ELECTRICITY ACT, 2010

(Act No. XIII of 2010)

 THE JAMMU AND KASHMIR ELECTRICITY ACT, 2010

(Act No. XIII of 2010)

CONTENTS

Preamble.
SECTION. SECTION.
PART I PART IV

Preliminary Licensing

1. Short title and commencement. 12. Authorised person to transmit,

supply etc. electricity.
2. Definitions.
13. Power to exempt.
PART II
14. Grant of licence.
State Electricity Policy and Plan 15. Procedure for grant of licence.
3. State Electricity Policy and Plan. 16. Conditions of licence.
4. State policy on stand alone system 17. Licensee not to do certain things.
for rural areas and non-conven-
18. Amendment of licence.
tional energy systems.
19. Revocation of licence.
5. State policy on electrification and
local distribution in rural areas. 20. Sale of utilities of licensees.

6. Obligations to supply electricity to 21. Vesting of utility in purchaser.

rural areas. 22. Provisions where no purchase takes
PART III place.
23. Directions to the licensee.
Generation of Electricity
24. Suspension of distribution licence
7. Generating company and require-
and sale of utility.
ment for setting up of generating
stations. PART V

8. Hydro Electric Generation. Transmission of Electricity

25. Transmission within the State.
9. Captive generation.
26. Constitution of State Load Despatch
10. Duties of generating companies.
Centre.
11. Directions to the generating com- 27. Functions of State Load Despatch
panies. Centre.
400 ELECTRICITY ACT, 2010

SECTION. SECTION.
28. Compliance of directions. 47. Provisions relating to safety and
29. Grid standards. electricity supply.

30. Intervening transmission facilities. 48. Control of transmission and use of

electricity.
31. Charges for intervening transmission
facilities. 49. Use, etc., of meters.
32. Directions by Government. 50. Disconnection of supply in the
33. State Transmission Utility and default of payment.
functions. 51. Standards of performance of licensee.
34. Duties of transmission licensees. 52. Different standards of performance
35. Other business of transmission by licensee.
licensee.
53. Information with respect to levels
PART VI of performance.
DISTRIBUTION OF ELECTRICITY 54. Market domination.
Provisions with respect to distribution CHAPTER VII
licensees
Tariff
36. Duties of distribution licensee and
open access. 55. Tariff regulations.
37. Duty to supply on request. 56. Determination of tariff.
38. Exceptions from duty to supply 57. Determination of tariff by bidding
electricity. process.
39. Power to recover charges. 58. Procedure for tariff order.
40. Power to recover expenditure. 59. Provisions of subsidy by Govern-
41. Power to require security. ment.
42. Additional terms of supply. 60. Development of market.
43. Agreements with respect to supply PART VIII
or purchase of electricity.
Works of licensees
44. The Electricity Suppy Code.
61. Provisions as to opening of streets,
45. Other business of distribution railways, etc.
licensees.
62. Overhead lines.
46. Provisions with respect to electricity
trader. 63. Notice to telegraph authority.
 ELECTRICITY ACT, 2010 401

SECTION. SECTION.
PART IX 81. Accounts and Audit of Commission.
STATE ELECTRICITY REGULATORY 82. Annual report of the Commission.
COMMISSION 83. Budget of the Commission.
Constitution, Powers and Functions 84. Directions by Government.
of the Commission
PART XI
64. Constitution of Commission.
Appeal
65. Qualification for appointment of
Members of the Commission. 85. Appeal to High Court in certain
cases.
66. Constitution of Selection Committee
to recommend Members. PART XII
67. Term of office and conditions of Investigation and Enforcement
service of Members.
86. Assessment.
68. State Advisory Committee.
87. Appeal to Appellate Authority.
69. Removal of Chairperson or Member.
88. Investigation of certain matters.
70. Officers and other employees of the
89. Orders for securing compliance.
Commission.
90. Procedure for issuing directions by
71. Functions of State Commission.
the Commission.
72. Objects of State Advisory Committee.
PART XIII
73. Proceedings of the Commission.
Reorganization of the Department/
74. Vacancies, etc. not to invalidate Utility
proceedings.
91. Vesting of property in the Govern-
75. Powers of Commission. ment.
76. Proceedings before Commission. 92. Use of pr oceeds of sa le an d
transfer, etc.
77. Powers of entry and seizure.
93. Provision relating to officers and
78. Delegation. employees.
PART X
94. Payment of compensation or damages
Grants, Fund, Accounts, Audit and on transfer.
Report
PART XIV
79. Grants and loans by the Government.
Offences and Penalties
80. Establishment of fund by Govern-
95. Theft of electricity.
ment.
402 ELECTRICITY ACT, 2010

SECTION. SECTION.
96. Theft of electric lines and material. 116. Procedure and power of Special
97. Punishment for receiving stolen Court.
property. 117. Special Court to have powers of
98. Interference with meters or works Court of Session.
of licensee. 118. Appeal and revision.
99. Negligently breaking or damaging 119. Review.
works.
PART XVI
100. Penalty for intentionally injuring
works. DISPUTE RESOLUTION
101. Extinguishing public lamp. Arbitration
102. Punishment for non-compliance of 120. Arbitration.
directions by Commission.
PART XVII
103. Power to adjudicate.
OTHER PROVISIONS
104. Factors to be taken into account by
Protective clauses
adjudicating officer.
121. Protection of railways, highways,
105. Civil Court not to have jurisdiction.
airports, canals and piers.
106. Punishment for non-compliance of
orders or directions. 122. Protection of telegraphic, tele-
phonic and electric signalling lines.
107. Penalties not to effect other liabilities.
123. Notice of accidents and inquiries.
108. Penalty where works belong to
Government. 124.Appintment of Chief Electrical
Inspector and Electrical Inspec-
109. Offences by companies. tor.
110. Abetment. 125.Power for licensee to enter pre-
111. Cognizance of offences. mises and to remove fittings or
other apparatus of licensee.
112. Power of Police to investigation.
126. Exercise of powers of Telegraph
113. Certain offences cognizable and
Authority in certain cases.
non-bailable.
PART XVIII
114. Compounding of offences.
Amendment of the Land Acquisition
PART XV
Act, Samvat 1990
Special Courts
127. Amendment of sections 40 and 41,
115. Constitution of Special Courts. Act X of Samvat 1990.
 ELECTRICITY ACT, 2010 403

SECTION. SECTION.
PART XIX 134. Inconsistency in laws.
Miscellaneous 135. Act to have overriding effect.
128. Co-ordination forum. 136. Provisions of the Act to be in addi-
tion to and not in derogation of
129.Exemption of electric lines or other laws.
electric plants from attachment in
certain cases. 137. Powers of Government to make
rules.
130. Protection of action taken in good
faith. 138. Power of the Commission to make
regulations.
131. Members, officers, etc. of the
Commission to be public servants. 139. Rules and regulations to be laid
before the State Legislature.
132. Recovery of penalty payable under
the Act. 140. Powers to remove difficulties.
133. Services of notices, orders or 141. Repeal and savings.
documents.
–––––––
Amendments made by:––

Act No. XI of 2018.

–––––––
404 ELECTRICITY ACT, 2010
 ELECTRICITY ACT, 2010 405

THE JAMMU AND KASHMIR ELECTRICITY ACT, 2010

(Act No. XIII of 2010)

[Received the assent of the Governor on 28th April, 2010 and published in
the Government Gazette dated 29th April, 2010.]

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 State Electricity
Regulatory Commission and for matters connected therewith or incidental thereto.

Be it enacted by the Jammu and Kashmir State Legislature in the Sixty-first

Year of the Republic of India as follows:––

PART I

Preliminary

1. Short title and commencement.––(1) This Act may be called the Jammu
and Kashmir Electricity Act, 2010.

(2)  It shall come into force on the date of its publication in the Government
Gazette.

2. Definitions.––In this Act, unless the context otherwise requires,—

(1) “Act” means the Jammu and Kashmir Electricity Act, 2010 ;

(2) “area of supply” means the area within which a distribution licensee is
authorized by his licence to supply electricity ;

(3) “Authority” means an authority defined as such in clause (6) of section

2 of the Electricity Act, 2003 (Central Act No. 36 of 2003) ;

(4) “Captive Generation 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 ;
406 ELECTRICITY ACT, 2010

(5) “Central Transmission Utility” shall be assigned the same meaning as

defined in clause (10) of section 2 of the Electricity Act, 2003 (Central
Act No. 36 of 2003) ;

(6) “Chairperson” means the Chairperson of the Commission ;

(7) “co-generation” means a process which simultaneously produces two

or more forms of useful energy (including electricity) ;

(8) “Commission” means the Jammu and Kashmir State Electricity

Regulatory Commission ;

(9) “Company” means a company formed and registered under the

Companies Act, 1956 and includes any body corporate under a Central
or State Act ;

(10) “conservation” means any reduction in consumption of electricity as

a result of increase in the efficiency in supply and use of electricity ;

(11) “Consumer” means any person who is supplied with electricity for his
own use by a licensee or by the Government or by any other person
engaged in the business of supplying electricity to the public under
the 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 ;

(12) “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 line or sub-stations or generating stations, or load centre,
as the case may be;

(13) “Distribution Licensee” means a licensee authorized to operate and

maintain a distribution system for supplying electricity to the consumers
in his area of supply ;

(14) “Distribution Main” means the portion of any main with which a service
line is, or is intended to be, immediately connected ;

(15) “Distribution System” means the system of wires and associated

facilities between the delivery points on the transmission lines or the
generating station and connection and the point of connection to the
installation of the consumers ;
 ELECTRICITY ACT, 2010 407

(16) “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 ;

(17) “Electrical Inspector” means a person appointed as such by the

Government under the provisions of the Act and also includes the
Chief Electrical Inspector ;

(18) “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 ;

(b) a meter used for ascertaining the quantity of electricity supplied

to any premises ; and

(c) an electrical equipment, apparatus or appliance under the control

of a consumer ;

(19) “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 ;

(20) “Electricity Supply Code” means the Electricity Supply Code specified
under section 44 ;

(21) “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 ;

(b) transmission lines ; or

(c) electric lines and sub-stations ;

(22) “Electricity trader” means a person who is authorized to undertake

trading in electricity under section 12 ;
408 ELECTRICITY ACT, 2010

(23) “Franchisee” means a person authorized by a distribution licensee to

distribute electricity on its behalf in a particular area within his area of
supply ;

(24) “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 ;

(25) “Generate” means to produce electricity from a generating station for

the purpose to give supply to any premises or enabling a supply to be
so given ;

(26) “Generating Station or Station” means any station for generating

electricity including any building and plant with step-up transformer,
switch-gear, switchyard, 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 ;

(27) “Government” means the Government of the State of Jammu and

Kashmir ;

