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Act36
Enacted 2003

The Electricity Act, 2003

In force 188 sections Power

An Act to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity and generally for taking measures conducive to development of electricity industry, promoting competition therein, protecting interest of consumers and supply of electricity to all areas, rationalisation of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmentally benign policies, constitution of Central Electricity Authority, Regulatory Commissions and establishment of Appellate Tribunal and for matters connected therewith or incidental thereto.

Act 36 of 2003 Enacted 26 May 2003 In force 10 Jun 2003

Administered by. Ministry of Power · Other Acts of 2003

Preamble

THE ELECTRICITY ACT, 2003

ACT NO. 36 OF 2003

[26th May, 2003.] An Act to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity and generally for taking measures conducive to development of electricity industry, promoting competition therein, protecting interest of consumers and supply of electricity to all areas, rationalisation of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmentally benign policies, constitution of Central Electricity Authority, Regulatory Commissions and establishment of Appellate Tribunal and for matters connected therewith or incidental thereto.

BE it enacted by Parliament in the Fifty-fourth Year of the Republic of India as follows:--

What this Act covers

Summary of the Electricity Act, 2003

Key Provisions

1. Bodies and Definitions

• Appellate Tribunal for Electricity

• Central and State Regulatory Commissions

• Central Electricity Authority

• Definitions: Captive Generation, Co-generation, Distribution Licensee, etc.

2. Structural and Operational Provisions

1. National Policy and Plan: Mandatory for guiding the sector.

2. Generation, Transmission, Distribution, and Supply:

• Generation: Regulations for setup, captive use, and generating company duties.

• Transmission and Distribution: Licensing, exemptions, and conditions.

• Supply: Obligations, exceptions, and consumer protection measures.

3. Licensing, Tariff, and Consumer Protection

• Licensing Process: For transmission, distribution, and supply, including conditions.

• Tariff Determination: By Commissions, with principles for efficiency, consumer protection, and reduced cross-subsidies.

• Consumer Rights and Standards: Duty to supply, pricing regulations, performance standards, and complaint resolution.

4. Penalties, Dispute Resolution, and State Amendments

• Penalties: For offenses like theft, damage, non-compliance, ranging from fines to imprisonment.

• Dispute Resolution: Adjudication and appellate processes.

• State Amendments (e.g., Karnataka): Empowering states to make rules on safety, licensing, and fees if centrally not provided.

Sections

Type to filter. 188 sections.

