Indian Bare Acts

Search Alphabatically :

THE ELECTRICITY (SUPPLY) ACT, 1948

Title : THE ELECTRICITY (SUPPLY) ACT, 1948

Year : 1948



(1) For the efficient performance of its duties under this Act, the Board or a Generating Company, as the case may be, may prepare one or more schemes, relating to the establishment or acquisition of generating stations, tie-lines, sub-stations or transmission lines, as are referred to in clause (e) of section 18 or clause (c) of sub-section (1) of section 18A, as the case may be.

(2) The Board or, as the case may be, the Generating Company which has prepared a scheme may, sanction such scheme either generally or in respect of any part of the area specified in the scheme and where a scheme has been sanctioned in respect of any part of the area, such scheme may subsequently be sanctioned in respect of any other part of that area:

Provided that where the scheme is of the nature referred to in sub-section (1) of section 29, the scheme shall not be sanctioned (generally or for part of an area) by the Board or the Generating Company except with the previous concurrence of the Authority.

2*[(2A) The Board or, as the case may be, the Generating Company shall, as soon as may be after it has sanctioned any scheme which is not of the nature referred to in section 29, forward the scheme to the Authority and, if required by the Authority so to do, supply to the Authority any information incidental or supplementary to the scheme within such period as may be specified by the Authority.]

(3) Every scheme sanctioned under this section shall be published in the Official Gazette and in such local newspapers as the Board or, as the case may be, the Generating Company may consider necessary.]

----------------------------------------------------------------------------------------------------------------------------------------------------------

1. Substituted by Act 115 of 1976, Section 17, for section 28 w.r.e.f. 8-10-1976.

2. Inserted by Act 48 of 1984, Section 2 w.e.f. 1-10-1984.

----------------------------------------------------------------------------------------------------------------------------------------------------------



2* [(1) Every scheme estimated to involve a capital expenditure exceeding such sum, as may be fixed by the Central Government, from time to time, by notification in the Official Gazette, shall, as soon as may be after it is prepared, be submitted to the Authority for its concurrence.]

(2) Before finalisation of any scheme of the nature referred to in sub-section (1) and the submission thereof to the Authority for concurrence, the Board or, as the case may be, the Generating Company shall cause such scheme, which among other things shall contain the estimates of the capital expenditure involved, salient features thereof and the benefits that may accrue therefrom, to be published in the Official Gazette of the State concerned and in such local newspapers as the Board or the Generating Company may consider necessary along with a notice of the date, not being less than two months after the date of such publication, before which licensees and other persons interested may make representations on such scheme.

(3) The Board or, as the case may be, the Generating Company may, after considering the representations, if any, that may have been received by it and after making such inquiries as it thinks fit, modify the scheme and the scheme so finally prepared (with or without modifications) shall be submitted by it to the Authority along with the representations.

(4) A copy of the scheme finally prepared by the Board or, as the case may be, the Generating Company under sub-section (3) shall be forwarded to the State Government or State Governments concerned:

Provided that where the scheme has been prepared by a Generating Company in relation to which the Central Government is the 3*[competent government or one of the competent governments], a copy of the scheme finally prepared shall be forwarded also to the Central Government.

(5) The Authority may give such directions as to the form and contents of a scheme and the procedure to be followed in, and any other matter relating to, the preparation, submission and approval of such scheme, as it may think fit.

(6) In respect of any scheme submitted to the Authority for its concurrence under sub-section (1), the Board or, as the case may be, the Generating Company shall, if required by the Authority so to do, supply any information incidental or supplementary to the scheme within such period, being not less than one month, as may be specified by the Authority.]

---------------------------------------------------------------------------------------------------------------------------------------------------------

1. Section 29 Substituted by Act 30 of 1966, Section 6 w..e.f. 16-9-1966 and again Substituted by Act 115 of 1976, Section 17 w.r.e.f. 8-10-1976.

2. Substituted by Act 50 of 1991, Section 6, for sub-section (1) w..e.f. 15-10-1991.

3. Substituted by Act 50 of 1991, Section 6, for "promoting government or one of the promoting governments" w.e.f. 15-10-1991.