(28) “Government Company” shall have the meaning as assigned to it in

section 617 of the Companies Act, 1956 ;

(29) “Grid” means the high voltage backbone system of interconnected

transmission lines, sub-station and generating plants ;

(30) “Grid Code” means the Grid Code specified by the Central Electricity
Regulatory Commission under the provisions of the Electricity Act,
2003 (Central) ;

(31) “Grid Standards” means the grid standards specified under clause (d)
of section 73 of the Electricity Act, 2003 (Central) ;

(32) “High Voltage Line” means an electric line or cable of a nominal voltage
as may be specified by the authority from time to time ;

(33) “Inter State Transmission System” includes––

 ELECTRICITY ACT, 2010 409

(a) any system for the conveyance of electricity by means of main

transmission line from the territory of the State to another
State ;

(b) 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 ;

(c) the transmission of electricity within the territory of the State on

a system built, owned, operated, maintained or controlled by a
State Transmission Utility ;

(34) “Intra-State Transmission System” means any system for transmission

of electricity other than an Inter-State Transmission System ;

(35) “Licence” means a licence granted under section 14 ;

(36) “Licensee” means a person who has been granted a licence under
section 14 ;

(37) “Line” means any wire, cable, tube, pipe, insulator, conductor or other
similar thing (including its casing or coating) which is designed or
adopted 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 ;

(38) “Local Authority” means any Municipal Council, Municipal

Corporation, Municipal Committee, Panchayat constituted at the
village, intermediate and district levels or other authority legally
entitled to, or entrusted by the Government with, the control or
management of any area or local fund ;

(39) “Main” means any electric supply line through which electricity is or
is, intended to be, supplied ;

(40) “Member” means the member of the Commission and includes its
Chairperson ;

(41) “Notification” means notification published in the Government Gazette

and the expression “notify” shall be construed accordingly ;

(42) “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
410 ELECTRICITY ACT, 2010

in generation in accordance with the regulations specified by the

Commission ;

(43) “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 ;

(44) “Person” shall include any company or body corporate or association

or body of individuals whether incorporated or not, or artificial juridical
person ;

(45) “Power System” means all aspects of generation, transmission,

distribution and supply of electricity and includes one or more of the
following, namely:––

(a) generating station ;

(b) transmission or main transmission lines ;

(c) sub-stations ;

(d) tie-lines ;

(e) load dispatch activities ;

(f) mains or distribution mains ;

(g) electric supply lines ;

(h) overhead lines ;

(i) service lines ;

(j) works ;

(46) “premises” includes any land, building or structure ;

(47) “prescribed” means prescribed by rules made by the Government under

the Act ;

(48) “Public Lamp” means an electric lamp used for the lighting of any
street ;

(49) “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 dispatch centre ;
 ELECTRICITY ACT, 2010 411

(50) “Regional Load Dispatch Centre” means the centre established under
sub-section (1) of section 27 of the Electricity Act, 2003 (Central) ;

(51) “Regulations” mean regulation made under the Act ;

(52) “Repealed laws” means the Jammu and Kashmir Electricity Act, 1940
and the Jammu and Kashmir State Electricity Regulatory Commission
Act, 2000 repealed by section 140 ;

(53) “Rules” means rules made under the Act ;

(54) “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 ;

(55) “Specified” means specified by regulations made by the Commission

under this Act ;

(56) “Stand alone System” means the electricity system set-up to generate
power and distribute electricity in a specified area without connection
to the grid ;

(57) “State Grid Code” means the State Grid Code specified under clause
(h) of sub-section (1) of section 71 ;

(58) “State Load Dispatch Centre” means the centre established under
section 26 ;

(59) “State Transmission Utility” means any Government Company or

Corporation specified as such by the Government under the sub-section
(1) of section 33 ;

(60) “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 ;

(61) “Sub-station” means station for transforming or converting electricity

for the transmission or distribution thereof and includes transformers,
412 ELECTRICITY ACT, 2010

converters, switch-gears, capacitors, synchronous, condensers,

structures, cables and other appurtenant equipment and any buildings
used for that purpose and the site thereof ;

(62) “Supply” in relation to electricity, means the sale of electricity to a

licensee or consumer ;

(63) “Trading” means purchase of electricity for resale thereof and the
expression “trade” shall be constructed accordingly ;

(64) “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-gears 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 ;

(65) “Transmission Licensee” means a licensee authorized to establish or

operate transmission lines ;

(66) “Transmit” means conveyance of electricity by means of transmission

lines and the expression “transmission” shall be constructed
accordingly ;

(67) “Utility” means the electric lines or electrical plant, and includes all
lands, buildings, works and material attached thereto belonging to any
person acting as a generating company or licensee under the provisions
of the Act ;

(68) “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 56 ; and

(69) “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 the Act or any
other law for the time being in force.
 ELECTRICITY ACT, 2010 413

PART II

State Electricity Policy and Plan

3. State Electricity Policy and Plan.––(1) The Government shall, from time
to time, prepare the State Electricity Policy and Tariff Policy, in light of National
Electricity Policy and Tariff Policy, for development of the power system based
on optimal utilization of resources such as coal, natural gas, nuclear substances or
materials, hydro and renewable sources of energy.

(2)  The Government may publish the State Electricity  Policy and Tariff
Policy from time to time.

(3) The  Government  may,  from  time  to  time,  review  or  revise  the  State
Electricity Policy and Tariff Policy referred to in sub-section (1) in accordance
with the National Electricity Policy and Tariff Policy.

(4) The Government shall, prepare the State Electricity Plan in accordance
with the State Electricity Policy and notify such plan once in five years. The
Government, while doing so, may seek expert advice from the authority also :

Provided that the Government, while preparing the State Electricity Plan,
shall publish the Draft State Electricity Plan and invite suggestions and objections
thereon from licensees, generating companies and the public within such time as
may be prescribed.

4. State policy on stand-alone system for rural areas and non-conventional

energy systems.––The Government shall, prepare and notify a State policy,
permitting stand alone systems (including those based on renewable sources of
energy and other non-conventional sources of energy) for rural areas.

5.  State policy on electrification and local distribution in rural areas.––
The Government shall also formulate a State policy, for rural electrification and
bulk purchase of power and management of local distribution in rural areas through
Panchayat Institutions, Users Association, Co-operative Societies, Non-
Governmental Organizations or Franchises.

6.  Obligations to supply electricity to rural areas.––The Government shall

endeavor to supply electricity to all areas including villages and hamlets.
414 ELECTRICITY ACT, 2010

PART III

Generation of Electricity

7.  Generating  company  and  requirement  for  setting  up  of  generating

stations.—Any generating company may establish, operate and maintain a
generating station without obtaining a licence under the Act if it complies with the
technical standards relating to connectivity with the grid referred to in clause (b)
of section 73 of the Electricity Act, 2003 (Central).

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 Central Electricity 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 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 multipurpose scheme for the development of any river in any
region is in operation, the Government and the generating company shall coordinate
their activities with the activities of such person responsible for such scheme in so
far as they are inter-related.

9. Captive generation.––(1) Notwithstanding anything contained in this Act,

a person may construct, maintain or operate a captive generating plant and dedicated
transmission line/s :

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 :
 ELECTRICITY ACT, 2010 415

Provided further that no licence shall be required under the Act for supply
of electricity generated from a captive generating plant to any licensee in
accordance with the provisions of the Act and the rules and regulations made
thereunder and to any consumer subject to the regulations made under sub-section
(2) of section 36.

(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 State Transmission Utility :

Provided further that any dispute regarding the availability of transmission

facility shall be adjudicated upon by the Commission.

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 the Act or the rules or
regulations made thereunder.

(2) A generating company may supply electricity to any licensee in accordance

with the Act and the rules and regulations made thereunder.

(3) Every generating company shall,—

(a) submit technical details regarding its generating stations to the

Commission and the Authority ;

(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.

11. Directions to the generating companies.—(1) The Government may

specify that a generating company shall, in extraordinary circumstances, operate
and maintain any generating station in accordance with the directions as may be
issued by the Government.

Explanation:–– For purposes of this section, the expression “extraordinary

circumstances” means circumstances arising out of the threat
to security of the State, public order or a natural calamity or
such other circumstances arising in the public interest.
416 ELECTRICITY ACT, 2010

(2) The 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.

PART IV

Licensing

12. Authorized person to transmit, supply etc. electricity.––No person

shall,––

(a) transmit electricity ; or

(b) distribute electricity ; or

(c) undertake trading in electricity,

unless he is authorized to do so by a licence issued under section 14, or is exempt

under section 13.

13. Power to exempt.––The Commission may, on the recommendations of

the Government, in accordance with the State 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 Institutions, Users Association, Co-operative Societies, Non-
Governmental Organization, or franchisees.

14. Grant of licence.—The Commission may, on an application made to it

under section 15, grant a licence to any person to––

(a) transmit electricity as a transmission licensee ; or

(b) distribute electricity as a distribution licensee ; or

(c) 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 shall on the commencement
of the Act be deemed to be a licensee under the Act for such period as may be
stipulated in the licence, clearance or approval granted to him under the repealed
laws and the provisions of the repealed laws shall apply for a period of one year
from the date of commencement of the Act or such earlier period as may be
 ELECTRICITY ACT, 2010 417

specified, at the request of the licensee, by the Commission and thereafter the
provisions of this Act shall apply to such business :

Provided further that the Central Transmission Utility and State Transmission
Utility shall be deemed to be a transmission licensee under the Act :

Provided also that in case the Government transmits electricity or distributes

electricity or undertakes trading in electricity, whether before or after the
commencement of the Act, the Government shall be deemed to be a licensee under
the Act, and shall not be required to obtain a licence under the Act :
1
[Provided also that the Government Companies namely; Jammu and Kashmir
State Power Transmission Company Limited (Transco), Jammu and Kashmir State
Power Trading Company Limited (Tradeco), Jammu Power Distribution Company
Limited (Jammu Discom) and Kashmir Power Distribution Company Limited
(Kashmir Discom) or the Company referred to in sub-section (2) of section 91 of
the Act, shall be deemed to be licensee under this Act] :

Provided also that the 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
the Act, comply with the additional requirements (relating to the capital adequacy,
creditworthiness, or Code of Conduct) as may be prescribed, 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 :

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 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 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 47 :

Provided also that a distribution licensee shall not require a licence to

undertake trading in electricity.
1. Proviso inserted by Act No. XI of 2018, s. 2.
418 ELECTRICITY ACT, 2010

15.  Procedure for grant of licence.––(1) Every application under this section

shall be made in such form and in such manner as may be specified by the
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––

(a) until the objections, if any, received by the Commission in response to

publication of the application have been considered by it :

Provided that no objection shall be considered unless it is received before

the expiration of thirty days from the date of publication of the notice as
aforesaid ; and

(b) 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
Government for defence purposes, the Commission has ascertained
that there is no objection to the grant of licence on the part of the
Central Government.