  1. 1Short title, extent and commencement
  2. 2Definitions
  3. 3National Electricity Policy and Plan
  4. 4National policy on stand alone systems for rural areas and non-conventional energy systems
  5. 5National policy on electrification and local distribution in rural areas
  6. 6Joint responsibility of State Government and Central Government in rural electrification
  7. 7Generating company and requirement for setting up of generating station
  8. 8Hydro-electric generation
  9. 9Captive generation
  10. 10Duties of generating companies
  11. 11Directions to generating companies
  12. 12Authorised persons to transmit, supply, etc., electricity
  13. 13Power to exempt
  14. 14Grant of licence
  15. 15Procedure for grant of licence
  16. 16Conditions of licence
  17. 17Licensee not to do certain things
  18. 18Amendment of licence
  19. 19Revocation of licence
  20. 20Sale of utilities of licensees
  21. 21Vesting of utility in purchaser
  22. 22Provisions where no purchase takes place
  23. 23Directions to licensees
  24. 24Suspension of distribution licence and sale of utility
  25. 25Inter-State, regional and inter-regional transmission
  26. 26National Load Despatch Centre
  27. 27Constitution of Regional Load Despatch Centre
  28. 28Functions of Regional Load Despatch Centre
  29. 29Compliance of directions
  30. 30Transmission within a State
  31. 31Constitution of State Load Despatch Centres
  32. 32Functions of State Load Despatch Centres
  33. 33Compliance of directions
  34. 34Grid Standards
  35. 35Intervening transmission facilities
  36. 36Charges for intervening transmission facilities
  37. 37Directions by Appropriate Government
  38. 38Central Transmission Utility and functions
  39. 39State Transmission Utility and functions
  40. 40Duties of transmission licensees
  41. 41Other business of transmission licensee
  42. 42Duties of distribution licensee and open access
  43. 43Duty to supply on request
  44. 44Exceptions from duty to supply electricity
  45. 45Power to recover charges
  46. 46Power to recover expenditure
  47. 47Power to require security
  48. 48Additional terms of supply
  49. 49Agreements with respect to supply or purchase of electricity
  50. 50The Electricity supply code
  51. 51Other businesses of distribution licensees
  52. 52Provisions with respect to electricity trader
  53. 53Provision relating to safety and electricity supply
  54. 54Control of transmission and use of electricity
  55. 55Use, etc., of meters
  56. 56Disconnection of supply in default of payment
  57. 57Standards of performance of licensee
  58. 58Different standards of performance by licensee
  59. 59Information with respect to levels of performance
  60. 60Market domination
  61. 61Tariff regulations
  62. 62Determination of tariff
  63. 63Determination of tariff by bidding process
  64. 64Procedure for tariff order
  65. 65Provision of subsidy by State Government
  66. 66Development of market
  67. 67Provision as to opening up of streets, railways, etc
  68. 68Overhead lines
  69. 69Notice to telegraph authority
  70. 70Constitution, etc., of Central Electricity Authority
  71. 71Members not to have certain interest
  72. 72Officers and staff of Authority
  73. 73Functions and duties of Authority
  74. 74Power to require statistics and returns
  75. 75Directions by Central Government to Authority
  76. 76Constitution of Central Commission
  77. 77Qualifications for appointment of Members of Central Commission
  78. 78Constitution of Selection Committee to recommend Members
  79. 79Functions of Central Commission
  80. 80Central Advisory Committee
  81. 81Objects of Central Advisory Committee
  82. 82Constitution of State Commission
  83. 83Joint Commission
  84. 84Qualifications for appointment of Chairperson and Members of State Commission
  85. 85Constitution of Selection Committee to select Members of State Commission
  86. 86Functions of State Commission
  87. 87State Advisory Committee
  88. 88Objects of State Advisory Committee
  89. 89Term of office and conditions of service of Members
  90. 90Removal of Member
  91. 91Secretary, officers and other employees of Appropriate Commission
  92. 92Proceedings of Appropriate Commission
  93. 93Vacancies, etc., not to invalidate proceedings
  94. 94Powers of Appropriate Commission
  95. 95Proceedings before Commission
  96. 96Powers of entry and seizure
  97. 97Delegation
  98. 98Grants and loans by Central Government
  99. 99Establishment of Fund by Central Government
  100. 100Accounts and audit of Central Commission
  101. 101Annual report of Central Commission
  102. 102Grants and Loans by State Government
  103. 103Establishment of Fund by State Government
  104. 104Accounts and audit of State Commission
  105. 105Annual report of State Commission
  106. 106Budget of Appropriate Commission
  107. 107Directions by Central Government
  108. 108Directions by State Government
  109. 109Directions to Joint Commission
  110. 110Establishment of Appellate Tribunal
  111. 111Appeal to Appellate Tribunal
  112. 112Composition of Appellate Tribunal
  113. 113Qualifications for appointment of Chairperson and Member of Appellate Tribunal
  114. 114Term of office
  115. 115Terms and conditions of service
  116. 116Vacancies
  117. 117Resignation and removal
  118. 117AQualifications, terms and conditions of service of Chairperson and Member
  119. 118Member to act as Chairperson in certain circumstances
  120. 119Officers and other employees of Appellate Tribunal
  121. 120Procedure and powers of Appellate Tribunal
  122. 121Power of Appellate Tribunal
  123. 122Distribution of business amongst Benches and transfer of cases from one Bench to another Bench
  124. 123Decision to be by majority
  125. 124Right of appellant to take assistance of legal practitioner and of Appropriate Commission to appoint presenting officers
  126. 125Appeal to Supreme Court
  127. 126Assessment
  128. 127Appeal to Appellate Authority
  129. 128Investigation of certain matters
  130. 129Orders for securing compliance
  131. 130Procedure for issuing directions by Appropriate Commission
  132. 131Vesting of property of Board in State Government
  133. 132Use of proceeds of sale or transfer of Board, etc
  134. 133Provisions relating to officers and employees
  135. 134Payment of compensation or damages on transfer
  136. 135Theft of Electricity
  137. 136Theft of electric lines and materials
  138. 137Punishment for receiving stolen property
  139. 138Interference with meters or works of licensee
  140. 139Negligently breaking or damaging works
  141. 140Penalty for intentionally injuring works
  142. 141Omitted
  143. 142Punishment for non-compliance of directions by Appropriate Commission
  144. 143Power to adjudicate
  145. 144Factors to be taken into account by adjudicating officer
  146. 145Civil courts not to have jurisdiction
  147. 146Punishment for non-compliance of orders or directions
  148. 147Penalties not to affect other liabilities
  149. 148Penalty where works belong to Government
  150. 149Offences by companies
  151. 150Abetment
  152. 151Cognizance of offences
  153. 151APower of police to investigate
  154. 151BCertain offences to be cognizable and non-bailable
  155. 152Compounding of offences
  156. 153Constitution of Special Courts
  157. 154Procedure and power of Special Court
  158. 155Special Court to have powers of Court of Session
  159. 156Appeal and revision
  160. 157Review
  161. 158Arbitration
  162. 159Protection of railways, highways, airports and canals, docks, wharfs and piers
  163. 160Protection of telegraphic, telephonic and electric signalling lines
  164. 161Notice of accidents and injuries
  165. 162Appointment of Chief Electrical Inspector and Electrical Inspector
  166. 163Power for licensee to enter premises and to remove fittings or other apparatus of licensee
  167. 164Exercise of powers of Telegraph Authority in certain cases
  168. 165Amendment of sections 40 and 41 of Act 1 of 1894
  169. 166Coordination forum
  170. 167Exemption of electric lines or electrical plants from attachment in certain cases
  171. 168Protection of action taken in good faith
  172. 169Members, officers, etc., of Appellate Tribunal, Appropriate Commission to be public servants
  173. 170Recovery of penalty payable under this Act
  174. 171Services of notices, orders or documents
  175. 172Transitional provisions
  176. 173Inconsistency in laws
  177. 174Act to have overriding effect
  178. 175Provisions of this Act to be in addition to and not in derogation of other laws
  179. 176Power of Central Government to make rules
  180. 177Powers of Authority to make regulations
  181. 178Powers of Central Commission to make regulations
  182. 179Rules and regulations to be laid before Parliament
  183. 180Powers of State Governments to make rules
  184. 181Powers of State Commissions to make regulations
  185. 182Rules and regulations to be laid before State Legislature
  186. 183Power to remove difficulties
  187. 184Provisions of Act not apply in certain cases
  188. 185Repeal and saving

