30. Transmission within a State.—
The State Commission shall facilitate and promote transmission,
wheeling and inter-connection arrangements within its territorial jurisdiction for the transmission and
supply of electricity by economical and efficient utilisation of the electricity.
31. Constitution of State Load Despatch Centres.—
(1) The State Government shall establish a
Centre to be known as the State Load Despatch Centre for the purposes of exercising the powers and
discharging the functions under this Part.
(2) The State Load Despatch Centre shall be operated by a Government company or any authority or
corporation established or constituted by or under any State Act, as may be notified by the State
Government:
Provided that until a Government company or any authority or corporation is notified by the State
Government, the State Transmission Utility shall operate the State Load Despatch Centre:
Provided further that no State Load Despatch Centre shall engage in the business of trading in
electricity.
24
32. Functions of State Load Despatch Centres.—
(1) The State Load Despatch Centre shall be the
apex body to ensure integrated operation of the power system in a State.
(2) The State Load Despatch Centre shall—
(a) be responsible for optimum scheduling and despatch of electricity within a State, in
accordance with the contracts entered into with the licensees or the generating companies operating in
that State;
(b) monitor grid operations;
(c) keep accounts of the quantity of electricity transmitted through the State grid;
(d) exercise supervision and control over the intra-State transmission system; and
(e) be responsible for carrying out real time operations for grid control and despatch of electricity
within the State through secure and economic operation of the State grid in accordance with the Grid
Standards and the State Grid Code.
(3) The State Load Despatch Centre may levy and collect such fee and charges from the generating
companies and licensees engaged in intra-State transmission of electricity as may be specified by the
State Commission.
33. Compliance of directions.—
(1) The State Load Despatch Centre in a State may give such
directions and exercise such supervision and control as may be required for ensuring the integrated grid
operations and for achieving the maximum economy and efficiency in the operation of power system in
that State.
(2) Every licensee, generating company, generating station, sub-station and any other person
connected with the operation of the power system shall comply with the directions issued by the State
Load Depatch Centre under sub-section
(1).
(3) The State Load Despatch Centre shall comply with the directions of the Regional Load Despatch
Centre.
(4) If any dispute arises with reference to the quality of electricity or safe, secure and integrated
operation of the State grid or in relation to any direction given under sub-section
(1), it shall be referred to
the State Commission for decision:
Provided that pending the decision of the State Commission, the directions of the State Load
Despatch Centre shall be complied with by the licensee or generating company.
(5) If any licensee, generating company or any other person fails to comply with the directions issued
under sub-section
(1), he shall be liable to a penalty not exceeding rupees five lacs.
Other provisions relating to transmission
34. Grid Standards.—Every transmission licensee shall comply with such technical standards, of
operation and maintenance of transmission lines, in accordance with the Grid Standards, as may be
specified by the Authority.
35. Intervening transmission facilities.—The Appropriate Commission may, on an application by
any licensee, by order require any other licensee owning or operating intervening transmission facilities to
provide the use of such facilities to the extent of surplus capacity available with such licensee:
Provided that any dispute, regarding the extent of surplus capacity available with the licensee, shall be
adjudicated upon by the Appropriate Commission.
25
36. Charges for intervening transmission facilities.—
(1) Every licensee shall, on an order made
under section 35, provide his intervening transmission facilities at rates, charges and terms and conditions
as may be mutually agreed upon:
Provided that the Appropriate Commission may specify rates, charges and terms and conditions if
these cannot be mutually agreed upon by the licensees.
(2) The rates, charges and terms and conditions referred to in sub-section
(1) shall be fair and
reasonable, and may be allocated in proportion to the use of such facilities.
Explanation.—For the purposes of sections 35 and 36, the expression “intervening transmission
facilities” means the electric lines owned or operated by a licensee where such electric lines can be
utilised for transmitting electricity for and on behalf of another licensee at his request and on payment of a
tariff or charge.
37. Directions by Appropriate Government.—The Appropriate Government may issue directions
to the Regional Load Despatch Centres or State Load Despatch Centres, as the case may be, to take such
measures as may be necessary for maintaining smooth and stable transmission and supply of electricity to
any region or State.
38. Central Transmission Utility and functions.—
(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
26
(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.
39. State Transmission Utility and functions.—
(1) The State Government may notify the Board or
a Government company as the State Transmission Utility:
Provided that the State Transmission Utility shall not engage in the business of trading in electricity:
Provided further that the State Government may transfer, and vest any property, interest in property,
rights and liabilities connected with, and personnel involved in transmission of electricity, of such State
Transmission Utility, to a company or companies to be incorporated under the Companies Act, 1956
(1 of 1956) to function as 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 State Transmission Utility shall be—
(a) to undertake transmission of electricity through intra-State transmission system;
(b) to discharge all functions of planning and co-ordination relating to intra-State transmission
system with—
(i) Central Transmission Utility;
(ii) State Governments;
(iii) generating companies;
(iv) Regional Power Committees;
(v) Authority;
(vi) licensees;
(vii) any other person notified by the State Government in this behalf;
(c) to ensure development of an efficient, co-ordinated and economical system of intra-State
transmission lines for smooth flow of electricity from a generating station to the load centers;
(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
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).
