ELECTRICITY ACT, 2003
(1) This Act may be called the Electricity Act, 2003.
(2) It extends to the whole of India except the State of Jammu and Kashmir.
(3) It shall come into force on such date1 as the Central Government may, by notification, appoint:
Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.
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1. Sections 1 to 120 and sections 122 to 185 came into force on 10-6-2003, vide S.O. 669(E), dated 10th June, 2003, published in the Gazette of India, Extra., Pt. II, Sec. 3(ii), dated 10th Jun
In this Act, unless the context otherwise requires,—
(1) “Appellate Tribunal” means the Appellate Tribunal for Electricity established under section 110;
(2) “appointed date” means such date as the Central Government may, by notification, appoint;
(3) “area of supply” means the area within which a distribution licensee is authorised by his licence to supply electricity;
(4) “Appropriate Commission” means the Central Regulatory Commission referred to in sub-section (1) of section 76 or the State Regulatory Commission referred to in section 82 or the Joint Commission referred to in section 83, as the case may be;
(5) “Appropriate Government” means,—
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Section 2 of the Electricity Act, 2003, provides definitions crucial for interpreting the provisions of the Act. It lays down the meanings of key terms such as "consumer," "licensee," "distribution system," and others, which form the foundation for the legal framework governing electricity generation, transmission, distribution, and supply in India.
Section 2 contains a series of definitions that clarify the scope and application of the Act. Notable definitions include:- "Consumer" (Section 2(15)): Any person supplied with electricity for own use by a licensee, government, or other authorized entity.- "Distribution system" (Section 2(16)): The network used for distributing electricity, including transmission lines and associated infrastructure.- "Appropriate Commission" (Section 2(5)): The regulatory authority at the central or state level.- "Transmission system" (Section 2(72), 2(48)): Systems for transmitting electricity, including dedicated transmission lines and overhead lines.- "Licensee" (Section 2(17)): Entities authorized to operate in the electricity sector.
These definitions are instrumental in understanding rights, obligations, and procedural aspects under the Act.
Section 2 is primarily definitional and does not prescribe punishments directly. However, misinterpretation or misuse of these definitions can lead to violations of the Act, attracting penalties under other sections like those related to theft, unauthorized use, or breach of license conditions.
Section 2 of the Electricity Act, 2003, is pivotal in establishing clear, precise definitions that underpin the entire statutory framework governing electricity in India. It delineates roles, responsibilities, and jurisdictional boundaries, ensuring legal certainty and facilitating effective regulation, dispute resolution, and enforcement. The definitions also harmonize with other laws and technical standards, reinforcing the comprehensive nature of the Act.
Note: The references are drawn from the provided sources and are cited in square brackets as per the instructions.
(1) The Central Government shall, from time to time, prepare the National Electricity Policy and tariff policy, in consultation with the State Governments and the Authority for development of the power system based on optimal utilisation of resources such as coal, natural gas, nuclear substances or materials, hydro and renewable sources of energy.
(2) The Central Government shall publish the National Electricity Policy and tariff policy from time to time.
(3) The Central Government may, from time to time in consultation with the State Governments, and the Authority review or revise the National Electricity Policy and tariff policy referred to in sub-section (1).
(4) The Authority shall prepare a National Electricity Plan in accordance with the National Electricity Policy and notify such plan o
The Central Government shall, after consultation with the State Governments, prepare and notify a national policy, permitting stand alone systems (including those based on renewable sources of energy and other non-conventional sources of energy) for rural areas.
The Central Government shall also formulate a national policy, in consultation with the State Governments and the State Commissions, for rural electrification and for bulk purchase of power and management of local distribution in rural areas through Panchayat Institutions, users’ associations, co-operative societies, non-governmental organisations or franchisees.
The concerned State Government and the Central Government shall jointly endeavour to provide access to electricity to all areas including villages and hamlets through rural electricity infrastructure and electrification of households.]
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1. Subs. by Act 26 of 2007, sec. 2, for section 6. Section 6, before substitution, stood as under:
“6. Obligations to supply electricity to rural areas.—The Appropriate Government shall endeavour to supply electricity to all areas including villages and hamlets.”
Any generating company may establish, operate and maintain a generating station without obtaining a licence under this Act if it complies with the technical standards relating to connectivity with the grid referred to in clause (b) of section 73.
(1) Notwithstanding anything contained in section 7, any generating company intending to set-up a hydro-generating station shall prepare and submit to the Authority for its concurrence, a scheme estimated to involve a capital expenditure exceeding such sum, as may be fixed by the Central Government, from time to time, by notification.
(2) The Authority shall, before concurring in any scheme submitted to it under sub-section (1) have particular regard to, whether or not in its opinion,—
(a) the proposed river-works will prejudice the prospects for the best ultimate development of the river or its tributaries for power generation, consistent with the requirements of drinking water, irrigation, navigation, flood-control, or other public purposes, and for this purpose the Authority shall satisfy itself, after consultation with the S
(1) Notwithstanding anything contained in this Act, a person may construct, maintain or operate a captive generating plant and dedicated transmission lines:
Provided that the supply of electricity from the captive generating plant through the grid shall be regulated in the same manner as the generating station of a generating company:
1[Provided further that no licence shall be required under this Act for supply of electricity generated from a captive generating plant to any licencee in accordance with the provisions of this Act and the rules and regulations made thereunder and to any consumer subject to the regulations made under sub-section (2) of section 42.]
(2) Every person, who has constructed a captive generating plant and maintains and operates such plant, shall have the right to open
(1) Subject to the provisions of this Act, the duties of a generating company shall be to establish, operate and maintain generating stations, tie-lines, sub-stations and dedicated transmission lines connected therewith in accordance with the provisions of this Act or the rules or regulations made thereunder.
(2) A generating company may supply electricity to any licensee in accordance with this Act and the rules and regulations made thereunder and may, subject to the regulations made under sub-section (2) of section 42, supply electricity to any consumer.
(3) Every generating company shall—
(a) submit technical details regarding its generating stations to the Appropriate Commission and the Authority;
(b) co-ordinate with the Centr
(1) The Appropriate Government may specify that a generating company shall, in extraordinary circumstances operate and maintain any generating station in accordance with the directions of that Government.
Explanation.—For the purposes of this section, the expression “extraordinary circumstances” means circumstances arising out of threat to security of the State, public order or a natural calamity or such other circumstances arising in the public interest.
(2) The Appropriate Commission may offset the adverse financial impact of the directions referred to in sub-section (1) on any generating company in such manner as it considers appropriate.
No person shall—
(a) transmit electricity; or
(b) distribute electricity; or
(c) undertake trading in electricity,
unless he is authorised to do so by a licence issued under section 14, or is exempt under section 13.
The Appropriate Commission may, on the recommendations of the Appropriate Government, in accordance with the national policy formulated under section 5 and in the public interest, direct, by notification that subject to such conditions and restrictions, if any, and for such period or periods, as may be specified in the notification, the provisions of section 12 shall not apply to any local authority, Panchayat Institution, users’ association, co-operative societies, non-governmental organisations, or franchisees.
The Appropriate Commission may, on an application made to it under section 15, grant a licence to any person—
(a) to transmit electricity as a transmission licensee; or
(b) to distribute electricity as a distribution licensee; or
(c) to undertake trading in electricity as an electricity trader,
in any area as may be specified in the licence:
Provided that any person engaged in the business of transmission or supply of electricity under the provisions of the repealed laws or any Act specified in the Schedule on or before the appointed date shall be deemed to be a licensee under this Act for such period as may be stipulated in the licence, clearance or approval granted to him unde
The Electricity Act, 2003 was enacted to consolidate laws relating to the generation, transmission, distribution, trading, and use of electricity in India. Section 14 specifically addresses the grant of licenses for these activities, establishing a framework for regulatory oversight and ensuring that only authorized entities can engage in electricity-related operations.
Section 14 of the Electricity Act, 2003 empowers the Appropriate Commission to grant licenses for:- (a) Transmitting electricity as a transmission licensee.- (b) Distributing electricity as a distribution licensee.- (c) Undertaking trading in electricity as an electricity trader.
The scope of Section 14 is broad, covering all entities involved in the electricity sector, including:- Transmission companies.- Distribution companies.- Electricity traders.
This section ensures that all operations within the electricity sector are conducted by licensed entities, thereby promoting accountability and safety.
While Section 14 itself does not prescribe punishments, it establishes the framework under which unauthorized operations can be penalized under other sections of the Act, such as Section 135, which deals with theft of electricity.
This commentary highlights the significance of Section 14 of the Electricity Act, 2003, in regulating the electricity sector in India, ensuring that only licensed entities operate while protecting consumer rights and promoting public interest.
(1) Every application under section 14 shall be made in such form and in such manner as may be specified by the Appropriate Commission and shall be accompanied by such fee as may be prescribed.
(2) Any person who has made an application for grant of a licence shall, within seven days after making such application, publish a notice of his application with such particulars and in such manner as may be specified and a licence shall not be granted—
(i) until the objections, if any, received by the Appropriate Commission in response to publication of the application have been considered by it:
Provided that no objection shall be so considered unless it is received before the expiration of thirty days from the date of publication of the notice as aforesaid;
Section 15 of the Electricity Act, 2003, primarily deals with the procedure for grant of licenses to persons intending to undertake the activities of transmission, distribution, or trading of electricity. It forms a crucial part of the licensing framework established under the Act, aiming to regulate entry into the electricity sector, ensure compliance with statutory requirements, and promote fair competition.
Section 15 prescribes the process for applying for a license under the Act. It mandates that every application for a license shall be made in the prescribed form and manner, accompanied by the requisite fee, and specifies the criteria and procedure for the licensing authority (the Appropriate Commission) to grant or reject such applications. The section also details the factors to be considered by the Commission, such as financial capacity, technical competence, and compliance with the law.
Section 15 applies to:- Persons/entities seeking licenses for transmission, distribution, or trading of electricity.- The licensing process for new entrants into the electricity sector.- Ensuring transparency and fairness in licensing decisions.- Setting the procedural framework for applications, hearings, and approvals.It does not directly address issues related to power purchase agreements, power theft, or consumer disputes, which are covered under other provisions of the Act.
Section 15 itself does not prescribe any punishment. However, violations related to false statements in applications, non-compliance with licensing conditions, or operating without a license may attract penalties under other sections of the Act, such as Section 142 (offense for contravention of provisions) or Section 135 (power theft).
Note: The references are primarily from the provided sources, especially those discussing licensing procedures, application processes, and judicial interpretations related to Section 15 and its context within the Electricity Act, 2003.
The Appropriate Commission may specify any general or specific conditions which shall apply either to a licensee or class of licensees and such conditions shall be deemed to be conditions of such licence:
Provided that the Appropriate Commission shall, within one year from the appointed date, specify any general or specific conditions of licence applicable to the licensees referred to in the first, second, third, fourth and fifth provisos to section 14 after the expiry of one year from the commencement of this Act.
(1) No licensee shall, without prior approval of the Appropriate Commission,—
(a) undertake any transaction to acquire by purchase or takeover or otherwise, the utility of any other licensee; or
(b) merge his utility with the utility of any other licensee:
Provided that nothing contained in this sub-section shall apply if the utility of the licensee is situate in a State other than the State in which the utility referred to in clause (a) or clause (b) is situate.
(2) Every licensee shall, before obtaining the approval under sub-section (1), give not less than one month’s notice to every other licensee who transmits or distributes, electricity in the area of such licensee who applies for such approval.
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(1) Where in its opinion the public interest so permits, the Appropriate Commission, may, on the application of the licensee or otherwise, make such alterations and amendments in the terms and conditions of his licence as it thinks fit:
Provided that no such alterations or amendments shall be made except with the consent of the licensee unless such consent has, in the opinion of the Appropriate Commission, been unreasonably withheld.
(2) Before any alterations or amendments in the licence are made under this section, the following provisions shall have effect, namely:—
(a) where the licensee has made an application under sub-section (1) proposing any alteration or modifications in his licence, the licensee shall publish a notice of such application with such particulars and in such ma
(1) If the Appropriate Commission, after making an enquiry, is satisfied that public interest so requires, it may revoke a licence in any of the following cases, namely:—
(a) where the licensee, in the opinion of the Appropriate Commission, makes wilful and prolonged default in doing anything required of him by or under this Act or the rules or regulations made thereunder;
(b) where the licensee breaks any of the terms or conditions of his licence the breach of which is expressly declared by such licence to render it liable to revocation;
(c) where the licensee fails, within the period fixed in this behalf by his licence, or any longer period which the Appropriate Commission may have granted therefor—
(i) to
(1) Where the Appropriate Commission revokes under section 19 the licence of any licensee, the following provisions shall apply, namely:—
(a) the Appropriate Commission shall invite applications for acquiring the utility of the licensee whose licence has been revoked and determine which of such applications should be accepted, primarily on the basis of the highest and best price offered for the utility;
(b) the Appropriate Commission may, by notice in writing, require the licensee to sell his utility and thereupon the licensee shall sell his utility to the person (hereafter in this section referred to as the “purchaser”) whose application has been accepted by that Commission;
(c) all the rights, duties, obligations and liabilities of the licensee, on and from the dat
Where a utility is sold under section 20 or section 24, then, upon completion of the sale or on the date on which the utility is delivered to the intending purchaser, as the case may be, whichever is earlier—
(a) the utility shall vest in the purchaser or the intending purchaser, as the case may be, free from any debt, mortgage or similar obligation of the licensee or attaching to the utility:
Provided that any such debt, mortgage or similar obligation shall attach to the purchase money in substitution for the utility; and
(b) the rights, powers, authorities, duties and obligations of the licensee under his licence shall stand transferred to the purchaser and such purchaser shall be deemed to be the licensee.
