to
Where supply requires each affected
installation of distribu- 3 days from the 5 days from the
date of receipt date of receipt of customer per
tion transformer, pur- 24 hours of the
of complete complete applica-
chased, and delivered default
application tion
by customer at his cost
Where supply requires
extension of MV 7 days from the 10 days from the
distribution system date of receipt date of receipt of
including the arrange- of complete complete applica-
ment and installation application tion
of transformer by BPC
at the cost of customer

60
c. Installation of Supply
Installation
Installation of Supply of Supply
Compensation
Situation (Within the Period) (Within Rates
Urban Areas the Period)
rural areas
Where supply can be 3 days from
provided by extend- 2 days from the date the date of
ing the service cable of receipt of complete receipt of
from existing distri- application complete
bution networks application
3 weeks Nu. 50 per kW
Where supply from the per 24 hours of
2 weeks from the date
requires extension date of sanctioned load
of receipt of complete
of LV distribution receipt of shall be paid to
application
system complete each affected
application customer after
default
Where supply re-
quires installation of Within 1 month from the date of
distribution trans- receipt of complete application and
former purchased delivery of transformer at the work site
and delivered by
customer at his cost
where supply 1% of the
requires extension 6 months amount depos-
of MV distribution from the
4 months from the date ited as capacity
system including date of
the arrangement and of receipt of complete reserve charge
receipt of
application by the custom-
installation of trans- complete ers per 24 hours
former by BPC at the application of default
cost of customer

61
d. Restoration of Supply
Compensation
Situation Urban Areas Rural Areas
Rates
In the case of 3 hours upon a) 8 hours upon re-
burnt meters receipt of com- ceipt of complaint
plaint where there is road a) For LV customers:
access Nu. 5 per kW per
b) 48 hours upon re- hour of sanc-
ceipt of complaint tioned load after
where there is no default
road access
In the case of 2 hours upon a) 6 hours upon re-
normal receipt of com- ceipt of complaint
plaint where there is road
fuse-off calls access.
b) 8 hours upon re-
ceipt of complaint
where there is no
road access
In the case of 24 hours upon a) 36 hours upon re- b) For MV cus-
distribution receipt of com- ceipt of complaint tomers: 1% of
overhead line plaint here there is road average monthly
breakdowns access bill amount of
b) 72 hours upon re- last 3 months for
ceipt of complaint every 24 hours of
where there is no default
road access
In the case of 24 hours upon a) 36 hours upon re-
distribution receipt of com- ceipt of complaint
transformer plaint here there is road
failure access
b) 72 hours upon re-
ceipt of complaint
where there is no
road access
In the case of 24 hours upon a) 48 hours upon re-
underground receipt of com- ceipt of complaint
cable failure plaint where there is road
access
b) 72 hours upon re-
ceipt of complaint
where there is no
road access

62
e. Reconnection
Situation Standard Compensation Rates
After payment of dues,
reconnect the supply Nu. 470 shall be paid to
immediately for urban each affected custom-
Disconnected supply consumers er per 24 hours of the
Within 24 hours from default or on pro rata
payment of dues for basis
rural consumers

f. Consumer Bill Complaint

Situation Standard Compensation Rates
If no additioal information Within 3 working days
is required of receipt of complaint Nu. 470 shall be paid to
each affected customer
If additional information is Within 7 working days per 24 hours of the
required of receipt of complaint default

g. Customer Charter
Situation Standard Compensation Rates

Keeping of Date and time for the Nu. 50 for each in-
appointment with customer appointment stance of default

h. Other Services
Situation Standards Compensation Rates
Reading of customer’s Monthly Nu. 300 per month
meter
Change of name or tariff Nu. 100 per month or
Second billing cycle
category part thereof
1 day for urban areas
Closure of account after Nu. 100 per month or
and 2 days for rural
payment of dues part thereof
areas

63
i. Contact Center Operation Service Standards
Category Customer Service Measure Standard Penalty
Time to respond to telephone 95% within 30 As per Penal-
customer calls seconds ty Rules and
Service Should not be regulation
Call abandoned rate 2024
more than 10%

64
Schedule 2: Compensation for Failure to Meet Guaranteed Service
Level for HV Consumers

a. Quality of Supply: Voltage Variation

(1) On receipt of a voltage fluctuation complaint, licensee shall
verify if the voltage fluctuation is exceeding the limits specified
and upon confirmation, licensee shall rectify the complaints in
accordance with the time limits mentioned in table below.
(2) HV consumers failing to install capacitors of adequate capacity
shall not be eligible for the compensation.
(3) HV consumers shall maintain minimum power factor of 0.9.

Situation Standard Compensation Rates

1 day
Time taken to rectify voltage a) 12 hrs - 24 hrs: Nu. 500
complaint without need for shall be paid to each
any network reinforcement affected customer per
(voltage variation outside the hours of the default
limit)
b) 24 hours and beyond:
Nu.1000 shall be paid
3 months to each affected cus-
Time taken to correct voltage
complaint which requires net- tomer per hours of the
work reinforcement after com- default
pletion of detail assessment

b. Communication of Applicable Charge for Connection

Communication
Situation Compensation Rates
of Charges
Where supply requires an 30 days from the Nu. 470 shall be paid to
extension of HV transmission date of receipt of each affected customer per
system including installation complete appli- 24 hours of the default
of transformer by BPC at the cation
cost of customer

65
c. Installation of Supply

Situation Installation of Supply Compensation Rates

Where supply requires an 1% of the amount depos-

extension of HV trans- 12 months from the date ited as capacity reserve
mission system including of receipt of complete charge by the customers
installation of Transform- application per 24 hours of default
er

d. Restoration of Supply
Compensation
Situation Urban Areas Rural Areas Rates
a) 36 hours upon receipt
of complaint where
24 hours there is road access
In the case of line upon receipt b) 72 hours upon receipt
breakdowns of complaint of complaint where
there is no road
access
a) 36 hours upon receipt 1% of average
of complaint where monthly bill
amount of last
In the case of trans- 24 hours there is road access
upon receipt b) 72 hours upon receipt 3 months for
former failures every 24 hours
of complaint of complaint where
there is no road of default
access
a) 48 hours upon receipt
of complaint where
In the case of 24 hours there is road access
underground cable upon receipt b) 72 hours upon receipt
failure of complaint of complaint where
there is no road
access

66
e. Consumer Bill Complaint

Situation Standard Compensation Rates

If no additional information Within 3 working days of

is required receipt of complaint Nu. 470 shall be paid
to each affected cus-
tomer per 24 hours of
If additional information is Within 7 working days of the default
required receipt of complaint

The amended version approved in the Hundred Twenty Eighth Commission

Meeting held on 21st April 2025.

67
Electricity Regulatory Authority
Ministry of Energy and Natural Resources
Royal Government of Bhutan

Land line: +975-02-327317

Email: era@[Link]