Search Results on rules for query: "Electricity Act, 2003"
Related Section(s)(1) There shall be a body to be called the
Central Electricity Authority to exercise such functions and perform such duties as are assigned to it
under this Act.
(2) The Central Electricity Authority, established under section 3 of the Electricity (Supply) Act, 1948 (54 of 1948) and functioning as such immediately before the appointed date, shall be the Central Electricity Authority for the purposes of this Act and the Chairperson, Members, Secretary and other officers and employees thereof shall be deemed to have been appointed under this Act and they shall continue to hold office on the same terms and conditions on which they were appointed under the Electricity (Supply) Act, 1948. (3) The Authority shall consist of not more than fourteen Members (including its Chairperson) of whom not more than eight shall be full-time Members to be appointed by the Central Government. (4) The Central Government may appoint any person, eligible to be appointed as Member of the Authority, as the Chairperson of the Authority, or, designate one of the full-time Members as the Chairperson of the Authority. (5) The Members of the Authority shall be appointed from amongst persons of ability, integrity and standing who have knowledge of, and adequate experience and capacity in, dealing with problems relating to engineering, finance, commerce, economics or industrial matters, and at least one Member shall be appointed from each of the following categories, namely:-- (a) engineering with specialisation in design, construction, operation and maintenance of generating stations; (b) engineering with specialisation in transmission and supply of electricity; (c) applied research in the field of electricity; (d) applied economics, accounting, commerce or finance. (6) The Chairperson and all the Members of the Authority shall hold office during the pleasure of the Central Government. (7) The Chairperson shall be the Chief Executive of the Authority. (8) The headquarters of the Authority shall be at Delhi. (9) The Authority shall meet at the head office or any other place at such time as the Chairperson may direct, and shall observe such rules of procedure in regard to the transaction of business at its meetings (including the quorum at its meetings) as it may specify. (10) The Chairperson, or if he is unable to attend a meeting of the Authority, any other Member nominated by the Chairperson in this behalf and in the absence of such nomination or where there is no Chairperson, any Member chosen by the Members present from among themselves shall preside at the meeting. (11) All questions which come up before any meeting of the Authority shall be decided by a majority of votes of the Members present and voting, and in the event of an equality of votes, the Chairperson or the person presiding shall have the right to exercise a second or casting vote. (12) All orders and decisions of the Authority shall be authenticated by the Secretary or any other officer of the Authority duly authorised by the Chairperson in this behalf. (13) No act or proceedings of the Authority shall be questioned or shall be invalidated merely on the ground of existence of any vacancy in, or any defect in, the constitution of, the Authority. (14) The Chairperson of the Authority and other full-time Members shall receive such salary and allowances as may be determined by the Central Government and other Members shall receive such allowances and fees for attending the meetings of the Authority, as the Central Government may prescribe. (15) The other terms and conditions of service of the Chairperson and Members of the Authority including, subject to the provisions of sub-section (6), their terms of office shall be such as the Central Government may prescribe. (1) The Central Government shall, from time to time,
prepare the National Electricity Policy and tariff policy, in consultation with the State Governments and
the Authority for development of the power system based on optimal utilisation of resources such as coal,
natural gas, nuclear substances or materials, hydro and renewable sources of energy.
(2) The Central Government shall publish National Electricity Policy and tariff policy from time to time. (3) The Central Government may, from time to time, in consultation with the State Governments and the Authority, review or revise, the National Electricity Policy and tariff policy referred to in sub-section (1). (4) The Authority shall prepare a National Electricity Plan in accordance with the National Electricity Policy and notify such plan once in five years: Provided that the Authority while preparing the National Electricity Plan shall publish the draft National Electricity Plan and invite suggestions and objections thereon from licensees, generating companies and the public within such time as may be prescribed: Provided further that the Authority shall- (a) notify the plan after obtaining the approval of the Central Government; (b) revise the plan incorporating therein the directions, if any, given by the Central Government while granting approval under clause (a). (5) The Authority may review or revise the National Electricity Plan in accordance with the National Electricity Policy. The Central
Government shall also formulate a national policy, in consultation with the State Governments and the
State Commissions, for rural electrification and for bulk purchase of power and management of local
distribution in rural areas through Panchayat Institutions, users associations, co-operative societies,
non-Governmental organisations or franchisees.