---------------------------------------------------------------------------------------------------------------------------------------------------------



1*[The Authority shall, before concurring in any scheme submitted to it under sub-section (1) of section 29, have particular regard to, whether or not in its opinion-].

(a) Any river-works proposed 2[***] will prejudice the prospects for the best ultimate development of the river or its tributaries for power-generation, consistent with the requirements of irrigation, navigation and flood-control, and for this purpose the Authority [shall satisfy itself, after consultation with the State Government, the Central Government, or such other agencies as it may deem appropriate,] that an adequate study has been made of the optimum location of dams and other river-works;

(b) The proposed scheme will prejudice the proper combination of hydro-electric and thermo-electric power necessary to secure the greatest possible economic output of electric power;

(c) The proposed main transmission lines will be reasonably suitable for regional requirements;

(d) The scheme provides reasonable allowances for expenditure on capital and revenue account;

(e) The estimates of prospective supplies of electricity and revenue therefrom contained in the scheme are reasonable;

3*[(f) In the case of a scheme in respect of thermal power generation, the location of the generating station is best suited to the region, taking into account the optimum utilisation of fuel resources, the distance of load center, transportation facilities, water availability and environmental considerations; the scheme conforms to any other technical, economic or other criteria laid down by the Authority in accordance with the national power policy evolved by it in pursuance of the provisions contained in clause (i) of sub-section (1) of section 3 4*[and such other directions as may be given by the Central Government].]

--------------------------------------------------------------------------------------------------------------------------------------------------------

1. Substituted by Act 115 of 1976, Section 18, for the original paragraph w.r.e.f. 8-10-1976.

2. The words "by the Board" omitted by Act 115 of 1976, Section 18 w.r.e.f. 8-10-1976.

3. Inserted by Act 115 of 1976, Section 18 w.r.e.f. 8-10-1976.

4. Added by Act 50 of 1991, Section 7 w..e.f. 15-10-1991.

--------------------------------------------------------------------------------------------------------------------------------------------------------



(1) Where a scheme is submitted to the Authority under sub-section (1) of section 29, the Authority may, having regard to the matters referred to in section 30, either concur in the scheme without modification or require the Board or, as the case may be, the Generating Company to modify the scheme in such manner as the Authority specifies in the requisition so as to ensure that the scheme conforms to the national power policy evolved by the Authority in pursuance of the provisions contained in clause (i) of sub-section (1) of section 3 and in either case the Authority shall also communicate its decision to the State Government or State Governments concerned:

Provided that where the scheme was submitted for concurrence by a Generating Company in relation to which the Central Government is the2*[competent government or one of the competent governments], the decision shall be communicated also to that Government.

(2) Where under sub-section (1) the Authority requires that a scheme may be modified, the Board or, as the case may be, the Generating Company may prepare a revised scheme in accordance with such requisition and submit it to the Authority for concurrence and thereupon the Authority shall, if satisfied that the revised scheme complies with the requisition, concur in the same.

--------------------------------------------------------------------------------------------------------------------------------------------------------

1. Substituted by Act 115 of 1976, Section 19, for sections 31, 32 and 33 w.r.e.f. 8-10-1976.

2. Substituted by Act 50 of 1991, Section 8, for "the promoting government or one of the promoting governments" w.e.f. 15-10-1991.

-------------------------------------------------------------------------------------------------------------------------------------------------------



The Board or, as the case may be, the Generating Company may, from time to time, alter or extend a scheme by a supplementary scheme prepared in the manner specified in section 31:

Provided that any alterations or extensions of a scheme which are, in the opinion of the Board or, as the case may be, the Generating Company, minor in character may be made without preparing a supplementary scheme:

Provided further that where any alteration or extension of the nature referred to in the first proviso is made in respect of a scheme concurred in by the Authority, details of such alteration or extension shall be intimated to the Authority as soon as may be after such alteration or extension is made.



The provisions of sections 28 to 32 (both inclusive) shall, so far as may be, apply also in relation to a scheme prepared by a State Government for the generation, transmission or distribution of electricity.]



