THE ELECTRICITY ACT, 2003
CONTENTS
Introduction..........................................................................................l
Statement of Objects and Reasons......................................................9
PART I
Preliminary
1. Short title, extent and commencement...............................................12
2. Definitions...........................................................................................12
PART II
National Electricity Policy and Plan
3. National Electricity Policy and Plan ..................................................20
4. National Policy on stand alone systems for rural areas and
non-conventional energy systems...................................................21
5. National policy on electrification and local distribution
in rural areas....................................................................................21
6. Obligations to supply electricity to rural areas................................ 21
PART III
Generation of Electricity
7. Generating company and requirement for setting
up of generating station..........................................................................22
8. Hydro-electric generation ........................................................................22
9. Captive Generation.............................................................................22
10. Duties of Generating Companies.......................................................23
11. Direction to generating companies....................................................23
PART IV
Licensing
12. Authorised persons to transmit, supply, etc., electricity...................24
13. Power to exempt .........................................................................24
14. Grant of Licence ...............................................................................24
15. Procedure for Grant of Licence .......................................................26
16. Conditions of licence........................................................................27
17. Licensee not to do certain things.....................................................27
18. Amendment of licence......................................................................28
19. Revocation of licence.......................................................................29
20. Sale of utilities of licensees ..............................................................30
21. Vesting of utility in purchaser..........................................................31
22. Provisions where no purchase takes place........................................ 31
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The Electricity Act, 2003
23. Directions to licensees........................................................................32
24. Suspension of distribution licence and sale of utility........................32
PART V
Transmission of Electricity
Inter-State transmission
25. Inter-State, regional and Inter-Regional transmission...........................33
26. National Load Despatch Centre.........................................................33
27. Constitution of Regional Load Despatch Centre.................................34
28. Functions of Regional Load Despatch Centre.....................................34
29. Compliance of directions....................................................................35
Intra-State transmission
30. Transmission within a State................................................................36
31. Constitution of State Load Despatch Centres......................................36
32. Functions of State Load Despatch Centres.........................................36
33. Compliance of directions....................................................................37
Other provisions relating to transmission
34. Grid Standards...................................................................................37
35. Intervening transmission facilities......................................................38
36. Charges for intervening transmission facilities..................................38
37. Directions by Appropriate Government.............................................38
38. Central Transmission Utility and functions........................................38
39. State Transmission Utility and functions...........................................40
40. Duties of Transmission licensees.......................................................41
41. Other business of Transmission Licensee..........................................42
PART VI
Distribution of Electricity
Provisions with respect to distribution licensees
42. Duties of distribution Licensee and open access...............................42
43. Duty to supply on request................................................................44
44. Exceptions from duty to supply electricity.......................................44
45 Power to recover charges..................................................................45
46. Power to recover expenditure...........................................................45
47. Power to require security..................................................................45
48. Additional terms of supply................................................................46
49. Agreements with respect to supply or purchase of electricity.........46
50. The Electricity Supply Code.............................................................47
51. Other businesses of distribution licensees.........................................47
Contents
Provisions with respect to electricity trader
52. Provisions with respect to electricity traders....................................47
Provisions with respect to supply generally
53. Provisions relating to safety and electricity supply..........................47
54. Control of transmission and use of electricity..................................48
55. Use, etc., of meters..... .... .... .... ......................................................49
56. Disconnection of supply in default of payment...............................50
Consumer protection: Standards of performance
57. Standards of performance of licensee...............................................50
58. Different Standards of performance by licensee................................51
59. Information with respect to levels of performance...........................51
60. Market domination.............................................................................51
PART-VII
Tariff
61. Tariff Regulations..............................................................................51
62. Determination of Tariff.....................................................................52
63. Determination of tariff by bidding process.......................................53
64. Procedure for tariff order..................................................................54
65. Provision of subsidy by State Government.......................................54
66. Development of market......................................................................55
PART - VIII
Works
Works of licensees
67. Provision as to opening up of streets, railways etc..........................55
Provisions relating to overhead lines
68. Overhead lines...................................................................................57
69. Notice to telegraph authority............................................................58
PART IX
Central Electricity Authority
Constitution and functions of Authority
70. Constitution, etc., of Central Electricity Authority............................59
71. Members not to have certain interest................................................61
72. Officers and staff of Authority..........................................................61
73. Functions and duties of Authority.....................................................61
Certain powers and directions