(1) If the utility is not sold in the manner provided under section 20 or section 24, the Appropriate Commission may, to protect the interest of consumers or in the public interest, issue such directions or formulate such scheme as it may deem necessary for operation of the utility.
(2) Where no directions are issued or scheme is formulated by the Appropriate Commission under sub-section (1), the licensee referred to in section 20 or section 24 may dispose of the utility in such manner as it may deem fit:
Provided that, if the licensee does not dispose of the utility, within a period of six months from the date of revocation, under section 20 or section 24, the Appropriate Commission may cause the works of the licensee in, under, over, along, or across any street or public land to be removed and every such street or public land to be rei
If the Appropriate Commission is of the opinion that it is necessary or expedient so to do for maintaining the efficient supply, securing the equitable distribution of electricity and promoting competition, it may, by order, provide for regulating supply, distribution, consumption or use thereof.
(1) If at any time the Appropriate Commission is of the opinion that a distribution licensee—
(a) has persistently failed to maintain uninterrupted supply of electricity conforming to standards regarding quality of electricity to the consumers; or
(b) is unable to discharge the functions or perform the duties imposed on it by or under the provisions of this Act; or
(c) has persistently defaulted in complying with any direction given by the Appropriate Commission under this Act; or
(d) has broken the terms and conditions of licence,
and circumstances exist which render it necessary for it in public interest so to do, the Appropriate Commission may; for reasons to be rec
For the purposes of this Part, the Central Government may, make region-wise demarcation of the country, and, from time to time, make such modifications therein as it may consider necessary for the efficient, economical and integrated transmission and supply of electricity, and in particular to facilitate voluntary inter-connections and co-ordination of facilities for the inter-State, regional and inter-regional generation and transmission of electricity.
(1) The Central Government may establish a Centre at the national level, to be known as the National Load Despatch Centre for optimum scheduling and despatch of electricity among the Regional Load Despatch Centres.
(2) The constitution and functions of the National Load Despatch Centre shall be such as may be prescribed by the Central Government:
Provided that the National Load Despatch Centre shall not engage in the business of trading in electricity.
(3) The National Load Despatch Centre shall be operated by a Government company or any authority or corporation established or constituted by or under any Central Act, as may be notified by the Central Government.
(1) The Central Government shall establish a Centre for each region to be known as the Regional Load Despatch Centre having territorial jurisdiction as determined by the Central Government in accordance with section 25 for the purposes of exercising the powers and discharging the functions under this Part.
(2) The Regional Load Despatch Centre shall be operated by a Government company or any authority or corporation established or constituted by or under any Central Act, as may be notified by the Central Government:
Provided that until a Government company or authority or corporation referred to in this sub-section is notified by the Central Government, the Central Transmission Utility shall operate the Regional Load Despatch Centre:
Provided further that no Regional Load Despatch Centre sh
(1) The Regional Load Despatch Centre shall be the apex body to ensure integrated operation of the power system in the concerned region.
(2) The Regional Load Despatch Centre shall comply with such principles, guidelines and methodologies in respect of wheeling and optimum scheduling and despatch of electricity as the Central Commission may specify in the Grid Code.
(3) The Regional Load Despatch Centre shall—
(a) be responsible for optimum scheduling and despatch of electricity within the region, in accordance with the contracts entered into with the licensees or the generating companies operating in the region;
(b) monitor grid operations;
(c) keep accounts of quantity of elec
(1) The Regional Load Despatch Centre may give such directions and exercise such supervision and control as may be required for ensuring stability of grid operations and for achieving the maximum economy and efficiency in the operation of the power system in the region under its control.
(2) Every licensee, generating company, generating station, sub-station and any other person connected with the operation of the power system shall comply with the directions issued by the Regional Load Despatch Centres under sub-section (1).
(3) All directions issued by the Regional Load Despatch Centres to any transmission licensee of State transmission lines or any other licensee of the State or generating company (other than those connected to inter-State transmission system) or sub-station in the State shall be issued through the State Load Despatch
The State Commission shall facilitate and promote transmission, wheeling and inter-connection arrangements within its territorial jurisdiction for the transmission and supply of electricity by economical and efficient utilisation of the electricity.
(1) The State Government shall establish a Centre to be known as the State Load Despatch Centre for the purposes of exercising the powers and discharging the functions under this Part.
(2) The State Load Despatch Centre shall be operated by a Government company or any authority or corporation established or constituted by or under any State Act, as may be notified by the State Government:
Provided that until a Government company or any authority or corporation is notified by the State Government, the State Transmission Utility shall operate the State Load Despatch Centre:
Provided further that no State Load Despatch Centre shall engage in the business of trading in electricity.
(1) The State Load Despatch Centre shall be the apex body to ensure integrated operation of the power system in a State.
(2) The State Load Despatch Centre shall—
(a) be responsible for optimum scheduling and despatch of electricity within a State, in accordance with the contracts entered into with the licensees or the generating companies operating in that State;
(b) monitor grid operations;
(c) keep accounts of the quantity of electricity transmitted through the State grid;
(d) exercise supervision and control over the intra-State transmission system; and
(e) be responsible for carrying out real time operations fo
(1) The State Load Despatch Centre in a State may give such directions and exercise such supervision and control as may be required for ensuring the integrated grid operations and for achieving the maximum economy and efficiency in the operation of power system in that State.
(2) Every licensee, generating company, generating station, sub-station and any other person connected with the operation of the power system shall comply with the directions issued by the State Load Despatch Centre under sub-section (1).
(3) The State Load Despatch Centre shall comply with the directions of the Regional Load Despatch Centre.
(4) If any dispute arises with reference to the quality of electricity or safe, secure and integrated operation of the State grid or in relation to any direction given under sub-sect
Every transmission licensee shall comply with such technical standards, of operation and maintenance of transmission lines, in accordance with the Grid Standards, as may be specified by the Authority.
The Appropriate Commission may, on an application by any licensee, by order require any other licensee owning or operating intervening transmission facilities to provide the use of such facilities to the extent of surplus capacity available with such licensee:
Provided that any dispute, regarding the extent of surplus capacity available with the licensee, shall be adjudicated upon by the Appropriate Commission.
(1) Every licensee shall, on an order made under section 35, provide his intervening transmission facilities at rates, charges and terms and conditions as may be mutually agreed upon:
Provided that the Appropriate Commission may specify rates, charges and terms and conditions if these cannot be mutually agreed upon by the licensees.
(2) The rates, charges and terms and conditions referred to in sub-section (1) shall be fair and reasonable, and may be allocated in proportion to the use of such facilities.
Explanation.—For the purposes of sections 35 and 36, the expression “intervening transmission facilities” means the electric lines owned or operated by a licensee where such electric lines can be utilised for transmitting electricity for and on behalf of another licensee at his request and on
The Appropriate Government may issue directions to the Regional Load Despatch Centres or State Load Despatch Centres, as the case may be, to take such measures as may be necessary for maintaining smooth and stable transmission and supply of electricity to any region or State.
(1) The Central Government may notify any Government company as the Central Transmission Utility:
Provided that the Central Transmission Utility shall not engage in the business of generating of electricity or trading in electricity:
Provided further that the Central Government may transfer, and vest any property, interest in property, rights and liabilities connected with, and personnel involved in transmission of electricity of such Central Transmission Utility, to a company or companies to be incorporated under the Companies Act, 1956 (1 of 1956) to function as a transmission licensee, through a transfer scheme to be effected in the manner specified under Part XIII and such company or companies shall be deemed to be transmission licensees under this Act.
(2) The functions of the Central Tra
(1) The State Government may notify the Board or a Government company as the State Transmission Utility:
Provided that the State Transmission Utility shall not engage in the business of trading in electricity:
Provided further that the State Government may transfer, and vest any property, interest in property, rights and liabilities connected with, and personnel involved in transmission of electricity, of such State Transmission Utility, to a company or companies to be incorporated under the Companies Act, 1956 (1 of 1956) to function as transmission licensee through a transfer scheme to be effected in the manner specified under Part XIII and such company or companies shall be deemed to be transmission licensees under this Act.
(2) The functions of the State Transmission Utility shall be—
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It shall be the duty of a transmission licensee—
(a) to build, maintain and operate an efficient, co-ordinated and economical inter-State transmission system or intra-State transmission system, as the case may be;
(b) to comply with the directions of the Regional Load Despatch Centre and the State Load Despatch Centre as the case may be;
(c) to provide non-discriminatory open access to its transmission system for use by—
(i) any licensee or generating company on payment of the transmission charges; or
(ii) any consumer as and when such open access is provided by the State Commission under sub-section (2) of section 42, on payment of the transmission charg
A transmission licensee may, with prior intimation to the Appropriate Commission, engage in any business for optimum utilisation of its assets:
Provided that a proportion of the revenues derived from such business shall, as may be specified by the Appropriate Commission, be utilised for reducing its charges for transmission and wheeling:
Provided further that the transmission licensee shall maintain separate accounts for each such business undertaking to ensure that transmission business neither subsidies in any way such business undertaking nor encumbers its transmission assets in any way to support such business:
Provided also that no transmission licensee shall enter into any contract or otherwise engage in the business of trading in electricity.
(1) It shall be the duty of a distribution licensee to develop and maintain an efficient co-ordinated and economical distribution system in his area of supply and to supply electricity in accordance with the provisions contained in this Act.
(2) The State Commission shall introduce open access in such phases and subject to such conditions, (including the cross subsidies, and other operational constraints) as may be specified within one year of the appointed date by it and in specifying the extent of open access in successive phases and in determining the charges for wheeling, it shall have due regard to all relevant factors including such cross subsidies, and other operational constraints:
Provided that 1[such open access shall be allowed on payment of a surcharge] in addition to the charges for wheeling as may be determined by the State
(1) 1[Save as otherwise provided in this Act, every distribution] licensee, shall, on an application by the owner or occupier of any premises, give supply of electricity to such premises, within one month after receipt of the application requiring such supply:
Provided that where such supply requires extension of distribution mains, or commissioning of new sub-stations, the distribution licensee shall supply the electricity to such premises immediately after such extension or commissioning or within such period as may be specified by the Appropriate Commission:
Provided further that in case of a village or hamlet or area wherein no provision for supply of electricity exists, the Appropriate Commission may extend the said period as it may consider necessary for electrification of such village or hamlet or area.
Nothing contained in section 43 shall be taken as requiring a distribution licensee to give supply of electricity to any premises if he is prevented from so doing by cyclone, floods, storms or other occurrences beyond his control.
(1) Subject to the provisions of this section, the prices to be charged by a distribution licensee for the supply of electricity by him in pursuance of section 43 shall be in accordance with such tariffs fixed from time to time and conditions of his licence.
(2) The charges for electricity supplied by a distribution licensee shall be—
(a) fixed in accordance with the methods and the principles as may be specified by the concerned State Commission;
(b) published in such manner so as to give adequate publicity for such charges and prices.
(3) The charges for electricity supplied by a distribution licensee may include—
(a) a fixed charge in addition to the charge for the actual ele
The State Commission may, by regulations, authorise a distribution licensee to charge from a person requiring a supply of electricity in pursuance of section 43 any expenses reasonably incurred in providing any electric line or electrical plant used for the purpose of giving that supply.
(1) Subject to the provisions of this section, a distribution licensee may require any person, who requires a supply of electricity in pursuance of section 43, to give him reasonable security, as may be determined by regulations, for the payment to him of all monies which may become due to him—
(a) in respect of the electricity supplied to such person; or
(b) where any electric line or electrical plant or electric meter is to be provided for supplying electricity to such person, in respect of the provision of such line or plant or meter,
and if that person fails to give such security, the distribution licensee may, if he thinks fit, refuse to give the supply of electricity or to provide the line or plant or meter for the period during which the failure continues.
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A distribution licensee may require any person who requires a supply of electricity in pursuance of section 43 to accept—
(a) any restrictions which may be imposed for the purpose of enabling the distribution licensee to comply with the regulations made under section 53;
(b) any terms restricting any liability of the distribution licensee for economic loss resulting from negligence of the person to whom the electricity is supplied.
Where the Appropriate Commission has allowed open access to certain consumers, under section 42, such consumers, notwithstanding the provisions contained in clause (d) of sub-section (1) of section 62, may enter into an agreement with any person for supply or purchase of electricity on such terms and conditions (including tariff) as may be agreed upon by them.
The State Commission shall specify an Electricity Supply Code to provide for recovery of electricity charges, intervals for billing of electricity charges, disconnection of supply of electricity for non-payment thereof, restoration of supply of electricity, measures for preventing tampering, distress or damage to electrical plant or electrical line or meter, entry of distribution licensee or any person acting on his behalf for disconnecting supply and removing the meter, entry for replacing, altering or maintaining electric lines or electrical plants or meter and such other matters.]