(1) Subject to the provisions of this Act, the duties of a
generating company shall be to establish, operate and maintain generating stations, tie-lines, sub-stations
and dedicated transmission lines connected therewith in accordance with the provisions of this Act or the
rules or regulations made thereunder.
(2) A generating company may supply electricity to any licensee in accordance with this Act and the rules and regulations made thereunder and may, subject to the regulations made under sub-section (2) of section 42, supply electricity to any consumer. (3) Every generating company shall-- (a) submit technical details regarding its generating stations to the Appropriate Commission and the Authority; (b) co-ordinate with the Central Transmission Utility or the State Transmission Utility, as the case may be, for transmission of the electricity generated by it. (1) Notwithstanding anything contained in this Act, a person may construct,
maintain or operate a captive generating plant and dedicated transmission lines:
Provided that the supply of electricity from the captive generating plant through the grid shall be regulated in the same manner as the generating station of a generating company: 1 [Provided further that no licence shall be required under this Act for supply of electricity generated from a captive generating plant to any licensee in accordance with the provisions of this Act and the rules and regulations made thereunder and to any consumer subject to the regulations made under sub-section (2) of section 42.] (2) Every person, who has constructed a captive generating plant and maintains and operates such plant, shall have the right to open access for the purposes of carrying electricity from his captive generating plant to the destination of his use: Provided that such open access shall be subject to availability of adequate transmission facility and such availability of transmission facility shall be determined by the Central Transmission Utility or the State Transmission Utility, as the case may be: Provided further that any dispute regarding the availability of transmission facility shall be adjudicated upon by the Appropriate Commission.
1. Ins. by Act 26 of 2007, s. 3 (w.e.f. 15-6-2007).
No person shall--
(a) transmit electricity; or (b) distribute electricity; or (c) undertake trading in electricity, unless he is authorised to do so by a licence issued under section 14, or is exempt under section 13. The Appropriate Commission may, on an application made to it under section
15, grant a licence to any person--
(a) to transmit electricity as a transmission licensee; or (b) to distribute electricity as a distribution licensee; or (c) to undertake trading in electricity as an electricity trader, in any area as may be specified in the licence: Provided that any person engaged in the business of transmission or supply of electricity under the provisions of the repealed laws or any Act specified in the Schedule on or before the appointed date shall be deemed to be a licensee under this Act for such period as may be stipulated in the licence, clearance or approval granted to him under the repealed laws or such Act specified in the Schedule, and the provisions of the repealed laws or such Act specified in the Schedule in respect of such licence shall apply for a period of one year from the date of commencement of this Act or such earlier period as may be specified, at the request of the licensee, by the Appropriate Commission and thereafter the provisions of this Act shall apply to such business: Provided further that the Central Transmission Utility or the State Transmission Utility shall be deemed to be a transmission licensee under this Act: Provided also that in case an Appropriate Government transmits electricity or distributes electricity or undertakes trading in electricity, whether before or after the commencement of this Act, such Government shall be deemed to be a licensee under this Act, but shall not be required to obtain a licence under this Act: Provided also that the Damodar Valley Corporation, established under sub-section (1) of section 3 of the Damodar Valley Corporation Act, 1948 (14 of 1948), shall be deemed to be a licensee under this Act but shall not be required to obtain a licence under this Act and the provisions of the Damodar ValleyCorporation Act, 1948 (14 of 1948), in so far as they are not inconsistent with the provisions of this Act, shall continue to apply to that Corporation: Provided also that the Government company or the company referred to in sub-section (2) of section 131 of this Act and the company or companies created in pursuance of the Acts specified in the Schedule, shall be deemed to be a licensee under this Act: Provided also that the Appropriate Commission may grant a licence to two or more persons for distribution of electricity through their own distribution system within the same area, subject to the conditions that the applicant for grant of licence within the same area shall, without prejudice to the other conditions or requirements under this Act, comply with the additional requirements1 [relating to the capital adequacy, creditworthiness, or code of conduct] as may be prescribed by the Central Government, and no such applicant, who complies with all the requirements for grant of licence, shall be refused grant of licence on the ground that there already exists a licensee in the same area for the same purpose: Provided also that in a case where a distribution licensee proposes to undertake distribution of electricity for a specified area within his area of supply through another person, that person shall not be required to obtain any separate licence from the concerned State Commission and such distribution. licensee shall be responsible for distribution of electricity in his area of supply: Provided also that where a person intends to generate and distribute electricity in a rural area to be notified by the State Government, such person shall not require any licence for such generation and distribution of electricity, but he shall comply with the measures which may be specified by the Authority under section 53: Provided also that a distribution licensee shall not require a licence to undertake trading in electricity.