1*[(1)] Where a generating station situate within an area for which a scheme is in force has been designated in the scheme as a controlled station, the relations between the Board and the licensee owning the station shall, subject to any arrangements agreed under section 47,be regulated by the provisions of the First Schedule.

2*[(2) Notwithstanding anything contained in this Act or any scheme made hereunder, no generating station owned by a Generating Company shall be designated as a controlled station.]

-------------------------------------------------------------------------------------------------------------------------------------------------------------

1. Section 34 re-numbered as sub-section(1) thereof by Act 115 of 1976, Section 20 w.r.e.f. 8-10-1976.

2. Inserted by Act 115 of 1976, Section20 w.r.e.f. 8-10-1976.

--------------------------------------------------------------------------------------------------------------------------------------------------------------



The Board may at any time declare to a licensee owning a generating station, other than a controlled station, situate within an area for which a scheme is in force that it is ready to make a supply of electricity available to the licensee for the purposes of his undertaking, and thereupon, but without prejudice to the provisions of section 47, the provisions of the Second Schedule shall apply in respect of the relations between the Board and the said licensee.



The Board may at any lime declare to a licensee owning a generating station situate within an area for which a scheme is in force that the station shall be permanently closed down, and thereupon but without prejudice to the provisions of section 47, where the station is a controlled station the provisions of Part III of the First Schedule, or in other cases the provisions of the Third Schedule, shall apply in respect of the relations between the Board and the said licensee with reference to the station to be closed down.



(1) Where under the First or Third Schedule any generating station or undertaking is to be purchased by the Board, or where a sanctioned scheme provides for the purchase by the Board of a main transmission line belonging to any licensee,-

(a) The generating station or undertaking from such date of purchase as may be fixed under the appropriate Schedule, or the main transmission line from such date of purchase as the Board shall, by notice in writing given not less than one month before the said date, intimate to the licensee, shall vest in the Board free, save as provided in sub-section (2), from any debt, mortgage, lien or other similar obligation of the licensee or attaching to the station or undertaking or line, as the case may be, and any such debt, mortgage, lien or obligation shall, save as aforesaid, attach to the purchase-money in substitution of the station or undertaking or line:

Provided that notwithstanding any agreement to the contrary the licensee shall pay and the mortgagee, charge, lien-holder or oblige shall accept the whole or part of the purchase-money as the case may be in full or part satisfaction of the debt according as the amount of the purchase-money is more or less than the amount of his debt;

(b) Without prejudice to the provisions of section 47, the Board shall pay, or tender payment of, the price to be determined in accordance with the Fourth Schedule as soon as the amount thereof has been determined, together with interest on such amount from the date of purchase to the date of payment or tender of payment as aforesaid at the rate of one per centum over the average of the Reserve Bank rates between the said dates;

(e) The receipt of the licensee shall notwithstanding anything in any other law, be a full and sufficient discharge to the Board for the payment due in respect of the purchase.

(2) Where a generating station or undertaking or main transmission line purchased by the Board under this Act is in course of construction, extension or repair at the dale of purchase, the rights and liabilities of the former owner thereof under any contract for such construction, extension or repair shall be deemed to have been transferred to the Board, except such rights or liabilities acquired or incurred after the date of receipt of the notice of purchase without the prior sanction of the Board.

(3) Notwithstanding anything contained elsewhere in this Act,-

(i) Where any generating station purchased by the Board under this Act contains any plant or apparatus which, while the station was in operation, were used jointly for the purposes of generation and transmission or distribution or wholly for the purposes of transmission or distribution, then unless otherwise agreed between the Board and the licensee, such plant or apparatus shall not be purchased by the Board but shall remain the property of the licensee;

(ii) Where under the provisions of section 28 a scheme provides for the purchase of any main transmission line belonging to any licensee the Board shall not exercise the powers of acquisition thereby afforded without the prior consent of the licensee, which consent shall not be unreasonably withheld.



[Repealed. by the Electricity (Supply) Amendment Act, 1976 (115 of 1976), Section 21 (w.r.e.f. 8-10-1976).]