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1. Subs. by Act 26 of 2007, sec. 9, for section 50. Section 50, before substitution, stood as under:
“50. The Electricity Supply Code.—The S
A distribution licensee may, with prior intimation to the Appropriate Commission, engage in any other business for optimum utilisation of its assets:
Provided that a proportion of the revenues derived from such business shall, as may be specified by the concerned State Commission, be utilised for reducing its charges for wheeling:
Provided further that the distribution licensee shall maintain separate accounts for each such business undertaking to ensure that distribution business neither subsidises in any way such business undertaking nor encumbers its distribution assets in any way to support such business:
Provided also that nothing contained in this section shall apply to a local authority engaged, before the commencement of this Act, in the business of distribution of electricity.
(1) Without prejudice to the provisions contained in clause (c) of section 12, the Appropriate Commission may, specify the technical requirement, capital adequacy requirement and credit worthiness for being an electricity trader.
(2) Every electricity trader shall discharge such duties, in relation to supply and trading in electricity, as may be specified by the Appropriate Commission.
The Authority may, in consultation with the State Government, specify suitable measures for—
(a) protecting the public (including the persons engaged in the generation, transmission or distribution or trading) from dangers arising from the generation, transmission or distribution or trading of electricity, or use of electricity supplied or installation, maintenance or use of any electric line or electrical plant;
(b) eliminating or reducing the risks of personal injury to any person, or damage to property of any person or interference with use of such property;
(c) prohibiting the supply or transmission of electricity except by means of a system which conforms to the specifications as may be specified;
(d) giving
(1) Save as otherwise exempted under this Act, no person other than the Central Transmission Utility or a State Transmission Utility, or a licensee shall transmit or use electricity at a rate exceeding two hundred and fifty watts and one hundred volts—
(a) in any street, or
(b) in any place,—
(i) in which one hundred or more persons are ordinarily likely to be assembled; or
(ii) which is a factory within the meaning of the Factories Act, 1948 (63 of 1948) or a mine within the meaning of the Mines Act, 1952 (35 of 1952); or
(iii) to which the State Government, by general or special order, declares the provisions of this sub-section to apply,
(1) No licensee shall supply electricity, after the expiry of two years from the appointed date, except through installation of a correct meter in accordance with the regulations to be made in this behalf by the Authority:
Provided that the licensee may require the consumer to give him security for the price of a meter and enter into an agreement for the hire thereof, unless the consumer elects to purchase a meter:
Provided further that the State Commission may, by notification, extend the said period of two years for a class or classes of persons or for such area as may be specified in that notification.
(2) For proper accounting and audit in the generation, transmission and distribution or trading of electricity, the Authority may direct the installation of meters by a generating company or
(1) Where any person neglects to pay any charge for electricity or any sum other than a charge for electricity due from him to a licensee or the generating company in respect of supply, transmission or distribution or wheeling of electricity to him, the licensee or the generating company may, after giving not less than fifteen clear days’ notice in writing, to such person and without prejudice to his rights to recover such charge or other sum by suit, cut off the supply of electricity and for that purpose cut or disconnect any electric supply line or other works being the property of such licensee or the generating company through which electricity may have been supplied, transmitted, distributed or wheeled and may discontinue the supply until such charge or other sum, together with any expenses incurred by him in cutting off and reconnecting the supply, are paid, but no longer:
Pr
(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 concerned licensee shall be given a reasonable opportunity of being heard.
(3) The compensation determined under sub-section (2) shall be paid by the concerned licensee within ninety days of such determination.
The Appropriate Commission may specify different standards under sub-section (1) of section 57 for a class or classes of licensees.
(1) Every licensee shall, within the period specified by the Appropriate Commission, furnish to the Commission the following information, namely:—
(a) the level of performance achieved under sub-section (1) of section 57;
(b) the number of cases in which compensation was made under sub-section (2) of section 57 and the aggregate amount of the compensation.
(2) The Appropriate Commission shall at least once in every year arrange for the publication, in such form and manner as it considers appropriate, of such of the information furnished to it under sub-section (1).
The Appropriate Commission may issue such directions as it considers appropriate to a licensee or a generating company if such licensee or generating company enters into any agreement or abuses its dominant position or enters into a combination which is likely to cause or causes an adverse effect on competition in electricity industry.
The Appropriate Commission shall, subject to the provisions of this Act, specify the terms and conditions for the determination of tariff, and in doing so, shall be guided by the following, namely:—
(a) the principles and methodologies specified by the Central Commission for determination of the tariff applicable to generating companies and transmission licensees;
(b) the generation, transmission, distribution and supply of electricity are conducted on commercial principles;
(c) the factors which would encourage competition, efficiency, economical use of the resources, good performance and optimum investments;
(d) safeguarding of consumers’ interest and at the same time, recovery of the cost of electricity in a re
(1) The Appropriate Commission shall determine the tariff in accordance with the provisions of this Act for—
(a) supply of electricity by a generating company to a distribution licensee:
Provided that the Appropriate Commission may, in case of shortage of supply of electricity, fix the minimum and maximum ceiling of tariff for sale or purchase of electricity in pursuance of an agreement, entered into between a generating company and a licensee or between licensees, for a period not exceeding one year to ensure reasonable prices of electricity;
(b) transmission of electricity;
(c) wheeling of electricity;
(d) retail sale of electricity:
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Notwithstanding anything contained in section 62, the Appropriate Commission shall adopt the tariff if such tariff has been determined through transparent process of bidding in accordance with the guidelines issued by the Central Government.
(1) An application for determination of tariff under section 62 shall be made by a generating company or licensee in such manner and accompanied by such fee, as may be determined by regulations.
(2) Every applicant shall publish the application, in such abridged form and manner, as may be specified by the Appropriate Commission.
(3) The Appropriate Commission shall, within one hundred and twenty days from receipt of an application under sub-section (1) and after considering all suggestions and objections received from the public,—
(a) issue a tariff order accepting the application with such modifications or such conditions as may be specified in that order;
(b) reject the application for reasons to be recorded in writing if such ap
If the State Government requires the grant of any subsidy to any consumer or class of consumers in the tariff determined by the State Commission under section 62, the State Government shall, notwithstanding any direction which may be given under section 108, pay, in advance and in such manner as may be specified, the amount to compensate the person affected by the grant of subsidy in the manner the State Commission may direct, as a condition for the licence or any other person concerned to implement the subsidy provided for by the State Government:
Provided that no such direction of the State Government shall be operative if the payment is not made in accordance with the provisions contained in this section and the tariff fixed by the State Commission shall be applicable from the date of issue of orders by the Commission in this regard.
The Appropriate Commission shall endeavour to promote the development of a market (including trading) in power in such manner as may be specified and shall be guided by the National Electricity Policy referred to in section 3 in this regard.
(1) A licensee may, from time to time but subject always to the terms and conditions of his licence, within his area of supply or transmission or when permitted by the terms of his licence to lay down or place electric supply lines without the area of supply, without that area carry out works such as—
(a) to open and break up the soil and pavement of any street, railway or tramway;
(b) to open and break up any sewer, drain or tunnel in or under any street, railway or tramway;
(c) to alter the position of any line or works or pipes, other than a main sewer pipe;
(d) to lay down and place electric lines, electrical plant and other works;
(e) to repair, alter or r
The Electricity Act, 2003, was enacted to consolidate the laws relating to the generation, transmission, distribution, trading, and use of electricity in India. Section 67 specifically addresses the powers of licensees regarding the opening up of streets, railways, and other public properties for the purpose of laying down electric lines and other works necessary for electricity supply.
Section 67 of the Electricity Act, 2003, provides the legal framework for licensees to open and break up the soil and pavement of any street, railway, or tramway, and to carry out necessary works for the installation of electric lines and other related infrastructure.
The scope of Section 67 extends to:- Opening and breaking up of public roads and railways.- Laying down electric lines and other necessary works.- The authority to act without prior consent from landowners in certain circumstances, particularly when authorized under Section 164.
While Section 67 itself does not prescribe specific punishments, violations of the provisions can lead to civil liabilities, including the obligation to pay compensation for damages caused during the execution of works.
This commentary provides an overview of Section 67 of the Electricity Act, 2003, highlighting its implications, scope, and the legal interpretations surrounding it.
(1) An overhead line shall, with prior approval of the Appropriate Government, be installed or kept installed above ground in accordance with the provisions of sub-section (2).
(2) The provisions contained in sub-section (1) shall not apply—
(a) in relation to an electric line which has a nominal voltage not exceeding 11 kilovolts and is used or intended to be used for supplying to a single consumer;
(b) in relation to so much of an electric line as is or will be within premises in the occupation or control of the person responsible for its installation; or
(c) in such other cases, as may be prescribed.
(3) The Appropriate Government shall, while granting approval under sub-sect
(1) A licensee shall, before laying down or placing, within ten metres of any telegraph line, electric line, electrical plant or other works, not being either service lines or electric lines or electrical plant, for the repair, renewal or amendment of existing works of which the character or position is not to be altered,—
(a) submit a proposal in case of a new installation to an authority to be designated by the Central Government and such authority shall take a decision on the proposal within thirty days;
(b) give not less than ten days’ notice in writing to the telegraph authority in case of repair, renewal or amendment of existing works, specifying—
(i) the course of the works or alterations proposed;
(1) There shall be a body to be called the Central Electricity Authority to exercise such functions and perform such duties as are assigned to it under this Act.
(2) The Central Electricity Authority, established under section 3 of the Electricity (Supply) Act, 1948 (54 of 1948) and functioning as such immediately before the appointed date, shall be the Central Electricity Authority for the purposes of this Act and the Chairperson, Members, Secretary and other officers and employees thereof shall be deemed to have been appointed under this Act and they shall continue to hold office on the same terms and conditions on which they were appointed under the Electricity (Supply) Act, 1948 (54 of 1948).
(3) The Authority shall consist of not more than fourteen Members (including its Chairperson) of whom not more than eight shall be full-time Me
No Member of the Authority shall have any share or interest, whether in his own name or otherwise, in any company or other body corporate or an association of persons (whether incorporated or not) or a firm engaged in the business of generation, transmission, distribution and trading of electricity or fuel for the generation thereof or in the manufacture of electrical equipment.
The Authority may appoint a Secretary and such other officers and employees as it considers necessary for the performance of its functions under this Act and on such terms as to salary, remuneration, fee, allowance, pension, leave and gratuity, as the Authority may in consultation with the Central Government, fix:
Provided that the appointment of the Secretary shall be subject to the approval of the Central Government.
The Authority shall perform such functions and duties as the Central Government may prescribe or direct, and in particular to—
(a) advise the Central Government on the matters relating to the national electricity policy, formulate short-term and perspective plans for development of the electricity system and co-ordinate the activities of the planning agencies for the optimal utilisation of resources to subserve the interests of the national economy and to provide reliable and affordable electricity for all consumers;
(b) specify the technical standards for construction of electrical plants, electric lines and connectivity to the grid;
(c) specify the safety requirements for construction, operation and maintenance of electrical plants and electric lines;
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It shall be the duty of every licensee, generating company or person generating electricity for its or his own use to furnish to the Authority such statistics, returns or other information relating to generation, transmission, distribution, trading and use of electricity as it may require and at such times and in such form and manner as may be specified by the Authority.
(1) In the discharge of its functions, the Authority shall be guided by such directions in matters of policy involving public interest as the Central Government may give to it in writing.
(2) If any question arises as to whether any such direction relates to a matter of policy involving public interest, the decision of the Central Government thereon shall be final.
(1) There shall be a Commission to be known as the Central Electricity Regulatory Commission to exercise the powers conferred on, and discharge the functions assigned to, it under this Act.
(2) The Central Electricity Regulatory Commission, established under section 3 of the Electricity Regulatory Commissions Act, 1998 (14 of 1998) and functioning as such immediately before the appointed date, shall be deemed to be the Central Commission for the purposes of this Act and the Chairperson, Members, Secretary, and other officers and employees thereof shall be deemed to have been appointed under this Act and they shall continue to hold office on the same terms and conditions on which they were appointed under the Electricity Regulatory Commissions Act, 1998 (14 of 1998):
Provided that the Chairperson and other Members of the Central Commissio
(1) The Chairperson and the Members of the Central Commission shall be persons having adequate knowledge of, or experience in, or shown capacity in, dealing with, problems relating to engineering, law, economics, commerce, finance or management and shall be appointed in the following manner, namely:—
(a) one person having qualifications and experience in the field of engineering with specification in generation, transmission or distribution of electricity;
(b) one person having qualifications and experience in the field of finance;
(c) two persons having qualifications and experience in the field of economics, commerce, law or management:
Provided that not more than one Member shall be appointed under the same category und
(1) The Central Government shall, for the purposes of selecting the Members of the Appellate Tribunal and the Chairperson and Members of the Central Commission, constitute a Selection Committee consisting of—
(a) Member of the Planning Commission
incharge of the energy sector .........Chairperson;
(b) Secretary-in-charge of the Ministry of the
Central Government dealing with the
Department of Legal Affairs ................Member;
(c) Chairperson of the Public Enterprises
(1) The Central Commission shall discharge the following functions, namely:—
(a) to regulate the tariff of generating companies owned or controlled by the Central Government;
(b) to regulate the tariff of generating companies other than those owned or controlled by the Central Government specified in clause (a), if such generating companies enter into or otherwise have a composite scheme for generation and sale of electricity in more than one State;
(c) to regulate the inter-State transmission of electricity;
(d) to determine tariff for inter-State transmission of electricity;
(e) to issue licenses to persons to function as transmission licensee and electricity
(1) The Central Commission may, by notification, establish with effect from such date as it may specify in such notification, a Committee to be known as the Central Advisory Committee.
