What is the penalty to be imposed in the case of an unauthorized extension of a service connection, under the Conditions of Supply of Electrical Energy, the Regulations framed under Section 79(j) of the Electricity (Supply) Act, 1948, is the issue arising for consideration in this case. The Electricity Board has taken the view that the unauthorized extension is to be penalized at three times the energy charges prescribed under LT VIII Tariff, for the period the unauthorized extension was connected to the system. At the outset it is to be noted that even under Regulation 42(d) of the Conditions of Supply read with Section 26 of the Indian Electricity Act, 1910 the penalty is to be limited only to six months.

2. Regulation 24 of the Conditions of Supply of Electrical Energy provides that “supply taken from the existing plug point/mains to any appliance situated outside the premises will be treated as an extension. Such extensions should be taken only for temporary purposes.” The procedure for taking such temporary extension is prescribed under the same Regulation. To the extent relevant it reads as follows:-

“Should the consumer, at any time after the supply of energy has been commenced, desire to increase the number or wattage or capacity of lights, fans or motors etc., on his premises on a temporary or permanent basis or in any way alter the position of his wiring therein, notice thereof must be sent by the consumer in writing to the Board whose representative will call and inspect the alteration and, if necessary change meters and fuses and alter the service line. For this purpose if a single phase service line is to be converted to three phase or change of size of conductor to meet increased maximum demand is necessitated, the work shall be done at the cost of consumer on deposit work basis. A test report signed by a licensed wiring contractor should also be produced by the consumer along with his application for extension and alteration. The consumer should remit the testing fee. Failure to give such notice any derange the supply system and will render the supply liable to be summarily discontinued. During such time as alterations, additions, or repairs are being executed, the supply to the circuit, which is being altered, added to or repaired, must be entirely disconnected and it shall remain disconnected until the alterations, additions or repairs have been tested and passed by the Board. In the event of any unauthorized extensions, alterations or repairs resulting in any damage to the system of the Board, the consumer will have to pay the Board all expenses on account of such damages also.”

Regulation 42 provides for situations dealing with misuse of energy. Though misuse of energy as such is not defined under the Regulations, on broader principles, unauthorized extension is certainly a misuse of energy since unauthorized additional load is defined as misuse of energy. Under Regulation 42(d) “misuse of energy will be billed at three times the rate applicable to the respective tariff for the previous six months from the date of detection of misuse unless there are convincing reasons for adopting different periods and supply disconnected without notice.” The Board was adopting the method of levying proportionate energy charges also for the unauthorized additional load, in addition to the fixed charges. However, this court has now settled the law by judgment in Writ Appeal No,1231/2003 that the penalty has to be limited to the fixed charge portion only since the quantity of energy consumed at the premises is otherwise measured through the meter and charges have already been paid for the same. Section 26 of the India Electricity Act 1910 read with Regulation 35 provides that the amount of energy supplied to a consumer is to be ascertained by means of meter or meters installed at the premises. Irrespective of the connected load or extension, the energy supplied at a premises is measured by the meter and charges there