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THE ELECTRICITY ACT, 2003

ACT NO. 36 OF 2003 · Enacted [26th May, 2003.] · 188 sections

PRELIMINARY

Section 1.Short title, extent and commencement.
Section 2.Definitions.

NATIONAL ELECTRICITY POLICY AND PLAN

Section 3.National Electricity Policy and Plan.
Section 4.National policy on stand alone systems for rural areas and non-conventional energy systems.
Section 5.National policy on electrification and local distribution in rural areas.
Section 6.Joint responsibility of State Government and Central Government in rural electrification.

GENERATION OF ELECTRICITY

Section 7.Generating company and requirement for setting up of generating station.
Section 8.Hydro-electric generation.
Section 9.Captive generation.
Section 10.Duties of generating companies.
Section 11.Directions to generating companies.

LICENSING

Section 12.Authorised persons to transmit, supply, etc., electricity.
Section 13.Power to exempt.
Section 14.Grant of licence.
Section 15.Procedure for grant of licence.
Section 16.Conditions of licence.
Section 17.Licensee not to do certain things.
Section 18.Amendment of licence.
Section 19.Revocation of licence.
Section 20.Sale of utilities of licensees.
Section 21.Vesting of utility in purchaser.
Section 22.Provisions where no purchase takes place.
Section 23.Directions to licensees.
Section 24.Suspension of distribution licence and sale of utility.

Intra-State transmission

Section 25.Inter-State, regional and inter-regional transmission.
Section 26.National Load Despatch Centre.
Section 27.Constitution of Regional Load Despatch Centre.
Section 28.Functions of Regional Load Despatch Centre.
Section 29.Compliance of directions.

Inter-State transmission

Section 30.Transmission within a State.
Section 31.Constitution of State Load Despatch Centers.
Section 32.Functions of State Load Despatch Centers.
Section 33.Compliance of directions.

Other provisions relating to transmission

Section 34.Grid Standards.
Section 35.Intervening transmission facilities.
Section 36.Charges for intervening transmission facilities.
Section 37.Directions by Appropriate Government.
Section 38.Central Transmission Utility and functions.
Section 39.State Transmission Utility and functions.
Section 40.Duties of transmission licensees.
Section 41.Other business of transmission licensee.

Provisions with respect to distribution licensees

Section 42.Duties of distribution licensee and open access.
Section 43.Duty to supply on request.
Section 44.Exceptions from duty to supply electricity.
Section 45.Power to recover charges.
Section 46.Power to recover expenditure.
Section 47.Power to require security.
Section 48.Additional terms of supply.
Section 49.Agreements with respect to supply or purchase of electricity.
Section 50.The Electricity supply code.
Section 51.Other businesses of distribution licensees.

Provisions with respect to electricity traders

Section 52.Provisions with respect to electricity trader.

Provisions with respect to supply generally

Section 53.Provision relating to safety and electricity supply.
Section 54.Control of transmission and use of electricity.
Section 55.Use, etc., of meters.
Section 56.Disconnection of supply in default of payment.

Consumer protection: Standards of performance

Section 57.Standards of performance of licensee.
Section 58.Different standards of performance by licensee.
Section 59.Information with respect to levels of performance.
Section 60.Market domination.

TARIFF

Section 61.Tariff regulations.
Section 62.Determination of tariff.
Section 63.Determination of tariff by bidding process.
Section 64.Procedure for tariff order.
Section 65.Provision of subsidy by State Government.
Section 66.Development of market.

Works of licensees

Section 67.Provision as to opening up of streets, railways, etc.

Provisions relating to overhead lines

Section 68.Overhead lines.
Section 69.Notice to telegraph authority.

Constitution and functions of Authority

Section 70.Constitution, etc., of Central Electricity Authority.
Section 71.Members not to have certain interest.
Section 72.Officers and staff of Authority.
Section 73.Functions and duties of Authority.

Certain powers and directions

Section 74.Power to require statistics and returns.
Section 75.Directions by Central Government to Authority.

Constitution, powers and functions of Central Commission

Section 76.Constitution of Central Commission.
Section 77.Qualifications for appointment of Members of Central Commission.
Section 78.Constitution of Selection Committee to recommend Members.
Section 79.Functions of Central Commission.
Section 80.Central Advisory Committee.
Section 81.Objects of Central Advisory Committee.

Constitution, powers and functions of State Commissions

Section 82.Constitution of State Commission.
Section 83.Joint Commission.
Section 84.Qualifications for appointment of Chairperson and Members of State Commission.
Section 85.Constitution of Selection Committee to select Members of State Commission.
Section 86.Functions of State Commission.
Section 87.State Advisory Committee.
Section 88.Objects of State Advisory Committee.

Appropriate Commission–Other provisions

Section 89.Term of office and conditions of service of Members.
Section 90.Removal of Member.

Proceedings and powers of Appropriate Commission

Section 91.Secretary, officers and other employees of Appropriate Commission.
Section 92.Proceedings of Appropriate Commission.
Section 93.Vacancies, etc., not to invalidate proceedings.
Section 94.Powers of Appropriate Commission.
Section 95.Proceedings before Commission.
Section 96.Powers of entry and seizure.
Section 97.Delegation.