(2) The Central Advisory Committee shall consist of not more than thirty-one members to represent the interests of commerce, industry, transport, agriculture, labour, consumers, non-governmental organisations and academic and research bodies in the electricity sector.
(3) The Chairperson of the Central Commission shall be the ex officio Chairperson of the Central Advisory Committee and the Members of that Commission and Secretary to the Government of India in charge of the Ministry or Department of the Central Government dealing with Consumer Affairs and Public Distribution System shall be the ex officio Members of the Committee.
The objects of the Central Advisory Committee shall be to advise the Central Commission on—
(i) major questions of policy;
(ii) matters relating to quality, continuity and extent of service provided by the licensees;
(iii) compliance by the licensees with the conditions and requirements of their licence;
(iv) protection of consumer interest;
(v) electricity supply and overall standards of performance by utilities.
(1) Every State Government shall, within six months from the appointed date, by notification, constitute for the purposes of this Act, a Commission for the State to be known as the (name of the State) Electricity Regulatory Commission:
Provided that the State Electricity Regulatory Commission, established by a State Government under section 17 of the Electricity Regulatory Commissions Act, 1998 (14 of 1998) and the enactments specified in the Schedule, and functioning as such immediately before the appointed date shall be the State Commission for the purposes of this Act and the Chairperson, Members, Secretary, and officers and other employees thereof shall continue to hold office, on the same terms and conditions on which they were appointed under those Acts:
Provided further that the Chairperson and other Members of the State Commissio
Section 82 of the Electricity Act, 2003 mandates the establishment of State Electricity Regulatory Commissions (SERCs) by state governments. This provision is crucial for the regulation of the electricity sector, ensuring that the interests of consumers and service providers are balanced through effective governance.
Section 82(1) requires every State Government to constitute a State Electricity Regulatory Commission within six months from the appointed date. The Commission is tasked with regulating the electricity sector within the state, including tariff determination, licensing, and consumer grievance redressal.
The scope of Section 82 extends to:- Establishing a framework for the functioning of SERCs.- Outlining the responsibilities and powers of the Commission.- Ensuring compliance with national policies and standards in the electricity sector.
While Section 82 itself does not prescribe specific punishments, failure to comply with its provisions can lead to legal challenges and administrative actions against the state government or the Commission.
This commentary highlights the significance of Section 82 in shaping the regulatory landscape of the electricity sector in India, ensuring that consumer rights are protected while promoting efficient and sustainable energy practices.
(1) Notwithstanding anything to the contrary contained in section 82, a Joint Commission may be constituted by an agreement to be entered into—
(a) by two or more Governments of States; or
(b) by the Central Government, in respect of one or more Union territories, and one or more Governments of States,
and shall be in force for such period and shall be subject to renewal for each further period, if any, as may be stipulated in the agreement:
Provided that the Joint Commission, constituted under section 21A of the Electricity Regulatory Commissions Act, 1998 (14 of 1998) and functioning as such immediately before the appointed day, shall be the Joint Commission for the purposes of this Act and the Chairperson, Members, Secretary and
(1) The Chairperson and the Members of the State Commission shall be persons of ability, integrity and standing who have adequate knowledge of, and have shown capacity in, dealing with problems relating to engineering, finance, commerce, economics, law or management.
(2) Notwithstanding anything contained in sub-section (1), the State Government may appoint any person as the Chairperson from amongst persons who is, or has been, a Judge of a High Court:
Provided that no appointment under this sub-section shall be made except after consultation with the Chief Justice of that High Court.
(3) The Chairperson or any other Member of the State Commission shall not hold any other office.
(4) The Chairperson shall be the Chief Executive of the State Commissi
(1) The State Government shall, for the purposes of selecting the Members of the State Commission, constitute a Selection Committee consisting of—
(a) a person who has been a Judge of the
High Court .............Chairperson;
(b) the Chief Secretary of the concerned State ...................Member;
(c) the Chairperson of the Authority or the
Chairperson of the Central Commission ..................Member:
Provided that nothing contained in this section shall apply to the appointment of a person as the Chairperson who is or
(1) The State Commission shall discharge the following functions, namely:—
(a) determine the tariff for generation, supply, transmission and wheeling of electricity, wholesale, bulk or retail, as the case may be, within the State:
Provided that where open access has been permitted to a category of consumers under section 42, the State Commission shall determine only the wheeling charges and surcharge thereon, if any, for the said category of consumers;
(b) regulate electricity purchase and procurement process of distribution licensees including the price at which electricity shall be procured from the generating companies or licensees or from other sources through agreements for purchase of power for distribution and supply within the State;
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Legal Comments
"Section 86(1)(f)" - Jurisdiction over disputes between licensees and generating companies; can adjudicate or refer to arbitration - [A. P. Power Coordination Committee VS Lanco Kondapalli Power Ltd. - 2015 0 Supreme(SC) 1020], [02100130600], [Syed Tajuddeen Madani VS Tamil Nadu Electricity Board, represented through its Chairman - 2012 0 Supreme(Mad) 2029], [Project Director, National Highways Authority of India, Coimbatore VS K. Periyasamy - 2018 0 Supreme(Mad) 2694]
"Section 86(1)(b)/(f) interplay" - State Commission regulates electricity purchase and procurement; can adjudicate disputes under PPAs and interpret/modify tariff provisions; overlap with Arbitration Act is constrained by special law - [Maharashtra State Electricity Distribution Co. Ltd. VS Lloyds Steel Industries Ltd. - 2007 7 Supreme 152], [T. N. Generation & Distbn. Corpn. Ltd. VS PPN power Gen. Co. Pvt. Ltd. - 2014 3 Supreme 141], [Gujarat Urja Vikas Nigam Limited VS Tarini Infrastructure Ltd. - 2016 4 Supreme 755], [Shree Nanak Ferro Alloys (P) Ltd. VS Jharkhand Urja Vikas Nigam Limited - 2015 0 Supreme(Jhk) 751]
"Arbitration primacy under Statute" - When Section 86(1)(f) applies, arbitration may be pursued via State Commission or through designated arbitrator; Arbitration Act not applicable to statutory arbitration; Limitation Act not controlling for Commission proceedings - [A. P. Power Coordination Committee VS Lanco Kondapalli Power Ltd. - 2015 0 Supreme(SC) 1020], [Jharkhand State Electricity Board VS Laxmi Business and Cement - 2011 0 Supreme(Jhk) 589], [T. N. Generation & Distbn. Corpn VS PPN Power Gen. - Consumer (2014)]
"Overriding effect of Special Law" - Electricity Act provisions governing disputes supersede general laws (Arbitration Act, CPC, Limitation Act) in relevant contexts - [T. N. Generation & Distbn. Corpn VS PPN Power Gen. - Consumer (2014)], [JAI PARKASH HYDRO POWER LTD VS OCCHU RAM - 2006 0 Supreme(HP) 340], [Chattisgarh Vidyut Mandal Abhiyanta Sangh VS Chattisgarh State Electricity Regulatory Commission - 2007 7 Supreme 79]
"Writ jurisdiction vs statutory remedy" - High Courts should defer to statutory forum when alternate remedy exists; writs are entertained only in exceptional cases or where statutory remedy is inadequate - [Growel Energy Company Ltd. vs State of H.P. - 2026 0 Supreme(HP) 131], [Hassan Thermal Power Private Limited vs Power Company Of Karnataka Ltd. (PCKL) - 2025 0 Supreme(Kar) 2727], [Hubli Electricity Supply Company VS Shreeshail - 2020 0 Supreme(Kar) 2309]
"Regulatory tariff power" - State Commissions have exclusive power to fix/modify tariff; tariff is not immutable post-PPAs; commissions may review tariff and consider force majeure/price adjustments within statutory framework - [Jharkhand State Elect. Board VS Laxmi Business & Cement Co. P. Ltd. - 2014 0 Supreme(SC) 166], [Gujarat Urja Vikas Nigam Limited VS Tarini Infrastructure Ltd. - 2016 4 Supreme 755], [Jharkhand State Electricity Board VS Laxmi Business and Cement - 2011 0 Supreme(Jhk) 589]
"Renewable Purchase Obligation (RPO)/RPPO context" - RERC/Rajasthan judgments validate RE obligations as compatible with Act 2003; RPO can apply to captive/open access consumption as part of consumer total consumption - [Hindustan Zinc Ltd. VS Rajasthan Electricity Regulatory Commission - 2015 4 Supreme 711], [M. Sainalabdeen VS Kerala State Electricity Board, Rep by the Chairman - 2005 0 Supreme(Ker) 691], [Hindalco Industries Ltd VS Gujarat Energy Transmission Corporation Limited - 2008 0 Supreme(Guj) 524]
"Grid/POC and regulatory data issues" - Courts have allowed regulatory bodies to decide on Grid Support Charges, POC, and related levy issues; open data issues may be remitted back for petition or review, but maintain compliance with statutory routes - [Hindalco Industries Ltd VS Gujarat Energy Transmission Corporation Limited - 2008 0 Supreme(Guj) 524], [A. P. Gas Power Corporation VS A. P. Electricity Regulatory Commission - 2005 0 Supreme(AP) 668]
"Civil Court jurisdiction respect" - Civil Courts are not ousted automatically; the Act provisions must explicitly bar jurisdiction; disputes not in category of damage/damages or contract-specific issues may proceed in courts if statutory route not explicit - [JAI PARKASH HYDRO POWER LTD VS OCCHU RAM - 2006 0 Supreme(HP) 340], [Om Hydropower Limited VS Himachal Pradesh Electricity Board Limited - 2019 0 Supreme(HP) 1239]
"Remedies for EMD refunds" - If PPA lacks EMD forfeiture terms and government withdrawal occurs, EMD refunds can be directed under Article 300A; separation of EMD from PPA can be recognized - [Hassan Thermal Power Private Limited vs Power Company Of Karnataka Ltd. (PCKL) - 2025 0 Supreme(Kar) 2727]
"Appeals and interim orders in electricity disputes" - Appellate Tribunal for Electricity (APTEL) reviews State Commission references to arbitration; interim orders limited; strict scrutiny of jurisdictional decisions for arbitration - [Chief General Manager (IPC) M P Power Trading Co. Ltd. VS Narmada Equipments Pvt. Ltd. - 2021 0 Supreme(SC) 323], [Hindalco Industries Ltd VS Gujarat Energy Transmission Corporation Limited - 2008 0 Supreme(Guj) 524]
"Contractual liberty vs regulatory control" - Courts emphasize that PPAs may be revised within regulatory framework; coercion claims require substantial evidence; regulatory oversight aims to balance public interest and contractual certainty - [Maharashtra State Electricity Distribution Company Limited VS Rattan India Power Limited - 2023 0 Supreme(SC) 712], [Project Director, National Highways Authority of India, Coimbatore VS K. Periyasamy - 2018 0 Supreme(Mad) 2694]
"Licensing and generation freedom; de-licensing objective" - Generating companies may enter long-term PPAs with distribution licensees; regulatory approvals essential; licensing regimes do not bar generation contract formation but require compliance with Act 2003 provisions - [Tata Power Company Ltd. VS Reliance Energy Limited - 2009 0 Supreme(SC) 977], [Jharkhand State Electricity Board VS Laxmi Business and Cement - 2011 0 Supreme(Jhk) 589]
"Section 42/ Ombudsman framework vs Commission" - Individual consumer grievances must port to Consumer Grievance Redressal Forum/Ombudsman; Commission adjudicates disputes between licensees/generators, not direct consumer complaints - [Maharashtra State Electricity Distribution Co. Ltd. VS Lloyds Steel Industries Ltd. - 2007 7 Supreme 152], [C. B. M. College, rep. by its Secretary/Correspondent VS Assistant Electrical Engineer, Tamil Nadu Electricity Board, Coimbatore Distribution Circle (South) - 2011 0 Supreme(Mad) 4354]
"Interpretation tools for statute" - Courts apply purposive, harmonious construction; treat marginal notes and chapter headings as aids; avoid reading policy provisions as statutory, especially where not expressly provided - [Tata Power Company Ltd. VS Reliance Energy Limited - 2009 0 Supreme(SC) 977], [T. N. Generation & Distbn. Corpn VS PPN Power Gen. - Consumer (2014)]
"Judicial propriety and mischief rule" - In evaluating statutory interpretations, courts may rely on mischief rule and purposive approach to uphold legislative intent while avoiding ultra vires or irrational outcomes - [Tata Power Company Ltd. VS Reliance Energy Limited - 2009 0 Supreme(SC) 977]
"Limitation exclusions in arbitrations" - Time spent pursuing arbitration before High Court may be excluded under Section 14 principles when permissible; APtel/APR exceptions apply; not all limitation rules apply to Commission proceedings - [Villagers Of Barki Punu VS Jharkhand State Electricity Board - 2008 0 Supreme(Jhk) 662], [T. N. Generation & Distbn. Corpn VS PPN Power Gen. - Consumer (2014)]
"No discrimination principle adjoined to RPPO/RPO" - RPO/RPPO obligations must be read in consonance with Article 21; cannot discriminate between captive/open access consumers and typical consumers; viability of enforcement upheld - [Hindustan Zinc Ltd. VS Rajasthan Electricity Regulatory Commission - 2015 4 Supreme 711], [ITC Limited vs Telangana Electricity Regulatory Commission Rep. by its Secretary - 2026 0 Supreme(Telangana) 13]
"Tariff/policy vs statutory regulation" - Tariff policy cannot substitute for statutory tariff determinations; regulatory commissions must be consulted for tariff changes; policy cannot override statutory framework - [Jharkhand State Elect. Board VS Laxmi Business & Cement Co. P. Ltd. - 2014 0 Supreme(SC) 166], [Jharkhand State Electricity Board VS Laxmi Business and Cement - 2011 0 Supreme(Jhk) 589]
"Arbitration clause in PPA and statutory override" - PPA arbitration clauses exist but cannot override State Commission's jurisdiction under Section 86(1)(f) where applicable; arbitration arrangements may need to align with the Act’s framework - [Transmission Corporation of A. P. Ltd. VS Lanco Kondapalli Power Pvt. Ltd. - 2005 0 Supreme(SC) 1608], [Syed Tajuddeen Madani VS Tamil Nadu Electricity Board, represented through its Chairman - 2012 0 Supreme(Mad) 2029]
"Judicial review of regulator actions" - Writ jurisdiction limited when effective appellate remedy exists; courts should avoid disturbing regulator decisions absent gross irregularity, arbitrary action, or violation of principles of natural justice - [ITC Limited vs Telangana Electricity Regulatory Commission Rep. by its Secretary - 2026 0 Supreme(Telangana) 13], [Project Director, National Highways Authority of India, Coimbatore VS K. Periyasamy - 2018 0 Supreme(Mad) 2694]
"Bottom-line governing principle" - Section 86 empowers SERCs to regulate procurement, adjudicate disputes, and refer to arbitration where appropriate; arbitration Act 1996 generally does not apply to statutory arbitration; thus, practical dispute resolution rests with the regulatory commissions rather than civil courts in many electricity disputes - [Uttaranchal Jal Vidyut Nigam Ltd. VS Uttaranchal Electricity Regulatory Commission - 2004 0 Supreme(UK) 97], [Villagers Of Barki Punu VS Jharkhand State Electricity Board - 2008 0 Supreme(Jhk) 662], [T. N. Generation & Distbn. Corpn VS PPN Power Gen. - Consumer (2014)]
(1) The State Commission may, by notification, establish with effect from such date as it may specify in such notification, a Committee to be known as the State Advisory Committee.
