Power to recover charges
Section 45 of the Electricity Act, 2003 deals with power to recover charges. 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. The Act came into force on 10 Jun 2003.
(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.
Section 45, The Electricity Act, 2003 (Act 36 of 2003).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Referred to by 1
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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Paschim Gujarat Vij Company LTD vs Apurva Chemicals
Court's Decision & Legal Precedent
Deciding the batch led by K.C. Ninan v. Kerala State Electricity Board, the three-Judge Bench held that the duty to supply electricity is not absolute but is subject to the charges and conditions prescribed by the Act, the Supply Code and the regulations; a distribution licensee may therefore make clearance of the arrears of the previous consumer a condition of a fresh connection where the Supply Code so provides, because the electricity dues have a statutory character and the Commission's rule-making power bears a reasonable nexus with the objects of the Act. The licensee's power to sue for recovery is independent of its power to disconnect.
On this section: It construes the licensee's power to fix and recover charges and to impose conditions of supply, holding that the charges and conditions sanctioned by the Act and regulations bind a new occupant seeking supply of the same premises.
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Torrent Powr Ltd. & Etc vs Abhisar Developers
Court's Decision & Legal Precedent
In the same batch the Court held that the recoupment of a previous consumer's dues from a purchaser of the premises, including a purchaser at an auction taken 'as is where is' under the SARFAESI Act, is permissible where the Supply Code or conditions of supply so provide, the regulatory commission having the power to create such a condition; while exercising its Article 142 jurisdiction it waived the interest component and confined the auction purchasers' liability to the principal arrears.
On this section: It applies the licensee's charging and recovery power to hold that arrears recoverable under the conditions of supply attach to the supply of the premises and may be demanded from the incoming owner, subject only to the equities the Court itself moulded.
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Torrent Power Ltd. vs Union of India
Court's Decision & Legal Precedent
The Division Bench struck down paragraph 4(1) of Circular 34/8/2018-GST, holding that the ancillary charges a distribution licensee recovers under the Electricity Act and the GERC Regulations, meter rent, application and connection fees, testing fees and labour charges for shifting meters, are naturally bundled with, and ancillary to, the principal supply of transmission and distribution of electricity, and therefore take the exemption of that principal supply as a composite supply.
On this section: It treats the charges the licensee is authorised to levy and recover for supply as inseparable incidents of the supply of electricity itself, rather than as separate services.
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
1 instrument states 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.
Another 1 instrument names this provision in its title or its text without being made under it.
Questions about Section 45
What have the courts held on Section 45 of the Electricity Act?
Paschim Gujarat Vij Company LTD vs Apurva Chemicals (19 May 2023) is the leading judgment on this section among those set out below: It construes the licensee's power to fix and recover charges and to impose conditions of supply, holding that the charges and conditions sanctioned by the Act and regulations bind a new occupant seeking supply of the same premises. Another 2 judgments on this section are set out below, 2 of them from the Supreme Court. They run from 2018 to 2023.
How do I find court cases under Section 45 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 45, section 45 Electricity Act 2003, section 45 of the Electricity Act. People searching for it also type electricity act 2003 section 45 and electricity act 2003 section 45 5. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 3 reported judgments on this section are set out on this page, beginning with Paschim Gujarat Vij Company LTD vs Apurva Chemicals (19 May 2023).
What should I read with Section 45 of the Electricity Act, and has it changed?
Its own text turns on section 43 (Duty to supply on request), section 62 (Determination of tariff), so none of them can safely be read on its own. 1 other provision in this corpus refers back to it. The rules and notifications made under it are where it actually bites, and there is one: most recently CSERC (Terms and Conditions for Determination of Tariff) Regulations, 2006. (2006).
When did Section 45 of the Electricity Act come into force?
Section 45 of the Electricity Act, cited as Electricity Act 2003 45, 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 15 Oct 2026. This page is not a substitute for legal advice.