1. Subs. by Act 57 of 2003, s. 2, for "(including the capital adequacy, creditworthiness, or code of conduct)" (w.e.f. 27-1-2004).
(1) The Central Government shall establish a
centre for each region to be known as the Regional Load Despatch Centre having territorial jurisdiction as
determined by the Central Government in accordance with section 25 for the purposes of exercising the
powers and discharging the functions under this Part.
(2) The Regional Load Despatch Centre shall be operated by a Government company or any authority or corporation established or constituted by or under any Central Act, as may be notified by the Central Government: Provided that until a Government company or authority or corporation referred to in this sub-section is notified by the Central Government, the Central Transmission Utility shall operate the Regional Load Despatch Centre: Provided further that no Regional Load Despatch Centre shall engage in the business of generation of electricity or trading in electricity. (1) The Central Government may establish a centre at the
national level, to be known as the National Load Despatch Centre for optimum scheduling and despatch
of electricity among the Regional Load Despatch Centres.
(2) The constitution and functions of the National Load Despatch Centre shall be such as may be prescribed by the Central Government: Provided that the National Load Despatch Centre shall not engage in the business of trading in electricity. (3) The National Load Despatch Centre shall be operated by a Government company or any authority or corporation established or constituted by or under any Central Act, as may be notified by the Central Government. (1) The Central Government may notify any
Government company as the Central Transmission Utility:
Provided that the Central Transmission Utility shall not engage in the business of generation of electricity or trading in electricity: Provided further that the Central Government may transfer, and vest any property, interest in property, rights and liabilities connected with, and personnel involved in transmission of electricity of such Central Transmission Utility, to a company or companies to be incorporated under the Companies Act, 1956 (1 of 1956) to function as a transmission licensee, through a transfer scheme to be effected in the manner specified under Part XIII and such company or companies shall be deemed to be transmission licensees under this Act. (2) The functions of the Central Transmission Utility shall be-- (a) to undertake transmission of electricity through inter-State transmission system; (b) to discharge all functions of planning and co-ordination relating to inter-State transmission system with-- (i) State Transmission Utilities; (ii) Central Government; (iii) State Governments; (iv) generating companies; (v) Regional Power Committees; (vi) Authority; (vii) licensees; (viii) any other person notified by the Central Government in this behalf; (c) to ensure development of an efficient, co-ordinated and economical system of inter-State transmission lines for smooth flow of electricity from generating stations to the load centres; (d) to provide non-discriminatory open access to its transmission system for use by-- (i) any licensee or generating company on payment of the transmission charges; or (ii) any consumer as and when such open access is provided by the State Commission under sub-section (2) of section 42, on payment of the transmission charges and a surcharge thereon, as may be specified by the Central Commission: Provided that such surcharge shall be utilised for the purpose of meeting the requirement of current level cross-subsidy: Provided further that such surcharge and cross subsidies shall be progressively reduced 1 *** in the manner as may be specified by the Central Commission: 2 * * * * * Provided also that the manner of payment and utilisation of the surcharge shall be specified by the Central Commission: Provided also that such surcharge shall not be leviable in case open access is provided to a person who has established a captive generating plant for carrying the electricity to the destination of his own use.
1. The words "and eliminated" omitted by Act 26 of 2007, s. 4 (w.e.f. 15-6-2007).
2. The third proviso omitted by s. 4, ibid. (w.e.f. 15-6-2007) (1) There shall be a Commission to be known as the
Central Electricity Regulatory Commission to exercise the powers conferred on, and discharge the
functions assigned to it under this Act.