(2) The State Advisory Committee shall consist of not more than twenty-one members to represent the interests of commerce, industry, transport, agriculture, labour, consumers, non-governmental organisations and academic and research bodies in the electricity sector.
(3) The Chairperson of the State Commission shall be ex officio Chairperson of the State Advisory Committee and the Members of the State Commission and the Secretary to State Government in charge of the Ministry or Department dealing with Consumer Affairs and Public Distribution System shall be the ex officio Members of the Committee.
The objects of the State Advisory Committee shall be to advise the Commission on--
(i) major questions of policy;
(ii) matters relating to quality, continuity and extent of service provided by the licensees;
(iii) compliance by licensees with the conditions and requirements of their licence;
(iv) protection of consumer interest; and
(v) electricity supply and overall standards of performance by utilities.
(1) The Chairperson or other Member shall hold office for a term of five years from the date he enters upon his office:
Provided that the Chairperson or other Member in the Central Commission or the State Commission shall not be eligible for re-appointment in the same capacity as the Chairperson or a Member in that Commission in which he had earlier held office as such:
Provided further that no Chairperson or Member shall hold office as such after he has attained the age of sixty-five years.
(2) The salary, allowances and other terms and conditions of service of the Chairperson and Members shall be such as may be prescribed by the Appropriate Government:
Provided that the salary, allowances and other terms and conditions of service of the Members, s
(1) No Member shall be removed from office except in accordance with the provisions of this section.
(2) The Central Government, in the case of a Member of the Central Commission, and the State Government, in the case of a Member of the State Commission, may, by order, remove from office any Member, if he—
(a) has been adjudged an insolvent;
(b) has been convicted of an offence which, in the opinion of the Appropriate Government, involves moral turpitude;
(c) has become physically or mentally incapable of acting as a Member;
(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a Member;
(1) The Appropriate Commission may appoint a Secretary to exercise such powers and perform such duties as may be specified.
(2) The Appropriate Commission may, with the approval of the Appropriate Government, specify the numbers, nature and categories of other officers and employees.
(3) The salaries and allowances payable to, and other terms and conditions of service of, the Secretary, officers and other employees shall be such as may be specified with the approval of the Appropriate Government.
(4) The Appropriate Commission may appoint consultants required to assist that Commission in the discharge of its functions on the terms and conditions as may be specified.
(1) The Appropriate Commission shall meet at the head office or any other place at such time as the Chairperson may direct, and shall observe such rules of procedure in regard to the transaction of business at its meetings (including the quorum at its meetings) as it may specify.
(2) The Chairperson, or if he is unable to attend a meeting of the Appropriate Commission, any other Member nominated by the Chairperson in this behalf and, in the absence of such nomination or where there is no Chairperson, any Member chosen by the Members present from amongst themselves, shall preside at the meeting.
(3) All questions which come up before any meeting of the Appropriate Commission shall be decided by a majority of votes of the Members present and voting, and in the event of an equality of votes, the Chairperson or in his absence, the person pre
No act or proceeding of the Appropriate Commission shall be questioned or shall be invalidated merely on the ground of existence of any vacancy or defect in the constitution of the Appropriate Commission.
(1) The Appropriate Commission shall, for the purposes of any inquiry or proceedings under this Act, have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) in respect of the following matters, namely:—
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) discovery and production of any document or other material object producible as evidence;
(c) receiving evidence on affidavits;
(d) requisitioning of any public record;
(e) issuing commission for the examination of witnesses;
(f) reviewing its decisions, directions and order
All proceedings before the Appropriate Commission shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860) and the Appropriate Commission shall be deemed to be a civil court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1974).
The Appropriate Commission or any officer, not below the rank of a Gazetted Officer specially authorised in this behalf by the Commission, may enter any building or place where the Commission has reason to believe that any document relating to the subject matter of the inquiry may be found, and may seize any such document or take extracts or copies therefrom subject to the provisions of section 100 of the Code of Criminal Procedure, 1973 (2 of 1974), insofar as it may be applicable.
The Appropriate Commission may, by general or special order in writing, delegate to any Member, Secretary, officer of the Appropriate Commission or any other person subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this Act (except the powers to adjudicate disputes under section 79 and section 86 and the powers to make regulations under section 178 or section 181) as it may deem necessary.
The Central Government may, after due appropriation made by Parliament in this behalf, make to the Central Commission grants and loans of such sums of money as that Government may consider necessary.
(1) There shall be constituted a Fund to be called the Central Electricity Regulatory Commission Fund and there shall be credited thereto—
(a) any grants and loans made to the Central Commission by the Central Government under section 98;
(b) all fees received by the Central Commission under this Act;
(c) all sums received by the Central Commission from such other sources as may be decided upon by the Central Government.
(2) The Fund shall be applied for meeting—
(a) the salary, allowances and other remuneration of Chairperson, Members, Secretary, officers and other employees of the Central Commission;
(b) the expens
(1) The Central Commission shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India.
(2) The accounts of the Central Commission shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Central Commission to the Comptroller and Auditor-General of India.
(3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Central Commission under this Act shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-Gener
(1) The Central Commission shall prepare once every year, in such form and at such time as may be prescribed, an annual report giving a summary of its activities during the previous year and copies of the report shall be forwarded to the Central Government.
(2) A copy of the report received under sub-section (1) shall be laid, as soon as may be after it is received, before each House of Parliament.
The State Government may, after due appropriation made by Legislature of a State in this behalf, make to the State Commission grants and loans of such sums of money as that Government may consider necessary.
(1) There shall be constituted a Fund to be called the State Electricity Regulatory Commission Fund and there shall be credited thereto—
(a) any grants and loans made to the State Commission by the State Government under section 102;
(b) all fees received by the State Commission under this Act;
(c) all sums received by the State Commission from such other sources as may be decided upon by the State Government.
(2) The Fund shall be applied for meeting—
(a) the salary, allowances and other remuneration of Chairperson, Members, Secretary, officers and other employees of the State Commission;
(b) the expenses of the Sta
(1) The State Commission shall maintain proper accounts and other relevant records and prepare annual statement of accounts in such form as may be prescribed by the State Government in consultation with the Comptroller and Auditor-General of India.
(2) The accounts of the State Commission shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the State Commission to the Comptroller and Auditor-General of India.
(3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the State Commission under this Act shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General of India g
(1) The State Commission shall prepare once every year in such form and at such time as may be prescribed, an annual report giving a summary of its activities during the previous year and copies of the report shall be forwarded to the State Government.
(2) A copy of the report received under sub-section (1) shall be laid, as soon as may be after it is received, before the State Legislature.
The Appropriate Commission shall prepare, in such form and at such time in each financial year as may be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure of that Commission and forward the same to the Appropriate Government.
(1) In the discharge of its functions, the Central Commission shall be guided by such directions in matters of policy involving public interest as the Central Government may give to it in writing.
(2) If any question arises as to whether any such direction relates to a matter of policy involving public interest, the decision of the Central Government thereon shall be final.
(1) In the discharge of its functions, the State Commission shall be guided by such directions in matters of policy involving public interest as the State Government may give to it in writing.
(2) If any question arises as to whether any such direction relates to a matter of policy involving public interest, the decision of the State Government thereon shall be final.
Notwithstanding anything contained in this Act, where any Joint Commission is established under section 83—
(a) the Government of the State, for which the Joint Commission is established, shall be competent to give any direction under this Act only in cases where such direction relates to matter within the exclusive territorial jurisdiction of the State;
(b) the Central Government alone shall be competent to give any direction under this Act where such direction relates to a matter within the territorial jurisdiction of two or more States or pertaining to a Union territory if the participating Governments fail to reach an agreement or the participating States or majority of them request the Central Government to issue such directions.
The Central Government shall, by notification, establish an Appellate Tribunal to be known as the Appellate Tribunal for Electricity to hear appeals against the orders of the adjudicating officer or the Appropriate Commission under this Act.*
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* The Central Government has established the Appellate Tribunal for Electricity with effect from 7th April, 2004. The Head Quarters of the Tribunal is Delhi vide S.O. 478(E), dated 7th April, 2004.
(1) Any person aggrieved by an order made by an adjudicating officer under this Act (except under section 127) or an order made by the Appropriate Commission under this Act may prefer an appeal to the Appellate Tribunal for Electricity:
Provided that any person appealing against the order of the adjudicating officer levying any penalty shall, while filing the appeal, deposit the amount of such penalty:
Provided further that where in any particular case, the Appellate Tribunal is of the opinion that the deposit of such penalty would cause undue hardship to such person, it may dispense with such deposit subject to such conditions as it may deem fit to impose so as to safeguard the realisation of penalty.
(2) Every appeal under sub-section (1) shall be filed within a period of forty-five days fro
(1) The Appellate Tribunal shall consist of a Chairperson and three other Members.
(2) Subject to the provisions of this Act,—
(a) the jurisdiction of the Appellate Tribunal may be exercised by Benches thereof;
(b) a Bench may be constituted by the Chairperson of the Appellate Tribunal with two or more Members of the Appellate Tribunal as the Chairperson of the Appellate Tribunal may deem fit:
Provided that every Bench constituted under this clause shall include at least one Judicial Member and one Technical Member;
(c) the Benches of the Appellate Tribunal shall ordinarily sit at Delhi and such other places as the Central Government may, in consultation with th
(1) A person shall not be qualified for appointment as the Chairperson of the Appellate Tribunal or a Member of the Appellate Tribunal unless he—
(a) in the case of the Chairperson of the Appellate Tribunal, is, or has been, a Judge of the Supreme Court or the Chief Justice of a High Court; and
(b) in the case of a Member of the Appellate Tribunal,—
(i) is, or has been, or is qualified to be, a Judge of a High Court; or
(ii) is, or has been, a Secretary for at least one year in the Ministry or Department of the Central Government dealing with economic affairs or matters or infrastructure; or
(iii) is, or has been, a person of ability and standi
The Chairperson of the Appellate Tribunal or a Member of the Appellate Tribunal shall hold office as such for a term of three years from the date on which he enters upon his office:
Provided that such Chairperson or other Member shall be eligible for reappointment for a second term of three years:
Provided further that no Chairperson of the Appellate Tribunal or Member of the Appellate Tribunal shall hold office as such after he has attained,—
(a) in the case of the Chairperson of the Appellate Tribunal, the age of seventy years;
(b) in the case of a Member of the Appellate Tribunal, the age of sixty-five years.
The salary and allowances payable to, and the other terms and conditions of service of, the Chairperson of the Appellate Tribunal and Members of the Appellate Tribunal shall be such as may be prescribed by the Central Government:
Provided that neither the salary and allowances nor the other terms and conditions of service of the Chairperson of the Appellate Tribunal or a Member of the Appellate Tribunal shall be varied to his disadvantage after appointment.
