NYAYA SIGNAL
Haryana · 2003 · Bare Act
The Electricity Act, 2003
The Electricity Act, 2003
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MINISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi, the 2nd June, 2003.Jyaistha 12, 1925 (Saka)
The following Act of Parliament received the assent of the President on the 26th
May, 2003, and is hereby published for general information:
THE ELECTRICITY ACT, 2003
[No.36 of 2003]
[26th May, 2003]
An Act to consolidate the laws relating to generation, transmission, distribution,
trading and use of electricity and generally for taking measures conducive to
development of electricity industry, promoting competition therein, protecting
interest of consumers and supply of electricity to all areas, rationalization of
electricity tariff, ensuring transparent policies regarding subsidies, promotion of
efficient and environmentally benign policies, constitution of Central Electricity
Authority, Regulatory Commissions and establishment of Appellate Tribunal
and for matters connected therewith or incidental thereto.
Be it enacted by Parliament in the Fifty-fourth Year of the Republic of India as follows:-
PART I
PRELIMINARY
Section 1. (Short title, extent and commencement) --- (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 date 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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Section 2. (Definitions): --- 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, -
(a) the Central Government, -
(i) in respect of a generating company wholly or partly owned
by it;
(ii) in relation to any inter-State generation, transmission,
trading or supply of electricity and with respect to any
mines, oil-fields, railways, national highways, airports,
telegraphs, broadcasting stations and any works of defence,
dockyard, nuclear power installations;
(iii) in respect of National Load Despatch Centre; and Regional
Load Despatch Centre;
(iv) in relation to any works or electric installation belonging to
it or under its control ;
(b) in any other case, the State Government, having jurisdiction under
this Act;
(6) “Authority” means the Central Electricity Authority referred to in
sub-section(1) of section 70;
(7) "Board" means, a State Electricity Board, constituted before the
commencement of this Act, under sub-section (1) of section 5 of the
Electricity (Supply) Act, 1948;
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(8) “Captive generating plant” means a power plant set up by any person
to generate electricity primarily for his own use and includes a power
plant set up by any co-operative society or association of persons for
generating electricity primarily for use of members of such co-
operative society or association;
(9) "Central Commission" means the Central Electricity Regulatory
Commission referred to in sub-section (1) of section 76;
(10) "Central Transmission Utility" means any Government company
which the Central Government may notify under sub-section (1) of
section 38;
(11) "Chairperson" means the Chairperson of the Authority or Appropriate
Commission or the Appellate Tribunal, as the case may be;
(12) “Cogeneration” means a process which simultaneously produces two
or more forms of useful energy (including electricity);
(13) "company" means a company formed and registered under the
Companies Act, 1956 and includes any body corporate under a
Central, State or Provincial Act;
(14) "conservation" means any reduction in consumption of electricity as a
result of increase in the efficiency in supply and use of electricity;
(15) "consumer" means any person who is supplied with electricity for his
own use by a licensee or the Government or by any other person
engaged in the business of supplying electricity to the public under
this Act or any other law for the time being in force and includes any
person whose premises are for the time being connected for the
purpose of receiving electricity with the works of a licensee, the
Government or such other person, as the case may be;
(16) “dedicated transmission lines" means any electric supply-line for point
to point transmission which are required for the purpose of connecting
electric lines or electric plants of a captive generating plant referred to
in section 9 or generating station referred to in section 10 to any
transmission lines or sub-stations or generating stations, or the load
centre, as the case may be;
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(17) "distribution licensee" means a licensee authorised to operate and
maintain a distribution system for supplying electricity to the
consumers in his area of supply;
(18) "distributing main" means the portion of any main with which a
service line is, or is intended to be, immediately connected;
(19) "distribution system" means the system of wires and associated
facilities between the delivery points on the transmission lines or the
generating station connection and the point of connection to the
installation of the consumers;
(20) "electric line" means any line which is used for carrying electricity for
any purpose and includes
(a) any support for any such line, that is to say, any structure, tower, pole or
other thing in, on, by or from which any such line is, or may be,
supported, carried or suspended; and
(b) any apparatus connected to any such line for the purpose of carrying
electricity;
(21) "Electrical Inspector" means a person appointed as such by the Appropriate
Government under sub-section (1) of section 162 and also includes Chief
Electrical Inspector;
(22) "electrical plant" means any plant, equipment, apparatus or appliance or any
part thereof used for, or connected with, the generation, transmission,
distribution or supply of electricity but does not include-
(a) an electric line; or
(b) a meter used for ascertaining the quantity of electricity supplied to any
premises; or
(c) an electrical equipment, apparatus or appliance under the control of a
consumer;
(23) "electricity" means electrical energy-
(a) generated, transmitted, supplied or traded for any purpose; or
(b) used for any purpose except the transmission of a message;
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(24) "Electricity Supply Code" means the Electricity Supply Code specified under
section 50;
(25) "electricity system” means a system under the control of a generating
company or licensee, as the case may be, having one or more -
(a) generating stations; or
(b) transmission lines; or
(c) electric lines and sub-stations;
and when used in the context of a State or the Union, the entire electricity system
within the territories thereof;
(26) "electricity trader" means a person who has been granted a licence to
undertake trading in electricity under section 12;
(27) “franchisee means a persons authorised by a distribution licensee to
distribute electricity on its behalf in a particular area within his area of
supply;
(28) "generating company" means any company or body corporate or
association or body of individuals, whether incorporated or not, or artificial
juridical person, which owns or operates or maintains a generating station;
(29) "generate" means to produce electricity from a generating station for the
purpose of giving supply to any premises or enabling a supply to be so given;
(30) "generating station" or “station” means any station for generating
electricity, including any building and plant with step-up transformer, switch-
gear, switch yard, cables or other appurtenant equipment, if any, used for that
purpose and the site thereof; a site intended to be used for a generating station,
and any building used for housing the operating staff of a generating station, and
where electricity is generated by water-power, includes penstocks, head and tail
works, main and regulating reservoirs, dams and other hydraulic works, but
does not in any case include any sub-station;
(31) “Government company” shall have the meaning assigned to it in section 617
of the Companies Act, 1956;
(32) "grid" means the high voltage backbone system of inter-connected
transmission lines, sub-stations and generating plants;
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(33) "Grid Code" means the Grid Code specified by the Central Commission
under clause (h) of sub-section (l) of section 79;
(34) "Grid Standards" means the Grid Standards specified under clause (d) of
section 73 by the Authority;
(35) "high voltage line” means an electric line or cable of a nominal voltage as
may be specified by the Authority from time to time;
(36) “ inter-State transmission system” includes -
(i) any system for the conveyance of electricity by means of main
transmission line from the territory of one State to another State;
(ii) the conveyance of electricity across the territory of an intervening
State as well as conveyance within the State which is incidental to
such inter-State transmission of electricity;
(iii) the transmission of electricity within the territory of a State on a
system built, owned, operated, maintained or controlled by a
Central Transmission Utility.
(37) “intra-State transmission system” means any system for transmission of
electricity other than an inter-State transmission system ;
(38) “ licence” means a licence granted under section 14;
(39) “ licensee” means a person who has been granted a licence under
section 14;
(40) “ line” means any wire, cable, tube, pipe, insulator, conductor or other
similar thing (including its casing or coating) which is designed or adapted for
use in carrying electricity and includes any line which surrounds or supports,
or is surrounded or supported by or is installed in close proximity to, or is
supported, carried or suspended in association with, any such line;
(41) “local authority” means any Nagar Panchayat, Municipal Council,
municipal corporation, Panchayat constituted at the village, intermediate and
district levels, body of port commissioners or other authority legally entitled to,
or entrusted by the Union or any State Government with, the control or
management of any area or local fund;
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(42) "main” means any electric supply- line through which electricity is, or is
intended to be, supplied ;
(43) "Member" means the Member of the Appropriate Commission or Authority
or Joint Commission, or the Appellate Tribunal, as the case may be, and includes
the Chairperson of such Commission or Authority or Appellate Tribunal;
(44) "National Electricity Plan" means the National Electricity Plan notified under
sub-section (4) of section 3;
(45) “National Load Despatch Centre” means the Centre established under sub-
section (1) of section 26;
(46) “notification” means notification published in the Official Gazette and the
expression “notify” shall be construed accordingly;
(47) “open access” means the non-discriminatory provision for the use of
transmission lines or distribution system or associated facilities with such lines
or system by any licensee or consumer or a person engaged in generation in
accordance with the regulations specified by the Appropriate Commission;
(48) “overhead line” means an electric line which is placed above the ground and
in the open air but does not include live rails of a traction system;
(49) “person” shall include any company or body corporate or association or
body of individuals, whether incorporated or not, or artificial juridical person;
(50) "power system" means all aspects of generation, transmission, distribution
and supply of electricity and includes one or more of the following, namely:-
(a) generating stations;
(b) transmission or main transmission lines;
(c) sub-stations;
(d) tie-lines;
(e) load despatch activities;
(f) mains or distribution mains;
(g) electric supply-lines;
(h) overhead lines;
(i) service lines;
(j) works;
(51) “premises” includes any land, building or structure;
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(52) “prescribed” means prescribed by rules made by the Appropriate
Government under this Act;
(53) "public lamp" means an electric lamp used for the lighting of any street;
(54) "real time operation" means action to be taken at a given time at which
information about the electricity system is made available to the concerned Load
Despatch Centre;
(55) “Regional Power Committee” means a committee established by resolution
by the Central Government for a specified region for facilitating the integrated
operation of the power systems in that region;
(56) "Regional Load Despatch Centre" means the Centre established under sub-
section (1) of section 27;
(57) "regulations" means regulations made under this Act;
(58) “repealed laws” means the Indian Electricity Act, 1910, the Electricity
(Supply) Act, 1948 and the Electricity Regulatory Commissions Act, 1998
repealed by section 185;
(59) "rules " means rules made under this Act;
(60) “schedule” means the Schedule to this Act;
(61) "service-line" means any electric supply-line through which electricity is, or
is intended to be, supplied -
(a) to a single consumer either from a distributing main or
immediately from the Distribution Licensee's premises; or
(b) from a distributing main to a group of consumers on the same
premises or on contiguous premises supplied from the same point
of the distributing main;
(62) "specified" means specified by regulations made by the Appropriate
Commission or the Authority, as the case may be, under this Act;
(63) “stand alone system” means the electricity system set-up to generate power
and distribute electricity in a specified area without connection to the grid;
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(64) "State Commission" means the State Electricity Regulatory Commission
constituted under sub-section (1) of section 82 and includes a Joint Commission
constituted under sub-section (1) of section 83;
(65) "State Grid Code" means the State Grid Code specified under clause (h) of
sub-section (1) of section 86;
(66) "State Load Despatch Centre" means the centre established under sub-
section (1) of section 31;
(67) "State Transmission Utility" means the Board or the Government company
specified as such by the State Government under sub-section (1) of section 39;
(68) "street" includes any way, road, lane, square, court, alley, passage or open
space, whether a thoroughfare or not, over which the public have a right of way,
and also the roadway and footway over any public bridge or causeway;
(69) "sub-station" means a station for transforming or converting electricity for
the transmission or distribution thereof and includes transformers converters,
switch-gears, capacitors, synchronous condensers, structures, cable and other
appurtenant equipment and any buildings used for that purpose and the site
thereof;
(70) "supply", in relation to electricity, means the sale of electricity to a licensee or
consumer;
(71) "trading" means purchase of electricity for resale thereof and the expression
"trade" shall be construed accordingly;
(72) “transmission lines" means all high pressure cables and overhead lines (not
being an essential part of the distribution system of a licensee) transmitting
electricity from a generating station to another generating station or a sub-
station, together with any step-up and step-down transformers, switch-gear and
other works necessary to and used for the control of such cables or overhead
lines, and such buildings or part thereof as may be required to accommodate
such transformers, switch-gear and other works;
(73) "transmission licensee” means a licensee authorised to establish or operate
transmission lines;
(74) "transmit" means conveyance of electricity by means of transmission lines
and the expression "transmission" shall be construed accordingly;
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(75) "utility" means the electric lines or electrical plant, and includes all lands,
buildings, works and materials attached thereto belonging to any person acting
as a generating company or licensee under the provisions of this Act;
(76) "wheeling" means the operation whereby the distribution system and
associated facilities of a transmission licensee or distribution licensee, as the case
may be, are used by another person for the conveyance of electricity on payment
of charges to be determined under section 62;
(77) "works" includes electric line, and any building, plant, machinery,
apparatus and any other thing of whatever description required to transmit,
distribute or supply electricity to the public and to carry into effect the objects of
a licence or sanction granted under this Act or any other law for the time being in
force.
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PART II
NATIONAL ELECTRICITY POLICY AND PLAN
Section 3. (National Electricity Policy and Plan) --- (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 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 once in five years:
Provided that the Authority while preparing the National Electricity Plan
shall publish the draft National Electricity Plan and invite suggestions and
objections thereon from licensees, generating companies and the public within
such time as may be prescribed:
Provided further that the Authority shall -
(a) notify the plan after obtaining the approval of the Central
Government;
(b) revise the plan incorporating therein the directions, if any, given by
the Central Government while granting approval under clause (a).
(5) The Authority may review or revise the National Electricity Plan in
accordance with the National Electricity Policy.
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Section 4. (National Policy on stand alone systems for rural areas and non-
conventional energy systems):
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.
Section 5. (National policy on electrification and local distribution in 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.
1[Section 6. (Joint responsibility of State Government and Central Government
in rural electrification.)
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.]
1 Subs. Act 26 of 2007, Sec. 2 (w.e.f. 15th June 2007).
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PART III
GENERATION OF ELECTRICITY
Section 7. (Generating company and requirement for setting up of generating
station):
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.
Section 8. (Hydro-electric generation): --- (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 State Government, the Central Government, or such other
agencies as it may deem appropriate, that an adequate study has
been made of the optimum location of dams and other river-
works;
(b) the proposed scheme meets the norms regarding dam design and
safety.
(3) Where a multi-purpose scheme for the development of any river in any
region is in operation, the State Government and the generating company shall
co-ordinate their activities with the activities of the person responsible for such
scheme in so far as they are inter-related.
Section 9. (Captive generation):
(1) Notwithstanding anything contained in this Act, a person may construct,
maintain or operate a captive generating plant and dedicated transmission lines:
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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 access for the
purposes of carrying electricity from his captive generating plant to the
destination of his use:
Provided that such open access shall be subject to availability of
adequate transmission facility and such availability of transmission facility shall
be determined by the Central Transmission Utility or the State Transmission
Utility, as the case may be:
Provided further that any dispute regarding the availability of
transmission facility shall be adjudicated upon by the Appropriate Commission.