(3) A person intending to act as a transmission licensee shall, immediately

on making the application, forward such a copy of application to the State
Transmission Utility.

(4) The State Transmission Utility, shall within thirty days after the receipt
of  the  copy  of  the  application  referred  to  in  sub­­section (3),  send  its
recommendations, if any, to the Commission:

Provided that such recommendations shall not be binding on the Commission.

(5) Before granting a licence under section 14, the Commission shall––

(a) publish a notice in at least two such daily newspapers, as the

Commission may consider necessary, stating the name and address of
the person to whom it proposes, to issue the licence ; and

(b) consider all suggestions or objections and the recommendations, if

any, of the State Transmission, if any, of the State Transmission Utility.

(6) Where  a  person  makes  an  application  under  sub­section (1),  the

Commission shall, as far as practicable, within ninety days after receipt of such
application,––
 ELECTRICITY ACT, 2010 419

(a) issue a licence subject to the provisions of the 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 the 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 Commission shall, immediately after issue of a licence forward a
copy of the licence to the Government, Authority, Local Authority and to such
other person as it may consider necessary.

(8) A licence shall continue to be in force for a maximum period of twenty-
five years unless such licence is revoked, or unless otherwise specified to be in
force for a period of less than twenty-five years.

16.  Conditions of licence.––The 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 Commission shall, within one year from the date of
commencement of the Act, specify any general or specific conditions of licence
applicable to the licencees referred to in the first, second, third, fourth and fifth
provisos to section 14.

17. Licensee not to do certain things.—(1) No licensee shall, without prior

approval of the 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.

(2) Every licensee shall, before obtaining the approval under sub­section
(1), give not less than one month’s notice to every other licensee whom 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 Commission.
420 ELECTRICITY ACT, 2010

(4) Any agreement relating to any transaction specified in sub-section

(1) or sub-section (3), unless made with the prior approval of the Commission,
shall be void.

18. Amendment of licence.—(1) Where in its opinion the public interest so

permits, the Commission, may, on the application of the licensee otherwise, make
such alternations and amendments in the terms and conditions of his licence as it
thinks fit :

Provided that no such alternations or amendments shall be made except

with the consent of the licensee unless such consent has, in the opinion of the
Commission, been unreasonably withheld.

(2) Before any alternations 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 alternation 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 alternations 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 occupations of the Government for defence
purposes, the Commission shall not make any alternations or
modifications except with the consent of the Central Government ;

(c) where any alternations or modifications in a licence are proposed to

be made otherwise than on the application of the licensee, the
Commission shall publish the proposed alternations or modifications
with such particulars and in such manner as may be specified ;

(d) the Commission shall not make any alternations or modifications unless
all suggestions or objections received within thirty days from the date
of first publication of the notice have been considered.

19. Revocation of licence.—(1) If the Commission, after making an enquiry,

is satisfied that public interests so requires, it may revoke a licence in any of the
following cases, namely:––

(a) where the licensee, in the opinion of the Commission, makes wilful
and prolonged default in doing anything required of it by or under the
Act or the rules or regulations made there under ;
 ELECTRICITY ACT, 2010 421

(b) where the licensee violates any of the terms and conditions of its licence
the violation 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 its
licence, or any longer period which the Commission may have granted
thereof, to,––

(i) show to the satisfaction of the Commission that the licensee is

in a position fully and efficiently to discharge the duties and
obligations imposed on it by his licence ; or

(ii) 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 Commission the final 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 Commission
may, on application, or with the consent of the licensee, revoke his licence as to
the whole or part of his area of distribution or transmission or trading up on such
terms and conditions as it thinks fit.

(3) No licence shall be revoked under sub­section (1) unless the 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 Commission may, instead of revoking a licence under sub­section
(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 up on and be observed by the licensee and shall be of like force and effect
as if they were specified in the licence.

(5) Where the Commission revokes a licence under this section, it shall serve
a notice of revocation up on the licensee and fix a date on which the revocation
shall take effect.

(6) Where the 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 intended under the Act, the licensee may,
422 ELECTRICITY ACT, 2010

after prior approval of the Commission sell his utility to any person who is found
eligible by the Commission for grant of licence.

20. Sale of utilities of licensees.—(1) Where the Commission revokes under

section 19, the licence of any licensee, the following provisions shall apply,
namely:––

(a) the Commission shall invite application 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 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 the 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 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 Commission may direct.

(2) Where a utility is sold under sub­section (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 Commission issues any notice under sub­­section (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.

(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 sub­­section, the Commission may, if it deems fit, permit the
intending purchaser to operate and maintain the utility system pending the
completion of the sale.
 ELECTRICITY ACT, 2010 423

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 obligations of
the licensee or attaching to the utility :

Provided that any such debt, mortgage or similar obligations 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.

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 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
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
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.

23. Directions to the licensee.—If the 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.

24. Suspension of distribution licence and sale of utility.—(1) If at any time

the 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 the Act ; or
424 ELECTRICITY ACT, 2010

(c) has persistently defaulted in complying with any direction given by

the Commission under the Act ; or

(d) has violated the terms and conditions of licence,

and circumstances exist which render it necessary for it in public interest so to do,
the 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 function of the distribution licensee in accordance
with the terms and conditions of the license :

Provided that before suspending a licence under this section, the Commission
shall give a reasonable opportunity to the distribution licensee to make
representation against the proposed suspension of licence and shall consider the
representation, if any, of the distribution licensee.

(2) Upon suspension of licence under  sub­section (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 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.

(4) In a case where the 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 shall be remitted to the distribution licensee.

PART V

Transmission of Electricity

25. Transmission within the State.—The Commission shall facilitate and

promote transmission, wheeling and inter­connection arrangements within the State
for the transmission and supply of electricity by economical and efficient utilization
of the electricity.

26. Constitution of State Load Despatch Centre.––(1) The Government shall

establish a centre to be known as the State Load Despatch Centre for the purposes
 ELECTRICITY ACT, 2010 425

of exercising the power and discharging the functions under this Part for optimum
load scheduling and despatches.

(2) The State Load Despatch Centre shall be operated by a Government

company or any authority or corporation established or constituted by or under an
Act of the State Legislature, as may be notified by the Government :

Provided that until a Government company or any authority or corporation

is notified by the Government, the State Transmission Utility shall operate the
State Load Despatch Centre :

Provided further that State Load Despatch Centre shall not engage in the
business of trading in electricity.

27. Functions of State Load Despatch Centre.––(1) The State Load Despatch

Centre shall be the Apex Body to ensure integrated operation of the power system
in the State.

(2) The State Load Despatch Centre shall,––

(a) be responsible for optimum scheduling and despatch of electricity

within the State, in accordance with the contracts entered into with the
licensees or the generating companies operating in the 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 of 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 Commission.

(4) The State Load Despatch Centre shall have to comply with such principles,
guidelines and methodologies in respect of wheeling and optimum scheduling and
despatch of electricity as the Commission may specify in the Grid Code.
426 ELECTRICITY ACT, 2010

28. Compliance of directions.––(1) The State Load Despatch Centre 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 the State.

(2) Every licensee, generating company, generating station, sub-station and

any other person connected with the operation of the power system shall comply
with the directions issued by the State Load Despatch Centre under sub-section
(1).

(3) The State Load Despatch Centre shall comply with the directions of the
Regional Load Despatch Centre.

(4) If any dispute arises with reference to the quality of electricity or safe,
secure and integrated operation of the State grid or in relation to any direction
given under sub-section (1), it shall be referred to the Commission for decision :

Provided that pending the decision of the 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.

29. 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.

30. Intervening transmission facilities.––The Commission may, on an

application by any licensee, by order require any other licensee owning or operating
intervening transmission facilities to provide the use of such facilities to the extent
of surplus capacity available with such licensee :

Provided that any dispute, regarding the extent of surplus capacity available
with the licensee, shall be adjudicated upon by the Commission.

31. Charges for intervening transmission facilities.—(1) Every licensee shall,

on an order made under section 30, provide his intervening transmission facilities
at rates, charges and terms and conditions as may be mutually agreed upon :

Provided that the Commission may specify rates, charges and terms and
conditions if these can not be mutually agreed upon by the licensee.
 ELECTRICITY ACT, 2010 427

(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 purposes of sections 30 and 31, the expression “intervening

transmission facilities” means the electric lines owned or operated
by a licensee where such electric lines can be utilized for
transmitting electricity for and on behalf of another licensee at his
request and on payment of a tariff or charge.

32. Directions by Government.––The Government may issue directions to

the State Load Dispatch Centre to take such measures as may be necessary for
maintaining smooth and stable transmission and supply of electricity to any area
of the State.

33. State Transmission Utility and functions.––(1) The Government may

notify a Government Company or a Corporation 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 Government may transfer, and vest any property,
interest in property, rights and liabilities connected with, and personnel involved
in transmission of electricity, of such 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 the 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 co­ordination relating to
Intra-State Transmission System with,––

(i) Central Transmission Utility ;

(ii) other State Governments ;

(iii) generating Companies ;

(iv) Regional Power Committees ;

428 ELECTRICITY ACT, 2010

(v) Authority ;

(vi) licensees ;

(viii) any other person notified by the Government in this behalf ;

(c) to ensure development of an efficient, co-coordinated and economical

system of Intra-State transmission lines for smooth flow of electricity
from generating stations/HV Sub-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
Commission under sub-section (2) of section 36, on payment of
the transmission charges and a surcharge thereon, as may be
specified by the Commission :

Provided that such surcharges shall be utilized for the purpose of meeting
the requirement of current level cross-subsidy :

Provided further that such surcharges and cross-subsidies shall be

progressively reduced in the manner as may be specified by the Commission :

Provided also that the manner of payment and utilization of the surcharge
shall be specified by the 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.

34. Duties of transmission licensees.––It shall be the duty of a transmission

licensee, ––

(a) to build, maintain and operate an efficient, coordinated and economical

Intra-State Transmission System or Inter-State Transmission System,
as the case may be ;

(b) to comply with the directions of the Regional Load Dispatch 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,––
 ELECTRICITY ACT, 2010 429

(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
Commission under sub­­section (2) of the section 36, on payment
of the transmission charges and a surcharge thereon, as may be
specified by the Commission :

Provided that such surcharge shall be utilized for the purpose of meeting the
requirement of current level cross-subsidy :

Provided further that such surcharge and cross-subsidies shall be

progressively reduced in the manner as may be specified by the Commission :

Provided also that the manner of payment and utilization of the surcharge
shall be specified by the Commission :

Provided also that such surcharge shall not be leviable in case open access
in provided to a person who has established a captive generating plant for carrying
the electricity to the destination of his own use.