If, for reason other than temporary absence, any vacancy occurs in the office of the Chairperson of the Appellate Tribunal or a Member of the Appellate Tribunal, the Central Government shall appoint another person in accordance with the provisions of this Act to fill the vacancy and the proceedings may be continued before the Appellate Tribunal from the stage at which the vacancy is filled.
Section 116 of the Electricity Act, 2003, deals with vacancies in key statutory positions such as the Chairperson or Members of the Appellate Tribunal, outlining procedures for filling such vacancies to ensure the continuous functioning of the tribunal.
Note: The analysis is based on the available sources, emphasizing the procedural and judicial aspects of Section 116. Specific penalties or detailed procedural steps are not provided in the sources.
(1) The Chairperson of the Appellate Tribunal or a Member of the Appellate Tribunal may, by notice in writing under his hand addressed to the Central Government, resign his office:
Provided that the Chairperson of the Appellate Tribunal or a Member of the Appellate Tribunal shall, unless he is permitted by the Central Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of term of office, whichever is the earliest.
(2) The Chairperson of the Appellate Tribunal or a Member of the Appellate Tribunal shall not be removed from his office except by an order by the Central Government on the ground of proved misbehaviour or incapacity after an inquiry made by a Judge
(1) In the event of the occurrence of any vacancy in the office of the Chairperson of the Appellate Tribunal by reason of his death, resignation or otherwise, the senior-most Member of the Appellate Tribunal shall act as the Chairperson of the Appellate Tribunal until the date on which a new Chairperson, appointed in accordance with the provisions of this Act to fill such vacancy, enters upon his office.
(2) When the Chairperson of the Appellate Tribunal is unable to discharge his functions owing to absence, illness or any other cause, the senior-most Member of the Appellate Tribunal shall discharge the functions of the Chairperson of the Appellate Tribunal until the date on which the Chairperson of the Appellate Tribunal resumes his duties.
(1) The Central Government shall provide the Appellate Tribunal with such officers and other employees as it may deem fit.
(2) The officers and other employees of the Appellate Tribunal shall discharge their functions under the general superintendence of the Chairperson of the Appellate Tribunal.
(3) The salaries and allowances and other terms and conditions of service of the officers and other employees of the Appellate Tribunal shall be such as may be prescribed by the Central Government.
(1) The Appellate Tribunal shall not be bound by the procedure laid down by the Code of Civil Procedure, 1908 (5 of 1908), but shall be guided by the principles of natural justice and, subject to the other provisions of this Act, the Appellate Tribunal shall have powers to regulate its own procedure.
(2) The Appellate Tribunal shall have, for the purposes of discharging its functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:—
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) requiring the discovery and production of documents;
(c) receiving evidenc
The Appellate Tribunal may, after hearing the Appropriate Commission or other interested party, if any, from time to time, issue such orders, instructions or directions as it may deem fit, to any Appropriate Commission for the performance of its statutory functions under this Act.]
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1. Subs. by Act 57 of 2003, sec. 4, for section 121 (w.e.f. 27-1-2004). Prior to substitution it stood as:
“121. Power of Chairperson of Appellate Tribunal.—The Chairperson of the Appellate Tribunal shall exercise general power of superintendence and control over the Appropriate Commission.”
(1) Where Benches are constituted, the Chairperson of the Appellate Tribunal may, from time to time, by notification, make provisions as to the distribution of the business of the Appellate Tribunal amongst the Benches and also provide for the matters which may be dealt with by each Bench.
(2) On the application of any of the parties and after notice to the parties, and after hearing such of them as he may desire to be heard, or on his own motion without such notice, the Chairperson of the Appellate Tribunal may transfer any case pending before one Bench, for disposal, to any other Bench.
If the Members of the Appellate Tribunal of a Bench consisting of two Members differ in opinion on any point, they shall state the point or points on which they differ, and make a reference to the Chairperson of the Appellate Tribunal who shall either hear the point or points himself or refer the case for hearing on such point or points by one or more of the other Members of the Appellate Tribunal and such point or points shall be decided according to the opinion of the majority of the Members of the Appellate Tribunal who have heard the case, including those who first heard it.
(1) A person preferring an appeal to the Appellate Tribunal under this Act may either appear in person or take the assistance of a legal practitioner of his choice to present his case before the Appellate Tribunal, as the case may be.
(2) The Appropriate Commission may authorise one or more legal practitioners or any of its officers to act as presenting officers and every person so authorised may present the case with respect to any appeal before the Appellate Tribunal, as the case may be.
Any person aggrieved by any decision or order of the Appellate Tribunal, may, file an appeal to the Supreme Court within sixty days from the date of communication of the decision or order of the Appellate Tribunal, to him, on any one or more of the grounds specified in section 100 of the Code of Civil Procedure, 1908 (5 of 1908):
Provided that the Supreme Court may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding sixty days.
(1) If on an inspection of any place or premises or after inspection of the equipments, gadgets, machines, devices found connected or used, or after inspection of records maintained by any person, the assessing officer comes to the conclusion that such person is indulging in unauthorised use of electricity, he shall provisionally assess to the best of his judgment the electricity charges payable by such person or by any other person benefited by such use.
(2) The order of provisional assessment shall be served upon the person in occupation or possession or in charge of the place or premises in such manner as may be prescribed.
1[(3) The person, on whom an order has been served under sub-section (2), shall be entitled to file objections, if any, against the provisional assessment before the assessing officer, who shall, after affording a
(1) Any person aggrieved by the final order made under section 126 may, within thirty days of the said order, prefer an appeal in such form, verified in such manner and be accompanied by such fee as may be specified by the State Commission, to an appellate authority as may be prescribed.
(2) No appeal against an order of assessment under sub-section (1) shall be entertained unless an amount equal to 1[half of the assessed amount] is deposited in cash or by way of bank draft with the licensee and documentary evidence of such deposit has been enclosed along with the appeal.
(3) The appellate authority referred to in sub-section (1) shall dispose of the appeal after hearing the parties and pass appropriate order and send copy of the order to the assessing officer and the appellant.
(4) The order
Section 127 of the Electricity Act, 2003 provides a mechanism for consumers to appeal against final orders made under Section 126, which deals with unauthorized use of electricity. This section is crucial for ensuring that consumers have a legal recourse to challenge assessments made by electricity providers.
Section 127 allows any person aggrieved by a final order made under Section 126 to prefer an appeal within thirty days. The appeal must be accompanied by a deposit of a specified amount, which is typically one-third of the assessed amount.
The scope of Section 127 is limited to appeals against final orders made under Section 126. It does not extend to other types of disputes or assessments outside this context.
While Section 127 itself does not prescribe punishment, it establishes a framework for addressing grievances related to unauthorized use of electricity, which can lead to penalties under Section 126.
This commentary highlights the significance of Section 127 in the Electricity Act, 2003, and its role in protecting consumer rights while ensuring accountability in electricity distribution.
(1) The Appropriate Commission may, on being satisfied that a licensee has failed to comply with any of the conditions of licence or a generating company or a licensee has failed to comply with any of the provisions of this Act or the rules or regulations made thereunder, at any time, by order in writing, direct any person (hereafter in this section referred to as “Investigating Authority”) specified in the order to investigate the affairs of any generating company or licensee and to report to that Commission on any investigation made by such Investigating Authority:
Provided that the Investigating Authority may, wherever necessary, employ any auditor or any other person for the purpose of assisting him in any investigation under this section.
(2) Notwithstanding anything to the contrary contained in section 235 of the Companies Act, 195
(1) Where the Appropriate Commission, on the basis of material in its possession, is satisfied that a licensee is contravening, or is likely to contravene, any of the conditions mentioned in his licence or conditions for grant of exemption or the licensee or the generating company has contravened or is likely to contravene any of the provisions of this Act, it shall, by an order, give such directions as may be necessary for the purpose of securing compliance with that condition or provision.
(2) While giving direction under sub-section (1), the Appropriate Commission shall have due regard to the extent to which any person is likely to sustain loss or damage due to such contravention.
The Appropriate Commission, before issuing any direction under section 129, shall—
(a) serve notice in the manner as may be specified to the concerned licensee or the generating company;
(b) publish the notice in the manner as may be specified for the purpose of bringing the matters to the attention of persons, likely to be affected, or affected;
(c) consider suggestions and objections from the concerned licensee or generating company and the persons, likely to be affected, or affected.
(1) With effect from the date on which a transfer scheme, prepared by the State Government to give effect to the objects and purposes of this Act, is published or such further date as may be stipulated by the State Government (hereafter in this Part referred to as the effective date), any property, interest in property, rights and liabilities which immediately before the effective date belonged to the State Electricity Board (hereinafter referred to as the Board) shall vest in the State Government on such terms as may be agreed between the State Government and the Board.
(2) Any property, interest in property, rights and liabilities vested in the State Government under sub-section (1) shall be re-vested by the State Government in a Government company or in a company or companies, in accordance with the transfer scheme so published along with such other property, interest in propert
In the event that a Board or any utility owned or controlled by the Appropriate Government is sold or transferred in any manner to a person who is not owned or controlled by the Appropriate Government, the proceeds from such sale or transfer shall be utilised in priority to all other dues in the following order, namely:—
(a) dues (including retirement benefits due) to the officers and employees of such Board or utility, who have been affected by the aforesaid sale or transfer;
(b) payment of debt or other liabilities of the transferor as may be required by the existing loan covenants.
(1) The State Government may, by a transfer scheme, provide for the transfer of the officers and employees to the transferee on the vesting of properties, rights and liabilities in such transferee as provided under section 131.
(2) Upon such transfer under the transfer scheme, the personnel shall hold office or service under the transferee on such terms and conditions as may be determined in accordance with the transfer scheme:
Provided that such terms and conditions on the transfer shall not in any way be less favourable than those which would have been applicable to them if there had been no such transfer under the transfer scheme:
Provided further that the transfer can be provisional for a stipulated period.
Explanation.—For the purposes of this
Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947) or any other law for the time being in force and except for the provisions made in this Act, the transfer of the employment of the officers and employees referred to in sub-section (1) of section 133 shall not entitle such officers and employees to any compensation or damages under this Act, or any other Central or State law, save as provided in the transfer scheme.
1[(1) Whoever, dishonestly,—
(a) taps, makes or causes to be made any connection with overhead, underground or under water lines or cables, or service wires, or service facilities of a licensee or supplier, as the case may be; or
(b) tampers a meter, installs or uses a tampered meter, current reversing transformer, loop connection or any other device or method which interferes with accurate or proper registration, calibration or metering of electric current or otherwise results in a manner whereby electricity is stolen or wasted; or
(c) damages or destroys an electric meter, apparatus, equipment, or wire or causes or allows any of them to be so damaged or destroyed as to interfere with the proper or accurate metering of electricity; or
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Section 135 of the Electricity Act, 2003, is a crucial provision that deals with the offense of theft of electricity. It aims to deter unauthorized use, tampering, and illegal connections, thereby protecting the financial and infrastructural interests of electricity providers. This section also prescribes the procedures for inspection, assessment, and penalties related to electricity theft.
Section 135 criminalizes acts such as unauthorized tapping, making or causing to be made any connection with overhead or underground lines, tampering with meters, damaging electrical equipment, and using electricity for unauthorized purposes. It empowers authorized officers to inspect premises, seize equipment, and conduct searches if theft is suspected. The section also prescribes penalties including fines, imprisonment, and civil liabilities.
This concise legal commentary encapsulates the scope, provisions, and judicial interpretations of Section 135 of the Electricity Act, 2003, highlighting key legal principles, procedural safeguards, and penalties associated with electricity theft.
(1) Whoever, dishonestly—
(a) cuts or removes or takes away or transfers any electric line, material or meter from a tower, pole, any other installation or place of installation or any other place, or site where it may be rightfully or lawfully stored, deposited, kept, stocked, situated or located, including during transportation, without the consent of the licensee or the owner, as the case may be, whether or not the act is done for profit or gain; or
(b) stores, possesses or otherwise keeps in his premises, custody or control, any electric line, material or meter without the consent of the owner, whether or not the act is committed for profit or gain; or
(c) loads, carries, or moves from one place to another any electric line, material or meter without the consent
Whoever, dishonestly receives any stolen electric line or material knowing or having reasons to believe the same to be stolen property, shall be punishable with imprisonment of either description for a term which may extend to three years or with fine or with both.
(1) Whoever,—
(a) unauthorisedly connects any meter, indicator or apparatus with any electric line through which electricity is supplied by a licensee or disconnects the same from any such electric line; or
(b) unauthorisedly reconnects any meter, indicator or apparatus with any electric line or other works being the property of a licensee when the said electric line or other works has or have been cut or disconnected; or
(c) lays or causes to be laid, or connects up any works for the purpose of communicating with any other works belonging to a licensee; or
(d) maliciously injures any meter, indicator, or apparatus belonging to a licensee or wilfully or fraudulently alters the index of any such meter, indicator or
Whoever, negligently breaks, injures, throws down or damages any material connected with the supply of electricity, shall be punishable with fine which may extend to ten thousand rupees.]
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1. Subs. by Act 57 of 2003, sec. 6, for section 139 (w.e.f. 27-1-2004). Prior to substitution it stood as:
“139. Negligently wasting electricity or injuring works.—Whoever, negligently causes electricity to be wasted, or diverted or negligently breaks, injures, throws down or damages any material connected with the supply of electricity, shall be punishable with fine which may extend to ten thousand rupees.”