Section 10. (Duties of generating companies): --- (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;
1 Ins. by Act 26 of 2007, Sec. 3 (w.e.f.15th June 2007).
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(b) co-ordinate with the Central Transmission Utility or the State
Transmission Utility, as the case may be, for transmission of the
electricity generated by it.
Section 11. (Directions to generating companies): --- (1) 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.
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PART IV
LICENSING
Section 12. (Authorised persons to transmit, supply, etc., electricity):
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.
Section 13. (Power to exempt):
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 organizations, or franchisees:
Section 14. (Grant of licence):
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,
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clearance or approval granted to him under the repealed laws or such Act
specified in the Schedule, and the provisions of the repealed laws or such Act
specified in the Schedule in respect of such licence shall apply for a period of
one year from the date of commencement of this Act or such earlier period as
may be specified, at the request of the licensee, by the Appropriate Commission
and thereafter the provisions of this Act shall apply to such business:
Provided further that the Central Transmission Utility or the State
Transmission Utility shall be deemed to be a transmission licensee under this
Act:
Provided also that in case an Appropriate Government transmits
electricity or distributes electricity or undertakes trading in electricity, whether
before or after the commencement of this Act, such Government shall be deemed
to be a licensee under this Act, but shall not be required to obtain a licence under
this Act:
Provided also that the Damodar Valley Corporation, established under
sub-section (1) of section 3 of the Damodar Valley Corporation Act, 1948, shall be
deemed to be a licensee under this Act but shall not be required to obtain a
licence under this Act and the provisions of the Damodar Valley Corporation
Act, 1948, in so far as they are not inconsistent with the provisions of this Act,
shall continue to apply to that Corporation:
Provided also that the Government company or the company referred
to in sub-section (2) of section 131 of this Act and the company or companies
created in pursuance of the Acts specified in the Schedule, shall be deemed to
be a licensee under this Act:
Provided also that the Appropriate Commission may grant a licence to
two or more persons for distribution of electricity through their own distribution
system within the same area, subject to the conditions that the applicant for grant
of licence within the same area shall, without prejudice to the other conditions or
requirements under this Act, comply with the additional requirements 1[relating
to the capital adequacy, credit-worthiness, or code of conduct] as may be
prescribed by the Central Government, and no such applicant, who complies
with all the requirements for grant of licence, shall be refused grant of licence on
the ground that there already exists a licensee in the same area for the same
purpose:
1 Subs. by Act 57 of 2003, Sec.2 for the words and brackets “(including the capital adequacy credit
worthiness, or Code of conduct)” (w.e.f. 27th January, 2004).
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Provided also that in a case where a distribution licensee proposes to
undertake distribution of electricity for a specified area within his area of
supply through another person, that person shall not be required to obtain
any separate licence from the concerned State Commission and such
distribution licensee shall be responsible for distribution of electricity in his area
of supply:
Provided also that where a person intends to generate and distribute
electricity in a rural area to be notified by the State Government, such person
shall not require any licence for such generation and distribution of electricity,
but he shall comply with the measures which may be specified by the Authority
under section 53:
Provided also that a distribution licensee shall not require a licence to
undertake trading in electricity.
Section 15. (Procedure for grant of licence): --- (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 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 the publication of the
notice as aforesaid;
(ii) until, in the case of an application for a licence for an area
including the whole or any part of any cantonment, aerodrome,
fortress, arsenal, dockyard or camp or of any building or place in
the occupation of the Government for defence purposes, the
Appropriate Commission has ascertained that there is no objection
to the grant of the licence on the part of the Central Government.
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(3) A person intending to act as a transmission licensee shall, immediately
on making the application, forward a copy of such application to the Central
Transmission Utility or the State Transmission Utility, as the case may be.
(4) The Central Transmission Utility or the State Transmission Utility, as
the case may be, shall, within thirty days after the receipt of the copy of the
application referred to in sub-section (3), send its recommendations, if any, to
the Appropriate Commission:
Provided that such recommendations shall not be binding on the
Commission.
(5) Before granting a licence under section 14, the Appropriate Commission
shall -
(a) publish a notice in two such daily newspapers, as that Commission
may consider necessary, stating the name and address of the
person to whom it proposes to issue the licence;
(b) consider all suggestions or objections and the recommendations, if
any, of the Central Transmission Utility or State Transmission
Utility, as the case may be.
(6) Where a person makes an application under sub-section (1) of section 14
to act as a licensee, the Appropriate Commission shall, as far as practicable,
within ninety days after receipt of such application, -
(a) issue a licence subject to the provisions of this Act and the rules
and regulations made thereunder; or
(b) reject the application for reasons to be recorded in writing if such
application does not conform to the provisions of this Act or the
rules and regulations made thereunder or the provisions of any
other law for the time being in force:
Provided that no application shall be rejected unless the applicant has
been given an opportunity of being heard.
(7) The Appropriate Commission shall, immediately after issue of a licence,
forward a copy of the licence to the Appropriate Government, Authority, local
authority, and to such other person as the Appropriate Commission considers
necessary.
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(8) A licence shall continue to be in force for a period of twenty- five years
unless such licence is revoked.
Section 16. (Condition of licence):
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.
Section 17. (Licensee not to do certain things): --- (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.
(3) No licensee shall at any time assign his licence or transfer his utility, or
any part thereof, by sale, lease, exchange or otherwise without the prior
approval of the Appropriate Commission.
(4) Any agreement, relating to any transaction specified in sub-section (1)
or sub-section (3), unless made with the prior approval of the Appropriate
Commission, shall be void.
Section 18. (Amendment of licence):
(1) Where in its opinion the public interest so permits, the Appropriate
Commission, may, on the application of the licensee or otherwise, make such
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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 manner as may be specified;
(b) in the case of an application proposing alterations or modifications
in the area of supply comprising the whole or any part of any
cantonment, aerodrome, fortress, arsenal, dockyard or camp or any
building or place in the occupation of the Government for defence
purposes, the Appropriate Commission shall not make any
alterations or modifications except with the consent of the Central
Government;
(c) where any alterations or modifications in a licence are proposed to
be made otherwise than on the application of the licensee, the
Appropriate Commission shall publish the proposed alterations or
modifications with such particulars and in such manner as may be
specified;
(d) the Appropriate Commission shall not make any alterations or
modification unless all suggestions or objections received within
thirty days from the date of the first publication of the notice have
been considered.
Section 19. (Revocation of licence): --- (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;
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(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 show, to the satisfaction of the Appropriate Commission,
that he is in a position fully and efficiently to discharge the
duties and obligations imposed on him by his licence; or
(ii) to make the deposit or furnish the security, or pay the fees or
other charges required by his licence;
(d) where in the opinion of the Appropriate Commission the financial
position of the licensee is such that he is unable fully and efficiently
to discharge the duties and obligations imposed on him by his
licence.
(2) Where in its opinion the public interest so requires, the Appropriate
Commission may, on application, or with the consent of the licensee, revoke his
licence as to the whole or any part of his area of distribution or transmission or
trading upon such terms and conditions as it thinks fit.
(3) No licence shall be revoked under sub-section (1) unless the Appropriate
Commission has given to the licensee not less than three months’ notice, in
writing, stating the grounds on which it is proposed to revoke the licence, and
has considered any cause shown by the licensee within the period of that notice,
against the proposed revocation.
(4) The Appropriate Commission may, instead of revoking a licence under
sub-section (1), permit it to remain in force subject to such further terms and
conditions as it thinks fit to impose, and any further terms and conditions so
imposed shall be binding upon and be observed by the licensee and shall be of
like force and effect as if they were contained in the licence.
(5) Where the Commission revokes a licence under this section, it shall serve
a notice of revocation upon the licensee and fix a date on which the revocation
shall take effect.
(6) Where the Appropriate Commission has given notice for revocation of
licence under sub-section (5), without prejudice to any penalty which may be
imposed or prosecution proceeding which may be initiated under this Act, the
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licensee may, after prior approval of that Commission, sell his utility to any
person who is found eligible by that Commission for grant of licence.
Section 20. (Sale of utilities of licensees): --- (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 date of revocation of licence or on and from the
date, if earlier, on which the utility of the licensee is sold to a
purchaser, shall absolutely cease except for any liabilities which
have accrued prior to that date;
(d) the Appropriate Commission may make such interim arrangements
in regard to the operation of the utility as may be considered
appropriate including the appointment of Administrators;
(e) The Administrator appointed under clause (d) shall exercise such
powers and discharge such functions as the Appropriate
Commission may direct.
(2) Where a utility is sold under sub-section (1), the purchaser shall pay to the
licensee the purchase price of the utility in such manner as may be agreed upon.
(3) Where the Appropriate Commission issues any notice under sub-section
(1) requiring the licensee to sell the utility, it may, by such notice, require the
licensee to deliver the utility, and thereupon the licensee shall deliver on a date
specified in the notice, the utility to the designated purchaser on payment of the
purchase price thereof.
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(4) Where the licensee has delivered the utility referred to in sub-section(3)
to the purchaser but its sale has not been completed by the date fixed in the
notice issued under that sub-section, the Appropriate Commission may, if it
deems fit, permit the intending purchaser to operate and maintain the utility
system pending the completion of the sale.
Section 21. (Vesting of utility in purchaser):
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.
Section 22. (Provisions where no purchase takes place): --- (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 reinstated, and recover the cost of such removal and
reinstatement from the licensee.
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Section 23. (Directions to licensees):
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.
Section 24. (Suspension of distribution licence and sale of utility): --- (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 recorded in writing,
suspend, for a period not exceeding one year, the licence of the distribution
licensee and appoint an Administrator to discharge the functions of the
distribution licensee in accordance with the terms and conditions of the licence:
Provided that before suspending a licence under this section, the
Appropriate Commission shall give a reasonable opportunity to the distribution
licensee to make representations against the proposed suspension of license and
shall consider the representations, if any, of the distribution licensee.
(2) Upon suspension of license under sub-section (1) the utilities of the
distribution licensee shall vest in the Administrator for a period not exceeding
one year or up to the date on which such utility is sold in accordance with the
provisions contained in section 20, whichever is later.
(3) The Appropriate Commission shall, within one year of appointment of
the Administrator under sub-section (1) either revoke the licence in accordance
with the provisions contained in section 19 or revoke suspension of the licence
and restore the utility to the distribution licensee whose licence had been
suspended, as the case may be.
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(4) In a case where the Appropriate Commission revokes the licence under
sub-section (3), the utility of the distribution licensee shall be sold within a
period of one year from the date of revocation of the licence in accordance with
the provisions of section 20 and the price after deducting the administrative and
other expenses on sale of utilities be remitted to the distribution licensee.
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PART V
TRANSMISSION OF ELECTRICITY
Section 25. (Inter-State, regional and inter-regional transmission):
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.
Section 26. (National Load Despatch Centre) : --- (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.
Section 27. (Constitution of Regional Load Despatch Centre):
(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:
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Provided further that no Regional Load Despatch Centre shall engage in
the business of generation of electricity or trading in electricity.
Section 28. (Functions of Regional Load Despatch Centre): --- (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 the 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 electricity transmitted through the
regional grid;
(d) exercise supervision and control over the inter-State transmission
system; and
(e) be responsible for carrying out real time operations for grid
control and despatch of electricity within the region through
secure and economic operation of the regional grid in accordance
with the Grid Standards and the Grid Code.
(4) The Regional Load Despatch Centre may levy and collect such fee and
charges from the generating companies or licensees engaged in inter-State
transmission of electricity as may be specified by the Central Commission.
Section 29. (Compliance of directions): --- (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.
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(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 Centre and the State Load Despatch Centres shall ensure that
such directions are duly complied with the licensee or generating company or
sub-station.
(4) The Regional Power Committee in the region may, from time to time,
agree on matters concerning the stability and smooth operation of the integrated
grid and economy and efficiency in the operation of the power system in that
region.
(5) If any dispute arises with reference to the quality of electricity or safe,
secure and integrated operation of the regional grid or in relation to any
direction given under sub-section (1), it shall be referred to the Central
Commission for decision :
Provided that pending the decision of the Central Commission, the
directions of the Regional Load Despatch Centre shall be complied with by the
State Load Despatch Centre or the licensee or the generating company, as the
case may be.
(6) If any licensee, generating company or any other person fails to comply
with the directions issued under sub-section (2) or sub-section (3), he shall be
liable to a penalty not exceeding rupees fifteen lacs.
Intra-State transmission
Section 30. (Transmission within a State):
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.
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Section 31. (Constitution of State Load Despatch Centres): --- (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.
Section 32. (Functions of State Load Despatch Centres): --- (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 for grid control
and despatch of electricity within the State through secure and
economic operation of the State grid in accordance with the Grid
Standards and the State Grid Code.
(3) The State Load Despatch Centre may levy and collect such fee and charges
from the generating companies and licensees engaged in intra-State
transmission of electricity as may be specified by the State Commission.
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Section 33. (Compliance of directions): --- (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 Depatch 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-section (1), it shall be referred to the State Commission for
decision:
Provided that pending the decision of the State Commission, the
directions of the State Load Despatch Centre shall be complied with by the
licensee or generating company.
(5) If any licensee, generating company or any other person fails to comply
with the directions issued under sub-section(1), he shall be liable to a penalty
not exceeding rupees five lacs.
Other provisions relating to transmission
Section 34. (Grid Standards):
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.
Section 35. (Intervening transmission facilities):
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:
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Provided that any dispute, regarding the extent of surplus capacity
available with the licensee, shall be adjudicated upon by the Appropriate
Commission.
Section 36. (Charges for intervening transmission facilities): --- (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 section 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 payment
of a tariff or charge.
Section 37. (Directions by Appropriate Government):
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.
Section 38. (Central Transmission Utility and functions): ---- (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 generation 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 to function as a transmission licensee, through a transfer scheme to be
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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 Transmission Utility shall be -
(a) to undertake transmission of electricity through inter-State
transmission system;
(b) to discharge all functions of planning and co-ordination relating
to inter-State transmission system with -
(i) State Transmission Utilities;
(ii) Central Government;
(iii) State Governments;
(iv) generating companies;
(v) Regional Power Committees;
(vi) Authority;
(vii) licensees;
(viii) any other person notified by the Central Government in this
behalf;
(c) to ensure development of an efficient, co-ordinated and
economical system of inter-State transmission lines for smooth
flow of electricity from generating stations to the load centres;
(d) 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 charges and a surcharge
thereon, as may be specified by the Central Commission:
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Provided that such surcharge shall be utilised for the purpose of meeting
the requirement of current level cross-subsidy:
Provided further that such surcharge and cross subsidies shall be
progressively reduced 1[***] in the manner as may be specified by the Central
Commission:
2[***]
Provided also that the manner of payment and utilisation of the
surcharge shall be specified by the Central Commission:
Provided also that such surcharge shall not be leviable in case open
access is provided to a person who has established a captive generating plant
for carrying the electricity to the destination of his own use.
