The Electricity Act, 2003

The Electricity Act, 2003, consolidates the laws relating to electricity, promoting competition, protecting consumer interests, and ensuring reliable supply of electricity in India.

Ministry of Power

The Electricity Act, 2003, was enacted to consolidate the laws relating to generation, transmission, distribution, trading, and use of electricity and generally for taking measures conducive to the development of the electricity industry, promoting competition therein, protecting the interests of consumers, and ensuring transparent policies regarding subsidies. The Act does not specify a particular ministry; however, it falls under the purview of the Ministry of Power in India.

Enactment Date, Number of Chapters, Number of Sections:
The Electricity Act, 2003, was enacted on May 26, 2003. The Act is structured into 18 parts and 185 sections, along with a schedule. These sections cover various aspects of the electricity sector, including policy and planning, generation, transmission, distribution, licensing, tariff regulations, and miscellaneous provisions.

Act Governed By:
The Act is primarily governed by the provisions outlined within its sections. It establishes the framework for the generation, transmission, distribution, trading, and use of electricity. The Act also outlines the powers and functions of the Central Electricity Authority, Regulatory Commissions, and the Appellate Tribunal for Electricity.

On Whom It Is Applicable:
The Electricity Act, 2003, is applicable to all entities involved in the generation, transmission, distribution, trading, and use of electricity in India. This includes generating companies, transmission and distribution licensees, electricity traders, and consumers.

Penalties/Punishments:
The Act prescribes penalties for various violations and non-compliance. These include:

  • Penalties for theft of electricity, tampering with meters, and other related offenses.

  • Penalties for non-compliance with directions of the Appropriate Commission.

  • Penalties for non-compliance with safety regulations and standards.

  • Other penalties as may be prescribed by rules and regulations made under the Act.
    The Act also provides for the recovery of unpaid charges and compensation for damages.

Important Pointers:

  • The Act provides for the establishment of a National Electricity Policy and Plan.

  • It outlines the procedures for licensing of transmission, distribution, and trading of electricity.

  • The Act empowers the Central and State Commissions to determine tariffs and regulate the electricity sector.

  • It establishes the Central Electricity Authority to promote the development of the power system.

  • The Act emphasizes the importance of open access, competition, and consumer protection.

  • It provides for the establishment of an Appellate Tribunal for Electricity to hear appeals against orders of the Commissions.

  • The Act includes provisions for safety, grid standards, and the use of meters.

  • It also addresses issues related to theft of electricity and the recovery of charges.

  • The Act aims to create a transparent, efficient, and well-regulated electricity sector in India.

  • The Act has been amended over time to adapt to changing needs and circumstances.

Act Copy:

 

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