Many people are not clear about how long they should keep their
electricity receipts. Many are worried that the electricity supply
companies might bill them under "audit short claim" about power
consumed several years earlier. A brief history of the legal position
on this issue is given here.
In a decision given in 1993 (III (1993) CPJ 381 (NC)), the National Consumer Commission held that limitation period applies to electricity bills and that the electricity supply company can not raise a bill for power consumed more than three years ago. So consumers do not have to pay audit short claims more than three years old and need not preserve bill payment receipts for more than three years. The Supreme Court, in a judgment given in 1997 (AIR 1997 SC 1101) agreed that the supply companies can not make new demands on power consumed more than three years ago, but it also said that electric companies can disconnect the supply for not clearing the arrears. As a result of this surprising (and apparently self-contradicting) judgment, electricity consumers had to preserve all their old receipts, because if the electricity company claimed that you had not paid a bill 10 years ago, it could disconnect your supply unless you could prove that you had actually paid it.
But the law governing electricity supply was changed in 2003 when the Electricity Act, 2003 came into effect. According to Sec 56(2) of the Act, "no sum due from any consumer, ... shall be recoverable after the period of two years from the date when such sum became first due unless such sum has been shown continuously as recoverable as arrears of charges for electricity supplied and the licensee shall not cut off the supply of the electricity."
Therefore, if your electricity bills are not showing any outstanding arrears, you need to keep the receipts only for a period of two years. The electricity supply company can not claim that you owe money on a bill more than two two years ago and punish you for the non-payment.
In a decision given in 1993 (III (1993) CPJ 381 (NC)), the National Consumer Commission held that limitation period applies to electricity bills and that the electricity supply company can not raise a bill for power consumed more than three years ago. So consumers do not have to pay audit short claims more than three years old and need not preserve bill payment receipts for more than three years. The Supreme Court, in a judgment given in 1997 (AIR 1997 SC 1101) agreed that the supply companies can not make new demands on power consumed more than three years ago, but it also said that electric companies can disconnect the supply for not clearing the arrears. As a result of this surprising (and apparently self-contradicting) judgment, electricity consumers had to preserve all their old receipts, because if the electricity company claimed that you had not paid a bill 10 years ago, it could disconnect your supply unless you could prove that you had actually paid it.
But the law governing electricity supply was changed in 2003 when the Electricity Act, 2003 came into effect. According to Sec 56(2) of the Act, "no sum due from any consumer, ... shall be recoverable after the period of two years from the date when such sum became first due unless such sum has been shown continuously as recoverable as arrears of charges for electricity supplied and the licensee shall not cut off the supply of the electricity."
Therefore, if your electricity bills are not showing any outstanding arrears, you need to keep the receipts only for a period of two years. The electricity supply company can not claim that you owe money on a bill more than two two years ago and punish you for the non-payment.
Dr.T.N. Manjunath, Mysore Grahakara Parishat