Section 39. (State Transmission Utility and functions):
(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 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 -
(a) to undertake transmission of electricity through intra-State
transmission system;
(b) to discharge all functions of planning and co-ordination relating to
intra-State transmission system with -
1 The words “and eliminated” omitted by Act 26 of 2007, Sec.4 [w.e.f. 15th June 2007].
2 The words “Provided also that such surcharge may be levied till such time the cross subsidies are not
eliminated:” omitted by Act 26 of 2007, Sec.4 [w.e.f. 15th June 2007].
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(i) Central Transmission Utility;
(ii) State Governments;
(iii) generating companies;
(iv) Regional Power Committees;
(v) Authority;
(vi) licensees;
(vii) any other person notified by the State Government in
this behalf;
(c) to ensure development of an efficient, co-ordinated and
economical system of intra-State transmission lines for smooth flow
of electricity from a generating station to the load centres;
(d) 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 charges and a surcharge thereon,
as may be specified by the State Commission:
Provided that such surcharge shall be utilised for the purpose of
meeting the requirement of current level cross-subsidy:
Provided further that such surcharge and cross subsidies shall be
progressively reduced 1[***] in the manner as may be specified by the State
Commission:
2[***]
1 The words “and eliminated” omitted by Act 26 of 2007, Sec.5 [w.e.f. 15th June 2007]
2 The words “Provided also that such surcharge may be levied till such time the cross subsidies are not
eliminated:” omitted by Act 26 of 2007, Sec.5 [w.e.f. 15th June 2007].
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Provided also that the manner of payment and utilisation of the
surcharge shall be specified by the State Commission:
Provided also that such surcharge shall not be leviable in case open
access is provided to a person who has established a captive generating plant
for carrying the electricity to the destination of his own use.
Section 40. (Duties of transmission licensees):
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 charges and a surcharge thereon, as
may be specified by the State Commission:
Provided that such surcharge shall be utilised for the purpose of
meeting the requirement of current level cross-subsidy:
Provided further that such surcharge and cross subsidies shall be
progressively reduced 1[***] in the manner as may be specified by the
Appropriate Commission:
2[***]
Provided also that the manner of payment and utilisation of the
surcharge shall be specified by the Appropriate Commission:
1 The words “and eliminated” omitted by Act 26 of 2007, Sec.6 [w.e.f. 15th June 2007]
2 The words “Provided also that such surcharge may be levied till such time the cross subsidies are not
eliminated:” omitted by Act 26 of 2007, Sec.6 [w.e.f. 15th June 2007].
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Provided also that such surcharge shall not be leviable in case open
access is provided to a person who has established a captive generating plant
for carrying the electricity to the destination of his own use.
Section 41. (Other business of transmission licensee):
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 subsidises 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 :
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PART VI
DISTRIBUTION OF ELELCTRICITY
Provisions with respect to distribution licensee
Section 42. (Duties of distribution licensee and open access): --- (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 Commission:
Provided further that such surcharge shall be utilised to meet the
requirements of current level of cross subsidy within the area of supply of the
distribution licensee :
Provided also that such surcharge and cross subsidies shall be
progressively reduced 2[***] in the manner as may be specified by the State
Commission:
Provided also that such surcharge shall not be leviable in case open access
is provided to a person who has established a captive generating plant for
carrying the electricity to the destination of his own use:
3[Provided also that the State Commission shall, not later than five years
from the date of commencement of the Electricity (Amendment) Act, 2003, by
regulations, provide such open access to all consumers who require a supply of
electricity where the maximum power to be made available at any time exceeds
one megawatt.]
1 Subs. by Act 26 of 2007, Sec.7 for the words “such open access may be allowed before the cross subsidies
are eliminated on payment of a surcharge” [w.e.f. 15th June 2007].
2 The words “and eliminated” omitted by Act 26 of 2007, Sec.7 [w.e.f. 15th June 2007].
3 Ins. by Act 57 of 2003, Sec.3 [w.e.f. 27th January, 2004].
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(3) Where any person, whose premises are situated within the area of supply
of a distribution licensee, (not being a local authority engaged in the business of
distribution of electricity before the appointed date) requires a supply of
electricity from a generating company or any licensee other than such
distribution licensee, such person may, by notice, require the distribution
licensee for wheeling such electricity in accordance with regulations made by the
State Commission and the duties of the distribution licensee with respect to such
supply shall be of a common carrier providing non-discriminatory open access .
(4) Where the State Commission permits a consumer or class of consumers to
receive supply of electricity from a person other than the distribution licensee of
his area of supply, such consumer shall be liable to pay an additional surcharge
on the charges of wheeling, as may be specified by the State Commission, to meet
the fixed cost of such distribution licensee arising out of his obligation to supply.
(5) Every distribution licensee shall, within six months from the appointed date
or date of grant of licence, whichever is earlier, establish a forum for redressal of
grievances of the consumers in accordance with the guidelines as may be
specified by the State Commission.
(6) Any consumer, who is aggrieved by non-redressal of his grievances under
sub-section (5), may make a representation for the redressal of his grievance to
an authority to be known as Ombudsman to be appointed or designated by the
State Commission.
(7) The Ombudsman shall settle the grievance of the consumer within such
time and in such manner as may be specified by the State Commission.
(8) The provisions of sub-sections (5),(6) and (7) shall be without prejudice to
right which the consumer may have apart from the rights conferred upon him by
those sub-sections.
Section 43. (Duty to supply on request): --- (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:
1 Subs. by Act 26 of 2007, Sec.8 for the words “Every distribution” [w.e.f. 15th June 2007].
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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.
1[Explanation.- For the purposes of this sub-section, “application” means
the application complete in all respects in the appropriate form, as required by
the distribution licensee, along with documents showing payment of necessary
charges and other compliances.]
(2) It shall be the duty of every distribution licensee to provide, if required,
electric plant or electric line for giving electric supply to the premises specified in
sub-section (1) :
Provided that no person shall be entitled to demand, or to continue to
receive, from a licensee a supply of electricity for any premises having a separate
supply unless he has agreed with the licensee to pay to him such price as
determined by the Appropriate Commission.
(3) If a distribution licensee fails to supply the electricity within the period
specified in sub-section (1), he shall be liable to a penalty which may extend to
one thousand rupees for each day of default.
Section 44. (Exceptions from duty to supply electricity):
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.
Section 45. (Power to recover charges): --- (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
1 Ins. by Act 26 of 2007, Sec. 8 (w.e.f.. 15th June 2007).
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(a) a fixed charge in addition to the charge for the actual electricity supplied;
(b) a rent or other charges in respect of any electric meter or electrical
plant provided by the distribution licensee.
(4) Subject to the provisions of section 62, in fixing charges under this section
a distribution licensee shall not show undue preference to any person or class of
persons or discrimination against any person or class of persons.
(5) The charges fixed by the distribution licensee shall be in accordance with
the provisions of this Act and the regulations made in this behalf by the
concerned State Commission.
Section 46. (Power to recover expenditure):
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.
Section 47. (Power to require security): --- (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 persons; or
(b) where any electric line or electrical plant or electric meter is to be
provided for supplying electricity to 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.
(2) Where any person has not given such security as is mentioned in sub-
section (1) or the security given by any person has become invalid or
insufficient, the distribution licensee may, by notice, require that person, within
thirty days after the service of the notice, to give him reasonable security for the
payment of all monies which may become due to him in respect of the supply of
electricity or provision of such line or plant or meter.
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(3) If the person referred to in sub-section (2) fails to give such security, the
distribution licensee may, if he thinks fit, discontinue the supply of electricity
for the period during which the failure continues.
(4) The distribution licensee shall pay interest equivalent to the bank rate or
more, as may be specified by the concerned State Commission, on the security
referred to in sub-section (1) and refund such security on the request of the
person who gave such security.
(5) A distribution licensee shall not be entitled to require security in
pursuance of clause (a) of sub-section (1) if the person requiring the supply is
prepared to take the supply through a pre-payment meter.
Section 48. (Additional terms of supply):
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.
Section 49. (Agreement with respect to supply or purchase of electricity):
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.
1[Section 50. (The Electricity Supply Code):
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
1 Subs. by Act 26 of 2007, Sec.9 [w.e.f. 15th June 2007].
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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.]
Section 51. (Other businesses of distribution licensees):
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.
Section 52. (Provisions with respect to electricity traders): --- (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.
Section 53. (Provisions relating to safety and electricity supply):
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;
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(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 specification as may be
specified;
(d) giving notice in the specified form to the Appropriate
Commission and the Electrical Inspector, of accidents and failures
of supplies or transmissions of electricity;
(e) keeping by a generating company or licensee the maps, plans
and sections relating to supply or transmission of electricity;
(f) inspection of maps, plans and sections by any person authorised by
it or by Electrical Inspector or by any person on payment of
specified fee;
(g) specifying action to be taken in relation to any electric line or
electrical plant, or any electrical appliance under the control of a
consumer for the purpose of eliminating or reducing the risk of
personal injury or damage to property or interference with its use.
Section 54. (Control of transmission and use of electricity): --- (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 or a mine within the meaning of the Mines Act, 1952;
or
(iii) to which the State Government, by general or special order,
declares the provisions of this sub-section to apply,
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without giving, before the commencement of transmission or use of
electricity, not less than seven days’ notice in writing of his intention to the
Electrical Inspector and to the District Magistrate, or the Commissioner of
Police, as the case may be, containing particulars of the electrical installation
and plant, if any, the nature and the purpose of supply and complying with
such of the provisions of Part XVII of this Act, as may be applicable:
Provided that nothing in this section shall apply to electricity used for
the public carriage of passengers, animals or goods, on, or for the lighting or
ventilation of the rolling stock of any railway or tramway subject to the
provisions of the Railways Act, 1989.
(2) Where any difference or dispute arises as to whether a place is or is not
one in which one hundred or more persons are ordinarily likely to be
assembled, the matter shall be referred to the State Government, and the
decision of the State Government thereon shall be final.
(3) The provisions of this section shall be binding on the Government.
Section 55. (Use, etc., of meters): --- (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 licensee at such stages of generation,
transmission or distribution or trading of electricity and at such locations of
generation, transmission or distribution or trading , as it may deem necessary.
(3) If a person makes default in complying with the provisions contained in
this section or the regulations made under sub-section (1), the Appropriate
Commission may make such order as it thinks fit for requiring the default to be
made good by the generating company or licensee or by any officers of a
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company or other association or any other person who is responsible for its
default.
Section 56. (Disconnection of supply in default of payment): -- (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:
Provided that the supply of electricity shall not be cut off if such person
deposits, under protest, -
(a) an amount equal to the sum claimed from him, or
b) the electricity charges due from him for each month calculated on
the basis of average charge for electricity paid by him during the
preceding six months,
whichever is less, pending disposal of any dispute between him and the
licensee.
(2) Notwithstanding anything contained in any other law for the time being
in force, no sum due from any consumer, under this section shall be recoverable
after the period of two years from the date when such sum became first due
unless such sum has been shown continuously as recoverable as arrear of
charges for electricity supplied and the licensee shall not cut off the supply of
the electricity.
Section 57. (Consumer Protection: Standards of performance of licensee): (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
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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.
Section 58. (Different standards of performance by licensee):
The Appropriate Commission may specify different standards under sub-
section (1) of section 57 for a class or classes of licensee.
Section 59. (Information with respect to levels of performance): --- (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 the
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).
Section 60. (Market domination):
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.
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PART-VII
TARIFF
Section 61. (Tariff regulations):
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 reasonable manner;
(e) the principles rewarding efficiency in performance;
(f) multi year tariff principles;
1[(g) that the tariff progressively reflects the cost of supply of electricity
and also, reduces cross-subsidies in the manner specified by the
Appropriate Commission;]
(h) the promotion of co-generation and generation of electricity from
renewable sources of energy;
(i) the National Electricity Policy and tariff policy:
Provided that the terms and conditions for determination of tariff under
the Electricity (Supply) Act, 1948, the Electricity Regulatory Commission Act,
1998 and the enactments specified in the Schedule as they stood immediately
1 Subs. by Act 26 of 2007, Sec. 10 [w.e.f. 15th June 2007].
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before the appointed date, shall continue to apply for a period of one year or
until the terms and conditions for tariff are specified under this section,
whichever is earlier.
Section 62. (Determination of tariff): --- (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:
Provided that in case of distribution of electricity in the same area by two
or more distribution licensees, the Appropriate Commission may, for promoting
competition among distribution licensees, fix only maximum ceiling of tariff for
retail sale of electricity.
(2) The Appropriate Commission may require a licensee or a generating
company to furnish separate details, as may be specified in respect of
generation, transmission and distribution for determination of tariff.
(3) The Appropriate Commission shall not, while determining the tariff under
this Act, show undue preference to any consumer of electricity but may
differentiate according to the consumer's load factor, power factor, voltage, total
consumption of electricity during any specified period or the time at which the
supply is required or the geographical position of any area, the nature of supply
and the purpose for which the supply is required.
(4) No tariff or part of any tariff may ordinarily be amended, more frequently
than once in any financial year, except in respect of any changes expressly
permitted under the terms of any fuel surcharge formula as may be specified.
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(5) The Commission may require a licensee or a generating company to
comply with such procedures as may be specified for calculating the expected
revenues from the tariff and charges which he or it is permitted to recover.
(6) If any licensee or a generating company recovers a price or charge
exceeding the tariff determined under this section, the excess amount shall be
recoverable by the person who has paid such price or charge along with interest
equivalent to the bank rate without prejudice to any other liability incurred by
the licensee.
Section 63. (Determination of tariff by bidding process):
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.
Section 64. (Procedure for tariff order): --- (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
application is not in accordance with the provisions of this Act and
the rules and regulations made thereunder or the provisions of
any other law for the time being in force:
Provided that an applicant shall be given a reasonable opportunity of
being heard before rejecting his application.
(4) The Appropriate Commission shall, within seven days of making the
order, send a copy of the order to the Appropriate Government, the Authority,
and the concerned licensees and to the person concerned.
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(5) Notwithstanding anything contained in Part X, the tariff for any inter-
State supply, transmission or wheeling of electricity, as the case may be,
involving the territories of two States may, upon application made to it by the
parties intending to undertake such supply, transmission or wheeling, be
determined under this section by the State Commission having jurisdiction in
respect of the licensee who intends to distribute electricity and make payment
therefor.