27
(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 State 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 State Commission:
2
* * * * *
Provided also that the manner of payment and utilisation of the surcharge shall be specified by the
State 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.
40. Duties of transmission licensees.—It shall be the duty of a transmission licensee–
(a) to build, maintain and operate an efficient, co-ordinated and economical inter-State
transmission system or intra-State transmission system, as the case may be;
(b) to comply with the directions of the Regional Load Despatch Centre and the State Load
Despatch Centre as the case may be;
(c) 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 State 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 3*** in the
manner as may be specified by the Appropriate Commission:
1. The words “and eliminated” omitted by Act 26 of 2007, s. 5 (w.e.f. 15-6-2007).
2. The third proviso omitted by s. 5, ibid. (w.e.f. 15-6-2007).
3. The words “and eliminated” omitted by s. 6, ibid. (w.e.f. 15-6-2007).
28
1
* * * * *
Provided also that the manner of payment and utilisation of the surcharge shall be specified by the
Appropriate 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.
41. Other business of transmission licensee.—A transmission licensee may, with prior intimation to
the Appropriate Commission, engage in any business for optimum utilisation of its assets:
Provided that a proportion of the revenues derived from such business shall, as may be specified by
the Appropriate Commission, be utilised for reducing its charges for transmission and wheeling:
Provided further that the transmission licensee shall maintain separate accounts for each such
business undertaking to ensure that transmission business neither subsidises in any way such business
undertaking nor encumbers its transmission assets in any way to support such business:
Provided also that no transmission licensee shall enter into any contract or otherwise engage in the
business of trading in electricity.
PART VI
DISTRIBUTION OF ELECTRICITY
Provisions with respect to distribution licensees
42. Duties of distribution licensee and open access.—
(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.
(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:
Provided that 2[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:
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:
Provided also that such surcharge and cross subsidies shall be progressively reduced 3*** in the
manner as may be specified by the State 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 Third proviso omitted by Act 26 of 2007, s. 6 (w.e.f. 15-6-2007).
2. Subs. by s.7, ibid., for “such open access may be allowed before the cross subsidies are eliminated on payment of a surcharge”
(w.e.f. 15-6-2007).
3. The words “and eliminated” omitted by s. 7, ibid. (w.e.f. 15-6-2007).
29
1
[Provided also that the State Commission shall, not later than five years from the date of
commencement of the Electricity (Amendment) Act, 2003 (57 of 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.]
(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.
(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.
(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.
(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.
(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.
(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.
43. Duty to supply on request.—
(1) 2[Save as otherwise provided in this Act, every distribution]
licensee, shall, on an application by the owner or occupier of any premises, give supply of electricity to
such premises, within one month after receipt of the application requiring such supply:
Provided that where such supply requires extension of distribution mains, or commissioning of new
sub-stations, the distribution licensee shall supply the electricity to such premises immediately after such
extension or commissioning or within such period as may be specified by the Appropriate Commission:
Provided further that in case of a village or hamlet or area wherein no provision for supply of
electricity exists, the Appropriate Commission may extend the said period as it may consider necessary
for electrification of such village or hamlet or area.
[Explanation.—For the purposes of this sub-section, “application” means the application complete in
3
all respects in the appropriate form, as required by the distribution licensee, along with documents
showing payment of necessary charges and other compliances.]
1. Ins. by Act 57 of 2003, s. 3 (w.e.f. 27-1-2004).
2. Subs. by Act 26 of 2007, s. 8, for “Every distribution” (w.e.f. 15-6- 2007).
3. Ins. by s. 8, ibid. (w.e.f. 15-6-2007).
30
(2) It shall be the duty of every distribution licensee to provide, if required, electric plant or electric
line for giving electric supply to the premises specified in sub-section
(1):
Provided that no person shall be entitled to demand, or to continue to receive, from a licensee a
supply of electricity for any premises having a separate supply unless he has agreed with the licensee to
pay to him such price as determined by the Appropriate Commission.
(3) If a distribution licensee fails to supply the electricity within the period specified in
sub-section
(1), he shall be liable to a penalty which may extend to one thousand rupees for each day of
default.
44. Exceptions from duty to supply electricity.—Nothing contained in section 43 shall be taken as
requiring a distribution licensee to give supply of electricity to any premises if he is prevented from so
doing by cyclone, floods, storms or other occurrences beyond his control.
45. Power to recover charges.—
(1) Subject to the provisions of this section, the prices to be charged
by a distribution licensee for the supply of electricity by him in pursuance of section 43 shall be in
accordance with such tariffs fixed from time to time and conditions of his licence.
(2) The charges for electricity supplied by a distribution licensee shall be—
(a) fixed in accordance with the methods and the principles as may be specified by the concerned
State Commission;
(b) published in such manner so as to give adequate publicity for such charges and prices.
