Directions to licensees
Section 23 of the Electricity Act, 2003 deals with directions to licensees. If the Appropriate Commission is of the opinion that it is necessary or expedient so to do for maintaining the efficient supply, securing the equitable distribution of electricity and promoting competition, it may, by order, provide for regulating supply, distribution, consumption or use thereof. The Act came into force on 10 Jun 2003.
If the Appropriate Commission is of the opinion that it is necessary or expedient so to do for maintaining the efficient supply, securing the equitable distribution of electricity and promoting competition, it may, by order, provide for regulating supply, distribution, consumption or use thereof.
Section 23, The Electricity Act, 2003 (Act 36 of 2003).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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J. K. Tyre & Industries LTD vs Rajasthan Electricity Regulatory Commn
Court's Decision & Legal Precedent
The Rajasthan Electricity Regulatory Commission has statutory power under Section 86(1)(e) read with Section 181 of the Electricity Act 2003 to impose renewable energy purchase obligations on captive power plants and open access consumers located in the area of distribution licensee, as the term 'total consumption in the area of distribution licensee' includes consumption from all sources within that geographical area. Such obligations, being designed to achieve constitutional mandates under Articles 21, 48A, and 51A(g) of the Constitution and to promote renewable energy as a matter of public policy, do not violate the de-licensing principle of the Act nor do they infringe fundamental rights under Articles 14 or 19(1)(g) of the Constitution. The surcharge imposed for non-compliance is a valid regulatory measure under Section 86(1)(g) and Sections 142, 147 of the Act, representing a compensatory mechanism based on the polluter-pays principle, not an unauthorized tax under Article 265.
On this section: Distinguished from renewable energy obligation power; court held that RERC cannot use this section for licensing back-door measures
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Made under this section, and citing it
7 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
- Amendements in cash flow MechanismRule 2012
- MADHYA PRADESH ELECTRICITY REFORMS FIRST TRANSFER SCHEME RULES 2003- AMENDMENTSRule 2012
- MADHYA PRADESH ELECTRICITY REFORMS FIRST TRANSFER SCHEME RULES 2003- AMENDMENTSRule 2012
- Modification in Madhya Pradesh Electricity Reform First Transfer Scheme Rule 2003Rule 2012
- The Himachal Pradesh Electricity Regulatory Commission (Demand Side Management) Regulations, 2011Regulation 2011
- MADHYA PRADESH ELECTRICITY REFORMS FIRST TRANSFER SCHEME RULES 2003- AMENDMENTSRule 2005
- MADHYA PRADESH ELECTRICITY REFORMS FIRST TRANSFER SCHEME RULES 2003Rule 2003
Another 1 instrument names this provision in its title or its text without being made under it.
Questions about Section 23
What have the courts held on Section 23 of the Electricity Act?
J. K. Tyre & Industries LTD vs Rajasthan Electricity Regulatory Commn (13 May 2015) is the leading judgment on this section among those set out below: Distinguished from renewable energy obligation power; court held that RERC cannot use this section for licensing back-door measures.
How do I find court cases under Section 23 of the Electricity Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Electricity Act 2003 23, section 23 Electricity Act 2003, section 23 of the Electricity Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with J. K. Tyre & Industries LTD vs Rajasthan Electricity Regulatory Commn (13 May 2015).
What should I read with Section 23 of the Electricity Act, and has it changed?
The rules and notifications made under it are where it actually bites, and there are 7: most recently Amendements in cash flow Mechanism (2012), then MADHYA PRADESH ELECTRICITY REFORMS FIRST TRANSFER SCHEME RULES 2003- AMENDMENTS (2012), and 5 more.
When did Section 23 of the Electricity Act come into force?
Section 23 of the Electricity Act, cited as Electricity Act 2003 23, came into force on 10 Jun 2003, having been enacted on 26 May 2003. It is in force as at the date shown on this page.
Other sections of this Act
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. Text as in force on 18 Oct 2026. This page is not a substitute for legal advice.