74. Power to require statistics and returns.............................................62
75. Directions by Central Government to Authority...............................63
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The Electricity Act, 2003
PART X
Regulatory Commissions
Constitution, powers and functions of
Central Commission
Constitution of Central. Commission 63
Qualification for appointment of Members of
Central Commission . 64
Constitution of Selection Committee to recommend Members 65
Functions of Central Commission .. 66
Central Advisory Committee67
Objects of Central Advisory Committee . 68
Constitution, powers and functions of the
State Commissions
Constitution of State Commission . 68
Joint Commission . 68
Qualifications for appointment of Chairperson and
Members of State Commission 70
Constitution of Selection Committee to select Members
of State Commission . 70
Functions of State Commission . 71
State Advisory Committee . 73
Objects of State Advisory Committee .. 73
Appropriate Commission Other Provisions
89. Term of office and conditions of service of members. 73
90. Removal of-member .. 74
Proceedings and powers of the
Appropriate Commission
91. Secretary Officers and other employees of
Appropriate Commission . 75
92. Proceedings of Appropriate Commission 76
93. Vacancies, etc., not to invalidate proceedings 76
94. Powers of Appropriate Commission .. 76
95. Proceedings before Commission 77
96. Powers of entry and seizure . 77
97. Delegation 77
Grants, Fund r Accounts, Audit and Report
98. Grants and loans by Central Government .. 77
99. Establishment of Fund by Central Government .77
100. Accounts and Audit of Central Commission ..
78
Contents
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101. Annual Report of Central Commission 79
102. Grants and Loans by State Government .. 79
103. Establishment of Fund by State Government .. 79
104. Accounts and audit of State Commission .. 80
105. Annual report of State Commission . 80
106. Budget of Appropriate Commission . 80
107. Directions by Central Government .. 81
108. Directions by State Government 81
109. Directions to Joint Commission .81
PART XI
Appellate Tribunal for Electricity
110. Establishment of Appellate Tribunal 81
111. Appeal to Appellate Tribunal . 82
112. Composition of Appellate Tribunal .. 83
113. Qualifications for appointment of Chairperson and
Member of the Appellate Tribunal .. 83
114 Term of office... 84
115 Terms and conditions of service . 85
116. Vacancies .85
117. Resignation and removal 85
118. Member to act as Chairperson in certain circumstances . 85
119. Officers and other employees of Appellate Tribunal 86
120. Procedure and powers of Appellate Tribunal .. 86
121. Power of Chairperson of Appellate Tribunal .. 87
122. Distribution of business amongst Benches and transfer
of cases from one Bench to another Bench ... 87
123. Decision to be by majority . 87
123. Right of appellant to take assistance of legal practitioner
and of Appropriate Commission to appoint
presenting officers . 88
125. Appeal to Supreme Court ... 88
PART - XII
Investigation and Enforcement
126. Assessment .. 88
127. Appeal to Appellate Authority .89
128. Investigation of certain matters ..90
129. Orders for securing compliance ... 92
130. procedure for issuing directions by Appropriate Commission 92
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The Electricity Act, 2003
PART XIII
Reorganisation of Board
131. Vesting of property of Board in State Government
132.Use of proceeds of sale or transfer of the Board etc
133. Provisions relating to officers and employees
134. Payment of compensation or damages on transfer
PART - XIV Offences
and Penalties
135. Theft of Electricity
136. Theft of electric lines and materials
137. Punishment for receiving stolen property....
138. Interference with meters or works of licensee
139. Negligently wasting electricity or injuring works
140. Penalty for maliciously wasting electricity or injuring works
141. Extinguishing public lamps
142. Punishment for non-compliance of directions by
Appropriate Commission
143.Power to adjudicate
144.Factors to be taken into account by adjudicating officer
145.Civil Court not to have jurisdiction
146.Punishment for non-compliance of orders or directions
147. Penalties not to affect other liability
148. Penalty where works belong to Government
149. Offences by companies
150. Abetment.........
151. Cognizance of offences
152. Compounding of offences..
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PART - XV
Special
Courts
153. Constitution of Special Courts
l54. Procedure and power of Special Court
155. Special Court to have powers of court of Session
156. Appeal and revision..
157. Review
103
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PART XVI
Dispute Resolution
Arbitration.
158. Arbitration
107
Contents
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PART XVII
Other provisions
Protective clauses
159. Protection of railways, highways, airports and canals,
docks, wharfs and piers..................................................................107
160. Protection of telegraphic, telephonic and
electric signalling lines....................................................................107
161. Notice of accidents and inquiries....................................................108
162. Appointment of Chief Electrical Inspector and
Electrical Inspector..........................................................................109
163. Power for licensee to enter premises and to remove
fittings or other apparatus of licensee.............................................109
164. Exercise of powers of Telegraph Authority in certain cases..........110
165. Amendment of Sections 40 and 41 of Act (1 of 1894).................110
PART XVIII
Miscellaneous
166. Coordination Forum.........................................................................111
167. Exemption of electric lines or electrical plants from
attachment in certain cases.............................................................. Ill
168. Protection of action taken in good faith..........................................112
169. Members, officers, etc., of Appellate Tribunal,
Appropriate Commission to be public servants...............................112
170. Recovery of penalty payable under this Act...................................112
171. Services of notices, orders or documents.........................................112
172. Transitional provisions......................................................................113
173. Inconsistency in laws.......................................................................114
174. Act to have overriding effect..........................................................114
175.Provisions of this Act to be in addition to and not
in derogation of other laws.............................................................114
176. Power of Central Government to make rules..................................114
177. Powers of Authority to make regulations........................................116
178. Powers of Central Commission to make regulations.......................117
179. Rules and regulations to be laid before Parliament.........................119
180. Powers of State Governments to make rules...................................119
181. Powers of State Commissions to make regulations........................120
182. Rules and regulations to be laid before State Legislature...............123
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The Electricity Act, 2003
183.Power to remove difficulties .............................................................123
184. Provisions of Act not to apply in certain cases.............................124
185.Repeal and saving............................................................................124
The Schedule Enactments..............................................................125
