(1) The Appropriate Commission may, after consultation with the licensees and persons likely to be affected, specify standards of performance of a licensee or a class of licensees.
(2) If a licensee fails to meet the standards specified under sub-section (1), without prejudice to any penalty which may be imposed or prosecution be initiated, he shall be liable to pay such compensation to the person affected as may be determined by the Appropriate Commission:
Provided that before determination of compensation, the licensee shall be given a reasonable opportunity of being heard.
(3) The compensation determined under sub-section (2) shall be paid by the licensee within ninety days of such determination.
Legal Commentary & Landmark Judgments: Section 57
Section 57 of the Act empowers the Appropriate Commission to specify standards of performance for distribution licensees, establishing statutory compensation payable directly to affected consumers for service defaults.
Consumers experiencing prolonged unannounced blackouts or delayed connection releases should file formal compensation claims under Section 57 before the Consumer Grievance Redressal Forum (CGRF), citing specific SOP regulations to claim automatic per-day compensation credits.