35. Other business of transmission licensee.––A transmission licensee may,

with prior intimation to the Commission, engage in any business for optimum
utilization of its assets :

Provided that a proportion of the revenues delivered from such business

shall, as may be specified by the Commission, be utilized for reducing its charges
for transmission and wheeling :

Provided further that the transmission licensee shall maintain separate

accounts for each such business undertaking to ensure that transmission business
neither subsidies in any way such business undertaking nor encumbers its
transmission assets in any way to support such business :

Provided also that no transmission licensee shall enter into any contract or
otherwise engage in the business of trading in electricity.

PART VI

DISTRIBUTION OF ELECTRICITY

Provisions with respect to distribution licensees

36.  Duties of distribution licensee and open access.––(1) It shall be the

duty of a distribution licensee to develop and maintain an efficient, co-coordinated
430 ELECTRICITY ACT, 2010

and economical distribution system in his area of supply and to supply electricity
in accordance with the provisions contained in the Act.

(2) The 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 date of commencement of the Act and
in specifying the extent of open access in successive phases and in determining
the charges of wheeling, it shall have due regard to all relevant factors including
such cross subsidies, and other operational constraints :

Provided that such open access shall be allowed on payment of a

surcharge in addition to the charges for wheeling as may be determined by
the Commission :

Provided further that such surcharge shall be utilized 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 in the manner as may be specified by the 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 :

Provided also that the Commission shall, not later than five years from the
date of commencement of the Act, 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.

(3) Where any person, whose premises are situated within the area of a
distribution licensee (not being a local authority engaged in the business of
distribution of electricity before the commencement of the Act) 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 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 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 Commission, to meet the fixed
cost of such distribution licensee arising out of his obligation to supply.
 ELECTRICITY ACT, 2010 431

(5) Every  distribution  licensee  shall,  within  six  months  from  the

commencement of the Act 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 Commission.

(6) Any consumer, who is aggrieved by non­redressal of his grievances under
sub-section (5), may make a representation for redressal of his grievances to an
authority to be known as Ombudsman to be appointed or designated by the
Commission.

(7) The Ombudsman shall settle the grievances of the consumer within such
time and in such manner as may be specified by the 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 right conferred upon him by
those sub-sections.

37. Duty to supply on request.––(1) Save as otherwise provided in the 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-station, 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 Commission :

Provided further that in case of a village or hamlet or area wherein no

provision for supply of electricity exists, the Commission may extend the said
period as it may consider necessary for electrification of such village or hamlet or
area.

Explanation:–– For 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
432 ELECTRICITY ACT, 2010

unless he has agreed with the licensee to pay to him such price as may be determined
by the Commission from time to time.

(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.

38. Exceptions from duty to supply electricity.––Nothing contained in section

37 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.

39. 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 37 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 Commission ;

(b) published in such manner as shall give adequate publicity for such
charges and prices.

(3) The charges for electricity supplied by a distribution licensee may

include, ––

(a) a fixed charge in addition to the charge for the actual electricity
supplied ;

(b) a rent or other charges in respect of any electric meter or electric plant
provided by the distribution licensee.

(4) Subject to the provisions of section 56, 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 the Act and the regulations made in this behalf by the
Commission.

40. Power to recover expenditure.––The Commission may, by regulations,

authorize a distribution licensee to charge from a person requiring a supply of
 ELECTRICITY ACT, 2010 433

electricity in pursuance of section 37, any expenses reasonably incurred in providing

any electric line or electrical plant used for the purpose of giving that supply.

41. 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 37, to give him reasonable security, as
may be determined by regulations, for the payment to him of all charges which
may become due to him,––

(a) in respect of the electricity supplied to such person ; or

(b) where any electric line or electric plant or electric meter is to be

provided for supplying electricity to such person, in respect of the
provisions 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 a supply of electricity or to provide a 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 charges which may become due to him in respect of the supply of electricity or
provisions of such line or plant or meter.

(3) If the person referred to in sub­section (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 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.

42. Additional terms of supply.––A distribution licensee may require any person

who requires a supply of electricity in pursuance of section 37 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 47 ;
434 ELECTRICITY ACT, 2010

(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.

43. Agreements with respect to supply or purchase of electricity.––Where

the Commission has allowed open access to certain consumers under section 36,
such consumers, notwithstanding the provisions contained in clause (d) of sub-
section (1) of section 56, 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.

44. The Electricity Supply Code.––The 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, electric lines or meters, entry of
distribution licensee or any person acting on his behalf for disconnecting supply
and removing the meter, entry for replacing, altering or maintaining electric lines
or electrical plants meter and such other matters.

45. Other business of distribution licensees.––A distribution licensee may,

with prior intimation to the Commission, engage in any other business for optimum
utilization of its assets :

Provided that a proportion of the revenues delivered from such business

shall, as may be specified by the Commission, be utilized 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
subsidies 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 the Act, in the business of
distribution of electricity.

46. Provisions with respect to electricity trader.––(1) Without prejudice to

the provisions contained in clause (c) of section 12, the 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 Commission.
 ELECTRICITY ACT, 2010 435

47. Provisions relating to safety and electricity supply.––The Authority may,

in consultation with the Government, specify suitable measures for,––

(a) protecting the public (including the persons engaged in the generation,
transmission or distribution or trading) from dangers arising from the
generation, transmission or distribution or trading of electricity, or
use of electricity supplied or installation, maintenance or use of any
electric line or electrical plant ;

(b) eliminating or reducing the risk of personal injury to any person or

damage to property of any person or interference with use of such
property ;

(c) prohibiting the supply or transmission of electricity except by means of

a system which conforms to the specifications as may be specified ;

(d) giving notice in the specified form to the 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 authorized 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.

48. Control of transmission and use of electricity.––(1) Save as otherwise

exempted under the Act, no person other than the 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
436 ELECTRICITY ACT, 2010

(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 Government, by general or special order, declares

the provisions of this sub-section to apply, 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, as the case
may be, containing particulars of the electrical installations and
plant, if any, the nature and the purpose of supply and complying
with such of the provisions of Part XVII of the 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 Government, and the decision of the Government
thereon shall be final.

49. Use, etc., of meters.––(1) No licensee shall supply electricity, after the

expiry of two years from the commencement of the Act, except through installation
of a correct meter in accordance with the regulations to be made in this behalf by
the Commission :

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 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 Commission 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 Commission may
 ELECTRICITY ACT, 2010 437

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 company or other association
or any other person who is responsible for its default.

50. Disconnection of supply in the 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 right to recover such charges
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 charges 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 more, 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 arrears of charges for
electricity supplied and the licensee shall not cut off supply of electricity.

51. Standards of performance of licensee.—(1) The Commission may, after

consultation with the licensees and the 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 sub­section (1),
without prejudice to any penalty which may be imposed or prosecution be initiated,
he shall be liable to pay such compensation to the person affected as may be
determined by the Commission :

Provided that before determination of compensation, the concerned licensee

shall be given a reasonable opportunity of being heard.
438 ELECTRICITY ACT, 2010

(3) The compensation determined under sub­section (2) shall be paid by the
concerned licensee within ninety days of such determination.

52. Different standards of performance by licensee.––The Commission may

specify  different standards  under  sub­­section (1)  of  section 51,  for  a class  or
classes of licensees.

53. Information with respect to levels of performance.–– (1) Every licensee

shall, within the period specified by the Commission, furnish to the Commission
the following information, namely:––

(a) the level of performance achieved under sub-section (1) of section 51 ;

(b) the number of cases in which compensation was made under sub-
section (2) of section 51, and the aggregate amount of the
compensation.

(2) The  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).

54. Market domination.––The 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.

PART VII

Tariff

55. Tariff regulations.––The Commission shall, subject to the provisions of

the 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 ;
 ELECTRICITY ACT, 2010 439

(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 ;

(g) that the tariff progressively, reflects the cost of supply of electricity
and also reduces cross subsidies within the period to be specified by
the Commission ;

(h) the promotion of co-generation and generation of electricity from

renewable sources of energy ;

(i) the State Electricity Policy and the State Tariff Policy :

Provided that the terms and conditions for determination of tariff laid down
by the Commission or by any other authority, immediately before the
commencement of the Act, 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.

56. Determination of tariff.––(1) The Commission shall determine the tariff

in accordance with the provisions of the Act for,––

(a) supply of electricity by a generating company to a distribution licensee :

Provided that the 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 Commission may, for promoting competition among
distribution licensees, fix only maximum ceiling of tariff for retail sale of electricity.

(2) The  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.
440 ELECTRICITY ACT, 2010

(3) The Commission shall not, while determining the tariff under the 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 charges expressly permitted
under the terms of any fuel surcharge formula as may be specified.

(5) The  Commission may require a licensee or a generating company to
comply with such procedure 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.

57. Determination of tariff by bidding process.––Notwithstanding anything

contained in section 56, the Commission shall adopt the tariff if such tariff has
been determined through transparent process of bidding in accordance with the
guidelines issued by the Government.

58. Procedure for tariff order.––(1) An application for determination of tariff

under section 56 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 Commission.

(3) The 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 tariff order accepting the application with such modifications or
conditions as may be specified in that order ; or

(b) reject the application for reasons to be recorded in writing if such

application is not in accordance with the provisions of the Act and the
rules or regulations made thereunder or the provisions of any other
law for the time being in force :
 ELECTRICITY ACT, 2010 441

Provided that an applicant shall be given a reasonable opportunity of being

heard before rejecting his application.

(4) The Commission shall, within seven days of making the order, send a
copy of the order to the Government, the Authority, and the concerned licensee
and to the person concerned.

(5) A tariff order shall, unless amended or revoked, continue to be in force
for such period as may be specified in the tariff order.

59. Provisions of subsidy by Government.––If the Government requires the

grant of any subsidy to any consumer or class of consumers in the tariff determined
by the Commission under section 56, the Government shall, notwithstanding any
direction which may be given under section 84, 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 Commission may direct, as a condition for the licensee
or any other person concerned to implement the subsidy provided for by the
Government :

Provided that no such direction of the Government shall be operative if the

payment is not made in accordance with the provisions contained in this section
and the tariff fixed by the Commission shall be applicable from the date of issue
of orders by the Commission in this regard.

60. Development of market.––The 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 State Electricity Policy.

PART VIII

WORKS

Works of licensees

61. Provisions as to opening 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 beyond the area of supply, beyond
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 ;
442 ELECTRICITY ACT, 2010

(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 Government may, by rules made by it in this behalf, specify,—

(a) the cases and circumstances in which the consent in writing of the
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 ;

(d) the procedure and manner of consideration of objections and

suggestions 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 ;
 ELECTRICITY ACT, 2010 443

(l) the procedure for undertaking works which are not repairable by the
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

(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 anyone 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
Commission.