(3) The charges for electricity supplied by a distribution licensee may include—
(a) a fixed charge in addition to the charge for the actual electricity supplied;
(b) a rent or other charges in respect of any electric meter or electrical plant provided by the
distribution licensee.
(4) Subject to the provisions of section 62, in fixing charges under this section a distribution licensee
shall not show undue preference to any person or class of persons or discrimination against any person or
class of persons.
(5) The charges fixed by the distribution licensee shall be in accordance with the provisions of this
Act and the regulations made in this behalf by the concerned State Commission.
46. Power to recover expenditure.—The State Commission may, by regulations, authorise a
distribution licensee to charge from a person requiring a supply of electricity in pursuance of section 43
any expenses reasonably incurred in providing any electric line or electrical plant used for the purpose of
giving that supply.
47. Power to require security.—
(1) Subject to the provisions of this section, a distribution licensee
may require any person, who requires a supply of electricity in pursuance of section 43, to give him
reasonable security, as may be determined by regulations, for the payment to him of all monies which
may become due to him–
(a) in respect of the electricity supplied to such persons; or
(b) where any electric line or electrical plant or electric meter is to be provided for supplying
electricity to such person, in respect of the provision of such line or plant or meter,
and if that person fails to give such security, the distribution licensee may, if he thinks fit, refuse to give
the supply of electricity or to provide the line or plant or meter for the period during which the failure
continues.
(2) Where any person has not given such security as is mentioned in sub-section
(1) or the security
given by any person has become invalid or insufficient, the distribution licensee may, by notice, require
that person, within thirty days after the service of the notice, to give him reasonable security for the
31
payment of all monies which may become due to him in respect of the supply of electricity or provision
of such line or plant or meter.
(3) If the person referred to in sub-section
(2) fails to give such security, the distribution licensee may,
if he thinks fit, discontinue the supply of electricity for the period during which the failure continues.
(4) The distribution licensee shall pay interest equivalent to the bank rate or more, as may be
specified by the concerned State Commission, on the security referred to in sub-section
(1) and refund
such security on the request of the person who gave such security.
(5) A distribution licensee shall not be entitled to require security in pursuance of clause
(a) of
sub-section
(1) if the person requiring the supply is prepared to take the supply through a pre-payment
meter.
48. Additional terms of supply.—A distribution licensee may require any person who requires a
supply of electricity in pursuance of section 43 to accept—
(a) any restrictions which may be imposed for the purpose of enabling the distribution licensee to
comply with the regulations made under section 53;
(b) any terms restricting any liability of the distribution licensee for economic loss resulting from
negligence of the person to whom the electricity is supplied.
49. Agreements with respect to supply or purchase of electricity.—Where the Appropriate
Commission has allowed open access to certain consumers under section 42, such consumers,
notwithstanding the provisions contained in clause
(d) of sub-section
(1) of section 62, may enter into an
agreement with any person for supply or purchase of electricity on such terms and conditions (including
tariff) as may be agreed upon by them.
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.]
51. Other businesses of distribution licensees.—A distribution licensee may, with prior intimation
to the Appropriate Commission, engage in any other business for optimum utilisation of its assets:
Provided that a proportion of the revenues derived from such business shall, as may be specified by
the concerned State Commission, be utilised for reducing its charges for wheeling:
Provided further that the distribution licensee shall maintain separate accounts for each such business
undertaking to ensure that distribution business neither subsidises in any way such business undertaking
nor encumbers its distribution assets in any way to support such business:
Provided also that nothing contained in this section shall apply to a local authority engaged, before
the commencement of this Act, in the business of distribution of electricity.
Provisions with respect to electricity traders
52. Provisions with respect to electricity trader.—
(1) Without prejudice to the provisions contained
in clause
(c) of section 12, the Appropriate Commission may, specify the technical requirement, capital
adequacy requirement and credit worthiness for being an electricity trader.
(2) Every electricity trader shall discharge such duties, in relation to supply and trading in electricity,
as may be specified by the Appropriate Commission.
1. Subs. by Act 26 of 2007, s. 9, for section 50 (w.e.f. 15-6-2007).
32
Provisions with respect to supply generally
53. Provision relating to safety and electricity supply.—The Authority may, in consultation with
the State Government, specify suitable measures for—
(a) protecting the public (including the persons engaged in the generation, transmission or
distribution or trading) from dangers arising from the generation, transmission or distribution or
trading of electricity, or use of electricity supplied or installation, maintenance or use of any electric
line or electrical plant;
(b) eliminating or reducing the risks of personal injury to any person, or damage to property of
any person or interference with use of such property;
(c) prohibiting the supply or transmission of electricity except by means of a system which
conforms to the specifications as may be specified;
(d) giving notice in the specified form to the Appropriate Commission and the Electrical
Inspector, of accidents and failures of supplies or transmissions of electricity;
(e) keeping by a generating company or licensee the maps, plans and sections relating to supply
or transmission of electricity;
(f) inspection of maps,