(6) A tariff order shall, unless amended or revoked, continue to be in force
for such period as may be specified in the tariff order.
Section 65. (Provision of subsidy by State Government):
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 State Commission shall be
applicable from the date of issue of orders by the Commission in this regard.
Section 66. (Development of market):
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.
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PART VIII
WORKS
Works of licensees
Section 67. (Provisions as to opening up of streets, railways, etc): --- (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 remove the same;
(f) to do all other acts necessary for transmission or supply of
electricity.
(2) The Appropriate Government may, by rules made by it in this behalf,
specify, -
(a) the cases and circumstances in which the consent in writing
of the Appropriate Government, local authority, owner or
occupier, as the case may be, shall be required for carrying
out works;
(b) the authority which may grant permission in the
circumstances where the owner or occupier objects to the
carrying out of works;
(c) the nature and period of notice to be given by the licensee
before carrying out works;
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(d) the procedure and manner of consideration of objections and
suggestion received in accordance with the notice referred to
in clause (c);
(e) the determination and payment of compensation or rent to
the persons affected by works under this section;
(f) the repairs and works to be carried out when emergency
exists;
(g) the right of the owner or occupier to carry out certain works
under this section and the payment of expenses therefor;
(h) the procedure for carrying out other works near sewers,
pipes or other electric lines or works;
(i) the procedure for alteration of the position of pipes, electric
lines, electrical plant, telegraph lines, sewer lines, tunnels,
drains, etc.;
(j) the procedure for fencing, guarding, lighting and other
safety measures relating to works on streets, railways,
tramways, sewers, drains or tunnels and immediate
reinstatement thereof;
(k) the avoidance of public nuisance, environmental damage
and unnecessary damage to the public and private property
by such works;
(1) the procedure for undertaking works which are not
repairable by the Appropriate Government, licensee or local
authority;
(m) the manner of deposit of amount required for restoration of
any railways, tramways, waterways, etc.;
(n) the manner of restoration of property affected by such works
and maintenance thereof;
(o) the procedure for deposit of compensation payable by the
licensee and furnishing of security; and
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(p) such other matters as are incidental or consequential to the
construction and maintenance of works under this section.
(3) A licensee shall, in exercise of any of the powers conferred by or under
this section and the rules made thereunder, cause as little damage, detriment
and inconvenience as may be, and shall make full compensation for any damage,
detriment or inconvenience caused by him or by any one employed by him.
(4) Where any difference or dispute [including amount of compensation
under sub-section (3)] arises under this section, the matter shall be determined by
the Appropriate Commission.
(5) The Appropriate Commission, while determining any difference or dispute
arising under this section in addition to any compensation under sub-section (3),
may impose a penalty not exceeding the amount of compensation payable under
that sub-section.
Section 68. (Provisions relating to Overhead lines): ---- (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-
section (1), impose such conditions (including conditions as to the ownership
and operation of the line) as appear to it to be necessary.
(4) The Appropriate Government may vary or revoke the approval at any
time after the end of such period as may be stipulated in the approval granted by
it.
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(5) Where any tree standing or lying near an overhead line or where any
structure or other object which has been placed or has fallen near an overhead
line subsequent to the placing of such line, interrupts or interferes with, or is
likely to interrupt or interfere with, the conveyance or transmission of electricity
or the accessibility of any works, an Executive Magistrate or authority specified
by the Appropriate Government may, on the application of the licensee, cause
the tree, structure or object to be removed or otherwise dealt with as he or it
thinks fit.
(6) When disposing of an application under sub-section (5), an Executive
Magistrate or authority specified under that sub-section shall, in the case of any
tree in existence before the placing of the overhead line, award to the person
interested in the tree such compensation as he thinks reasonable, and such
person may recover the same from the licensee.
Explanation. - For the purposes of this section, the expression “tree” shall be
deemed to include any shrub, hedge, jungle growth or other plant.
Section 69. (Notice to telegraph authority): --- (1) A licensee shall, before
laying down or placing, within ten meters 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 or existing
works , specifying-
(i) the course of the works or alterations proposed ;
(ii) the manner in which the works are to be utilised ;
(iii) the amount and nature of the electricity to be transmitted;
(iv) the extent to, and the manner in which (if at all), earth
returns are to be used ,
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and the licensee shall conform to such reasonable requirements,
either general or special, as may be laid down by the telegraph authority
within that period for preventing any telegraph line from being
injuriously affected by such works or alterations:
Provided that in case of emergency (which shall be stated by the licensee
in writing to the telegraph authority) arising from defects in any of the electric
lines or electrical plant or other works of the licensee, the licensee shall be
required to give only such notice as may be possible after the necessity for the
proposed new works or alterations has arisen.
(2) Where the works of the laying or placing of any service line is to be
executed the licensee shall, not less than forty-eight hours before commencing
the work, serve upon the telegraph authority a notice in writing of his intention
to execute such works.
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PART IX
CENTRAL ELECTRICITY AUTHORITY
Constitution and functions of Authority
Section 70. (Constitution, etc., of Central Electricity Authority): --- (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 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.
(3) The Authority shall consist of not more than fourteen Members (including
its Chairperson) of whom not more than eight shall be full-time Members to be
appointed by the Central Government.
(4) The Central Government may appoint any person, eligible to be
appointed as Member of the Authority, as the Chairperson of the Authority, or,
designate one of the full time Members as the Chairperson of the Authority.
(5) The Members of the Authority shall be appointed from amongst persons of
ability, integrity and standing who have knowledge of, and adequate
experience and capacity in, dealing with problems relating to engineering,
finance, commerce, economics or industrial matters, and at least one Member
shall be appointed from each of the following categories, namely:-
(a) engineering with specialisation in design, construction, operation
and maintenance of generating stations;
(b) engineering with specialisation in transmission and supply of
electricity;
(c) applied research in the field of electricity;
(d) applied economics, accounting, commerce or finance.
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(6) The Chairperson and all the Members of the Authority shall hold office
during the pleasure of the Central Government.
(7) The Chairperson shall be the Chief Executive of the Authority.
(8) The headquarters of the Authority shall be at Delhi.
(9) The Authority 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.
(10) The Chairperson, or if he is unable to attend a meeting of the Authority,
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 among themselves shall preside at the
meeting.
(11) All questions which come up before any meeting of the Authority 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 the person presiding shall have
the right to exercise a second or casting vote.
(12) All orders and decisions of the Authority shall be authenticated by the
Secretary or any other officer of the Authority duly authorised by the
Chairperson in this behalf.
(13) No act or proceedings of the Authority shall be questioned or shall be
invalidated merely on the ground of existence of any vacancy in, or any defect in,
the constitution of, the Authority.
(14) The Chairperson of the Authority and other full time Members shall
receive such salary and allowances as may be determined by the Central
Government and other Members shall receive such allowances and fees for
attending the meetings of the Authority, as the Central Government may
prescribe.
(15) The other terms and conditions of service of the Chairperson and
Members of the Authority including, subject to the provisions of sub-section (6),
their terms of office shall be such as the Central Government may prescribe.
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Section 71. (Members not to have certain interest):
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.
Section 72. (Officers and staff of Authority):
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.
Section 73. (Functions and duties of Authority):
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;
(d) specify the Grid Standards for operation and maintenance of
transmission lines;
(e) specify the conditions for installation of meters for transmission
and supply of electricity;
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(f) promote and assist in the timely completion of schemes and projects
for improving and augmenting the electricity system;
(g) promote measures for advancing the skill of persons engaged in the
electricity industry;
(h) advise the Central Government on any matter on which its advice
is sought or make recommendation to that Government on any
matter if, in the opinion of the Authority, the recommendation
would help in improving the generation, transmission, trading,
distribution and utilisation of electricity;
(i) collect and record the data concerning the generation, transmission,
trading, distribution and utilisation of electricity and carry out
studies relating to cost, efficiency, competitiveness and such like
matters;
(j) make public from time to time the information secured under this
Act, and provide for the publication of reports and investigations;
(k) promote research in matters affecting the generation, transmission,
distribution and trading of electricity;
(l) carry out, or cause to be carried out , any investigation for the
purposes of generating or transmitting or distributing electricity;
(m) advise any State Government, licensees or the generating
companies on such matters which shall enable them to operate and
maintain the electricity system under their ownership or control in
an improved manner and where necessary, in co-ordination with
any other Government, licensee or the generating company
owning or having the control of another electricity system;
(n) advise the Appropriate Government and the Appropriate
Commission on all technical matters relating to generation,
transmission and distribution of electricity; and
(o) discharge such other functions as may be provided under this Act.
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Certain powers and directions
Section 74. (Power to require statistics and returns):
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.
Section 75. (Directions by Central Government to 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.
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PART X
REGULATORY COMMISSIONS
Constitution, powers and functions of Central Commission
Section 76. (Constitution of Central Commission): --- (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 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:
Provided that the Chairperson and other Members of the Central
Commission appointed, before the commencement of this Act, under the
Electricity Regulatory Commissions Act, 1998, may, on the recommendations of
the Selection Committee constituted under sub-section (1) of section 78, be
allowed, to opt for the terms and conditions under this Act by the Central
Government.
(3) The Central Commission shall be a body corporate by the name aforesaid,
having perpetual succession and a common seal with power to acquire, hold and
dispose of property, both movable and immovable, and to contract and shall, by
the said name, sue or be sued.
(4) The head office of the Central Commission shall be at such place as the
Central Government may, by notification, specify.
(5) The Central Commission shall consist of the following Members, namely:-
(a) a Chairperson and three other Members;
(b) the Chairperson of the Authority who shall be the Member, ex-
officio.
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(6) The Chairperson and Members of the Central Commission shall be
appointed by the Central Government on the recommendation of the Selection
Committee referred to in section 78.
Section 77. (Qualifications for appointment of Members of Central
Commission): --- (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 specialisation 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 under clause (c).
(2) Notwithstanding anything contained in sub-section (1), the Central
Government may appoint any person as the Chairperson from amongst persons
who is, or has been, a Judge of the Supreme Court or the Chief Justice of a High
Court:
Provided that no appointment under this sub-section shall be made except
after consultation with the Chief Justice of India.
(3) The Chairperson or any other Member of the Central Commission shall
not hold any other office.
(4) The Chairperson shall be the Chief Executive of the Central Commission.
Section 78. (Constitution of Selection Committee to recommend Members): ---
(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
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incharge of the energy sector ……………… Chairperson;
(b) Secretary-in-charge of the Ministry of the Central Government
dealing with the Department of the Legal Affairs …………. Member;
(c) Chairperson of the Public Enterprises Selection Board …….Member;
(d) a person to be nominated by the Central Government
in accordance with sub-section (2)………………… Member;
(e) a person to be nominated by the Central Government
in accordance with sub-section (3) ………………… Member;
(f) Secretary-in-charge of the Ministry of the Central
Government dealing with power ………………….. Member.
(2) For the purposes of clause (d) of sub-section (1), the Central Government
shall nominate from amongst persons holding the post of chairperson or
managing director, by whatever name called, of any public financial institution
specified in section 4A of the Companies Act, 1956.
(3) For the purposes of clause (e) of sub-section (1), the Central Government
shall, by notification, nominate from amongst persons holding the post of
director or the head of the institution, by whatever name called, of any research,
technical or management institution for this purpose.
(4) Secretary-in-charge of the Ministry of the Central Government dealing
with Power shall be the Convenor of the Selection Committee.
(5) The Central Government shall, within one month from the date of
occurrence of any vacancy by reason of death, resignation or removal of a
Member of the Appellate Tribunal or the Chairperson or a Member of the
Central Commission and six months before the superannuation or end of tenure
of the Member of the Appellate Tribunal or Member of the Central
Commission, make a reference to the Selection Committee for filling up of the
vacancy.
(6) The Selection Committee shall finalise the selection of the Chairperson
and Members referred to in sub-section (5) within three months from the date
on which the reference is made to it.
(7) The Selection Committee shall recommend a panel of two names for every
vacancy referred to it.
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(8) Before recommending any person for appointment as Member of the
Appellate Tribunal or the Chairperson or other Member of the Central
Commission, the Selection Committee shall satisfy itself that such person does
not have any financial or other interest which is likely to affect prejudicially his
functions as the Chairperson or Member.
(9) No appointment of the Chairperson or other Member shall be invalid
merely by reason of any vacancy in the Selection Committee:
Provided that nothing contained in this section shall apply to the
appointment of a person as the Chairperson of the Central Commission where
such person is, or has been , a Judge of the Supreme Court or the Chief Justice of
a High Court.
Constitution, powers, and functions of Central Commission
Section 79. (Functions of Central Commission): --- (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 trader with respect to their inter-State operations;
(f) to adjudicate upon disputes involving generating companies or
transmission licensee in regard to matters connected with clauses
(a) to (d) above and to refer any dispute for arbitration;
(g) to levy fees for the purposes of this Act;
(h) to specify Grid Code having regard to Grid Standards;
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(i) to specify and enforce the standards with respect to quality,
continuity and reliability of service by licensees;
(j) to fix the trading margin in the inter-State trading of electricity, if
considered, necessary;
(k) to discharge such other functions as may be assigned under this
Act.
(2) The Central Commission shall advise the Central Government on all or
any of the following matters, namely :-
(i) formulation of National electricity Policy and tariff policy;
(ii) promotion of competition, efficiency and economy in
activities of the electricity industry;
(iii) promotion of investment in electricity industry;
(iv) any other matter referred to the Central Commission by that
Government.
(3) The Central Commission shall ensure transparency while exercising its
powers and discharging its functions.
(4) In discharge of its functions, the Central Commission shall be guided by
the National Electricity Policy, National Electricity Plan and tariff policy
published under section 3.
Section 80. (Central Advisory Committee): --- (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.
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Section 81. (Objects of Central Advisory 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.
Constitution, powers, and functions of State Commissions
Section 82. (Constitution of State Commission): --- (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 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 other
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
Commission appointed, before the commencement of this Act under the
Electricity Regulatory Commissions Act, 1998 or under the enactments specified
in the Schedule, may on the recommendations of the Selection Committee
constituted under sub-section (1) of Section 85 be allowed to opt for the terms
and conditions under this Act by the concerned State Government.
(2) The State Commission shall be a body corporate by the name aforesaid,
having perpetual succession and a common seal, with power to acquire, hold
and dispose of property, both movable and immovable, and to contract and
shall, by the said name, sue or be sued.
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(3) The head office of the State Commission shall be at such place as the State
Government may, by notification, specify.
(4) The State Commission shall consist of not more than three Members,
including the Chairperson.
(5) The Chairperson and Members of the State Commission shall be
appointed by the State Government on the recommendation of a Selection
Committee referred to in section 85.