(2) The Central Electricity Regulatory Commission, established under section 3 of the Electricity Regulatory Commissions Act, 1998 (14 of 1998) and functioning as such immediately before the appointed date, shall be deemed to be the Central Commission for the purposes of this Act and the Chairperson, Members, Secretary, and other officers and employees thereof shall be deemed to have been appointed under this Act and they shall continue to hold office on the same terms and conditions on which they were appointed under the Electricity Regulatory Commissions Act, 1998: Provided that the Chairperson and other Members of the Central Commission appointed, before the commencement of this Act, under the Electricity Regulatory Commissions Act, 1998 (14 of 1998), may, on the recommendations of the Selection Committee constituted under sub-section (1) of section 78, be allowed, to opt for the terms and conditions under this Act by the Central Government. (3) The Central Commission shall be a body corporate by the name aforesaid, having perpetual succession and a common seal with power to acquire, hold and dispose of property, both movable and immovable, and to contract and shall, by the said name, sue or be sued. (4) The head office of the Central Commission shall be at such place as the Central Government may, by notification, specify. (5) The Central Commission shall consist of the following Members, namely:-- (a) a Chairperson and three other Members; (b) the Chairperson of the Authority who shall be the Member, ex officio. (6) The Chairperson and Members of the Central Commission shall be appointed by the Central Government on the recommendation of the Selection Committee referred to in section 78. 1
[50. The Electricity supply code.–The State Commission shall specify an electricity supply code to
provide for recovery of electricity charges, intervals for billing of electricity charges, disconnection of
supply of electricity for non-payment thereof, restoration of supply of electricity, measures for preventing
tampering, distress or damage to electrical plant or electrical line or meter, entry of distribution licensee
or any person acting on his behalf for disconnecting supply and removing the meter, entry for replacing,
altering or maintaining electric lines or electrical plants or meter and such other matters.]
1. Subs. by Act 26 of 2007, s. 9, for section 50 (w.e.f. 15-6-2007).
(1) The Central Commission shall discharge the following
functions, namely:--
(a) to regulate the tariff of generating companies owned or controlled by the Central Government; (b) to regulate the tariff of generating companies other than those owned or controlled by the Central Government specified in clause (a), if such generating companies enter into or otherwise have a composite scheme for generation and sale of electricity in more than one State; (c) to regulate the inter-State transmission of electricity; (d) to determine tariff for inter-State transmission of electricity; (e) to issue licences to persons to function as transmission licensee and electricity trader with respect to their inter-State operations; (f) to adjudicate upon disputes involving generating companies or transmission licensee in regard to matters connected with clauses (a) to (d) above and to refer any dispute for arbitration; (g) to levy fees for the purposes of this Act; (h) to specify Grid Code having regard to Grid Standards; (i) to specify and enforce the standards with respect to quality, continuity and reliability of service by licensees; (j) to fix the trading margin in the inter-State trading of electricity, if considered, necessary; (k) to discharge such other functions as may be assigned under this Act. (2) The Central Commission shall advise the Central Government on all or any of the following matters, namely:-- (i) formulation of National electricity Policy and tariff policy; (ii) promotion of competition, efficiency and economy in activities of the electricity industry; (iii) promotion of investment in electricity industry; (iv) any other matter referred to the Central Commission by that Government. (3) The Central Commission shall ensure transparency while exercising its powers and discharging its functions. (4) In discharge of its functions, the Central Commission shall be guided by the National Electricity Policy, National Electricity Plan and tariff policy published under section 3. (1) Notwithstanding anything to the contrary contained in section 82, a Joint
Commission may be constituted by an agreement to be entered into--
(a) by two or more Governments of States; or (b) by the Central Government, in respect of one or more Union territories, and one or more Governments of States, and shall be in force for such period and shall be subject to renewal for each further period, if any, as may be stipulated in the agreement: Provided that the Joint Commission, constituted under section 21A of Electricity Regulatory Commissions Act, 1998 (14 of 1998) and functioning as such immediately before the appointed day, shall be the Joint Commission for the purposes of this Act and the Chairperson, Members, Secretary and other officers and employees thereof shall be deemed to have been appointed as such under this Act and they shall continue to hold office, on the same terms and conditions on which they were appointed under the Electricity Regulatory Commissions Act, 1998. (2) The Joint Commission shall consist of one Member from each of the participating States and Union territories and the Chairperson shall be appointed from amongst the Members by consensus, failing which by rotation. (3) An agreement under sub-section (1) shall contain provisions as to the name of the Joint Commission, the manner in which the participating States may be associated in the selection of the Chairperson and