(5) The 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.

62. Overhead lines.––(1) An overhead line shall, with prior approval of the

Government, be installed or kept installed above ground in accordance with the
provisions of sub-section (2).

(2) The provisions contained in sub­section (1) shall not apply, ––

(a) in relation to an electric line which has a normal 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.

444 ELECTRICITY ACT, 2010

(3) The Government shall, while granting approval under sub­section (1),
impose such conditions (including conditions as to the ownership and operation
of the line) as appear to it to be necessary.

(4) The 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.

(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, any officer or authority specified by the 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 sub­section (5), the officer 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 purposes of this section, the expression “tree” shall be deemed
to include any shrub, hedge, jungle growth or other plant.

63. Notice to telegraph authority.––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 Government and such authority shall take a decision
on the proposal within thirty days ;

(b) give not less than ten days’ notice in writing to the telegraph authority in
case of repair, renewal or amendment of existing works, specifying—

(i) the course of works or alterations proposed ;

(ii) the manner in which works are to be utilized ;

(iii) amount and nature of electricity to be transmitted ;

 ELECTRICITY ACT, 2010 445

(iv) the extent to, and the manner in which (if at all), earth returns
are to be used, 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 the 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.

PART IX

STATE ELECTRICITY REGULATORY COMMISSION

Constitution, Powers and Functions of the Commission

64. Constitution of Commission.––(1) There shall be a Commission to be

known as the State Electricity Regulatory Commission to exercise the powers
conferred on, and discharge the functions assigned to it under this Act.

(2) The  State Electricity  Regulatory  Commission  established under  sub­

section (1) of section 3 of the Jammu and Kashmir State Electricity Regulatory
Commission Act, 2000 and functioning as such immediately before the
commencement of the Act, shall be the State Commission for the purposes of this
Act and the Chairperson, Members, Secretary and officers and other employees
thereof shall continue to hold office, on the same terms and conditions on which
they were appointed under that Act :

Provided that the Chairperson and other Members of the Commission

appointed, before the commencement of the Act, under the Jammu and Kashmir
State Electricity Regulatory Commission Act, 2000 may on the recommendations
of the Selection Committee constituted under sub-section (1) of section 66, be
allowed to opt for the terms and conditions under the Act by the Government.

(3) The 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.
446 ELECTRICITY ACT, 2010

(4) The  Head  Office  of  the  Commission  shall  be  at  such  place  as  the
Government may, by notification, specify.

(5) The Commission shall consist of not more than three Members including
the Chairperson.

(6) The Chairperson and Members of the Commission shall be appointed
by the Government on the recommendation of a Selection Committee referred to
in sub-section (1) of section 66.

65. Qualification for appointment of Members of the Commission.––(1) The

Chairperson and the Members of the Commission shall be persons of ability, integrity
and standing who have adequate knowledge of, or experience in, or have shown capacity
in, dealing with, problems relating to engineering, finance, commerce, economics,
law or management and shall be appointed in the following manner, namely :––

(a) at least one person having qualifications and experience in the field of
engineering with specifications in generation, transmission or
distribution of electricity ;

(b) one person having qualification and experience in the field of finance,
economics, commerce, law or management.

(2) The Chairperson or any other Member of the Commission shall not hold
any other office.

(3) The Chairperson shall be the Chief Executive of the Commission.

66. Constitution of Selection Committee to recommend Members.––(1) The

Government shall, for the purposes of selecting the Chairperson and Members of
the Commission constitute a Selection Committee consisting of:––

(a) Chief Secretary ... Chairperson

(b) Member, Central Electricity Regulatory

Commission as nominated by the Chairman,
Central Electricity Regulatory Commission ... Member

(c) Administrative Secretary incharge

Power Development Department ... Member

(d) Administrative Secretary incharge

Law Department ... Member.

(2) No appointment of Chairperson or a Member shall be invalid merely by
reason of any vacancy in the Selection Committee.
 ELECTRICITY ACT, 2010 447

(3) The Government shall, within one month from the date of occurrence of
any vacancy by reason of death, resignation or removal of the Chairperson or
Member of the Commission and six months before the superannuation or end of
tenure of the Chairperson or a Member of the Commission make a reference to the
Selection Committee for filling up of the vacancy.

(4) The Selection Committee shall finalize the selection of the Chairperson
or the Members referred to in sub-section (3) within two months from the date on
which the reference is made to it.

(5) The Selection Committee shall recommend a panel of two names for
every vacancy referred to it.

(6) Before recommending any person for appointment as Chairperson or

Member, 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.

67. Term of office and conditions of service of Members.—(1) The

Chairperson and Members shall hold office for a term of five years from the date
they enter upon their office :

Provided that the Chairperson and Members shall not be eligible for re-
appointment in the Commission :

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 the Members shall be such as may be prescribed :

Provided that the salary, allowances and other terms and conditions of service
of the Chairperson or the Members shall not be varied to their disadvantage after
appointment.

(3) The Chairperson and Members shall, before entering upon their 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), the Chairperson

or a Member may,—

(a) relinquish his office by giving in writing to the Government a notice

of not less than three months ; or
448 ELECTRICITY ACT, 2010

(b) be removed from his office in accordance with the provisions of section
69.

(5) The Chairperson or 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.

Explanation: ––For purposes of this sub-section, “commercial employment” means

employment in any capacity in any organization which has been a
party to the proceedings before the 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.

68. State Advisory Committee.—(1) The 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 eleven

members excluding the ex officio members to represent the interests of commerce,
industry, transport, agriculture, labour, consumers, non-governmental organizations
and academic and research bodies in the electricity sector.

(3) The Chairperson of the Commission shall be the ex­officio Chairperson
of the State Advisory Committee and the Members of the Commission and the
Administrative Secretary to Government incharge of the Department dealing with
Consumer Affairs and Public Distribution System shall be the ex-officio Members
of the Committee.

69.  Removal  of  Chairperson  or  Member.––(1) The Chairperson and

Members shall not be removed from office except in accordance with the provisions
of this section.

(2) The Government, may, by order, remove from office the Chairperson or
any Member, if he––

(a) has been adjudged an insolvent ;

 ELECTRICITY ACT, 2010 449

(b) has been convicted of an offence which, in the opinion of the

Government, involves moral turpitude ;

(c) has become physically or mentally incapable of acting as such ;

(d) has acquired such financial or other interest as is likely to affect

prejudicially his functions in the Commission ;

(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 the Chairperson or a Member shall not be removed from his
office on any ground specified in clauses (d), (e) and (f) unless the High Court, on
a reference being made to it in this behalf by the Government, has, on an enquiry
held in accordance with such procedure as may be prescribed by the High Court,
reported that the Chairperson or such Member ought on such ground or grounds
to be removed.

(2) The Government may suspend the Chairperson or any Member of the
Commission in respect of whom a reference has been made to High Court under
sub-section (1) until the Government has passed orders on receipt of the report of
the High Court on such reference.

70.  Officers and other employees of the Commission.–– (1) The Commission

shall have a Secretary to exercise such powers and perform such duties under the
control of the Chairperson, as may be prescribed.

(2) The Secretary shall be appointed by the Government.

(3) The  number,  nature  and  categories  of  other  officers  and  employees
required to assist the Commission in the discharge of its functions shall be such as
may be determined by the Government.

(4) 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
determined by the Government.

(5) The  Commission  may  appoint  consultants  required  to  assist  the

Commission in the discharge of its functions on the terms and conditions as may
be specified.

71. Functions of State Commission.––(1) The Commission shall discharge

the following functions, namely: ––
450 ELECTRICITY ACT, 2010

(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 36, the Commission shall determine only the
wheeling charges and surcharges thereon, if any, for the said category of
consumers ;

(b) regulate electricity purchase and procurement process of distribution

licensees including the price at which electricity shall be procured
from the generating companies or licensees or from other sources
through agreements for purchase of power for distribution and supply
within the State ;

(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 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 the Act ;

(h) specify State Grid Code consistent with the Grid Code specified under
the Electricity Act, 2003 (Central) ;

(i) specify or enforce standards with respect to quality, continuity and

reliability of service by licencees ;

(j) fix the trading margin in the Intra-State trading of electricity, if

considered, necessary ;

(k) discharge such other functions as may be assigned to it under the Act.

(2) The  Commission  shall  advise  the  Government  on  all  or  any  of  the
following matters, namely:––
 ELECTRICITY ACT, 2010 451

(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 ;

(iv) matters concerning generation, transmission, distribution and trading

of electricity or any other matter referred to the Commission by the
Government.

(3) The Commission shall ensure transparency while exercising the powers
and discharging its functions.

(4) In discharge of its functions, the Commission shall be guided by  the
State Electricity Policy, State Electricity Plan and Tariff policy published under
the provisions of the Act.

72. 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 requirement of

their licence ;

(iv) protection of consumer interest ; and

(v) electricity supply and overall standards of performance by utilities.

73. Proceedings of the Commission.––(1) The 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 meeting) as it may specify.

(2) The Chairperson, or if he is unable to attend a meeting of the Commission,
any other Member nominated by the Chairperson in this behalf, and in the absence
of such nomination or where there is no Chairperson, the senior most Member
shall preside at the meeting.

(3) All questions which come up before any meeting of the Commission
shall be decided by a majority of votes, the Chairperson or in his absence, the
person presiding shall have a second or casting vote.
452 ELECTRICITY ACT, 2010

(4) Save as otherwise provided in sub­section (3), every Member shall have
one vote.

(5) All orders and decisions of the Commission shall be authenticated by its
Secretary and in his absence, by any other officer of the Commission duly authorized
by the Chairperson in this behalf.

74.  Vacancies, etc. not to invalidate proceedings.—No act or proceeding

of the Commission shall be questioned or shall be invalidated merely on the ground
of existence of any vacancy or defect in the constitution of the Commission.

75.  Powers of Commission.—(1) The Commission shall, for the purposes

of any inquiry or proceedings under the Act, have the same powers as are vested in
a Civil Court under the Code of Civil Procedure, Samvat 1977 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 Commission shall have the powers to pass such interim order in any
proceeding, hearing or matter before it, as it may consider appropriate.

(3) The Commission may authorise any person, as it deems fit, to represent
the interest of the consumers in the proceedings before it.

76.  Proceedings before Commission.––All proceedings before the

Commission shall be deemed to be judicial proceedings within the meaning of
sections 193 and 228 of the State Ranbir Penal Code and the Commission shall be
deemed to be a Civil Court for the purposes of sections 480 and 482 of the Code
of Criminal Procedure, Samvat 1989.
 ELECTRICITY ACT, 2010 453

77.  Powers of entry and seizure.––The Commission or any officer, not below

the rank of Gazetted Officer specially authorized 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 of copies therefrom subject to the
provisions of section 102 of the Code of Criminal Procedure, Samvat 1989, in so
far as it may be applicable.

