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THE ELECTRICITY (SUPPLY) ACT, 1948

Title : THE ELECTRICITY (SUPPLY) ACT, 1948

Year : 1948



(1) The Central Government shall constitute a body called the Central Electricity Authority generally to exercise such functions and perform such duties under the Act and in such manner as the Central Government may prescribe or direct, and in particular to-

(i) Develop a sound, adequate and uniform national power policy, 1 [formulate short-term and perspective plans for power development and co-ordinate the activities of the planning agencies] in relation to the control and utilisation of national power resources;

(ii) Act as arbitrators in matters arising between the State Government or the Board and a licensee or other person as provided in this Act;

2*[(iii) Collect and record the data concerning the generation, distribution and utilisation of power and carry out studies relating to cost, efficiency, losses, benefits and such like matters;]

(iv) Make public from time to time information secured under this Act and to provide for the publication of reports and investigations;

3*[(v) Advise any State Government, Board, Generating Company or other agency engaged in the generation or supply of electricity on such matters as will enable such Government, Board, Generating Company or agency to operate and maintain the power system under its ownership or control in an improved manner and, where necessary, in co-ordination with any other Government, Board, Generating Company or other agency owning or having the control of another power system;

(vi) Promote and assist in the timely completion of schemes sanctioned under Chapter V;

(vii) Make arrangements for advancing the skill of persons in the generation and supply of electricity;

(viii) Carry out, or make arrangements for, any investigation for the purpose of generating or transmitting electricity;

(ix) Promote research in matters affecting the generation, transmission and supply of electricity;

(x) Advise the Central Government on any matter on which its advice is sought or make recommendation to that Government on any matter if, in the opinion of the Authority, the recommendation would help in improving the genera┬Čtion, distribution and utilisation of electricity; and

(xi) Discharge such other functions as may be entrusted to it by or under any other law.]

(2) The Authority shall consist of 4*[not more than fourteen members of whom not more than eight shall be full-time members] appointed by the Central Government 5 [***].

6*[(2A) A full-time member shall be a person who has experience of, and has shown capacity in,-

(a) Design, construction, operation and maintenance of generating stations;

(b) Transmission and supply of electricity;

(c) Applied research in the field of electricity;

(d) Applied economics; or

(e) Industrial, commercial or financial matters.]

(3) The Central Government shall appoint [one of the full-time members] to be the Chairman of the Authority.

(4) All the members of the Authority shall hold office during the pleasure of the Central Government.

7*[(4A) The Chairman of the Authority and the other full-time members shall receive such salaries and allowances as may be determined by the Central Government and the other members shall receive such allowances and fees for attending the meetings of the Authority, as the Central Government may prescribe.

(4B) The other terms and conditions of service of the members of the Authority [including, subject to the provisions of sub-section (4), their terms of office] shall be such as the Central Government may prescribe.]

(5) No full-time member of the Authority shall 8*[have any share or interest for his own benefit, whether in his own name or otherwise,] in any company or other body corporate or an association of persons (whether incorporated or not), or a firm engaged in the business of supplying electrical energy or 9*[fuel, in whatever form, for the generation of electricity or in the manufacture of electrical equipment].

(6) The Authority may appoint a Secretary and such other officers and 10*[employees] as it considers necessary for the performance of its functions under this Act on such terms as to salary, remuneration, fee, allowance, pension, leave and gratuity, as the Authority may, in consultation with the Central Government, fix:

Provided that the appointment of the Secretary shall be subject to the approval of the Central Government.

11*[(7) The Chairman of the Authority may, by order, appoint any two or more members of the Authority to act on behalf of the Authority in relation to any matter referred to in clause (ii) of sub-section (1).

(8) No act or proceeding of the Authority shall be invalid merely on the ground of the existence of any vacancy in, or any defect in the constitution of, the Authority.]

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1. Substituted by Act 115 of 1976, Section 4, for "and particularly to co-ordinate the activities of the planning agencies" w.r.e.f. 8-10-1976.