Section 83. (Joint Commission): ---- (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 21 A of
Electricity Regulatory Commissions Act, 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 other officers
and employees thereof shall be deemed to have been appointed as such 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.
(2) The Joint Commission shall consist of 1 Member from each of the
participating States and Union Territories and the Chairperson shall be
appointed from amongst the Members by consensus, failing which by rotation.
(3) An agreement under sub-section (1) shall contain provisions as to the
name of the Joint Commission, the manner in which the participating States may
be associated in the selection of the Chairperson and Members of the Joint
Commission, manner of appointment of Members and appointment of
Chairperson by rotation or consensus, places at which the Commission shall sit,
apportionment among the participating States of the expenditure in connection
with the Joint Commission, manner in which the differences of opinion between
the Joint Commission and the State Government concerned would be resolved
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and may also contain such other supplemental, incidental and consequential
provisions not inconsistent with this Act as may be deemed necessary or
expedient for giving effect to the agreement.
(4) The Joint Commission shall determine tariff in respect of the participating
States or Union Territories separately and independently.
(5) Notwithstanding anything contained in this section, the Central Government
may, if so authorised by all the participating States, constitute a Joint
Commission and may exercise the powers in respect of all or any of the matters
specified under sub-section (3) and when so specifically authorized by the
participating States.
Section 84. (Qualifications for appointment of Chairperson and Members of
State Commission): --- (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 Commission.
Section 85. (Constitution of Selection Committee to select Members of State
Commission): --- (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
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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 has been a Judge of the
High Court.
(2) The State Government shall, within one month from the date of
occurrence of any vacancy by reason of death, resignation or removal of the
Chairperson or a Member and six months before the superannuation or end of
tenure of the Chairperson or Member, make a reference to the Selection
Committee for filling up of the vacancy.
(3) The Selection Committee shall finalise the selection of the Chairperson
and Members within three months from the date on which the reference is made
to it.
(4) The Selection Committee shall recommend a panel of two names for every
vacancy referred to it.
(5) Before recommending any person for appointment as the Chairperson or
other Member of the State Commission, the Selection Committee shall satisfy
itself that such person does not have any financial or other interest which is
likely to affect prejudicially his functions as such Chairperson or Member, as
the case may be.
(6) No appointment of Chairperson or other Member shall be invalid merely
by reason of any vacancy in the Selection Committee.
Section 86. (Functions of State Commission): --- (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
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other sources through agreements for purchase of power for
distribution and supply within the State;
(c) facilitate intra-State transmission and wheeling of electricity;
(d) issue licences to persons seeking to act as transmission licensees,
distribution licensees and electricity traders with respect to their
operations within the State;
(e) promote co-generation and generation of electricity from
renewable sources of energy by providing suitable measures for
connectivity with the grid and sale of electricity to any person,
and also specify, for purchase of electricity from such sources, a
percentage of the total consumption of electricity in the area of a
distribution licensee;
(f) adjudicate upon the disputes between the licensees, and
generating companies and to refer any dispute for arbitration;
(g) levy fee for the purposes of this Act;
(h) specify State Grid Code consistent with the Grid Code specified
under clause (h) of sub-section (1) of section 79;
(i) specify or enforce standards with respect to quality, continuity
and reliability of service by licensees;
(j) fix the trading margin in the intra-State trading of electricity, if
considered, necessary; and
(k) discharge such other functions as may be assigned to it under this
Act.
(2) The State Commission shall advise the State Government on all or any of
the following matters, namely :-.
(i) promotion of competition, efficiency and economy in activities of
the electricity industry;
(ii) promotion of investment in electricity industry;
(iii) reorganization and restructuring of electricity industry in the
State;
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(iv) matters concerning generation, transmission , distribution and
trading of electricity or any other matter referred to the State
Commission by that Government.
(3) The State Commission shall ensure transparency while exercising its
powers and discharging its functions.
(4) In discharge of its functions, the State Commission shall be guided by the
National Electricity Policy, National Electricity Plan and tariff policy published
under section 3.
Section 87. (State Advisory Committee): --- (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 the 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.
Section 88. (Objects of State Advisory 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.
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Appropriate Commission – other provisions
Section 89. (Term of office and conditions of service of Members): --- (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, shall not be varied to their disadvantage after
appointment.
(3) Every Member shall, before entering upon his office, make and subscribe
to an oath of office and secrecy in such form and in such manner and before
such authority as may be prescribed.
(4) Notwithstanding anything contained in sub-section (1), a Member may-
(a) Relinquish his office by giving in writing to the Appropriate
Government a notice of not less than three months; or
(b) be removed from his office in accordance with the provisions of
section 90.
(5) Any member ceasing to hold office as such shall –
(a) not accept any commercial employment for a period of two years
from the date he ceases to hold such office; and
(b) not represent any person before the Central Commission or any
State Commission in any manner.
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Explanation. - For the purposes of this sub-section "commercial
employment” means employment in any capacity in any organisation
which has been a party to the proceedings before the Appropriate
Commission or employment in any capacity under, or agency of, a person
engaged in trading, commercial, industrial or financial business in
electricity industry and includes a director of a company or partner of a
firm or setting up practice either independently or as partner of a firm or
as an advisor or a consultant.
Section 90. (Removal of Member): --- (1) No Member shall be removed
from office except in accordance with the provisions of this section.
(2) The Central Commission, 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;
(e) has so abused his position as to render his continuance in office
prejudicial to the public interest; or
(f) has been guilty of proved misbehaviour:
Provided that no Member shall be removed from his office on any ground
specified in clauses (d), (e) and (f) unless the Chairperson of the Appellate
Tribunal on a reference being made to him in this behalf by the Central
Government, or the State Government, as the case may be, has, on an inquiry,
held by him in accordance with such procedure as may be prescribed by the
Central Government, reported that the Member ought on such ground or
grounds to be removed.
(3) The Central Government or the State Government, as the case may be,
may, in consultation with the Chairperson of the Appellate Tribunal suspend any
Member of the Appropriate Commission in respect of whom a reference has
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been made to the Chairperson of the Appellate Tribunal, under sub-section (2)
until the Central Government or the State Government, as the case may be, has
passed orders on receipt of the report of the Chairperson of the Appellate
Tribunal, on such reference :
Provided that nothing contained in this section shall apply to the
Chairperson of the Appropriate Commission who, at the time of his appointment
as such is a sitting Judge of the Supreme Court or the chief Justice of a High
Court or a Judge of a High Court.
Proceedings and powers of appropriate commission
Section 91. (Secretary, officers and other employees of Appropriate Commission): ---
(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.
Section 92. (Proceedings of Appropriate Commission): --- (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
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voting, and in the event of an equality of votes, the Chairperson or in his absence,
the person presiding shall have a second or casting vote.
(4) Save as otherwise provided in sub-section (3), every Member shall have
one vote.
(5) All orders and decisions of the Appropriate Commission shall be
authenticated by its Secretary or any other officer of the Commission duly
authorised by the Chairperson in this behalf.
Section 93. (Vacancies, etc. not to invalidate proceedings):
No act or proceedings 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.
Section 94. (Powers of 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 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 orders;
(g) any other matter which may be prescribed.
(2) The Appropriate Commission shall have the powers to pass such interim
order in any proceeding, hearing or matter before the Appropriate Commission,
as that Commission may consider appropriate.
(3) The Appropriate Commission may authorise any person, as it deems fit,
to represent the interest of the consumers in the proceedings before it.
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Section 95. (Proceedings before Commission):
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 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.
Section 96. (Powers of entry and seizure):
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, insofar as it
may be applicable.
Section 97. (Delegation):
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.
Grants, Fund and Accounts, Audit and Report
Section 98. (Grants and loans by Central Government):
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.
Section 99. (Establishment of Fund by Central Government): --- (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;
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(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 expenses of the Central Commission in discharge of its function
under section 79;
(c) the expenses on objects and for purposes authorised by this Act.
(3) The Central Government may, in consultation with the Comptroller and
Auditor-General of India, prescribe the manner of applying the Fund for meeting
the expenses specified in clause (b) or clause (c) of sub-section (2).
Section 100. (Accounts and audit of Central Commission): --- (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 auditing 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-General
of India has in connection with the audit of the Government accounts and, in
particular, shall have the right to demand the production of books, accounts,
connected vouchers and other documents and papers and to inspect any of the
offices of the Central Commission.
(4) The accounts of the Central Commission, as certified by the Comptroller
and Auditor-General of India or any other person appointed by him in this
behalf, together with the audit report thereon, shall be forwarded annually to
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the Central Government and that Government shall cause the same to be laid, as
soon as may be after it is received, before each House of Parliament.
Section 101. (Annual Report of Central Commission): --- (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.
Section 102. (Grants and Loans by State Government):
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.
Section 103. (Establishment of Fund by State Government): ---- (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 State Commission in discharge of its function under
Section 86; and
(c) the expenses on objects and for purposes authorised by this Act.
(3) The State Government may, in consultation with the Comptroller and
Auditor-General of India, prescribe the manner of applying the Fund for meeting
the expenses specified in clause (b) or clause (c) of sub-section (2).
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Section 104. (Accounts and audit of State Commission): --- (1) The State
Commission shall maintain proper accounts and other relevant records and
prepare annual statement of accounts in such forms 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 generally has in
connection with the audit of Government accounts and, in particular, shall have
the right to demand the production of books, accounts, connected vouchers and
other documents and papers and to inspect any of the offices of the State
Commission.
(4) The accounts of the State Commission, as certified by the Comptroller and
Auditor-General of India or any other person appointed by him in this behalf,
together with the audit report thereon shall be forwarded annually to the State
Government and that Government shall cause the same to be laid , as soon as
may be after it is received, before the State Legislature.
Section 105. (Annual Report of State Commission): --- (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.
Section 106. (Budget of Appropriate Commission):
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.
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Section 107. (Directions by Central 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.
Section 108. (Directions by State Government): ---- (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.
Section 109. (Directions to Joint Commission):
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.
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PART XI
APPELLATE TRIBUNAL FOR ELECTIRICITY
Section 110. (Establishment of Appellate Tribunal):
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.
Section 111. (Appeal to Appellate Tribunal): --- (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 wherein 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 from the date on which a copy of the order made by the adjudicating
officer or the Appropriate Commission is received by the aggrieved person and
it shall be in such form, verified in such manner and be accompanied by such fee
as may be prescribed:
Provided that the Appellate Tribunal may entertain an appeal after the
expiry of the said period of forty-five days if it is satisfied that there was
sufficient cause for not filing it within that period.
(3) On receipt of an appeal under sub-section (1), the Appellate Tribunal may,
after giving the parties to the appeal an opportunity of being heard, pass such
orders thereon as it thinks fit, confirming, modifying or setting aside the order
appealed against.
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(4) The Appellate Tribunal shall send a copy of every order made by it to the
parties to the appeal and to the concerned adjudicating officer or the Appropriate
Commission, as the case may be.
(5) The appeal filed before the Appellate Tribunal under sub-section (1) shall
be dealt with by it as expeditiously as possible and endeavour shall be made by it
to dispose of the appeal finally within one hundred and eighty days from the
date of receipt of the appeal:
Provided that where any appeal could not be disposed of within the said
period of one hundred and eighty days, the Appellate Tribunal shall record its
reasons in writing for not disposing of the appeal within the said period.
(6) The Appellate Tribunal may, for the purpose of examining the legality,
propriety or correctness of any order made by the adjudicating officer or the
Appropriate Commission under this Act, as the case may be, in relation to any
proceeding, on its own motion or otherwise, call for the records of such
proceedings and make such order in the case as it thinks fit.
Section 112. (Composition of Appellate Tribunal): --- (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 the Chairperson of the Appellate Tribunal, notify;
(d) the Central Government shall notify the areas in relation to which
each Bench of the Appellate Tribunal may exercise jurisdiction.
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(3) Notwithstanding anything contained in sub-section (2), the Chairperson
of the Appellate Tribunal may transfer a Member of the Appellate Tribunal from
one Bench to another Bench.
Explanation.- For the purposes of this Chapter,-
(i) “Judicial Member” means a Member of the Appellate
Tribunal appointed as such under sub-clause (i) of caluse (b) of sub-section
(1) of section 113, and includes the Chairperson of the Appellate Tribunal;
(ii) “Technical Member” means a Member of the Appellate Tribunal
appointed as such under sub-clause (ii) or sub-clause (iii) of clause (b) of sub-
section (1) of section 113.
Section 113. (Qualification for appointment of Chairperson and Members of
Appellate Tribunal): --- (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 standing, having
adequate knowledge or experience in dealing with the
matters relating to electricity generation, transmission and
distribution and regulation or economics, commerce, law or
management.
(2) The Chairperson of the Appellate Tribunal shall be appointed by the
Central Government after consultation with the Chief Justice of India.
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(3) The Members of the Appellate Tribunal shall be appointed by the
Central Government on the recommendation of the Selection Committee
referred to in section 78.
(4) Before appointing any person for appointment as Chairperson or other
Member of the Appellate Tribunal, the Central Government shall satisfy itself
that such person does not have any financial or other interest which is likely to
affect prejudicially his functions as such Chairperson or Member.
Section 114. (Term of Office):
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.
Section 115. (Terms and conditions of service):
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.
Section 116. (Vacancies):
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
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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 117. (Resignation and Removal): --- (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 of the Supreme Court as the Central Government may
appoint for this purpose in which the Chairperson or a Member of the Appellate
Tribunal concerned has been informed of the charges against him and given a
reasonable opportunity of being heard in respect of such charges.
Section 118. (Member to act as Chairperson in certain circumstances): --- (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.
Section 119. (Officers and other employees of Appellate Tribunal): --- (1) The
Central Government shall provide the Appellate Tribunal with such officers and
other employees as it may deem fit.
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(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.
Section 120. (Procedure and powers of Appellate Tribunal): --- (1) The
Appellate Tribunal shall not be bound by the procedure laid down by the Code
of Civil Procedure, 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, 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 evidence on affidavits;
(d) subject to the provisions of sections 123 and 124 of the Indian
Evidence Act, 1872, requisitioning any public record or document
or copy of such record or document from any office;
(e) issuing commissions for the examination of witnesses or
documents;
(f) reviewing its decisions;
(g) dismissing a representation of default or deciding it ex parte;
(h) setting aside any order of dismissal or any representation for
default or any order passed by it ex parte;
(i) any other matter which may be prescribed by the Central
Government.
(3) An order made by the Appellate Tribunal under this Act shall be
executable by the Appellate Tribunal as a decree of civil court and, for this
purpose, the Appellate Tribunal shall have all the powers of a civil court.