Members of the Joint Commission, manner of appointment of Members and appointment of Chairperson by rotation or consensus, places at which the Commission shall sit, apportionment among the participating States of the expenditure in connection with the Joint Commission, manner in which the differences of opinion between the Joint Commission and the State Government concerned would be resolved and may also contain such other supplemental, incidental and consequential provisions not inconsistent with this Act as may be deemed necessary or expedient for giving effect to the agreement. (4) The Joint Commission shall determine tariff in respect of the participating States or Union territories separately and independently. (5) Notwithstanding anything contained in this section, the Central Government may, if so authorised by all the participating States, constitute a Joint Commission and may exercise the powers in respect of all or any of the matters specified under sub-section (3) and when so specifically authorised by the participating States. The Authority shall perform such functions and duties as
the Central Government may prescribe or direct, and in particular to--
(a) advise the Central Government on the matters relating to the national electricity policy, formulate short-term and perspective plans for development of the electricity system and co-ordinate the activities of the planning agencies for the optimal utilisation of resources to subserve the interests of the national economy and to provide reliable and affordable electricity for all consumers; (b) specify the technical standards for construction of electrical plants, electric lines and connectivity to the grid; (c) specify the safety requirements for construction, operation and maintenance of electrical plants and electric lines; (d) specify the Grid Standards for operation and maintenance of transmission lines; (e) specify the conditions for installation of meters for transmission and supply of electricity; (f) promote and assist in the timely completion of schemes and projects for improving and augmenting the electricity system; (g) promote measures for advancing the skill of persons engaged in the electricity industry; (h) advise the Central Government on any matter on which its advice is sought or make recommendation to that Government on any matter if, in the opinion of the Authority, the recommendation would help in improving the generation, transmission, trading, distribution and utilisation of electricity; (i) collect and record the data concerning the generation, transmission, trading, distribution and utilisation of electricity and carry out studies relating to cost, efficiency, competitiveness and such like matters; (j) make public from time to time the information secured under this Act, and provide for the publication of reports and investigations; (k) promote research in matters affecting the generation, transmission, distribution and trading of electricity; (l) carry out, or cause to be carried out, any investigation for the purposes of generating or transmitting or distributing electricity; (m) advise any State Government, licensees or the generating companies on such matters which shall enable them to operate and maintain the electricity system under their ownership or control in an improved manner and where necessary, in co-ordination with any other Government, licensee or the generating company owning or having the control of another electricity system; (n) advise the Appropriate Government and the Appropriate Commission on all technical matters relating to generation, transmission and distribution of electricity; and (o) discharge such other functions as may be provided under this Act. (1) Every State Government shall, within six months from
the appointed date, by notification, constitute for the purposes of this Act, a Commission for the State to
be known as the (name of the State) Electricity Regulatory Commission:
Provided that the State Electricity Regulatory Commission, established by a State Government under section 17 of the Electricity Regulatory Commissions Act, 1998 (14 of 1998) and the enactments specified in the Schedule, and functioning as such immediately before the appointed date, shall be the State Commission for the purposes of this Act and the Chairperson, Members, Secretary, and officers and other employees thereof shall continue to hold office, on the same terms and conditions on which they were appointed under those Acts: Provided further that the Chairperson and other Members of the State Commission appointed, before the commencement of this Act, under the Electricity Regulatory Commissions Act, 1998 (14 of 1998) or under the enactments specified in the Schedule, may, on the recommendations of the Selection Committee constituted under sub-section (1) of Section 85, be allowed to opt for the terms and conditions under this Act by the concerned State Government. (2) The State Commission shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power to acquire, hold and dispose of property, both movable and immovable, and to contract and shall, by the said name, sue or be sued. (3) The head office of the State Commission shall be at such place as the State Government may, by notification, specify. (4) The State Commission shall consist of not more than three Members, including the Chairperson. (5) The Chairperson and Members of the State Commission shall be appointed by the State Government on the recommendation of a Selection Committee referred to in section 85. The Central Government shall, by notification, establish
an Appellate Tribunal to be known as the Appellate Tribunal for Electricity to hear appeals against the
orders of the adjudicating officer or the Appropriate Commission 1
[under this Act or any other law for the
time being in force].