Whoever, with intent to cut off the supply of electricity, cuts or injures, or attempts to cut or injure, any electric supply line or works, shall be punishable with fine which may extend to ten thousand rupees.]
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1. Subs. by Act 57 of 2003, sec. 6, for section 140 (w.e.f. 27-1-2004). Prior to substitution it stood as:
“140. Penalty for maliciously wasting electricity or injuring works.—Whoever, maliciously causes electricity to be wasted or diverted, or, with intent to cut off the supply of electricity, cuts or injures, or attempts to cut or injure, any electric supply line or works, shall be punishable with fine which may extend to ten thousand rupees.”
Whoever, maliciously extinguishes any public lamp shall be punishable with fine which may extend to two thousand rupees.
In case any complaint is filed before the Appropriate Commission by any person or if that Commission is satisfied that any person has contravened any of the provisions of this Act or the rules or regulations made thereunder, or any direction issued by the Commission, the Appropriate Commission may after giving such person an opportunity of being heard in the matter, by order in writing, direct that, without prejudice to any other penalty to which he may be liable under this Act, such person shall pay, by way of penalty, which shall not exceed one lakh rupees for each contravention and in case of a continuing failure with an additional penalty which may extend to six thousand rupees for every day during which the failure continues after contravention of the first such direction.
(1) For the purpose of adjudging under this Act, the Appropriate Commission shall appoint any of its Members to be an adjudicating officer for holding an inquiry in such manner as may be prescribed by the Appropriate Government, after giving any person concerned a reasonable opportunity of being heard for the purpose of imposing any penalty.
(2) While holding an inquiry, the adjudicating officer shall have power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or produce any document which in the opinion of the adjudicating officer, may be useful for or relevant to the subject-matter of the inquiry, and if, on such inquiry, he is satisfied that the person has failed to comply with the provisions of section 29 or section 33 or section 43, he may impose such penalty as he thinks fit in accordance with the prov
While adjudicating the quantum of penalty under section 29 or section 33 or section 43, the adjudicating officer shall have due regard to the following factors, namely:--
(a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default;
(b) the repetitive nature of the default.
No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which an assessing officer referred to in section 126 or an appellate authority referred to in section 127 or the adjudicating officer appointed under this Act is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act.
Section 145 of the Electricity Act, 2003, establishes a statutory bar on the jurisdiction of civil courts in matters concerning assessments and proceedings under the Act, particularly relating to theft, unauthorized use, and other disputes that are within the exclusive domain of specialized authorities. This provision aims to streamline dispute resolution through dedicated tribunals and adjudicating officers, thereby limiting the scope of civil litigation in electricity-related matters.
Section 145 explicitly states that:- No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which an assessing officer, appellate authority, or adjudicating officer under the Act is empowered to determine.- No injunction shall be granted by any court or authority in respect of actions taken or to be taken in pursuance of powers conferred by the Act.
In summary, Section 145 of the Electricity Act, 2003, is a pivotal provision that restricts civil courts from entertaining disputes related to assessments, penalties, or actions that are within the exclusive jurisdiction of designated authorities. It enforces a specialized adjudicatory framework, promotes judicial discipline, and ensures efficient resolution of electricity-related disputes, especially those concerning theft and unauthorized use. Parties must exhaust statutory remedies before approaching civil courts, which are barred from interfering in matters explicitly assigned to electricity tribunals and officers.
Whoever, fails to comply with any order or direction given under this Act, within such time as may be specified in the said order or direction or contravenes or attempts or abets the contravention of any of the provisions of this Act or any rules or regulations made thereunder, shall be punishable with imprisonment for a term which may extend to three months or with fine which may extend to one lakh rupees, or with both in respect of each offence and in the case of a continuing failure, with an additional fine which may extend to five thousand rupees for every day during which the failure continues after conviction of the first such offence:
1[Provided that nothing contained in this section shall apply to the orders, instructions or directions issued under section 121.]
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The penalties imposed under this Act shall be in addition to, and not in derogation of, any liability in respect of payment of compensation or, in the case of a licensee, the revocation of his licence which the offender may have incurred.
(1) Where an offence under this Act has been committed by a company, every person who at the time the offence was committed was in charge of and was responsible to the company for the conduct of the business of the company, as well as the company shall be deemed to be guilty of having committed the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of or
(1) Whoever abets an offence punishable under this Act, shall, notwithstanding anything contained in the Indian Penal Code (45 of 1860), be punished with the punishment provided for the offence.
(2) Without prejudice to any penalty or fine which may be imposed or prosecution proceeding which may be initiated under this Act or any other law for the time being in force, if any officer or other employee of the Board or the licensee enters into or acquiesces in any agreement to do, abstains from doing, permits, conceals or connives at any act or thing whereby any theft of electricity is committed, he shall be punishable with imprisonment for a term which may extend to three years, or with fine, or with both.
1[(3) Notwithstanding anything contained in sub-section (1) of section 135, sub-section (1) of section 136, section 137 and section 138
No court shall take cognizance of an offence punishable under this Act except upon a complaint in writing made by Appropriate Government or Appropriate Commission or any of their officer authorised by them or a Chief Electrical Inspector or an Electrical Inspector or licensee or the generating company, as the case may be, for this purpose:
1[Provided that the court may also take cognizance of an offence punishable under this Act upon a report of a police officer filed under section 173 of the Code of Criminal Procedure, 1973:
Provided further that a special court constituted under section 153 shall be competent to take cognizance of an offence without the accused being committed to it for trial.]
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For the purposes of investigation of an offence punishable of this Act, the police officer shall have all the powers as provided in Chapter XII of the Code of Criminal Procedure, 1973.]
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1. Ins. by Act 26 of 2007, sec. 16.
Notwithstanding anything contained in the Code of Criminal Procedure, 1973, an offence punishable under sections 135 to 140 or section 150 shall be cognizable and non-bailable.]
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1. Ins. by Act 26 of 2007, sec. 16.
(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), the Appropriate Government or any officer authorised by it in this behalf may accept from any consumer or person who committed or who is reasonably suspected of having committed an offence of theft of electricity punishable under this Act, a sum of money by way of compounding of the offence as specified in the Table below:
Table
Nature of Service Rate at which the sum of money for compounding to be collected per Kilowatt (KW)/Horse Power (HP) or part thereof for Low Tension (LT) supply and per Kilo Volt Ampere (KVA) of contracted demand for High Tension (HT)
(1) (2)
1. Industrial Service tw
(1) The State Government may, for the purposes of providing speedy trial of offences referred to in 1[sections 135 to 140 and section 150], by notification in the Official Gazette, constitute as many Special Courts as may be necessary for such area or areas, as may be specified in the notification.
(2) A Special Court shall consist of a single Judge who shall be appointed by the State Government with the concurrence of the High Court.
(3) A person shall not be qualified for appointment as a Judge of a Special Court unless he was, immediately before such appointment, an Additional District and Sessions Judge.
(4) Where the office of the Judge of a Special Court is vacant, or such Judge is absent from the ordinary place of sitting of such Special Court, or he is incapacitated by illness or other
(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), every offence punishable under 2[sections 135 to 140 and section 150] shall be triable only by the Special Court within whose jurisdiction such offence has been committed.
(2) Where it appears to any court in the course of any inquiry or trial that an offence punishable under 1[sections 135 to 140 and section 150] in respect of any offence that the case is one which is triable by a Special Court constituted under this Act for the area in which such case has arisen, it shall transfer such case to such Special Court, and thereupon such case shall be tried and disposed of by such Special Court in accordance with the provisions of this Act:
Provided that it shall be lawful for such Special Court to act on the evidence, if any, recorded by any court in
Section 154 of the Electricity Act, 2003, delineates the powers, procedures, and jurisdiction of the Special Court in cases involving offences under Sections 135 to 140 and 150 of the Act, primarily concerning theft and unauthorized use of electricity. It establishes a specialized mechanism for swift adjudication of such offences, emphasizing the importance of separate proceedings for criminal and civil liabilities.
Section 154 provides that:- All offences punishable under Sections 135 to 140 and 150 shall be tried exclusively by a Special Court within whose jurisdiction the offence has been committed (sub-section 1).- The Special Court has the power to transfer cases to itself if they are triable elsewhere (sub-section 2).- The Court may try these offences summarily, following the procedure under the Criminal Procedure Code, with provisions for re-hearing if necessary (sub-section 3).- The Court can tender pardon to accomplices or concerned persons (sub-section 4).- Crucially, it empowers the Court to determine the civil liability of the accused or consumer for theft of energy, which shall not be less than twice the applicable tariff for the period of theft, to be recovered as if it were a decree of a civil court (sub-section 5).- The Court's order regarding civil liability can be challenged or modified, and excess deposits are refundable (sub-section 6).
Section 154 of the Electricity Act, 2003, provides a comprehensive framework for the trial and adjudication of offences related to theft and unauthorized use of electricity, emphasizing speedy, specialized, and independent proceedings. Its provisions for civil liability ensure that the financial consequences of theft are effectively recovered, reinforcing the deterrent against electricity theft and misuse.
References have been drawn from the provided sources, notably judgments and legal interpretations emphasizing the scope and application of Section 154, its procedural aspects, and judicial affirmations of its provisions.
Save as otherwise provided in this Act, the Code of Criminal Procedure, 1973 (2 of 1974), insofar as they are not inconsistent with the provisions of this Act, shall apply to the proceedings before the Special Court and for the purpose of the provisions of the said enactments, the Special Court shall be deemed to be a Court of Session and shall have all powers of a Court of Session and the person conducting a prosecution before the Special Court shall be deemed to be a Public Prosecutor.
The High Court may exercise, so far as may be applicable, all the powers conferred by Chapters XXIX and XXX of the Code of Criminal Procedure, 1973 (2 of 1974), as if the Special Court within the local limits of the jurisdiction of the High Court is a District Court, or as the case may be, the Court of Session, trying cases within the local limits of jurisdiction of the High Court.
The Special Court may, on a petition or otherwise and in order to prevent miscarriage of justice, review its judgment or order passed under section 154, but no such review petition shall be entertained except on the ground that it was such order passed under a mistake of fact, ignorance of any material fact or any error apparent on the face of the record:
Provided that the Special Court shall not allow any review petition and set aside its previous order or judgment without hearing the parties affected.
Explanation.—For the purposes of this Part, “Special Courts” means the Special Courts constituted under sub-section (1) of section 153.
Where any matter is, by or under this Act, directed to be determined by arbitration, the matter shall, unless it is otherwise expressly provided in the licence of a licensee, be determined by such person or persons as the Appropriate Commission may nominate in that behalf on the application of either party; but in all other respects the arbitration shall be subject to the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996).
No person shall, in the generation, transmission, distribution, supply or use of electricity, in any way injure any railway, highway, airports, tramway, canal or water-way or any dock, wharf or pier vested in or controlled by a local authority, or obstruct or interfere with the traffic on any railway, airway, tramway, canal or water-way.
(1) Every person generating, transmitting, distributing, supplying or using electricity (hereafter in this section referred to as the “operator”) shall take all reasonable precautions in constructing, laying down and placing his electric lines, electrical plant and other works and in working his system, so as not injuriously to affect, whether by induction or otherwise, the working of any wire or line used for the purpose of telegraphic, telephone or electric signalling communication, or the currents in such wire or line.
(2) Where any difference or dispute arises between the operator, and the telegraph authority as to whether the operator has constructed, laid down or placed his electric lines, electrical plant or other works, or worked his system, in contravention of sub-section (1), or as to whether the working of any wire, line or current is or is not injuriously affected there
(1) If any accident occurs in connection with the generation, transmission, distribution, supply or use of electricity in or in connection with, any part of the electric lines or electrical plant of any person and the accident 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, such person shall give notice of the occurrence and of any such loss or injury actually caused by the accident, in such form and within such time as may be prescribed, to the Electrical Inspector or such other person as aforesaid and to such other authorities as the Appropriate Government may by general or special order, direct.
(2) The Appropriate Government may, if it thinks fit, require any Electrical Inspector, or any other person appointed by it in this behalf, to inquire and report—
(a
(1) The Appropriate Government may, by notification, appoint duly qualified persons to be Chief Electrical Inspector or Electrical Inspectors and every such Inspector so appointed shall exercise the powers and perform the functions of a Chief Electrical Inspector or an Electrical Inspector under this Act and exercise such other powers and perform such other functions as may be prescribed within such areas or in respect of such class of works and electric installations and subject to such restrictions as the Appropriate Government may direct.
(2) In the absence of express provision to the contrary in this Act, or any rule made thereunder, an appeal shall lie from the decision of a Chief Electrical Inspector or an Electrical Inspector to the Appropriate Government or if the Appropriate Government, by general or special order so directs, to an Appropriate Commission.
(1) A licensee or any person duly authorised by a licence may, at any reasonable time, and on informing the occupier of his intention, enter any premises to which electricity is, or has been, supplied by him, of any premises or land, under, over, along, across, in or upon which the electric supply-lines or other works have been lawfully placed by him for the purpose of—
(a) inspecting, testing, repairing or altering the electric supply-lines, meters, fittings, works and apparatus for the supply of electricity belonging to the licensee; or
(b) ascertaining the amount of electricity supplied or the electrical quantity contained in the supply; or
(c) removing where a supply of electricity is no longer required, or where the licensee is authorised to take away and cut of
The Appropriate Government may, by order in writing, for the placing of electric lines or electrical plant for the transmission of electricity or for the purpose of telephonic or telegraphic communications necessary for the proper co-ordination of works, confer upon any public officer, licensee or any other person engaged in the business of supplying electricity under this Act, subject to such conditions and restrictions, if any, as the Appropriate Government may think fit to impose and to the provisions of the Indian Telegraph Act, 1885 (13 of 1885), any of the powers which the telegraph authority possesses under that Act with respect to the placing of telegraph lines and posts for the purposes of a telegraph established or maintained, by the Government or to be so established or maintained.