(4) Notwithstanding anything contained in sub-section (3), the Appellate
Tribunal may transmit any order made by it to a civil court having local
jurisdiction and such civil court shall execute the order as if it were a decree
made by that court.
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(5) All proceedings before the Appellate Tribunal shall be deemed to be
judicial proceedings within the meaning of sections 193 and 228 of the Indian
Penal Code and the Appellate Tribunal shall be deemed to be a civil court for the
purposes of section 345 and 346 of the Code of Criminal Procedure, 1973 .
1[Section 121. (Power of Appellate Tribunal):
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.]
Section 122. (Distribution of business amongst Benches and transfer of cases
from one Bench to another Bench): --- (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.
Section 123. (Decision to be by majority):
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.
Section 124. (Right of appellant to take assistance of legal practitioner and of
Appropriate Commission to appoint presenting officers): --- (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.
1 Subs. by Act 57 of 2003, Sec. 4 (w.e.f. 27th January, 2004).
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(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.
Section 125. (Appeal to Supreme Court):
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:
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.
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PART XII
INVESTIGATION AND ENFORCEMENT
Section 126: (Assessment): --- (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
unauthorized use of electricity, he shall provisionally assess to the best of his
judgement 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 reasonable opportunity
of hearing to such person, pass a final order of assessment within thirty days
from the date of service of such order of provisional assessment of the electricity
charges payable by such person.]
(4) Any person served with the order of provisional assessment, may,
accept such assessment and deposit the assessed amount with the licensee
within seven days of service of such provisional assessment order upon him:
2[***]
3[(5) If the assessing officer reaches to the conclusion that unauthorised use of
electricity has taken place, the assessment shall be made for the entire period during
which such unauthorized use of electricity has taken place and if, however, the period
during which such unauthorised use of electricity has taken place cannot be ascertained,
such period shall be limited to a period of twelve months immediately preceding the date
of inspection.]
1 Subs. by Act 26 of 2007, Sec.11 (w.e.f. 15th June 2007).
2 The words “Provided that in case the person deposits the assessed amount he shall not be subjected to any
further liability or any action by any authority whatsoever” omitted by Act 26 of 2007, Sec.11 (w.e.f. 15th
June 2007).
3 Subs. by Act 26 of 2007, Sec.11 (w.e.f. 15th June 2007).
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(6) The assessment under this section shall be made at a rate equal to
1[twice] the tariff rates applicable for the relevant category of services specified
in sub-section (5).
Explanation.- For the purposes of this section,-
(a) “assessing officer” means an officer of a State Government or Board or
licensee, as the case may be, designated as such by the State Government;
(b) “unauthorised use of electricity” means the usage of electricity –
(i) by any artificial means; or
(ii) by a means not authorised by the concerned person or
authority or licensee; or
(iii) through a tampered meter; or
2[(iv) for the purpose other than for which the usage of electricity
was authorised; or
(v) for the premises or areas other than those for which the
supply of electricity was authorized.”]
Section 127. (Appeal to Appellate Authority): --- (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 3[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 of the appellate authority referred to in sub-section (1) passed
under sub-section (3) shall be final.
1 subs. by Act 26 of 2007, Sec. 11 for the words “one-and-half times” (w.e.f. 15th June 2007).
2 Subs. by Act 26 of 2007, Sec. 11 (w.e.f. 15th June 2007)
3 Subs. by Act 26 of 2007, Sec.12 for the words “one third of the assessed amount” (w.e.f. 15th June
2007).
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(5) No appeal shall lie to the appellate authority referred to in sub-section (1)
against the final order made with the consent of the parties.
(6) When a person defaults in making payment of assessed amount, he, in
addition to the assessed amount shall be liable to pay, on the expiry of thirty
days from the date of order of assessment, an amount of interest at the rate of
sixteen per cent, per annum compounded every six months.
Section 128. (Investigation of certain matters): ---- (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 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, 1956, the Investigating Authority may, at any time, and shall, on
being directed so to do by the Appropriate Commission, cause an inspection to
be made, by one or more of his officers, of any licensee or generating company
and his books of account; and the Investigating Authority shall supply to the
licensee or generating company, as the case may be, a copy of his report on
such inspection.
(3) It shall be the duty of every manager, managing director or other officer of
the licensee or generating company, as the case may be, to produce before the
Investigating Authority directed to make the investigation under sub-section (1),
or inspection under sub-section (2), all such books of account, registers and other
documents in his custody or power and to furnish him with any statement and
information relating to the affairs of the licensee or generating company, as the
case may be, as the said Investigating Authority may require of him within such
time as the said Investigating Authority may specify.
(4) Any Investigating Authority, directed to make an investigation under sub-
section (1), or inspection under sub-section (2), may examine on oath any
manager, managing director or other officer of the licensee or generating
company, as the case may be, in relation to his business and may administer
oaths accordingly.
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(5) The Investigating Authority, shall, if it has been directed by the
Appropriate Commission to cause an inspection to be made, and may, in any
other case, report to the Appropriate Commission on any inspection made under
this section.
(6) On receipt of any report under sub-section (1) or sub-section (5), the
Appropriate Commission may, after giving such opportunity to the licensee or
generating company, as the case may be, to make a representation in
connection with the report as in the opinion of the Appropriate Commission,
seems reasonable, by order in writing—
(a) require the licensee or the generating company to take such action
in respect of any matter arising out of the report as the Appropriate
Commission may think fit; or
(b) cancel the licenece; or
(c) direct the generating company to cease to carry on the business
of generation of electricity.
(7) The Appropriate Commission may, after giving reasonable notice to the
licensee or the generating company, as the case may be, publish the report
submitted by the Investigating Authority under sub-section (5) or such portion
thereof as may appear to it to be necessary.
(8) The Appropriate Commission may specify the minimum information to
be maintained by the licensee or the generating company in their books, the
manner in which such information shall be maintained, the checks and other
verifications to be adopted by licensee or the generating company in that
connection and all other matters incidental thereto as are, in its opinion,
necessary to enable the Investigating Authority to discharge satisfactorily its
functions under this section.
Explanation.- For the purposes of this section, the expression “licensee or the
generating company” shall include in the case of a licensee incorporated in
India—
(a) all its subsidiaries formed for the purpose of carrying on the
business of generation or transmission or distribution or trading
of electricity exclusively outside India; and
(b) all its branches whether situated in India or outside India.
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(9) All expenses of, and incidental to, any investigation made under this
section shall be defrayed by the licensee or the generating company, as the case
may be, and shall have priority over that debts due from the licensee or the
generating company and shall be recoverable as an arrear of land revenue.
Section 129. (Orders for securing compliance): --- (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.
Section 130. (Procedure for issuing directions by Appropriate Commission):
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.
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PART XIII
REORGANISATION OF BOARD
Section 131. (Vesting of property of Board in State Government): --- (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
property, rights and liabilities of the State Government as may be stipulated in
such scheme, on such terms and conditions as may be agreed between the State
Government and such company or companies being State Transmission Utility
or generating company or transmission licensee or distribution licensee, as the
case may be :
Provided that the transfer value of any assets transferred hereunder shall
be determined, as far as may be, based on the revenue potential of such assets at
such terms and conditions as may be agreed between the State Government and
the State Transmission Utility or generating company or transmission licensee or
distribution licensee, as the case may be.
(3) Notwithstanding anything contained in this section, where,-
(a) the transfer scheme involves the transfer of any property or rights to
any person or undertaking not wholly owned by the State
Government, the scheme shall give effect to the transfer only for
fair value to be paid by the transferee to the State Government;
(b) a transaction of any description is effected in pursuance of a transfer
scheme, it shall be binding on all persons including third parties
and even if such persons or third parties have not consented to it.
(4) The State Government may, after consulting the Government company or
company or companies being State Transmission Utility or generating company
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or transmission licensee or distribution licensee, referred to in sub-section (2)
(hereinafter referred to as the transferor), require such transferor to draw up a
transfer scheme to vest in a transferee being any other generating company or
transmission licensee or distribution licensee, the property, interest in property,
rights and liabilities which have been vested in the transferor under this section,
and publish such scheme as statutory transfer scheme under this Act.
(5) A transfer scheme under this section may-
(a) provide for the formation of subsidiaries, joint venture companies
or other schemes of division, amalgamation, merger, reconstruction
or arrangements which shall promote the profitability and viability
of the resulting entity, ensure economic efficiency, encourage
competition and protect consumer interests;
(b) define the property, interest in property, rights and liabilities to be
allocated -
(i) by specifying or describing the property, rights and
liabilities in question; or
(ii) by referring to all the property, interest in property, rights
and liabilities comprised in a described part of the
transferor's undertaking; or
(iii) partly in one way and partly in the other;
(c) provide that any rights or liabilities stipulated or described in the
scheme shall be enforceable by or against the transferor or the
transferee;
(d) impose on the transferor an obligation to enter into such written
agreements with or execute such other instruments in favour of any
other subsequent transferee as may be stipulated in the scheme;
(e) mention the functions and duties of the transferee;
(f) make such supplemental, incidental and consequential provisions
as the transferor considers appropriate including provision
stipulating the order as taking effect; and
(g) provide that the transfer shall be provisional for a stipulated
period.
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(6) All debts and obligations incurred, all contracts entered into and all
matters and things engaged to be done by the Board, with the Board or for the
Board, or the State Transmission Utility or generating company or transmission
licensee or distribution licensee, before a transfer scheme becomes effective shall,
to the extent specified in the relevant transfer scheme, be deemed to have been
incurred, entered into or done by the Board, with the Board or for the State
Government or the transferee and all suits or other legal proceedings instituted
by or against the Board or transferor, as the case may be, may be continued or
instituted by or against the State Government or concerned transferee, as the case
may be.
(7) The Board shall cease to be charged with and shall not perform the
functions and duties with regard to transfers made on and after the effective
date.
Explanation.- For the purpose of this Part, -
(a) "Government company" means a Government Company formed
and registered under the Companies Act, 1956.
(b) "company" means a company to be formed and registered under
the Companies Act, 1956 to undertake generation or transmission
or distribution in accordance with the scheme under this Part.
Section 132. (Use of proceeds of sale or transfer of Board, etc.):
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.
Section 133. (Provisions relating to officers and employees): --- (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.
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(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 section and the transfer scheme, the
expression "officers and employees" shall mean all officers and employees who
on the date specified in the scheme are the officers and employees of the Board
or transferor, as the case may be.
Section 134. (Payment of compensation or damages on transfer):
Notwithstanding anything contained in the Industrial Disputes Act, 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.
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PART XIV
OFFENCES AND PENALTIES
Section 135. (Theft of Electricity): --- 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,
(d) uses electricity through a tampered meter; or
(e) uses electricity for the purpose other than for which the usage of
electricity was authorised,
so as to abstract or consume or use electricity shall be punishable with
imprisonment for a term which may extend to three years or with fine or with
both:
Provided that in a case where the load abstracted, consumed, or used or
attempted abstraction or attempted consumption or attempted use -
(i) does not exceed 10 kilowatt, the fine imposed on first conviction shall not
be less than three times the financial gain on account of such theft of
electricity and in the event of second or subsequent conviction the fine
imposed shall not be less than six times the financial gain on account of such
theft of electricity;
(ii) exceeds 10 kilowatt, the fine imposed on first conviction shall not be less
than three times the financial gain on account of such theft of electricity and
in the event of second or subsequent conviction, the sentence shall be
1 Subs. by Act 26 of 2007, Sec. 13 (w.e.f.. 15th June 2007).
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imprisonment for a term not less than six months, but which may extend to
five years and with fine not less than six times the financial gain on account
of such theft of electricity:
Provided further that in the event of second and subsequent conviction of a
person where the load abstracted, consumed, or used or attempted abstraction or
attempted consumption or attempted use exceeds 10 kilowatt, such person shall
also be debarred from getting any supply of electricity for a period which shall
not be less than three months but may extend to two years and shall also be
debarred from getting supply of electricity for that period from any other source
or generating station:
Provided also that if it is proved that any artificial means or means not
authorized by the Board or licensee or supplier, as the case may be, exist for the
abstraction, consumption or use of electricity by the consumer, it shall be
presumed, until the contrary is proved, that any abstraction, consumption or use
of electricity has been dishonestly caused by such consumer.
(1A) Without prejudice to the provisions of this Act, the licensee or supplier, as
the case may be, may, upon detection of such theft of electricity, immediately
disconnect the supply of electricity:
Provided that only such officer of the licensee or supplier, as authorized for
the purpose by the Appropriate Commission or any other officer of the licensee
or supplier, as the case may be, of the rank higher than the rank so authorised
shall disconnect the supply line of electricity:
Provided further that such officer of the licensee or supplier, as the case may
be, shall lodge a complaint in writing relating to the commission of such offence
in police station having jurisdiction within twenty four hours from the time of
such disconnection:
Provided also that the licensee or supplier, as the case may be, on deposit or
payment of the assessed amount or electricity charges in accordance with the
provisions of this Act, shall, without prejudice to the obligation to lodge the
complaint as referred to in the second proviso to this clause, restore the supply
line of electricity within forty-eight hours of such deposit or payment.]
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(2) 1[Any officer of the licensee or supplier as the case may be,] authorized in
this behalf by the State Government may --
(a) enter, inspect, break open and search any place or premises in
which he has reason to believe that electricity 2[has been or is
being,] used unauthorisedly;
(b) search, seize and remove all such devices, instruments, wires and
any other facilitator or article which has been, or is being, used for
unauthorized use of electricity;
(c) examine or seize any books of account or documents which in his
opinion shall be useful for or relevant to, any proceedings in
respect of the offence under sub-section (1) and allow the person
from whose custody such books of account or documents are
seized to make copies thereof or take extracts therefrom in his
presence.
(3) The occupant of the place of search or any person on his behalf shall
remain present during the search and a list of all things seized in the course of
such search shall be prepared and delivered to such occupant or person who
shall sign the list:
Provided that no inspection, search and seizure of any domestic places
or domestic premises shall be carried out between sunset and sunrise except in
the presence of an adult male member occupying such premises.
(4) The provisions of the Code of Criminal Procedure, 1973, relating to search
and seizure shall apply, as far as may be, to searches and seizure under this Act.
Section 136. (Theft of electric lines and materials): --- (1) Whoever,
dishonestly --
(a) cuts or removes or takes way 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
1 Subs. by Act 26 of 2007, Sec. 13 for the words “Any officer authorized” (w.e.f. 15th June 2007)
2 Subs. by Act 57 of 2003, Sec. 5 for the words “has been or is being or is likely to be” (w.e.f. 27th January,
20004).
