Electricity Act 2003

Module IV
 Electricity Act 2003
 The Need
 Economic Reforms in the country
 Power sector reforms in various States.
 Electricity Act 2003
Significance
It is a single legislation which addresses all the key areas
of Electricity in the country.
 It provides a road map for over all and uniform
development of electricity sector in the country
 It takes care of interests of consumers belonging to
various sectors
 It also aims to reform the sector to suit the needs of
the present day requirement , in the light of
globalization.
 Through specific provisions it aims to bring in financial
and commercial viability for power sector utilities.
 Electricity Act 2003
Object and Scope of the Act
1.Consolidate the laws relating to generation,
transmission, distribution, trading and use of
electricity.
2. Take measures conducive for development of
electricity sector.
3. To promote Competition in the sector.
4. To protect the interests of Consumers
5. To rationalize the electricity tariffs
6. To Establish Regulatory commissions and
Appellate Tribunal for Electricity.
 Provisions relating to Transmission
(System Operation)
 Section 26 – Provides for establishment of National
Load Dispatch centre ( NLDC) to monitor and maintain
grid operations at the national level.
 Section 27 – Provides for establishment of Regional
Load Dispatch Centre ( RLDC) to monitor and maintain
grid operations at the regional level.
 Section 31- Provides for establishment of Regional
Load Dispatch Centre ( SLDC) to monitor and maintain
grid operations at the State level.
 NLDC and RLDC takes care of interstate transmission
while SLDC takes care of intrastate transmission
 Provisions relating to Transmission
(System Operation)
 Role of National Load Dispatch Centre (NLDC) Section
26

 Optimum scheduling and dispatch of electricity amongst

the Regional Load Dispatch centers.
 Provisions relating to Transmission
Functions of RLDC Section 28
 Optimum Scheduling
 dispatch in accordance with the contracts entered into
with licensees or generating companies in the region

 monitor grid operations

 keep accounts of quantity of electricity,
 responsible for real time operations of the grid,
 exercise supervision and control over inter state
transmission

 State Load Dispatch Centre Section 31,32

 Provisions relating to Distribution
 Section 42: Duty to develop and maintain an efficient,
coordinated and economical distribution system in his area of
supply
 Section 43 – Duty to supply on request : This provision very
clearly indicates that it shall be the duty of the licensee to
supply electricity to the premises of the applicant within 30
days from the date of application.
 Section 45 – Power to recover charges for supply of electricity
in accordance with the methods and principles laid down by
the State Commission.
 Section 50- Electricity Supply Code- This section empowers
the State Commission to specify the ES code for effective
operation of supply, billing , disconnection, restoration of
supply, tempering with meter
 Section 53 – Provisions relating to safety and electricity supply
 Section 56 – provisions relating to Disconnection of supply- 15
days notice, 2 years limitation for dues
 Provisions relating to Distribution
 Section 57 – Consumer protection - Provisions under
this section says that appropriate standards of
performance shall be determined by the Commission .
Failure to adhere to the standards, the licensee
becomes liable for penalty or prosecution besides
providing compensation to the consumer.
 Section 42 (5) provides for establishment of consumer
grievance redressal forum by the licensee as per the
guidelines issued by the Commission.
 Section 42(6) provides for establishment of
Ombudsman for redressal of grievances not properly
addressed by consumer grievance redressal forums
under sub section (5)
 Provisions relating to Tariffs
Sections 61- 65 deals with Tariffs

 Section 61 provides for setting of terms and conditions

for determination of tariffs by the State Commission
which shall be guided by the national tariff policy and
national electricity policy.

 This section also provides principles for determining

tariffs:
 tariffs progressively reflecting the cost of supply
 elimination of cross subsidy
 Offences & Penalty
 Section 135: Deals with theft of electricity – tapping,
tampering, damaging, use for different purpose.
 Section 136: Theft of electrical lines and materials. 3yrs or
fine or both
 Section 141 : Extinguishing public lamps – fine upto Rs 2000
 Section 142 : Punishment for non compliance of directions
by appropriate commissions – fine upto one lakh, continuing
failure: fine of Rs. 6000 for each day
 Section 146 : Failure to order and directions under this act is
punishable with imprisonment upto three months and fine
upto one lakh or both.
 Special Courts
 Section 153: provides for constitution of special courts
for speedy trials of offences
 Comprising of Single Judge appointed by State
Government in consultation with HC; Additional District
and Sessions Judge; try in Summary Manner

 Section 158 Arbitration