Analysis of The Electricity Act, 2003 (Act)

1. Objective of the Act:-

A. To take measures conducive to development of electricity industry;

B. Promoting competition;

C. Protecting interest of consumers;

D. Supply of electricity to all areas;

E. Rationalization of electricity tariff;

F. Ensuring transparent policies regarding subsidies;

G. Promotion of policies not harmful to the Environment;

H. Constitution of Central Electricity Authority;

I. Constitution of Regulatory Commissions;

J. Establishment of Appellate Tribunal;

2. Authorities/Quasi Judicial Bodies under the Act

2.1 Central Electricity Authority

2.2 Regulatory Commissions (Both State & Centre)

2.3 Appellate Tribunal

3. Section wise note

The Constitution of India places electricity on the concurrent list, that

is, both the centre and state legislatures are authorised to enact law
and make policies to promote the electricity sector.
S.No Section Law
1. Requirement of Restriction on transmission, distribution and
license-Section 12 trading in electricity without license
2. Licenses for Intra- License for intra-state trading, transmission or
State & Inter-State distribution to be granted by state commission
Trading,
Transmission or License for inter-state trading , transmission or
distribution to be granted by Central
distribution-Section
Commission.
14.
3. Categories of Four Categories of Licenses are available:
License- Section 15.
r.w. CERC 1. Category I- NIL

Regulation,2009 2. Category II- Upto 1500 MU

3. Category III- Upto 500 MU
4. Category IV- upto 100 MU
4. Revocation of It provides the grounds for revocation of license
License- Section 19 in public interest.
5. Power to Sell utilities Commission's power to sell the utilities of
after revocation of licensee after revocation.
License- Section 20.
6. Grievance Redressal 1. Redressal of Consumer grievances by
of Consumer- Section distribution licensee's grievance cell
42
2. If not satisfied by the grievance Redressal
cell, then consumer may approach the
Ombudsman appointed by the Commission.

3. Consumer is free to approach any

appropriate forum under any other act.
7. Who determines The Commission to determine the Tariff for:
Tariff- Section 64 1. Supply of electricity from generating
company to distributor.
 2. Transmission
3. Wheeling
4. Retail Sale
8. Proceedings deemed Proceedings before the commission are deemed
Judicial Proceedings- to be judicial proceeding.
Section 95.
9. Appointment of Commission to appoint adjudicating officer for
adjudicating officer- adjudging the disputes under this Act.
Section 143
10. Appeal against the Appeal against the Order of adjudicating officer
Order of adjudicating to be made before the Appellate Tribunal.
Officer- Section 111 Decision of the Apellate tribunal by the way of
Majority.
11. Appeal to Supreme Appeal to Supreme Court against the
Court-Section 125 orders/decisions of the Appellate tribunal.
Ceratain offences and Provides for various categories of offences and
punishments- Part the punishment thereof. E.g. Theft of electricity,
XIV- Section 135 to interference with the meter, negligently

152 damaging the work, intentionally damaging the

work etc.

Theft of Electricity is a compoundable

offence.
12. Special Courts- Part The State government may for the purposes of
XV speedy trial regarding offences in XIV, by
notification in Gazette, constitute more than
one special court.

High Court may exercise powers of appeal

and revision as if the special court within
the local limits of jurisdiction of the High
Courts.
Special court has also the power to review
its own judgement.
13. Arbitration- Section The act provides for the power of the
158 adjudicating bodies to refer the matter to
arbitration in certain case or otherwise when
 mentioned itself in the act.
14. Overriding Effect- In case of any conflict Electricity Act,2003 will
Section 174 have overriding effect on any other law except
for Consumer Protection Act, 1986, the Atomic
Energy Act, 1962 or the Railways Act, 1989.
15. Power of Central Gov. Central government is empowered to make
to make rules - rules under the Electricity Act, 2003.
Section 176 Any Such Rule is subject to being laid
before and approved by the Parliament OR
State legislature as the case may be.
Power of Central Gov.
to make rules -
Section 180
16. Power to make The Authority and Central Commission & State
regulations- Section Commission under the Electricity Act, 2003 is
177, 178 & 181 empowered to make regulations consistent with
the Act and Rules.
Any such regulation is subject to being laid
before and approved by the Parliament OR
the State legislature as the case may be.
17. Provisions not to The provisions of this Act shall not apply to the
apply in certain Ministry/Department/Board/Institutions of the
cases- Section- 184 Central Government dealing with Defence,
Atomic Energy or such other similar Ministries
or Departments as may be notified by the
Central Government.