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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 of its owner, whether or not
the act is done for profit or gain,
is said to have committed an offence of theft of electric lines and materials, and
shall be punishable with imprisonment for a term which may extend to three
years or with fine or with both.
(2) If a person, having been convicted of an offence punishable under sub-
section (1) is again guilty of an offence punishable under that sub-section, he
shall be punishable for the second or subsequent offence for a term of
imprisonment which shall not be less than six months but which may extend to
five years and shall also be liable to fine which shall not be less than ten
thousand rupees.
Section 137. (Punishment for receiving stolen property):
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.
Section 138. (Interference with meters or works of licensee): (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
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(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 willfully or fraudulently alters the index of any such
meter, indicator or apparatus or prevents any such meter, indicator
or apparatus from duly registering,
shall be punishable with imprisonment for a term which may
extend to three years, or with fine which may extend to ten thousand
rupees, or with both, and , in the case of a continuing offence, with a daily
fine which may extend to five hundred rupees; and if it is proved that any
means exist for making such connection as is referred to in clause (a) or
such re-connection as is referred to in clause (b), or such communication
as is referred to in clause (c), for causing such alteration or prevention as is
referred to in clause (d), and that the meter, indicator or apparatus is
under the custody or control of the consumer, whether it is his property or
not, it shall be presumed, until the contrary is proved, that such
connection, reconnection, communication, alteration, prevention or
improper use, as the case may be, has been knowingly and willfully
caused by such consumer.
1[Section 139. (Negligently breaking or damaging works):
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.
Section 140. (Penalty for intentionally injuring works):
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.]
Section 141. (Extinguishing public lamps):
Whoever, maliciously extinguishes any public lamp shall be punishable
with fine which may extend to two thousand rupees.
1 Subs. by Act 57 of 2003, Sec.6 for Sections 139 and 140 (w.e.f. 27th January 2004).
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Section 142. (Punishment for non-compliance of directions by Appropriate
Commission):
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.
Section 143. (Power to adjudicate): --- (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
provisions of any of those sections.
Section 144. (Factors to be taken into account by adjudicating officer):
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.
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Section 145. (Civil courts not to have jurisdiction):
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 146. (Punishment for non-compliance of orders or directions):
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.]
Section 147. (Penalties not to affect other liabilities):
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.
Section 148. (Penalty where works belong to Government):
The provisions of this Act shall, so far as they are applicable, be deemed to
apply also when the acts made punishable thereunder are committed in the case
of electricity supplied by or of works belonging to the Appropriate Government.
Section 149. (Offences by companies): --- (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
1 Ins. by Act 57 of 2003, Sec. 7 (w.e.f. 27th January 2004).
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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 is attributable
to any neglect on the part of any director, manager, secretary or other officer of
the company, such director, manager, secretary or other officer shall also be
deemed to be guilty of having committed such offence and shall be liable to be
proceeded against and punished accordingly.
Explanation. - For the purposes of this section,-
(a) "company" means a body corporate and includes a firm or other
association of individuals; and
(b) "director", in relation to a firm, means a partner in the firm.
Section 150. (Abetment): --- (1) Whoever abets an offence punishable under
this Act, shall, notwithstanding anything contained in the Indian Penal Code, 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 section136, section 137 and section 138, the licence or certificate of
competency or permit or such other authorisation issued under the rules made or
deemed to have been made under this Act to any person who acting as an
electrical contractor, supervisor or worker abets the commission of an offence
punishable under sub-section (1) of section 135, sub-section (1) of section 136,
1 Ins. by Act 26 of 2007, Sec.14 (w.e.f. 15th June 2007).
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section 137, or section 138, on his conviction for such abetment, may also be
cancelled by the licensing authority:
Provided that no order of such cancellation shall be made without giving such
person an opportunity of being heard.
Explanation.– For the purposes of this sub-section, “licencing authority” means
the officer who for the time being in force is issuing or renewing such licence or
certificate of competency or permit or such other authorisation.]
Section 151. (Cognizance of offences):
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 authorized 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.]
2[151A. For the purposes of investigation of an offence punishable under this Act,
the police officer shall have all the powers as provided in Chapter XII of the
Code of Criminal Procedure, 1973.
151B. 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.]
Section 152. (Compounding of offences): --- (1) Notwithstanding anything
contained in the Code of Criminal Procedure 1973, the Appropriate Government
or any officer authorized 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:
1 Ins. by Act 26 of 2007, Sec.15 (w.e.f. 15th June 2007).
2 Ins. by Act 26 of 2007, Sec.16 (w.e.f. 15th June 2007).
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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 twenty thousand rupees;
2. Commercial Service ten thousand rupees;
3. Agricultural Service two thousand rupees;
4. Other Services four thousand rupees:
------------------------------------------------------------------------------------------
Provided that the Appropriate Government may, by notification in the
Official Gazette, amend the rates specified in the Table above.
(2) On payment of the sum of money in accordance with sub-section (1), any
person in custody in connection with that offence shall be set at liberty and no
proceedings shall be instituted or continued against such consumer or person in
any criminal court.
(3) The acceptance of the sum of money for compounding an offence in
accordance with sub-section (1) by the Appropriate Government or an officer
empowered in this behalf empowered in this behalf shall be deemed to amount
to an acquittal within the meaning of section 300 of the Code of Criminal
Procedure, 1973.
(4)The Compounding of an offence under sub-section (1) shall be allowed only
once for any person or consumer.
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PART XV
SPECAIL COURTS
Section 153. (Constitution of Special Courts): --- (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 otherwise for the performance of his duties, any
urgent business in the Special Court shall be disposed of –
(a) by a Judge, if any, exercising jurisdiction in the Special Court;
(b) where there is no such other Judge available, in accordance with
the direction of District and Sessions Judge having jurisdiction over
the ordinary place of sitting of Special Court, as notified under sub-
section (1).
Section 154. (Procedure and power of Special Court): --- (1) Notwithstanding
anything contained in the Code of Criminal Procedure, 1973, every offence
punishable under [2sections 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 sections 135 to 139 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 :
1 Subs. by Act 26 of 2007, Sec.17 for the words “sections 135 to 139” (w.e.f. 15th June 2007).
2 Subs. by Act 26 of 2007, Sec.18 for the words “sections 135 to 139” (w.e.f. 15th June 2007).
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Provided that it shall be lawful for such Special Court to act on the
evidence, if any, recorded by any court in the case of presence of the accused
before the transfer of the case to any Special Court :
Provided further that if such Special Court is of opinion that further
examination, cross-examination and re-examination of any of the witnesses
whose evidence has already been recorded, is required in the interest of justice, it
may re-summon any such witness and after such further examination, cross-
examination or re-examination, if any, as it may permit, the witness shall be
discharged.
(3) The Special Court may, notwithstanding anything contained in sub-
section (1) of section 260 or section 262 of the Code of Criminal Procedure, 1973,
try the offence referred to in sections 135 to 139 in a summary way in accordance
with the procedure prescribed in the said Code and the provisions of sections 263
to 265 of the said Code shall, so far as may be, apply to such trial :
Provided that where in the course of a summary trial under this sub-
section, it appears to the Special Court that the nature of the case is such that it is
undesirable to try such case in summary way, the Special Court shall recall any
witness who may have been examined and proceed to re-hear the case in the
manner provided by the provisions of the said Code for the trial of such offence:
Provided further that in the case of any conviction in a summary trial
under this section, it shall be lawful for a Special Court to pass a sentence of
imprisonment for a term not exceeding five years.
(4) A Special Court may, with a view to obtaining the evidence of any person
supposed to have been directly or indirectly concerned in or privy to, any offence
tender pardon to such person on condition of his making a full and true
disclosure of the circumstances within his knowledge relating to the offence and
to every other person concerned whether as principal or abettor in the
commission thereof, and any pardon so tendered shall, for the purposes of
section 308 of the Code of Criminal Procedure,1973, be deemed to have been
tendered under section 307 thereof.
(5) The 1[Special Court shall] determine the civil liability against a consumer
or a person in terms of money for theft of energy which shall not be less than an
amount equivalent to two times of the tariff rate applicable for a period of twelve
months preceding the date of detection of theft of energy or the exact period of
1 Subs. by Act 26 of 2007, Sec.18 for the words “Special Court may” (w.e.f. 15th June 2007).
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theft if determined whichever is less and the amount of civil liability so
determined shall be recovered as if it were a decree of civil court.
(6) In case the civil liability so determined finally by the Special Court is less
than the amount deposited by the consumer or the person, the excess amount so
deposited by the consumer or the person, to the Board or licensee or the
concerned person, as the case may be, shall be refunded by the Board or licensee
or the concerned person, as the case may be, within a fortnight from the date of
communication of the order of the Special Court together with interest at the
prevailing Reserve Bank of India prime lending rate for the period from the date
of such deposit till the date of payment.
Explanation. - For the purposes of this section, “civil liability” means loss or
damage incurred by the Board or licensee or the concerned person, as the case
may be, due to the commission of an offence referred to in sections 135 to 139.
Section 155. (Special Court to have powers of Court of Session):
Save as otherwise provided in this Act, the Code of Criminal Procedure,
1973, 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.
Section 156. (Appeal and revision):
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,
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.
Section 157. (Review):
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 :
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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 purpose of this Part, "Special Courts" means the Special
Courts constituted under sub-section (1) of section 153.
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PART XVI
DISPUTE RESOLUTION
Arbitration
Section 158. (Arbitration):
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.
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PART XVII
OTHER PROVISIONS
Protective Clauses
Section 159. (Protection of railways, highways, airports and canals, docks,
wharfs and piers):
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.
Section 160. (Protection of telegraphic, telephonic and electric signalling lines):
--- (1) Every person generating, transmitting, distributing, supplying or using
electricity (hereinafter 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 thereby, the matter shall be referred to the
Central Government and the Central Government, unless it is of opinion that the
wire or line has been placed in unreasonable proximity to the electric lines,
electrical plant or works of the operator after the construction of such lines, plant
or works, may direct the operator to make such alterations in, or additions to, his
system as may be necessary in order to comply with the provisions of this
section, and the operator shall make such alterations or additions accordingly:
Provided that nothing in this sub-section shall apply to the repair, renewal
or amendment of any electric line or electrical plant so long as the course of the
electric line or electrical plant and the amount and nature of the electricity
transmitted thereby are not altered.
(3) Where the operator makes default in complying with the requirements of
this section, he shall make full compensation for any loss or damage incurred by
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reason thereof, and, where any difference or dispute arises as to the amount of
such compensation, the matter shall be determined by arbitration.
Explanation. - For the purposes of this section, a telegraph line shall be deemed
to be injuriously affected if telegraphic, telephonic or electric signalling
communication by means of such line is, whether through induction or
otherwise, prejudicially interfered with by an electric line , electrical plant or
other work or by any use made thereof.
Section 161. (Notice of accidents and injuries): --- (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) as to the cause of any accident affecting the safety of the public,
which may have been occasioned by or in connection with, the
generation, transmission, distribution, supply or use of electricity,
or
(b) as to the manner in, and extent to, which the provisions of this Act
or rules and regulations made thereunder or of any licence, so far
as those provisions affect the safety of any person, have been
complied with.
(3) Every Electrical Inspector or other person holding an inquiry under sub-
section (2) shall have all the powers of a civil court under the Code of Civil
Procedure, 1908 for the purpose of enforcing the attendance of witnesses and
compelling the production of documents and material objects, and every person
required by an Electrical Inspector be legally bound to do so within the meaning
of section 176 of the Indian Penal Code.
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Section 162. (Appointment of Chief Electrical Inspector and Electrical
Inspector): --- (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.
Section 163. (Power for licensee to enter premises and to remove fittings or
other apparatus of licensee): --- (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 off such
supply, any electric supply-lines, meters, fittings, works or
apparatus belonging to the licensee.
(2) A licensee or any person authorised as aforesaid may also, in pursuance of
a special order in this behalf made by an Executive Magistrate and after giving
not less than twenty-four hours notice in writing to the occupier, -
(a) enter any premises or land referred to in sub-section (1) for any of the
purposes mentioned therein;
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(b) enter any premises to which electricity is to be supplied by him, for the
purpose of examining and testing the electric wires fittings, works and
apparatus for the use of electricity belonging to the consumer.
(3) Where a consumer refuses to allow a licensee or any person authorised as
aforesaid to enter his premises or land in pursuance of the provisions of sub-
section (1) or, sub-section (2), when such licensee or person has so entered,
refuses to allow him to perform any act which he is authorised by those sub-
sections to perform, or fails to give reasonable facilities for such entry or
performance, the licensee may, after the expiry of twenty-four hours from the
service of a notice in writing on the consumer, cut off the supply to the consumer
for so long as such refusal or failure continues, but for no longer.
Section 164. (Exercise of powers of Telegraph Authority in certain cases):
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, 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.
Section 165. (Amendment of sections 40 and 41 of Act 1 of 1894): --- (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 in the same manner and on the same conditions as it might
be acquired if the person were a company.
PART XVIII
MISCELLANEOUS
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Section 166. (Coordination Forum): --- (1) 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 representatives
of the generating companies, transmission licensee and distribution licensees
engaged in generation, transmission and distribution of electricity in that State
for smooth and coordinated development of the power system in the State.
(5) There shall be a committee in each district to be constituted by the
Appropriate Government -
(a) to coordinate and review the extension of electrification in each
district;
(b) to review the quality of power supply and consumer satisfaction;
(c) to promote energy efficiency and its conservation.
Section 167. (Exemption of electric lines or electrical plants from attachment in
certain cases):
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.
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Section 168. (Protection of action taken in good faith):
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 employees
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.
Section 169. (Members, officers, etc. of Appellate Tribunal, Appropriate
Commission to be public servants):
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.
Section 170. (Recovery of penalty payable under this Act):
Any penalty payable by a person under this Act, if not paid, may be
recovered as if it were an arrear of land revenue.
Section 171. (Services of notices, orders or documents): --- (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;
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(d) where any other person is the addressee, at the usual or last known
place of abode or business of the person.
(2) Every notice, order or document by or under this Act required or
authorised to be addressed to the owner or occupier of any premises shall be
deemed to be properly addressed if addressed by the description of the owner or
occupier of the premises (naming the premises), and may be served by delivering
it, or a true copy thereof, to some person on the premises, or if there is no person
on the premises to whom the same can with reasonable diligence be delivered,
by affixing it on some conspicuous part of the premises.