78.  Delegation.––The Commission may, by general or special order in

writing, delegate to any Member, Secretary, officer of the 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 the Act, (except the powers to adjudicate
disputes under section 71 and the powers to make regulations under section 137)
as it may deem necessary.

PART X

Grants, Fund, Accounts, Audit and Report

79.  Grants and loans by the Government.––The Government may, after

due appropriation made by State Legislature in this behalf, make to the Commission
grants and loans of such sums of money as the Government may consider necessary.

80.  Establishment of fund by 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 Commission by the Government
under section 79 ;

(b) all fees received by the Commission under the Act ;

(c) all sums received by the Commission from such other sources as may
be decided upon by the Government.

(2) The fund shall be applied for meeting,––

(a) the salary, allowances and other remuneration of Chairperson,

Members, Officers and other Employees of the Commission ;

(b) the expenses of the Commission in discharge of its functions under

section 71 ;

(c) the expenses on objects and for purposes authorized by the Act.
454 ELECTRICITY ACT, 2010

(3) The 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).

81.  Accounts and Audit of Commission.––(1) The 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 Government in
consultation with the Comptroller and Auditor General of India.

(2) The accounts of the 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
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 Commission under the
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 Commission.

(4) The accounts of the Commission, as certified by the Comptroller and
Auditor General of India or any other person appointed by him in his behalf together
with the audit report thereon, shall be forwarded annually to the Government and
the Government shall cause the same to be laid, as soon as may be after it is
received, before the State Legislature.

82.  Annual report of the Commission.––(1) The 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 Government.

(2) A copy of the report received under sub­section (1) shall be laid, as soon
as may be after it is received, before the State Legislature.

83.  Budget of the Commission.––The 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 estimate receipts and expenditure of the
Commission and forward the same to the Government.

84.  Directions by Government.––(1) In the discharge of its functions, the

Commission shall be guided by such directions in matters of policy involving
public interest as the Government may give to it in writing.
 ELECTRICITY ACT, 2010 455

(2) If any question arises as to whether any such direction relates to a matter
of policy involving public interest, the decision of the Government thereon shall
be final.

PART XI

Appeal

85.  Appeal to High Court in certain cases.––(1) Any person aggrieved by

any decision or order of the Commission may file an appeal to the High Court.

(2) Except as aforesaid, no appeal or revision shall lie to any Court from
any decision or order of the Commission.

(3) An appeal under this section shall be preferred within sixty days from
the date of communication of the decision or order of the Commission to the
person aggrieved by the said decision or order:

Provided that the High Court may entertain an appeal after the expiry of the
said period of sixty days, if it is satisfied that the aggrieved person had sufficient
cause for not preferring the appeal within the said period.

PART XII

Investigation and Enforcement

86. 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 judgment the electricity charges
payable by such person or by any other person benefited by such use.

(2) The order of provisional assessment shall be served upon the person in
occupation or possession or in charge of the place or premises in such manner as
may be prescribed.

(3) The person, on whom an order has been served under sub­section (2),
shall be entitled to file objections, if any, against the provisional assessment before
the assessing officer, who may, after affording a reasonable opportunity of hearing
to such person, pass a final order of assessment within 30 days from the date of
service of such order of provisional assessment, of the electricity charges payable
by such person.
456 ELECTRICITY ACT, 2010

(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.

(5) If the assessing officer reaches to the conclusion that unauthorized use
of electricity has taken place, the assessment shall be made for the entire period
during which such un-authorised use of electricity has taken place, and if, however,
the period during which such un-authorised 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.

(6) The assessment under this section shall be made at a rate equal to
twice the tariff applicable for the relevant category of services specified in
sub-section (5).

Explanation: –– For purposes of this section,––

(a) “Assessing Officer” means an officer of the Government or licensee,

as the case may be, designated as such by the Government ;

(b) “Unauthorised use of electricity” means the usage of electricity: ––

(i) by an artificial means ; or

(ii) by a means not authorised by the concerned person or authority

or licensee ; or

(iii) through a tampered meter; or

(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 authorised.

87.  Appeal to Appellate Authority.––(1) Any person aggrieved by the

final order made under section 86 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 Commission, to an Appellate Authority as
may be prescribed.

(2) No appeal against an order of assessment under sub­­section (1) shall be
entertained unless an amount equal to one-third 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.
 ELECTRICITY ACT, 2010 457

(3) The Appellate Authority referred to in sub­section (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 sub­section (1) passed
under sub-section (3) shall be final.

(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.

88.  Investigation of certain matters.––(1) The 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 the Act or the rules or regulations made thereunder, at any time, by order in
writing, direct any person (hereafter in this section referred to as “Investigating
Authority”) specified in the order to investigate the affairs of any generating
company or licensee and to report to the 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 Commission, cause an inspection to be made, by
one or more of its 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 Officers
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 it may specify.
458 ELECTRICITY ACT, 2010

(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.

(5) The Investigating Authority, shall, if it has been directed by the

Commission to cause an inspection to be made, and may, in any other case, report
to the Commission on any inspection made under this section.

(6) On receipt of any report under sub­section (1) or sub­­section (5),
the 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 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 Commission
may think fit ; or

(b) cancel the licence ; or

(c) direct the generating company to cease to carry on the business of

generating of electricity.

(7) The 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 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 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 ; and

(b) all its branches wherever situated.

 ELECTRICITY ACT, 2010 459

(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 the debts due from the licensee or the generating
company and shall be recoverable as an arrear of land revenue.

89.  Orders for securing compliance.––(1) Where the 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 the 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 sub­section (1), the Commission shall have
due regard to the extent to which any person is likely to sustain loss or damage due
to such contravention.

90.  Procedure for issuing directions by the Commission.––The Commission,

before issuing any direction under section 89, 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.

PART XIII

Reorganisation of the Department/Utility

91.  Vesting of property in the Government.––(1) With effect from the date

on which a transfer scheme, prepared by the Government to give effect to the
objects and purposes of the Act, is published or such further date as may be
stipulated by the 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 any institution or corporation or authority
shall vest in the Government free from all encumbrances.

(2) Any  property, interest in property,  rights and liabilities vested in  the

Government earlier or under sub-section (1) above shall be re-vested by the
460 ELECTRICITY ACT, 2010

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 Government as may be stipulated
in such scheme, on such terms and conditions as may be agreed between the
Government and such company or companies being State transmission utility or
generating company or 1[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 revenue potential of such assets at such
terms and conditions as may be agreed between the 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 Government, the
scheme shall give effect to the transfer scheme only on fair value to be
paid by the transferee to the Government ;

(b) a transaction of any description is effected in pursuance of a transfer

scheme, it shall be binding on all parties including third parties and
even if such persons or third parties have not consented to it.

(4) The  Government  may,  after consulting  the  Government  company  or

companies being state transmission utility or generating company or transmission
licensee or distribution licensee referred to in sub-section (2) (hereinafter referred
to as ‘the transferor’), require such transferor to draw 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 the 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 ;
1. Substituted for “transmission licensee” by Act No. XI od 2018, s.3, w.e.f.13.03.2018.
 ELECTRICITY ACT, 2010 461

(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 and 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.

(6) All debts and obligations incurred, all contracts entered into and all
matters and things engaged to be done by the Government, with the Government
or for the Government or 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 Government, with the
Government or for the Government or the transferee and all suits or legal
proceedings instituted by or against the Government or transferor, as the case
may be, may be continued or instituted by or against the Government or concerned
transferee, as the case may be.

92.  Use of proceeds of sale and transfer, etc.––In the event that any utility
owned or controlled by the Government is sold or transferred in any manner to a
person who is or to any company which is, not owned or controlled by the
Government, the proceeds from such sale or transfer shall be utilized in priority to
all other dues in the following order, namely,––
462 ELECTRICITY ACT, 2010

(a) dues (including retirement dues) to the officers and employees of such
utility, or 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.

93.  Provision relating to officers and employees.––(1) The Government

may, by a transfer scheme, provide for the transfer of officers and employees to
the transferee on the vesting of properties, rights and liabilities in such transferee
as provided under section 91.

(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 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 purpose 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 transferor.

94.  Payment of compensation or damages on transfer.––Notwithstanding

anything contained in the any other law for the time being in force and except for
the provisions made in the Act, the transfer of employment of the officers and
employees referred to in sub-section (1) of section 93 shall not entitle such officers
and employees to any compensation or damages under the Act, or any other law,
save as provided in the transfer scheme.

PART XIV

Offences and Penalties

95. Theft of electricity.––(1) Whoever, dishonestly,––

(a) tapes, makes or causes to be made any connection with overhead,

underground or underwater lines or cables, or service wires, or service
facilities of a licensee or supplied, 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
 ELECTRICITY ACT, 2010 463

interferes with accurate or proper registration, calibration or metering

of electric current or otherwise results in a manner whereby electricity
is stolen or wasted ; or

(c) damages or destroys an electric meter, apparatus equipment, or wire

or causes or allows any of them to be so damaged or destroyed as to
interfere with the proper or accurate metering of electricity ; or

(d) uses electricity through a tampered meter ; or

(e) uses electricity for the purposes other than for which the usage of
electricity was authorized,

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 case where the load abstracted, consumed, or used or

attempted abstraction or attempted consumption or attempted use,––

(i) does not exceed ten 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 of financial gain on account
of such theft of electricity ;

(ii) exceeds ten 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 imprisonment for a term not less than six months but
which may extend to five years and with fine not less than six months
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,
consumption or use exceeds ten kilowatt, such person shall 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 provided that any artificial means, or means not
authorized by the Government 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.
464 ELECTRICITY ACT, 2010

(2)  Without prejudice to the provisions of the 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 or the licensee or the supplier, as

authorized for the purpose by the Commission or any other officer of the
licensee or supplier of the rank higher than the rank so authorized 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 to the commission of such offence in Police
Station having jurisdiction within 24 hours from the time of such disconnect :

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 the Act, shall, without prejudice to the obligation to lodge the
complaint as referred to in the second proviso to this sub-section, restore the supply
of electricity within 48 hours of such deposit or payment.

(3) Any officer of the licensee or the supplier, as the case may be, authorized
in this behalf by the Government may,––

(a) enter, inspect, break open and search any place or premises in
which he has reason to believe that electricity 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.

(4)  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 place or

domestic premises shall be carried out between sunset and sunrise except in the
presence of an adult male member occupying such premises.
 ELECTRICITY ACT, 2010 465

(5)  The provisions of the Code of Criminal Procedure, Samvat 1989,
relating to search and seizure shall apply, as far as may be, to searches and
seizure under the Act.

