(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.

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(2) The Central Government shall publish National Electricity Policy and tariff policy from time to time.

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(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).

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(4) The Authority shall prepare a National Electricity Plan in accordance with the National Electricity Policy and notify such plan once in five years:

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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:

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Provided further that the Authority shall-

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(a) notify the plan after obtaining the approval of the Central Government;

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(b) revise the plan incorporating therein the directions, if any, given by the Central Government while granting approval under clause (a).

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(5) The Authority may review or revise the National Electricity Plan in accordance with the National Electricity Policy.

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(1) It shall be the duty of a distribution licensee to develop and maintain an efficient, co-ordinated and economical distribution system in his area of supply and to supply electricity in accordance with the provisions contained in this Act.

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(2) The State Commission shall introduce open access in such phases and subject to such conditions, (including the cross subsidies, and other operational constraints) as may be specified within one year of the appointed date by it and in specifying the extent of open access in successive phases and in determining the charges for wheeling, it shall have due regard to all relevant factors including such cross subsidies, and other operational constraints:

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Provided that ¹ [such open access shall be allowed on payment of a surcharge in addition to the charges] for wheeling as may be determined by the State Commission:

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Provided further that such surcharge shall be utilised to meet the requirements of current level of cross subsidy within the area of supply of the distribution licensee:

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Provided also that such surcharge and cross subsidies shall be progressively reduced ² *** in the manner as may be specified by the State Commission:

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

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³ [Provided also that the State Commission shall, not later than five years from the date of commencement of the Electricity (Amendment) Act, 2003, by regulations, provide such open access to all consumers who require a supply of electricity where the maximum power to be made available at any time exceeds one megawatt.]

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(3) Where any person, whose premises are situated within the area of supply of a distribution licensee, (not being a local authority engaged in the business of distribution of electricity before the appointed date) requires a supply of electricity from a generating company or any licensee other than such distribution licensee, such person may, by notice, require the distribution licensee for wheeling such electricity in accordance with regulations made by the State Commission and the duties of the distribution licensee with respect to such supply shall be of a common carrier providing non-discriminatory open access.

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(4) Where the State Commission permits a consumer or class of consumers to receive supply of electricity from a person other than the distribution licensee of his area of supply, such consumer shall be liable to pay an additional surcharge on the charges of wheeling, as may be specified by the State Commission, to meet the fixed cost of such distribution licensee arising out of his obligation to supply.

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(5) Every distribution licensee shall, within six months from the appointed date or date of grant of licence, whichever is earlier, establish a forum for redressal of grievances of the consumers in accordance with the guidelines as may be specified by the State Commission.

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

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(7) The Ombudsman shall settle the grievance of the consumer within such time and in such manner as may be specified by the State Commission.

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(8) The provisions of sub-sections (5), (6) and (7) shall be without prejudice to right which the consumer may have apart from the rights conferred upon him by those sub-sections.

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(1) The Central Government may, by notification, make rules for carrying out the provisions of this Act.

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(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:--

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(a) the time within which the objection and suggestions on the draft National Electricity Plan to be invited by the Authority under the proviso to sub-section (4) of section 3;

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(b) the additional requirements ¹ [relating to the capital adequacy, creditworthiness or code of conduct] under sixth proviso to section 14;

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(c) the payment of fees for application for grant of licence under sub-section (1) of section 15;

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(d) the constitution and functions of the National Load Despatch Centre under sub-section (2) of section 26;

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(e) the works of licensees affecting the property of owner or occupier under sub-section (2) of section 67;

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(f) such other cases which may be prescribed under clause (c) of sub-section (2) of section 68;

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(g) allowances and fees payable to others Members for attending the meetings of Authority under sub-section (14) of section 70.

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(h) other terms and conditions of service of the Chairperson and Members of the Authority under sub-section (15) of section 70;

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(i) the functions and duties of the Central Electricity Authority under section 73;

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(j) the salary, allowances and other conditions of service of Chairperson and Member of Central Commission under sub-section (2) of section 89;

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(k) the form and manner in which and the authority before whom oath of office and secrecy should be subscribed under sub-section (3) of section 89;

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(l) the procedure to be prescribed by the Central Government under the proviso to sub-section (2) of section 90;

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(m) any other matter required to be prescribed under clause (g) of sub-section (1) of section 94;

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(n) the form in which the Central Commission shall prepare its annual statement of accounts under sub-section (1) of section 100;

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(o) the form in which and time at which the Central Commission shall prepare its annual report under sub-section (1) of section 101;

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(p) the form in which and time at which the Central Commission shall prepare its budget under section 106;

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(q) the form and the manner of verifying such form, and fee for filing appeal under sub-section (2) of section 111;

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(r) the salary and allowances payable to and the other terms and conditions of service of the Chairperson of the Appellate Tribunal and Members of the Appellate Tribunal under section 115;

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(s) the salary and allowances and other conditions of service of the officers and employees of the Appellate Tribunal under sub-section (3) of section 119;

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(t) the additional matters in respect of which the Appellate Tribunal may exercise the powers of a civil court under clause (i) of sub-section (2) of section 120;

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(u) the authority to whom the appeal shall be filed under sub-section (1) of section 127;

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(v) manner of holding inquiry by an adjudicating officer under sub-section (1) of section 143;

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(w) the form in which and the time at which service of notices to any person or to the Central Government for the purpose under sub-section (1) of section 161;

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(x) the powers to be exercised and the functions to be performed by the Inspectors under sub-section (1) of section 162;

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(y) the manner of delivery of every notice, order or document to be served under sub-section (1) of section 171;

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

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