1. Subs. by Act 28 of 2010, s. 16 and the Schedule, for 'under this Act" (w.e.f. 24-8-2010)
(1) Save as otherwise provided in this Act, the Indian Electricity Act, 1910 (9 of 1910), the Electricity (Supply) Act, 1948 (54 of 1948) and the Electricity Regulatory Commissions Act, 1998 (14 of 998) are hereby repealed.
(2) Notwithstanding such repeal,-- (a) anything done or any action taken or purported to have been done or taken including any rule, notification, inspection, order or notice made or issued or any appointment, confirmation or declaration made or any licence, permission, authorisation or exemption granted or any document or instrument executed or any direction given under the repealed laws shall, in so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provisions of this Act; (b) the provisions contained in sections 12 to 18 of the Indian Electricity Act, 1910 (9 of 1910) and rules made thereunder shall have effect until the rules under section 67 to 69 of this Act are made; (c) the Indian Electricity Rules, 1956 made under section 37 of the Indian Electricity Act, 1910 (9 of 1910) as it stood before such repeal shall continue to be in force till the regulations under section 53 of this Act are made; (d) all rules made under sub-section (1) of section 69 of the Electricity (Supply) Act, 1948 (54 of 1948) shall continue to have effect until such rules are rescinded or modified, as the case may be; (e) all directives issued, before the commencement of this Act, by a State Government under the enactments specified in the Schedule shall continue to apply for the period for which such directions were issued by the State Government. (3) The provisions of the enactments specified in the Schedule, not inconsistent with the provisions of this Act, shall apply to the States in which such enactments are applicable. (4) The Central Government may, as and when considered necessary, by notification, amend the Schedule. (5) Save as otherwise provided in sub-section (2), the mention of particular matters in that section, shall not be held to prejudice or affect the general application of section 6 of the General Clauses Act, 1897 (10 of 1897), with regard to the effect of repeals. (1) The Appropriate
Government may, by notification, appoint duly qualified persons to be Chief Electrical Inspector or
Electrical Inspectors and every such Inspector so appointed shall exercise the powers and perform the
functions of a Chief Electrical Inspector or an Electrical Inspector under this Act and exercise such other
powers and perform such other functions as may be prescribed within such areas or in respect of such
class of works and electric installations and subject to such restrictions as the Appropriate Government
may direct.
(2) In the absence of express provision to the contrary in this Act, or any rule made thereunder, an appeal shall lie from the decision of a Chief Electrical Inspector or an Electrical Inspector to the Appropriate Government or if the Appropriate Government, by general or special order so directs, to an Appropriate Commission. STATE AMENDMENT Karnataka Amendment of section 162.--In section 162 of the Principal Act, after sub-section (2), the following shall be inserted, namely:-- "(3) where no provision is made by Central Government or the Authority in respect of powers and functions and qualifications of Chief Electrical Inspector and Electrical Inspectors, the State Government may by rules prescribe the same". [Vide Karnataka Act 39 of 2014, s. 3] (1) This Act may be called the Electricity Act, 2003.
(2) It extends to the whole of India 1***. (3) It shall come into force on such date2 as the Central Government may, by notification, appoint: Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.
1. The words except the State of Jammu and Kashmir omitted by Act 34 of 2019, s. 95 and the Fifth Schedule
(w.e.f. 31-10- 2019).
2. 10th June, 2003 (ss. 1 to 120 and ss. 122 to 185), vide notification No. S.O. 669(E), dated 10th June, 2003, see Gazette of India, Extraordinary, Part II, sec. 3(ii). |