(6)  For purpose of the aforesaid provision, the authorized officer may be
conferred with the powers of an Executive Magistrate by the Government by
notification in the Government Gazette.

96. Theft of electric lines and material.––(1) Whoever, dishonestly––

(a) cuts or removes or takes away or transfers any electric line material or
meter from a tower, pole, any other installation or place of installation
or any other place, or site where it may be rightfully or lawfully stored,
deposited, kept, stocked, situated or located including during
transportation, without the consent of the licensee or the owner, as the
case may be, whether or not the act is done for profit or gain ; or

(b) stores, possesses or otherwise keeps in his premises, custody or control,

any electric line, material or meter without the consent of the owner,
whether or not the act is committed for profit or gain ; or

(c) loads, carries or moves from one place to another any electric line
material or meter without the consent 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 which shall not be less than five thousand rupees 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.

97. 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.

98.  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
466 ELECTRICITY ACT, 2010

(b) unauthorisedly reconnects any meter, indicator or apparatus with

any electric line or other works being the property of a licensee
when the said electric line or other works has or have been cut or
disconnected ; or

(c) lays or causes to be laid, or connects up any works for the purpose of
communicating with any other works belonging to a licensee ; or

(d) maliciously injures any meter, indicator or apparatus belonging to a

licensee or wilfully or fraudulently alters the index of any such meter,
indicator or 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 reconnection 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 the meter, indicator or apparatus is
under the custody or control of the consumer, and, 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 wilfully caused by such consumer.

99.  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.

100. Penalty for intentionally injuring works.––Whoever maliciously causes

electricity to be wasted or diverted or with intent to cut off the supply of electricity,
cuts or injuries, or attempts to cut or injure any electric supply line or works shall
be punishable with fine which may extend to ten thousand rupees.

101.  Extinguishing public lamp.––Whoever, maliciously extinguishes any

public lamp shall be punishable with fine which may extend to two thousand rupees.

102.  Punishment for non-compliance of directions by Commission.—In case

any complaint is filed before the Commission by any person, or if the Commission
is satisfied that any person has contravened any of the provisions of the Act or the
rules or regulations made thereunder, or any direction issued by the Commission,
the 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
 ELECTRICITY ACT, 2010 467

which he may be liable under the 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.

103. Power to adjudicate.––(1) For the purpose of adjudging under the

Act, the Commission shall appoint any of its Members to be an adjudicating
officer for holding an inquiry in such manner as may be prescribed, after giving
any person concerned a reasonable opportunity of being heard for the purpose
of imposing any penalty.

(2)  While holding any 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 28 or section 37, he
may impose such penalty as he thinks fit in accordance with the provisions of
any of those sections.

(3)  Any person aggrieved by an order under sub­section (2) may within
thirty days of the order prefer an appeal before the Commission for modifying or
rescinding such order :

Provided that the Commission shall not pass any order without affording
reasonable opportunity to the other party or parties, as the case may be.

104. Factors to be taken into account by adjudicating officer.–– While

adjudicating the quantum of penalty under section 28 or section 37, 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.

105.  Civil Court 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 86 or an Appellate Authority referred to in
section 87 or the adjudicating officer appointed under the Act is empowered by or
under the Act to determine and no injection 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 the Act.
468 ELECTRICITY ACT, 2010

106.  Punishment for non-compliance of orders or directions.––Whoever,

fails to comply with any order or direction given under the 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 the 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.

107.  Penalties not to effect other liabilities.––The penalties imposed under

the 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.

108. Penalty where works belong to Government.––The provisions of the

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 Government.

109.  Offences by companies.––(1) Where an offence under the Act, has

been committed by a company, every person who at the time of the Commission
of offence was incharge of and was responsible to the company for the conduct of
the business of the company, as well as the company, shall be deemed to be guilty
of having committed the offence and shall be liable to be proceeded against and
punished accordingly :

Provided that nothing contained in this sub-section shall render any such
person liable to any punishment if he proves that the offence was committed without
his knowledge or that he had exercised all due diligence to prevent the commission
of such office.

(2) Notwithstanding anything contained in sub­section (1), where an offence
under the 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 purposes of this section :—

(a) “company” means a body corporate and includes a firm or other

association of individuals ; and
 ELECTRICITY ACT, 2010 469

(b) “director” in relation to a firm, means a partner in the firm.

110.  Abetment.––(1) Whoever abets an offence punishable under the Act

shall notwithstanding anything contained in the State Ranbir 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 the Act or any other law for
the time being in force, if any officer or other employee of the Government 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.

(3) Notwithstanding anything contained in sub­section (1) of section 95,
sub-section (1) of section 96, section 97 and section 98, the licence or certificate
of competency or permit or such other authorization issued under the rules made
under the 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 95, sub-section (1) of section 96, section 97, or section 98, 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 purposes of this sub-section, ‘licensing 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.

111.  Cognizance of offences.––No court shall take cognizance of an offence

punishable under the Act except upon a complaint in writing made by Government
or the 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 :

Provided that the Court may also take cognizance of an offence punishable
under the Act upon a report of Police Officer filed under section 173 of the Code
of Criminal Procedure, Samvat 1989 :

Provided further that a Special Court constituted under section 115 shall be
competent to take cognizance of an offence without the accused being commuted
to it for trial.
470 ELECTRICITY ACT, 2010

112.  Power of Police to investigation.––For the purposes of investigation

of an offence punishable under the Act, the Police Officer shall have all the powers
as provided in Chapter XIV of the Code of Criminal Procedure, Samvat 1989.

113.  Certain offences cognizable and non-bailable.–– Notwithstanding

anything contained in the Code of Criminal Procedure, Samvat 1989, an offence
punishable under sections 95 to 100 or section 110 shall be cognizable and non-
bailable.

114.  Compounding of offences.––(1) Notwithstanding anything contained

in the Code of Criminal Procedure, Samvat 1989, the 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 the Act, sum of money by way of compounding
of the offence as specified in the Table below:—

TABLE
Nature of service Rate at which the sum of money for
compounding to be collected per
Kilowatt (KW)/Horse Power (HP) or
part thereof for low tension (LT) supply
and per Kilo Volt Ampere (KVA) of
contracteddemand for high tension.

1 2

1. Industrial service Twenty thousand rupees.

2. Commercial service Ten thousand rupees.

3. Agricultural service Two thousand rupees.

4. Other service Four thousand rupees :

Provided that the Government may, by notification, amend the rates specified
in the Table above.

(2) On payment of the sum of money in accordance with sub­section (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 Government or an officer empowered in
 ELECTRICITY ACT, 2010 471

this behalf shall be deemed to amount to an acquittal within the meaning of section
403 of the Code of Criminal Procedure, Samvat 1989.

(4) The compounding of an offence under sub­section (1) shall be allowed
only once for any person or consumer.

PART XV

Special Courts

115.  Constitution of Special Courts.––(1) The Government in consultation

with the High Court may, for the purposes of providing speedy trial of offences
referred to in sections 95 to 100 and section 110, by notification constitute as
many Special Courts as may be necessary for such area or areas, as may be specified
in the notification.

(2) 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 where no
Special Court has been constituted under the Act, the functions of the Special
Court shall be disposed off by the Chief Judicial Magistrate having jurisdiction in
the area or such other Judicial Magistrate as the Government may in consultation
with the High Court, designate.

116. Procedure and power of Special Court.––(1) Notwithstanding anything

contained in the Code of Criminal Procedure, Samvat 1989, every offence
punishable under sections 95 to 100 and section 110 shall be triable 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 95 to 100 and section 110 in respect of any
offence that the case is one which is triable by a Special Court constituted under
the Act for the area in which such case has arisen, if shall transfer such case to
such Special Court, wherever constituted for the area and thereupon such case
shall be tried and disposed of by such Special Court in accordance with the
provisions of the Act :

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 witness 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.
472 ELECTRICITY ACT, 2010

(3) The Special Court may, notwithstanding anything contained in sub­section
(1) of section 260 or section 262 of the Code of Criminal Procedure, Samvat 1989
try the offence referred to in sections 95 to 100 and section 110 in summary way in
accordance with the procedure prescribed in the said Code and 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 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 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 338 of the Code of
Criminal Procedure, Samvat 1989, be deemed to have been tendered under section
337 thereof.

(5) The Special Court may 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
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 consumer or the person, to the licensee or the concerned person,
as the case may be, shall be refunded by the 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 purpose of this section, “Civil liability” means loss or damage
incurred by the licensee or the concerned person, as the case may
 ELECTRICITY ACT, 2010 473

be, due to the commission of an offence referred to in sections 95

to 100 and section 110.

117.  Special Court to have powers of Court of Session.—Save as otherwise

provided in the Act, the provisions of the Code of Criminal Procedure, Samvat
1989, in so far as they are not inconsistent with the provisions of the Act, shall
apply to the proceedings before the Special Court and for the purpose of the
provisions of the said enactment, 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.

118.  Appeal and revision.—The High Court may exercise, so far as may be

applicable, all the powers conferred by Chapters XXXI and XXXII of the Code of
Criminal Procedure, Samvat 1989, as if the Special Court is a District Court, or as
the case may be, the Court of Session.

119.  Review.—The Special Court may, on the petition or otherwise and in

order to prevent miscarriage of justice, review its judgment or order passed under
section 116, but no such review petition shall be entertained except on the ground
that it had passed such order under a mistake of fact, ignorance of any material
fact or any error apparent on the face of the record :

Provided that the Special Court shall not allow any review petition and set
aside its previous order or judgment without hearing the parties affected.

Explanation: ––For purpose of this part, “Special Courts” means the Special Courts
constituted under sub-section (1) of section 115 and includes the
Court having such jurisdiction under sub-section (2) thereof.

PART XVI

DISPUTE RESOLUTION

Arbitration

120.  Arbitration.—Where any matter is, by or under the 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
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 Jammu
and Kashmir Arbitration and Conciliation Act, 1997.
474 ELECTRICITY ACT, 2010

PART XVII

OTHER PROVISIONS

Protective clauses

121.  Protection of railways, highways, airports, canals 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 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.

122.  Protection  of  telegraphic,  telephonic  and  electric  signalling

lines.—(1) Every person generating, transmitting, distributing, supplying or
using electricity (hereafter in this section referred to as “operator”) shall take
all reasonable precautions in constructing, laying down and placing his electric
lines, electrical plants 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
telegraphic 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), as to whether working of any wire, line or current
is or is not injuriously affected thereby, the matter shall be referred to the
Government and the Government, unless it is of the opinion that 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 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 reason thereof, and where any difference or dispute arises as to the amount of
such compensation, the matter shall be determined by arbitration.
 ELECTRICITY ACT, 2010 475

Explanation: ––For 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 works or by any use made
thereof.