Schedules

This Act has 1 schedule. A schedule is published as a document of its own; the text is reproduced on its page where it has been read, and the document is mirrored here either way.

Rules made under this Act

40 sets of Rules. India Code publishes Rules as a record and a document rather than as text, so these are indexed here and not reproduced. All Rules.

  • The Appelate Authority under Section 127 of Electricity Act 20032025
  • UPERC (MYT for Transmission) Regulations 20252025
  • Uttar Pradesh Electricity Regulatory Commission (Procedure, Terms & Conditions for grant of Trading License for Intrastate Electricity Trader and other related Provisions) Regulations, 20052025
  • Uttar Pradesh Electricity Regulatory Commission Multi Year Tariff for Distribution Regulations, 20252025
  • CSERC (Redressal of Grievances of the Consumers) Regulations, 2023.2023
  • Central Electricity Authority (Flexible Operation of Coal based Thermal Power Generating Units) Regulations, 20232023
  • Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 20232023
  • Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2023.2023
  • Gazette Notification For Addition of Formats in the Central Electricity Authority (Furnishing of Statistics, Returns and Information) Regulations, 20072023
  • The Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 20232023
  • Uttar Pradesh Electricity Regulatory Commission (Modalities of Tariff Determination) Regulations, 20232023
  • Uttar Pradesh Electricity Regulatory Commission Power System Development Fund Regulations, 20232023
  • Central Electricity Authority (Installation and Operation of Meters) (Amendment) Regulations, 20222022
  • Central Electricity Authority (Safety Requirements for Construction, Operation and Maintenance of Electrical Plants and Electric Lines) (Amendment) Regulations, 20222022
  • Central Electricity Authority (Technical Standards for Construction of Electrical Plants and Electric Lines) Regulations, 20222022
  • Gazette notification dated 17.03.2022 for deletion/modification of formats of Central Electricity Authority (Furnishing of Statistics, Returns and Information) Regulation 2007 as required for Ease of doing Business.2022
  • The Electricity (Late Payment Surcharge and Related Matters) Rules, 20222022
  • The Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 20222022
  • The Electricity (Rights of Consumers) Amendment Rules, 20222022
  • UP Electricity Regulatory Commission (Consumer Grievance Redressal Forum) Regulations, 20222022
  • Uttar Pradesh Electricity Regulatory Commission (Facilitation of Telecommunication Network) Regulations, 20222022
  • The Electricity (Rights of Consumers) Amendment Rules, 20212021
  • The Procedure for Conducting Inquiry against a Member of Appropriate Commission (Amendment) Rules, 20212021
  • Central Electricity Authority (Technical Standards for Communication System in Power System Operation) Regulations, 20202020
  • Electricity (Rights of Consumers) Rules, 20202020
  • The Electricity (Amendment) Rules, 20202020
  • The Himachal Pradesh Electricity Regulatory Commission (Power System Development Fund) Regulations, 20202020
  • Central Electricity Authority (Installation and Operation of Meters) (Amendment) Regulations, 20192019
  • Central Electricity Authority (Technical Standards for Connectivity of the Distributed Generation Resources) Amendment Regulations, 20192019
  • Central Electricity Authority (Technical Standards for Connectivity to the Grid ) (Amendment ) Regulations, 20192019
  • Madhya Pradesh Electricity Regulatory Commission (Annual Report) Rules 20192019
  • Madhya Pradesh Electricity Regulatory Commission (Budget) Rules 20192019
  • Central Electricity Regulatory Commission (Salary, Allowances and other Conditions of Service of Chairperson and Members) Amendment Rules, 20182018
  • Delhi Electricity Regulatory Commission (Forum for Redressal of Grievances of the Consumers and Ombudsman) Regulations, 20182018
  • JERC Notification dated 26.11.20182018
  • JERC Notification dated 26.11.20182018
  • JERC Notification dated 26.11.20182018
  • MoP Notification dated 24.05.20182018
  • State Advisory Committee2018
  • The Chhattisgarh State Electricity Supply Code (Second Amendment) 20182018

Related Acts

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Every one of the 188 sections of this Act has its own page. This page is not a substitute for legal advice.