Section 172. (Transitional provisions):
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;
(b) all licences, authorisations approvals, clearances and permissions
granted under the provisions of the repealed laws may, for a
period not exceeding one year from the appointed date or such
earlier period, as may be notified by the Appropriate Government,
continue to operate as if the repealed laws were in force with
respect to such licences, authorisations, approvals, clearances and
permissions, as the case may be, and thereafter such licences,
authorisations, approvals, clearances and permissions shall be
deemed to be licences, authorisations, approvals, clearances and
permission under this Act and all provisions of this Act shall
apply accordingly to such licences, authorizations, approvals,
clearances and permissions;
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(c) the undertaking of the State Electricity Boards established under
section 5 of the Electricity (Supply) Act, 1948 may after the expiry
of the period specified in clause (a) be transferred in accordance
with the provisions of Part XIII of this Act;
(d) the State Government may, by notification, declare that any or all
the provisions contained in this Act, shall not apply in that State
for such period, not exceeding six months from the appointed date,
as may be stipulated in the notification.
Section 173. (Inconsistency in laws):
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 or the Atomic Energy Act, 1962 or the Railways
Act, 1989.
Section 174. (Act to have overriding effect):
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.
Section 175. (Provisions of this Act to be in addition to and not in derogation
of other laws):
The provisions of this Act are in addition to and not in derogation of any
other law for the time being in force.
Section 176. (Power of Central Government to make rules): --- (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: -
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(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,
creditworthiness 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) the constitution and functions of the National Load Despatch
Centre under sub-section (2) of section 26;
(e) the works of licensees affecting the property of owner or occupier
under sub-section (2) of section 67;
(f) such other cases which may be prescribed under clause (c) of sub-
section (2) of Section 68;
(g) allowances and fees payable to others Members for attending the
meetings of Authority under sub-section (14) of section 70.
(h) other terms and conditions of service of the Chairperson and
Members of the Authority under sub-section (15) of section 70;
(i) the functions and duties of the Central Electricity Authority
under section 73;
(j) the salary, allowances and other conditions of service of
Chairperson and Member of Central Commission under sub-
section (2) of section 89;
(k) the form and manner in which and the authority before whom
oath of office and secrecy should be subscribed under sub-section
(3) of section 89;
(l) the procedure to be prescribed by the Central Commission under
the proviso to sub- section (2) of section 90;
1 Subs. by Act 26 of 2007, Sec.19 for the words “(including the capital adequacy, creditworthiness or code
of conduct) (w.e.f. 15th June 2007).
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(m) any other matter required to be prescribed under clause (g) of sub-
section (1) of section 94;
(n) the form in which the Central Commission shall prepare its
annual statement of accounts under sub-section (1) of section 100;
(o) the form in which and time at which the Central Commission shall
prepare its annual report under sub-section (1) 101;
(p) the form in which and time at which the Central Commission
shall prepare its budget under section 106;
(q) the form and the manner of verifying such form, and fee for filing
appeal under sub-section (2) of section 111;
(r) 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 under section 115;
(s) the salary and allowances and other conditions of service of the
officers and employees of the Appellate Tribunal under sub-
section (3) of section 119;
(t) the additional matters in respect of which the Appellate Tribunal
may exercise the powers of a civil court under clause (i) of sub-
section (2) of section 120;
(u) the authority to whom the appeal shall be filed under sub-section
(1) of section 127;
(v) manner of holding inquiry by an adjudicating officer under sub-
section (1) of section 143;
(w) the form in which and the time at which service of notices to any
person or to the Central Government for the purpose under sub-
section (1) of section 161;
(x) the powers to be exercised and the functions to be performed by
the Inspectors under sub-section (1) of section 162;
(y) the manner of delivery of every notice, order or document to be
served under sub-section (1) of section 171;
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(z) any other matter which is required to be, or may be, prescribed.
Section 177. (Powers of Authority to make regulations): --- (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 standards for construction of electrical plants and
electric lines and connectivity to the grid under clause (b) of
section 73;
(f) the form and manner in which and the time at which the State
Government and licensees shall furnish statistics, returns or other
information under section 74.
(g) any other matter which is to be, or may be, specified;
(3) All regulations made by the Authority under this Act shall be subject to
the conditions of previous publication.
Section 178. (Powers of Central Commission to make regulations): --- (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:-
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(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;
(e) the manner and particulars of notice under clause (a) of sub-
section (2) of section 18;
(f) publication of alterations or amendments to be made in the
licence under clause(c) of sub-section (2) of section 18;
(g) Grid Code under sub-section (2) of section 28;
(h) levy and collection of fees and charge from generating companies
or transmission utilities or licensees under sub-section (4) of
section 28;
(i) rates, charges and terms and conditions in respect of intervening
transmission facilities under proviso to section 36;
(j) payment of the transmission charges and a surcharge under-sub-
clause (ii) of clause (d) of sub-section (2) of section 38;
(k) reduction 1[***] of surcharge and cross subsidies under second
proviso to sub-clause (ii) of clause (d) of sub-section (2) of section 38;
(l) payment of transmission charges and a surcharge under sub-clause
(ii) of clause(c) of section 40;
(m) reduction 2[***] of surcharge and cross subsidies under the second
proviso to sub-clause (ii) of clause (c) of section 40;
(n) proportion of revenues from other business to be utilised for
reducing the transmission and wheeling charges under proviso to
section 41;
1 The words “and elimination” omitted by Act 26 of 2007, Sec.20 (w.e.f. 15th June 2007).
2 The words “and elimination” omitted by Act 26 of 2007, Sec.20 (w.e.f. 15th June 2007).
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(o) duties of electricity trader under sub-section (2) of section 52;
(p) standards of performance of a licensee or class of licensees under
sub-section (1) of section 57;
(q) the period within which information to be furnished by the
licensee under sub-section (1) of section 59;
1[(r) the manner of reduction of cross subsidies under clause (g) of
section 61;]
(s) the terms and conditions for the determination of tariff under
section 61;
(t) details to be furnished by licensee or generating company under
sub-section (2) of section 62;
(u) the procedures for calculating the expected revenue from tariff
and charges under sub-section (5) of section 62;
(v) the manner of making an application before the Central
Commission and the fee payable therefor under sub-section (1) of
section 64;
(w) the manner of publication of application under sub-section (2) of
section 64;
(x) issue of tariff order with modifications or conditions under sub-
section (3) of section 64;
(y) the manner by which development of market in power including
trading specified under section 66;
(z) the powers and duties of the Secretary of the Central Commission
under sub-section (1) of section 91;
(za) the terms and conditions of service of the Secretary, officers and
other employees of Central Commission under sub-section (3) of section
91;
1 Subs. by Act 26 of 2007, Sec.20 (w.e.f. 15th June 2007).
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(zb) the rules of procedure for transaction of business under sub-
section (1) of section 92;
(zc) minimum information to be maintained by a licensee or the
generating company and the manner of such information to be
maintained under sub-section (8) of section 128;
(zd) the manner of service and publication of notice under section 130;
(ze) any other matter which is to be, or may be, specified by regulations.
(3) All regulations made by the Central Commission under this Act shall be
subject to the conditions of previous publication.
Section 179. (Rules and regulations to be laid before Parliament):
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.
Section 180. (Powers of State Governments to make rules): --- (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;
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(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 under sub-
section (2) of section 89;
(e) the form and manner in which and the authority before whom oath
of office and secrecy should be subscribed under sub-section (3) of
section 89;
(f) any other matter required to be prescribed by the State
Commission under clause (g) of sub- section (1) of section 94;
(g) the manner of applying the Fund under sub-section (3) of section
103;
(h) the form in which and time at which the State Commission shall
prepare its annual accounts under sub-section (1) of section 104;
(i) the form in which and time at which the State Commission shall
prepare its annual report under sub-section (1) of section 105;
(j) the form in which and time at which the State Commission shall
prepare its budget under section 106;
(k) manner of service of provisional order of assessment under sub-
section (2) of section 126;
(l) manner of holding inquiry by an adjudicating officer under sub-
section (1) of section 143;
(m) the form in which and the time at which notice to the Electrical
Inspector under sub-section (1) of section 161;
(n) the manner of delivery of every notice, order or document under
sub-section (1) of section 171; and
(o) any other matter which is required to be, or may be, prescribed.
Section 181. (Powers of State Commissions to make regulations): --- (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.
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(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 section 16;
(e) the manner and particulars of notice under clause(a) of sub-
section (2) of section 18;
(f) publication of the alterations or amendments to be made in the
licence under clause (c) of sub-section (2) of section 18;
(g) levy and collection of fees and charges from generating companies
or licensees under sub-section (3) of section 32;
(h) rates, charges and the term and conditions in respect of
intervening transmission facilities under proviso to section 36;
(i) payment of the transmission charges and a surcharge under sub-
clause (ii) of clause(d) of sub-section (2) of section 39;
(j) reduction 1[***] of surcharge and cross subsidies under second
proviso to sub-clause (ii) of clause (d) of sub-section (2) of section
39;
(k) manner and utilisation of payment and surcharge under the
fourth proviso to sub-clause(ii) of clause (d) of sub-section (2) of
section 39;
(l) payment of the transmission charges and a surcharge under sub-
clause(ii) of clause (c) of section 40;
1 The words “and elimination” omitted by Act 26 of 2007, Sec. 21 (w.e.f. 15th June 2007).
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(m) reduction 1[***] of surcharge and cross subsidies under second
proviso to sub-clause (ii) of clause (c) of section 40;
(n) the manner of payment of surcharge under the fourth proviso to
sub-clause (ii) of clause (c) of section 40;
(o) proportion of revenues from other business to be utilised for
reducing the transmission and wheeling charges under proviso to
section 41;
(p) reduction 2[***] of surcharge and cross-subsidies under the third
proviso to sub-section (2) of section 42;
(q) payment of additional charges on charges of wheeling under sub-
section (4) of section 42;
(r ) guidelines under sub-section (5) of section 42;
(s) the time and manner for settlement of grievances under sub-section
(7) of section 42;
(t) the period to be specified by the State Commission for the purposes
specified under sub-section (1) of section 43;
(u) methods and principles by which charges for electricity shall be
fixed under sub-section (2) of section 45;
(v) reasonable security payable to the distribution licensee under
sub-section (1) of section 47;
(w) payment of interest on security under sub-section (4) of section 47;
(x) electricity supply code under section 50;
(y) the proportion of revenues from other business to be utilised for
reducing wheeling charges under proviso to section 51;
(z) duties of electricity trader under sub-section (2) of section 52;
(za) standards of performance of a licensee or a class of licensees under
sub-section (1) of section 57;
1 The words “and elimination” omitted by Act 26 of 2007, Sec. 21 (w.e.f. 15th June 2007).
2 The words “and elimination” omitted by Act 26 of 2007, Sec. 21 (w.e.f. 15th June 2007).
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(zb) the period within which information to be furnished by the licensee under
sub-section (1) of section 59;
1[(zc) the manner of reduction of cross-subsidies under clause (g) of
section 61;]
(zd) the terms and conditions for the determination of tariff under section 61;
(ze) details to be furnished by licensee or generating company under
sub-section (2) of section 62;
(zf) the methodologies and procedures for calculating the expected
revenue from tariff and charges under sub-section (5) of section
62;
(zg) the manner of making an application before the State Commission and the
fee payable therefor under sub-section (1) of section 64;
(zh) issue of tariff order with modifications or conditions under sub-
section(3) of section 64;
(zi) the manner by which development of market in power including
trading specified under section 66;
(zj) the powers and duties of the Secretary of the State Commission
under sub-section (1) of section 91;
(zk) the terms and conditions of service of the secretary, officers and
other employees of the State Commission under sub-section (2) of
section 91;
(zl) rules of procedure for transaction of business under sub-section
(1) of section 92;
(zm) minimum information to be maintained by a licensee or the
generating company and the manner of such information to be
maintained under sub-section (8) of section 128;
(zn) the manner of service and publication of notice under section 130;
1 Subs. by Act 26 of 2007, Sec.21 (w.e.f. 15th June 2007).
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(zo) the form of preferring the appeal and the manner in which such
form shall be verified and the fee for preferring the appeal under
sub-section (1) of section 127;
(zp) any other matter which is to be, or may be, specified.
(3) All regulations made by the State Commission under this Act shall be
subject to the condition of previous publication.
Section 182. (Rules and regulations to be laid before State Legislature):
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.
Section 183. (Power to remove difficulties): --- (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.
Section 184. (Provisions of the Act not to apply in certain cases):
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.
Section 185. (Repeal and saving): --- (1) Save as otherwise provided in this Act,
the Indian Electricity Act, 1910, the Electricity (Supply) Act, 1948 and the
Electricity Regulatory Commissions Act, 1998 are hereby repealed.
(2) Notwithstanding such repeal, -
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(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 provisions contained in sections 12 to 18 of the Indian
Electricity Act, 1910 and rules made thereunder shall have effect
until the rules under section 67 to 69 of this Act are made;.
(c) the Indian Electricity Rules, 1956 made under section 37 of the
Indian Electricity Act, 1910 as it stood before such repeal shall
continue to be in force till the regulations under section 53 of this
Act are made.
(d) all rules made under sub-section (1) of section 69 of the Electricity
(Supply) Act, 1948 shall continue to have effect until such rules are
rescinded or modified, as the case may be;
(e) all directives issued, before the commencement of this Act, by a
State Government under the enactments specified in the Schedule
shall continue to apply for the period for which such directions
were issued by the State Government.
(3) The provisions of the enactments specified in the Schedule, not
inconsistent with the provisions of this Act, shall apply to the States in which
such enactments are applicable.
(4) The Central Government may, as and when considered necessary, by
notification, amend the Schedule.
(5) Save as otherwise provided in sub-section (2), the mention of particular
matters in that section, shall not be held to prejudice or affect the general
application of section 6 of the General Clauses Act, 1897, with regard to the effect
of repeals.
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THE SCHEDULE.
ENACTMENTS
[See sub-section (3) of section 185]
The schedule to this Act mentions the State Reforms Acts. Originally 8
enactments were incorporated:
1. The Orissa Electricity Reform Act, 1995 (Orissa Act No. 2 of 1996)
2. The Haryana Electricity Reform Act, 1997 (Haryana Act No. 10 of 1998)
3. The Andhra Pradesh Electricity Reform Act, 1998 (Andhra Pradesh Act
No. 30 of 1998)
4. The Uttar Pradesh Electricity Reform Act, 1999 (Uttar Pradesh Act No. 24
of 1999)
5. The Karnataka Electricity Reform Act, 1999 (Karnataka Act No. 25 of 1999)
6. The Rajasthan Electricity Reform Act, 1999 (Rajasthan Act No. 23 of 1999)
7. The Delhi Electricity Reforms Act, 2000 (Delhi Act No.2 of 2001)
8. The Madhya Pradesh Vidyut Sudhar Adhiniyam, 2000 (Madhya Pradesh
Act No. 4 of 2001)