123.  Notice of accidents and inquiries.—(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 Government may by general or special order, direct.

(2) The 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 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 the 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, Samvat 1977 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 State Ranbir Penal Code.

124.  Appointment of Chief Electrical Inspector and Electrical

Inspector.—(1) The Government may, by notification, appoint persons
possessing prescribed qualification 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 the Act, as the case may be, 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 Government may direct.
476 ELECTRICITY ACT, 2010

(2) In the absence of express provision to the contrary in the Act, or any rule
made thereunder, an appeal shall lie from the decision of a Chief Electrical Inspector
or Electrical Inspector to the Commission.

125.  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 authorized 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
purpose mentioned therein ;

(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), or when such licensee or person has so entered,
refuses to allow him to perform any act which he is authorized 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.
 ELECTRICITY ACT, 2010 477

126.  Exercise of powers of Telegraph Authority in certain cases.––The

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 coordination of works, confer
upon any public officer, licensee or any other person engaged in the business of
supplying electricity under the Act, subject to such conditions and restrictions, if
any, as the Government may think fit to impose and to the provisions of the Indian
Telegraph Act, 1885 (13 of 1885), any of the powers which the telegraph authority
possesses under that Act with respect to the placing of telegraph lines and posts
for the purposes of a telegraph established or maintained, by the Government or
to be so established or maintained.

PART XVIII

Amendment of the Land Acquisition Act, Samvat 1990

127.  Amendment of sections 40 and 41 Act X of Samvat 1990.––For purposes

of the Act, the term “work” appearing in clause (a) of sub-section (1) of section 40
and clause (iv) of section 41 of the Land Acquisition Act, Samvat 1990, shall be
deemed to include electricity supplied or to be supplied by means of the work to
be constructed.

PART XIX

Miscellaneous

128.  Co-ordination forum.––(1) The Government shall constitute a Co-

ordination Forum consisting of the Chairperson of the Commission and Members
thereof, representatives of the generating companies and transmission licensees
and distribution licensees engaged in generation, transmission and distribution of
electricity in the State for smooth and coordinated development of the power system
in the State.

(2) There  shall  be a  Committee  in  each  district  to be  constituted  by  the
Government,––

(a) to coordinate and review the extension of electrification in the district ;

(b) to review the quality of power supply and consumer satisfaction ;

(c) to promote energy efficiency and its conservation.

(3) The  Co­ordination  Forum and  Committee  shall be constituted in  the

prescribed manner.
478 ELECTRICITY ACT, 2010

129.  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 a 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.

130.  Protection of action taken in good faith.—No suit, prosecution or other

proceeding shall lie against the Government or the Commission or any officer of
the Government, or any Member, Officer or other employee of the Commission or
the assessing officer or any public servant for anything done or in good faith
purporting to be done under the Act or the rules or regulations made thereunder.

131.  Members, officers, etc of the Commission to be public servants.—The

Chairperson, Members, officers and other employees of the Commission and the
assessing officer referred to in section 86 shall be deemed, when acting or purporting
to act in pursuance of any of the provisions of the Act, to be public servants within
the meaning of section 21 of the State Ranbir Penal Code.

132.  Recovery of penalty payable under the Act.—Any penalty payable by

a person under the Act, if not paid, may be recovered as if it were an arrear of land
revenue.

133.  Services of notices, orders or documents.—(1) Every notice, order or

document by or under the Act, required, or authorized to be addressed to any
person may be served on him by delivering the same after obtaining signed
acknowledgment receipt therefor or by registered post or such means of delivery
as may be prescribed––

(a) where the Government is the addressee, at the office of such officer as
the Government may prescribe in this behalf ;

(b) where the Commission is the addressee, at the office of the 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 ;

(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 the Act required or authorized
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
 ELECTRICITY ACT, 2010 479

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.

134.  Inconsistency in laws. — Nothing contained in the Act or any rule or

regulation made thereunder or any instrument having effect by virtue of the Act,
rule or regulation shall have effect in so far as it is inconsistent with any other
provisions of the Jammu and Kashmir Consumer Protection Act, 1987.

135.  Act to have overriding effect.––Save as otherwise providing in section

134, the provisions of the 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 the Act.

136.  Provisions of the Act to be in addition to and not in derogation of

other laws. — The provisions of the Act are in addition to and not in derogation of
any other law for the time being in force.

137.  Powers of Government to make rules.––(1) The Government may by

notification in the Government Gazette make rules for carrying out the provisions
of the Act.

(2) In particulars 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 61 ;

(c) such other matters which may be prescribed under clause (c) of sub-
section (2) of section 62 ;

(d) the salary, allowances and other terms and conditions of service of the
Chairperson and Members of the Commission under sub-section (2)
of section 67 and sub-section (4) of section 70 ;

(e) the form and manner in which and the authority before whom oath of
the office and secrecy should be subscribed under sub-section (3) of
section 67 ;
480 ELECTRICITY ACT, 2010

(f) the powers and duties of the Secretary of the Commission under sub-
section (1) of section 70 ;

(g) the terms and conditions of services of the employees of the

Commission under sub-section (4) of section 70 ;

(h) any other matter required to be prescribed by the Government under

clause (g) of sub-section (1) of section 75 ;

(i) the manner of applying the fund under sub-section (3) of section 80 ;

(j) the form in which and time at which the Commission shall prepare its
annual accounts under sub-section (1) of section 81 ;

(k) the form in which and time at which the Commission shall prepare its
annual report under sub-section (1) of section 82 ;

(l) the form in which and time at which the Commission shall prepare its
budget under section 83 ;

(m) manner of service of provisional order of assessment under sub-section

(2) of section 86 ;

(n) manner of holding enquiry by an adjudicating officer under sub-section

(1) of section 103 ;

(o) the form in which and the time at which notice is to be given to the
Chief Electrical Inspector under sub-section (1) of section 123 ;

(p) the manner of delivery of every notice, order or document under sub-
section (1) of section 132 ; and

(q) any other matter which is required to be, or may be, prescribed.

138.  Power of the Commission to make regulations. — (1) The Commission

may, by notification, make regulations consistent with the Act and the rules generally
to carry out the provisions of the Act.

(2) In  particular  and  without  prejudice  to  the  generality  of  the  powers
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 to section 14 ;

 ELECTRICITY ACT, 2010 481

(b) the form and the manner of the application for grant of licence under
sub-section (1) of section 15 ;

(c) the manner and particulars for licence to be published 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 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
licensee under sub-section (3) of section 27 ;

(h) rates, charges and the terms and conditions in respect of intervening
transmission facilities under proviso to sub-section (1) of section 31 ;

(i) payment of transmission charges and a surcharge under sub-clause

(ii) of clause (d) of sub-section (2) of section 33 ;

(j) reduction of surcharge and cross subsidies under second proviso to

sub-clause (ii) of clause (d) of sub-section (2) of section 33 ;

(k) manner and utilization of payment and a surcharge under third proviso
to sub-clause (ii) of clause (d) of sub-section (2) of section 33 ;

(l) payment of transmission charges and a surcharge under sub-clause

(ii) of clause (c) of section 34 ;

(m) reduction of surcharge and subsidies under second proviso to sub-

clause (ii) of clause (c) of section 34 ;

(n) the manner of payment of surcharge under the fourth proviso to sub-
clause (ii) of clause (c) of section 34 ;

(o) proportion of revenues from other business to be utilized for reducing

the transmission and wheeling charges under proviso to section 35 ;

(p) payment of additional charges on charges of wheeling under sub-

section (4) of section 36 ;

(q) guidelines under sub-section (5) of section 36 ;

482 ELECTRICITY ACT, 2010

(r) the period to be specified by the Commission for the purposes specified
under sub-section (1) of section 37 ;

(s) methods and principles by which charges for electricity shall be fixed
under clause (a) of sub-section (2) of section 39 ;

(t) reasonable security payable to the distribution licensee under sub-

section (1) of section 41 ;

(u) payment of interest on security under sub-section (4) of section 41 ;

(v) electricity supply code under section 44 ;

(w) duties of electricity trader under sub-section (2) of section 46 ;

(x) standards of performance of a licensee or a class of licensees under

sub-section (1) of section 51 ;

(y) the period within which information be furnished by licensee under

sub-section (1) of section 53 ;

(z) the terms and conditions for determination of tariff under section 55 ;

(za) the period within which the cross subsidies shall be reduced under
clause (g) of section 55 ;

(zb) details to be furnished by licensee or generating company under sub-

section (2) of section 56 ;

(zc) the procedure for calculating the expected revenue from tariff and
charges under sub-section (5) of section 56 ;

(zd) the manner of making an application before the Commission and fee
payable therefor under section (1) of section 58 ;

(ze) issue of tariff order with modifications or conditions under sub-section

(3) of section 58 ;

(zf) the manner by which development of market in power including trading

specified under section 60 ;
 ELECTRICITY ACT, 2010 483

(zg) rules of procedure for transaction of business under sub-section (1) of

section 73 ;

(zh) 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 88 ;

(zi) the manner of service and publication of notice under section 90 ;

(zj) the form of preferring the appeal and the manner in which such form
shall be verified and the fee for preferring appeal under sub-section
(3) of section 103 ;

(zk) any other matter which is to be, or may be, specified.

(3) All regulations made by the Commission under the Act shall be subject
to the condition of previous publication.

139. Rules and regulations to be laid before the State Legislature.—Every

rule made by the Government and every regulation made by the Commission shall
be laid, as soon as may be after it is made, before each House of the State
Legislature.

140.  Power to remove difficulties.—(1) If any difficulty arises in giving

effect to the provisions of the Act, the Government may, by order published in the
Government Gazette make such provisions not inconsistent with the provisions of
the 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 the Act.

(2) Every order made under this section shall be laid, as soon as may be
after it is made, before each House of the State Legislature.

141.  Repeal and savings.—(1) Save as otherwise provided in the Act, the

Jammu and Kashmir Electricity Act, 1940 and the Jammu and Kashmir State
Electricity Regulatory Commission Act, 2000 are hereby repealed.

(2) Notwithstanding  such  repeal,  anything  done  or  any  action  taken  or

purported to have been done or taken including any rule, notification, inspection,
484 ELECTRICITY ACT, 2010

order or notice made or issued or any appointment, confirmation or declaration

made or any licence, permission, authorization 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 the Act :

Provided that the rules or regulations made under the repeals laws shall, in
so far as the same are not inconsistent with the provisions of this Act, be deemed
to have been made under this Act, and shall remain in force until repealed or
modified expressly or by implications by the Government or the Commission, as
the case may be.

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