2. Substituted by Act 115 of 1976, Section 4, for clause (iii) w.r.e.f. 8-10-1976.

3. Inserted by Act 115 of 1976, Section 4 w.r.e.f. 8-10-1976.

4. Substituted by Act 115 of 1976, Section 4, for "not more than six members" w.r.e.f. 8-10-1976.

5. The words "of whom at least three shall be full-time members" omitted by Act 57 of 1949, Section 3.

6. Inserted by Act 115 of 1976, Section 4 w.r.e.f. 8-10-1976.

7. Substituted by Act 115 of 1976, Section 4, for "one of the members" w.r.e.f. 8-10-1976.

8. Substituted by Act 115 of 1976, Section 4, for "be directly or indirectly concerned or interested in or have any share or interest" w.r.e.f. 8-10-1976.

9. Substituted by Act 115 of 1976, Section 4, for "fuel, solid or liquid, for the generation of electricity" w.r.e.f. 8-10-1976.

10. Substituted by Act 23 of 1978, Section 3 for "servants" w.e.f. 3-6-1978.

11. Substituted by Act 115 of 1976, Section 4, for sub-section (7) w.r.e.f. 8-10-1976.

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It shall be the duly of each 1*[State Electricity Board, Generating Company,] Slate Government Electricity Department or other licensee or person supplying electricity for public or private purposes, or generating electricity for its or his own use 2*[or consuming electricity] to furnish to the Authority such accounts, statistics, 3*[returns or other information] relating to the generation supply and use of electricity as it may require and at such times and in such form and manner as it may direct.

4A  4* Directions by Central Government to the Authority

(1) In the discharge of its functions, the Authority 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 direction relates to a matter of policy involving public interest, the decision of the Central Government thereon shall be final.]

4B - Power of Central Government to make rules

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

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

(a) The functions and duties of the Authority and the manner in which such functions and duties shall be exercised and performed, under sub-section (1) of section 3;

(b) The terms and conditions of service of the Chairman and other members of the Authority (including the allowances and fees payable to members, but not including the salaries and allowances payable to the Chairman and other full-time members, of the Authority) under sub-section (4A) and sub-section (4B) of section 3;

(c) Any other matter which is required to be, or may be, prescribed by the Central Government.

(3) Every rule made by the Central Government under this Chapter 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 both Houses agree that the rule should no be made, the rule 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.

4C - Power of Authority to make regulations

5*[(1)] The Authority may 6*[by notification in the Official Gazette,] make regulations, not inconsistent with the provisions of this Act and the rules made by the Central Government thereunder, to provide for all or any of the following matters, namely: -

(a) Summoning and holding of meetings of the Authority, the times and places at which such meetings shall be held, the conduct of business thereat and the number of members required to constitute a quorum;

(b) Any other matter arising out of the functions of the Authority under this Act for which it is necessary or expedient to make regulations.]

6*[(2) The Central Government shall cause every regulation made under this section to be laid, as soon as 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 regulation, or both Houses agree that the regulation should not be made, the 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 he without prejudice to the validity of anything previously done under that regulation.]

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1. Substituted by Act 115 of 1976, Section 5, for "State Electricity Board" w.r.e.f. 8-10-1976.

2. Inserted by Act 115 of 1976, Section 5, w.r.e.f. 8-10-1976.

3. Substituted by Act 115 of 1976, Section 5, for "and returns" w.r.e.f. 8-10-1976.

4. Sections 4A, 4B and 4C Inserted by Act 115 of 1976, Section 6 w.r.e.f. 8-10-1976.

5. Section 4C re-numbered as sub-section (1) thereof by Act 20 of 1983, Section 2 and Schedule w.e.f. 15-3-1984.

6. Inserted by Act 20 of 1983, Section 2 and Schedule w.e.f. 15-3-1984

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Last updated on July, 2016

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