(1) In section 40, sub-section (1) of clause (b) and section 41, sub-section (5) of the Land Acquisition Act, 1894, the term "work" shall be deemed to include electricity supplied or to be supplied by means of the work to be constructed.
(2) The Appropriate Government may, on recommendation of the Appropriate Commission in this behalf, if it thinks fit, on the application of any person, not being a company desirous of obtaining any land for its purposes, direct that he may acquire such land under the provisions of the Land Acquisition Act, 1894 (1 of 1894) in the same manner and on the same conditions as it might be acquired if the person were a company.
The Central Government shall constitute a coordination forum consisting of the Chairperson of the Central Commission and Members thereof, the Chairperson of the Authority, representatives of generating companies and transmission licensees engaged in inter-State transmission of electricity for smooth and coordinated development of the power system in the country.
(2) The Central Government shall also constitute a forum of regulators consisting of the Chairperson of the Central Commission and Chairpersons of the State Commissions.
(3) The Chairperson of the Central Commission shall be the Chairperson of the Forum of regulators referred to in sub-section (2).
(4) The State Government shall constitute a Coordination Forum consisting of the Chairperson of the State Commission and Members thereof re
Where any electric lines or electrical plant, belonging to a licensee are placed in or upon any premises or land not being in the possession of the licensee, such electric lines or electrical plant shall not be liable to be taken in execution under any process of any civil court or in any proceedings in insolvency against the person in whose possession the same may be.
No suit, prosecution or other proceeding shall lie against the Appropriate Government or Appellate Tribunal or the Appropriate Commission or any officer of Appropriate Government, or any Member, Officer or other employee of the Appellate Tribunal or any Members, officer or other employees of the Appropriate Commission or the assessing officer or any public servant for anything done or in good faith purporting to be done under this Act or the rules or regulations made thereunder.
The Chairperson, Members, officers and other employees of the Appellate Tribunal and the Chairperson, Members, Secretary, officers and other employees of the Appropriate Commission and the assessing officer referred to in section 126 shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860).
Any penalty payable by a person under this Act, if not paid, may be recovered as if it were an arrear of land revenue.
(1) Every notice, order or document by or under this Act required, or authorised to be addressed to any person may be served on him by delivering the same after obtaining signed acknowledgement receipt therefor or by registered post or such means of delivery as may be prescribed—
(a) where the Appropriate Government is the addressee, at the office of such officer as the Appropriate Government may prescribe in this behalf;
(b) where the Appropriate Commission is the addressee, at the office of the Appropriate Commission;
(c) where a company is the addressee, at the registered office of the company or, in the event of the registered office of the company not being in India, at the head office of the company in India;
Notwithstanding anything to the contrary contained in this Act,—
(a) a State Electricity Board constituted under the repealed laws shall be deemed to be the State Transmission Utility and a licensee under the provisions of this Act for a period of one year from the appointed date or such earlier date as the State Government may notify, and shall perform the duties and functions of the State Transmission Utility and a licensee in accordance with the provisions of this Act and rules and regulations made thereunder:
Provided that the State Government may, by notification, authorise the State Electricity Board to continue to function as the State Transmission Utility or a licensee for such further period beyond the said period of one year as may be mutually decided by the Central Government and the State Government.
The Electricity Act, 2003 was enacted to consolidate the laws relating to the generation, transmission, distribution, trading, and use of electricity in India. Section 172 of the Act provides transitional provisions that govern the applicability of the repealed laws and the transition to the new regulatory framework established by the Act.
Section 172 outlines the transitional provisions for the State Electricity Boards and other entities previously governed by the repealed laws. It allows for the continuation of licenses, authorizations, and permissions granted under the old laws for a specified period following the enactment of the new Act.
The scope of Section 172 is significant as it provides a legal framework for the transition from the old regulatory regime to the new one. It ensures that existing licenses and authorizations are not abruptly invalidated, allowing for a smoother transition for consumers and service providers.
While Section 172 itself does not prescribe punishments, it sets the stage for the enforcement of the new regulatory framework, which includes penalties for non-compliance with the provisions of the Electricity Act, 2003.
Transitional Provisions - Section 172 allows for the continuation of licenses and authorizations under the repealed laws for one year from the appointed date, ensuring a smooth transition to the new regulatory framework. - [MEHDI HASSAN VS STATE OF WEST BENGAL]
Applicability of Old Laws - The court held that the provisions of the Indian Electricity Act, 1910 were applicable for disconnection actions taken within one year of the appointed date of the Electricity Act, 2003. - [MEHDI HASSAN VS STATE OF WEST BENGAL]
Compliance with Conditions - The respondent authorities complied with statutory obligations under Clause 29(c) of the conditions of supply framed under the Indian Electricity Act, 1910, as per the transitional provisions. - [MEHDI HASSAN VS STATE OF WEST BENGAL]
Notification Authority - The State Government has the authority to declare that provisions of the new Act shall not apply for a period not exceeding six months, allowing for flexibility in implementation. - [Kerala State Electricity Board, Rep. by its Secretary, Kerala State Electricity Board VS Hotel Mariya, rep. by its Partner, Mathew Cyriac]
Prospective Effect - Notifications issued under Section 172(d) have only prospective effect, meaning they do not retroactively affect actions taken prior to the notification. - [Hotel Mariya, rep. by it's Partner, Mathew Cyriac VS Kerala State Electricity Board, rep. by it's Secretary]
Judicial Interpretation - Courts have interpreted Section 172 to mean that actions taken under the old laws remain valid until the transitional period expires, thereby protecting consumer rights. - [MEHDI HASSAN VS STATE OF WEST BENGAL]
Regulatory Changes - The enactment of the Electricity Act, 2003 has fundamentally changed the structure and functioning of State Electricity Boards, as they are now deemed to be State Transmission Utilities. - [Hari Bansh Lal, son of late Basudeo Lal VS State of Jharkhand]
Impact on Employment - The transition under Section 172 has implications for employment within State Electricity Boards, as the new Act mandates changes in administration and structure. - [Hari Bansh Lal, son of late Basudeo Lal VS State of Jharkhand]
Legal Challenges - Legal challenges have arisen regarding the applicability of the new Act versus the old laws, particularly in cases of disconnection and unauthorized use of electricity. - [PRABHATBHAI S DESAI VS AHMEDABAD ELECTRICITY CO. LTD. ]
Consumer Rights - Consumers have the right to challenge disconnection actions taken under the old laws if they occur within the transitional period, as established by Section 172. - [MEHDI HASSAN VS STATE OF WEST BENGAL]
Assessment of Charges - The provisions of the new Act limit the assessment of charges for irregularities to a specific timeframe, which has been a point of contention in legal disputes. - [PRABHATBHAI S DESAI VS AHMEDABAD ELECTRICITY CO. LTD. ]
Judicial Precedents - Courts have upheld the validity of actions taken under the old laws during the transitional period, reinforcing the legal standing of such actions. - [MEHDI HASSAN VS STATE OF WEST BENGAL]
Legislative Intent - The legislative intent behind Section 172 is to ensure that the transition to the new regulatory framework does not disrupt electricity supply or consumer rights. - [Hari Bansh Lal, son of late Basudeo Lal VS State of Jharkhand]
State Discretion - The discretion granted to the State Government under Section 172(d) to delay the applicability of the new Act reflects the need for localized governance in electricity regulation. - [Kerala State Electricity Board, Rep. by its Secretary, Kerala State Electricity Board VS Hotel Mariya, rep. by its Partner, Mathew Cyriac]
Consumer Protection - The transitional provisions serve to protect consumers from abrupt changes in service delivery and regulatory oversight during the transition period. - [MEHDI HASSAN VS STATE OF WEST BENGAL]
Legal Framework - Section 172 establishes a legal framework that balances the need for regulatory reform with the practical realities of existing licenses and consumer relationships. - [Hari Bansh Lal, son of late Basudeo Lal VS State of Jharkhand]
Future Implications - The transitional provisions will have lasting implications for how electricity is regulated and managed in India, influencing future legislative and regulatory developments. - [Hari Bansh Lal, son of late Basudeo Lal VS State of Jharkhand]
Judicial Review - The courts have the authority to review actions taken under the transitional provisions to ensure compliance with the principles of natural justice and statutory obligations. - [MEHDI HASSAN VS STATE OF WEST BENGAL]
Consumer Appeals - Consumers are entitled to appeal against assessments made under the old laws during the transitional period, ensuring their rights are safeguarded. - [MEHDI HASSAN VS STATE OF WEST BENGAL]
Regulatory Compliance - The transitional provisions necessitate that all actions taken by State Electricity Boards comply with both the old and new regulatory frameworks during the transition. - [Hari Bansh Lal, son of late Basudeo Lal VS State of Jharkhand]
Nothing contained in this Act or any rule or regulation made thereunder or any instrument having effect by virtue of this Act, rule or regulation shall have effect in so far as it is inconsistent with any other provisions of the Consumer Protection Act, 1986 (68 of 1986) or the Atomic Energy Act, 1962 (33 of 1962) or the Railways Act, 1989 (24 of 1989).
Save as otherwise provided in section 173, the provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act.
The provisions of this Act are in addition to and not in derogation of any other law for the time being in force.
(1) The Central Government may, by notification, make rules for carrying out the provisions of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—
(a) the time within which the objection and suggestions on the draft National Electricity Plan to be invited by the Authority under the proviso to sub-section (4) of section 3;
(b) the additional requirements 1[relating to the capital adequacy, credit worthiness or code of conduct] under sixth proviso to section 14;
(c) the payment of fees for application for grant of licence under sub-section (1) of section 15;
(d) th
(1) The Authority may, by notification, make regulations consistent with this Act and the rules generally to carry out the provisions of this Act.
(2) In particular and without prejudice to the generality of the power conferred in sub-section (1), such regulations may provide for all or any of the following matters, namely:—
(a) the Grid Standards under section 34;
(b) suitable measures relating to safety and electric supply under section 53;
(c) the installation and operation of meters under section 55;
(d) the rules of procedure for transaction of business under sub-section (9) of section 70;
(e) the technical stan
(1) The Central Commission may, by notification make regulations consistent with this Act and the rules generally to carry out the provisions of this Act.
(2) In particular and without prejudice to the generality of the power contained in sub-section (1), such regulations may provide for all or any of following matters, namely:—
(a) period to be specified under the first proviso to section 14;
(b) the form and the manner of the application under sub-section (1) of section 15;
(c) the manner and particulars of notice under sub-section (2) of
section 15;
(d) the conditions of licence under section 16;
&n
Every rule made by the Central Government, every regulation made by the Authority, and every regulation made by the Central Commission shall be laid, as soon as may be after it is made, before each House of the Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation.
(1) The State Government may, by notification, make rules for carrying out the provisions of this Act.
(2) In particular and without prejudice to the generality of foregoing power, such rules may provide for all or any of the following matters, namely:—
(a) the payment of fees for application for grant of licence under sub-section (1) of section 15;
(b) the works of licensees affecting the property of other persons under sub-section (2) of section 67;
(c) such other matters which may be prescribed under clause (c) of sub-section (2) of section 68;
(d) the salary, allowances and other terms and conditions of service of the Chairperson and Members of the State Commission
(1) The State Commissions may, by notification, make regulations consistent with this Act and the rules generally to carry out the provisions of this Act.
(2) In particular and without prejudice to the generality of the power contained in sub-section (1), such regulations may provide for all or any of the following matters, namely:—
(a) period to be specified under the first proviso of section 14;
(b) the form and the manner of application under sub-section (1) of section 15;
(c) the manner and particulars of application for licence to be published under sub-section (2) of section 15;
(d) the conditions of licence under section 16;
&nb
Every rule made by the State Government and every regulation made by the State Commission shall be laid, as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or where such Legislature consists of one House, before that House.
(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published, make such provisions not inconsistent with the provisions of this Act, as may appear to be necessary for removing the difficulty:
Provided that no order shall be made under this section after the expiry of two years from the date of commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.
The provisions of this Act shall not apply to the Ministry or Department of the Central Government dealing with Defence, Atomic Energy or such other similar Ministries or Departments or undertakings or Boards or institutions under the control of such Ministries or Departments as may be notified by the Central Government.
(1) Save as otherwise provided in this Act, the Indian Electricity Act, 1910 (9 of 1910), the Electricity (Supply) Act, 1948 (54 of 1948) and the Electricity Regulatory Commissions Act, 1998 (14 of 1998) are hereby repealed.
(2) Notwithstanding such repeal,—
(a) anything done or any action taken or purported to have been done or taken including any rule, notification, inspection, order or notice made or issued or any appointment, confirmation or declaration made or any licence, permission, authorisation or exemption granted or any document or instrument executed or any direction given under the repealed laws shall, in so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provisions of this Act;
(b) the pro
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