Grants, Fund and Accounts, Audit and Report

Section 98.Grants and loans by Central Government.
Section 99.Establishment of Fund by Central Government.
Section 100.Accounts and audit of Central Commission.
Section 101.Annual report of Central Commission.
Section 102.Grants and Loans by State Government.
Section 103.Establishment of Fund by State Government.
Section 104.Accounts and audit of State Commission.
Section 105.Annual report of State Commission.
Section 106.Budget of Appropriate Commission.
Section 107.Directions by Central Government.
Section 108.Directions by State Government.
Section 109.Directions to Joint Commission.

APPELLATE TRIBUNAL FOR ELECTRICITY

Section 110.Establishment of Appellate Tribunal.
Section 111.Appeal to Appellate Tribunal.
Section 112.Composition of Appellate Tribunal.
Section 113.Qualifications for appointment of Chairperson and Member of Appellate Tribunal.
Section 114.Term of office.
Section 115.Terms and conditions of service.
Section 116.Vacancies.
Section 117.Resignation and removal.
Section 117A.Qualifications, terms and conditions of service of Chairperson and Member.
Section 118.Member to act as Chairperson in certain circumstances.
Section 119.Officers and other employees of Appellate Tribunal.
Section 120.Procedure and powers of Appellate Tribunal.
Section 121.Power of Appellate Tribunal.
Section 122.Distribution of business amongst Benches and transfer of cases from one Bench to another Bench.
Section 123.Decision to be by majority.
Section 124.Right of appellant to take assistance of legal practitioner and of Appropriate Commission to appoint presenting officers.
Section 125.Appeal to Supreme Court.

INVESTIGATION AND ENFORCEMENT

Section 126.Assessment.
Section 127.Appeal to Appellate Authority.
Section 128.Investigation of certain matters.
Section 129.Orders for securing compliance.
Section 130.Procedure for issuing directions by Appropriate Commission.

REORGANISATION OF BOARD

Section 131.Vesting of property of Board in State Government.
Section 132.Use of proceeds of sale or transfer of Board, etc.
Section 133.Provisions relating to officers and employees.
Section 134.Payment of compensation or damages on transfer.

OFFENCES AND PENALTIES

Section 135.Theft of Electricity.
Section 136.Theft of electric lines and materials.
Section 137.Punishment for receiving stolen property.
Section 138.Interference with meters or works of licensee.
Section 139.Negligently breaking or damaging works.
Section 140.Penalty for intentionally injuring works.
Section 141.Extinguishing public lamps.
Section 142.Punishment for non-compliance of directions by Appropriate Commission.
Section 143.Power to adjudicate.
Section 144.Factors to be taken into account by adjudicating officer.
Section 145.Civil court not to have jurisdiction.
Section 146.Punishment for non-compliance of orders or directions.
Section 147.Penalties not to affect other liabilities.
Section 148.Penalty where works belong to Government.
Section 149.Offences by companies.
Section 150.Abetment.
Section 151.Cognizance of offences.
Section 151A.Power of police to investigate.
Section 151B.Certain offences to be cognizable and non-bailable.
Section 152.Compounding of offences.

SPECIAL COURTS

Section 153.Constitution of Special Courts.
Section 154.Procedure and power of Special Court.
Section 155.Special Court to have powers of Court of Session.
Section 156.Appeal and revision.
Section 157.Review.

Arbitration

Section 158.Arbitration.

Protective clauses

Section 159.Protection of railways, highways, airports and canals, docks, wharfs and piers.
Section 160.Protection of telegraphic, telephonic and electric signalling lines.
Section 161.Notice of accidents and inquiries.
Section 162.Appointment of Chief Electrical Inspector and Electrical Inspector.
Section 163.Power for licensee to enter premises and to remove fittings or other apparatus of licensee.
Section 164.Exercise of powers of Telegraph Authority in certain cases.
Section 165.Amendment of sections 40 and 41 of Act 1 of 1894.

MISCELLANEOUS

Section 166.Coordination Forum.
Section 167.Exemption of electric lines or electrical plants from attachment in certain cases.
Section 168.Protection of action taken in good faith.
Section 169.Members, officers, etc., of Appellate Tribunal, Appropriate Commission to be public servants.
Section 170.Recovery of penalty payable under this Act.
Section 171.Services of notices, orders or documents.
Section 172.Transitional provisions.
Section 173.Inconsistency in laws.
Section 174.Act to have overriding effect.
Section 175.Provisions of this Act to be in addition to and not in derogation of other laws.
Section 176.Power of Central Government to make rules.
Section 177.Powers of Authority to make regulations.
Section 178.Powers of Central Commission to make regulations.
Section 179.Rules and regulations to be laid before Parliament.
Section 180.Powers of State Governments to make rules.
Section 181.Powers of State Commissions to make regulations.
Section 182.Rules and regulations to be laid before State Legislature.
Section 183.Power to remove difficulties.
Section 184.Provisions of Act not to apply in certain cases.
Section 185.Repeal and saving.