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THE ELECTRICITY REGULATORY COMMISSIONS ACT,1998

Title : THE ELECTRICITY REGULATORY COMMISSIONS ACT,1998

Year : 1998



The Commissions shall ensure transparency while exercising their powers and discharging their functions.



(1) In the discharge of its functions, the Central Commission shall be guided by such directions in matters of policy involving public interest as the Central Government may give to it in writing.

(2) If any question arises as to whether any such directions relates to a matter of policy involving public interest, as the decision of the Central Government thereon shall be final.



(1) In the discharge of its functions, the State Commission shall be guided by such directions in matters of policy involving public interest as the State Government may give to it in writing.

(2) If any question arises as to whether any such direction relates to a matter of policy involving public interest, the decision of the State Government thereon shall be final.



The Chairperson, Members, officers and other employees of the
Commissions shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning of section 21 of the Indian Penal Code(45 of 1860).



The provisions of this Act in so far as they relate to the State Commission shall not apply to the Commissions established under the Orissa Electricity Reform Act, 1995 or the Haryana State Electricity Reform Act, 1997.



All proceedings before the Commission shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860) and the Commission shall be deemed to be a civil court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1974).



No suit, prosecution or other legal proceedings shall lie against the Central or State Government or the Central or State Commission or any officer of Central or State Government or any Members, officer or other employees of the Central or State Commission for anything which is in good faith done or intended to be done under this Act or the rules or regulations made there under.



Whoever fails to comply with any order or direction given under this Act, within such time as may be specified in the said order or direction or contravenes, or attempts to contravene or abets the contravention of any of the provisions of this Act or any rules or regulations made there under shall be punishable with imprisonment for a term which may extend to three months or with fine, which may extend to rupees one lakh or, with both in respect of each offence and in the case of a continuing failure, with an additional fine which may extend to rupees four thousand for every day during which the failure continues after conviction of the first such offence.



(1) In case any complaint is filed before the Commission by any person or if the Commission is satisfied that any person has contravened any directions issued by the Commission under this Act, rules or regulations made thereunder, the Commission may after giving such person an opportunity of being heard in the matter, by order in writing, direct that, without prejudice to any other penalty to which he may be liable under this Act, such person shall pay, by way of penalty, which shall not exceed rupees one lakh for each contravention and in case of a continuing failure with an additional penalty which may extend to rupees six thousand for every day during which the failure continues after contravention for the first such direction.

(2) Any amount payable under this section, if not paid, may be recovered as if it were an arrear of land revenue.



(1) The Commission or any other officer, not below the rank of a Gazetted Officer, specially authorised in this behalf by the Commission may enter any building or place where the Commission has reason to believe that any document relating to the subject matter of the inquiry may be found, and may seize any such document or take extracts or copies therefrom subject to the provisions of section 100 of the Code of Criminal Procedure, 1973( 2 of 1974), in so far as it may be applicable.



(1) Where an offence under this Act has been committed by a company, every person who at the time, the offence was committed was in charge of, and was responsible to the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided
that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he has exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.

Explanation.-For the purposes of this section,-

(a) "Company" means any body corporate and includes a firm or other association of individuals; and

(b) "Director", in relation to a firm, means a partner in the firm.



No court shall take cognizance of an offence punishable under this Act except upon a complaint, in writing, made by the Commission or by any other officer duly authorised by the Commission for this purpose.



Nothing contained in this Act or any rule or regulation made there under or any instrument having effect by virtue of this Act, rule or regulation shall have effect in so far as it is inconsistent with any other provisions of the Consumer Protection Act,1986 (68 of 1986) or the Atomic Energy Act, 1962 (33 of 1962).



The Central or the State Commission may, by general or special order in writing, delegate to any Members, officer of the Central or the State Commission or any other person subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this Act (except the power to settle disputes under Chapters III and V and the power to make regulations under section 55 or 58) as it may deem necessary.



With effect from such date as the Central Government may, by notification in the Official Gazette, appoint, sub-section (2) of section 43A of the Electricity (Supply) Act, 1948. Shall be omitted:

Provided that different dates may be appointed for different States.



Save as otherwise provided in section 49, the provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any enactment other than this Act.



The Central Government may give directions to a State Government as to the carrying out into execution of this Act in the State.



(1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-

(a) The salary and allowances payable to and the other conditions of service of the Chairperson and Members under sub-section (2) of section 6;

(b) The form and the manner in which and the authority before whom oath of office and secrecy should be subscribed under sub-section (4) of section 6;

(c) The form in which and the time at which the Central Comission shall prepare its budget under section 31;

(d) The form in which annual statement of accounts to be prepared by the Central Commission under sub-section (1) of section 32;

(e) The form and the time within which annual report should be filed under sub-section (1) of section 35;

(f) Any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made, by rules.



(1) The Central Commission may, by notification in the Official Gazette, make regulations consistent with this Act and the rules generally to carry out the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power such regulations may provide for all or any of the following matters, namely:

(a) The powers and duties of the Secretary under sub-section (1) of section 8;

(b) The salaries, allowances and other conditions of service of the
Secretary, officers and other employees under sub-section (3) of section 8;

(c) The terms and conditions of the consultants appointed under sub-section (4) of section 8;

(d) The rules of procedure to be observed by the Central Commission under sub-section (1) of section 9;

(e) The manner in which charges for energy may be determined under section 28.



Every rule made by the Central Government and every regulation made by the Central Commission under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however,that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation.



(1) The State Government may, by notification in the Official Gazette, make rules to carry out the provisions of this Act.

(2) In particular and without prejudice to the generality of the fore going power,such rules may provide for all or any of the following matters, namely:-

(a) The salary, allowances and other conditions of service of the Members under sub-section (2) of section 19;

(b) The form and manner in which and the authority before whom the oath of office and secrecy should be subscribed under sub-section (4) of section 19;

(c) The form in which and the time at which, the State Commission shall prepare its budget under section 33;

(d) The form in which annual statement of accounts to be prepared by the State Commission under sub-section (1) of section 34;

(e) The form and the time within which annual report shall be furnished under sub-section (1) of section 36;

(f) Any other matter which is to be, or may be, prescribed or in respect of which provision is to be made, by rules.



(1) The State Commission may, by notification in the Official Gazette, make regulations consistent with this Act and the rules made there under to carry out the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:-

(a) The duties and powers of the Secretary under sub-section (1) of section 21;

(b) The salary, allowances and other conditions of service of the secretary, officers and other employees under sub-section (3) of section 21;

(c) The terms and conditions of consultants appointed under sub-section (4) of section 21;

(d) The manner in which charges for energy may be determined under sub-section (2) of section 29;

(e) Any other matter which is to be, or may be, specified.



Every rule made by the State Government and every regulation made by the State Commission under this Act shall be laid, as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or where such Legislature consists of one House, before that House.



(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty:

Provided that no order shall be made under this section after the expiry of two years from the date of commencement of this Act.

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.



(1) The Electricity Regulatory Commissions Ordinance, 1998 (Ord. 14 of 1998) is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act.

Last updated on September, 2016

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