1*[(1)] Where the Board itself establishes a new generating station or acquires a generating station otherwise than for the purpose of closing it down, it shall operate the station itself, but the Board may with the sanction of the State Government make arrangements with any licensee or other person for its operation, if in the opinion of the Board it is desirable so to do.

2*[(2) Where a Generating Company has been established having its activities wholly or partly in a State, the State Government may direct the Board to make over any generating station established or acquired by the Board to the Generating Company subject to such terms and conditions as may be specified in the direction and the Board shall comply with such direction:

Provided that where the Central Government is the 3*[competent government or one of the competent governments] in relation to the Generating Company, no direction shall be made by any State Government under this sub-section without the concurrence of the Central Government.]

4*[(3) For the purposes of this section, no direction shall be issued to a Generating Company wholly or partly owned by the Central Government unless and until the prior concurrence of that Government is obtained.]

-----------------------------------------------------------------------------------------------------------------------------------------------------------

1. Section 39 re-numbered as sub-section (1) thereof by Act 115 of 1976, Section 22 w.r.e.f. 8-10-1976.

2. Inserted by Act 115 of 1976, Section 22 w.r.e.f. 8-10-1976.

3. Substituted by Act 50 of 1991, Section 9, "promoting government or one of the promoting governments" w.e.f. 15-10-1991.

4. Inserted by Act 50 of 1991, Section 9 w.e.f. 15-10-1991.

-----------------------------------------------------------------------------------------------------------------------------------------------------------



Where the Board has purchased a main transmission line and by reason of the user thereof by the Board any alteration or replacement of switch-gear or other apparatus of any licensee connected with the line becomes necessary, the Board may in its discretion itself carry out such alteration or replacement at its own cost or defray the reasonable expenses incurred by the licensee in effecting such alteration or replacement; and any question whether such alteration or replacement is necessary or whether the expenses incurred in connection therewith are reasonable shall in default of agreement be determined1[by arbitration] as provided under section 76.

-------------------------------------------------------------------------------------------------------------------------------------------------------

1. Inserted by Act 30 of 1966, Section 10 w.e.f. 16-9-1966.

-------------------------------------------------------------------------------------------------------------------------------------------------------



(1) Until the Central Commission is established, the Central Government and thereafter the Central Commission in the case of inter-State transmission system and until the State Commission is established, the State Government and thereafter the State Commission in the case of intra State transmission system may determine the charges payable to the Central Transmission Utility or State Transmission Utility as the case may be, for the use of transmission system by a Board, its successor entity, generating company, licensee or any other person.

(2) The Central Transmission Utility or State Transmission Utility, as the case may be, may enter into an agreement with any transmission licensee for the exclusive use of the transmission system constructed, maintained and operated by the transmission licensee.

(3) Where the Central Transmission Utility or the State Transmission Utility, as the case may be, considers it necessary to use for any purpose any transmission system or transmission line or main transmission line of a generating company or a licensee, it shall have the power to use such lines to the extent to which the capacity thereof is surplus to the requirements of the generating company or the licensee on payment of charges calculated in accordance with the provisions of the Fifth Schedule.]

---------------------------------------------------------------------------------------------------------------------------------------------------------

1. Substituted by Act 22 of 1998, Section 10, for section 41 w.e.f. 31-12-1998.

---------------------------------------------------------------------------------------------------------------------------------------------------------



1*[(1)] Notwithstanding anything contained in sections 12 to 16 and 18 and 19 of the Indian Electricity Act, 1910 (9 of 1910) but without prejudice to the requirements of section 17 of that Act where provision in such behalf is made in a sanctioned scheme, the Board shall have, for the placing of any wires, poles, wall-brackets, stays apparatus and appliances for the transmission and distribution of electricity, or for the transmission of telegraphic or telephonic communications necessary for the proper co-ordination of the works of the Board, all the powers which the telegraph authority possesses under Pan HI of the Indian Telegraph Act, 1885 (13 of 1885) with regard to a telegraph established or maintained by the Government or to be so established or maintained:

Provided that where a sanctioned scheme does not make such provision as aforesaid, all the provisions of sections 12 to 19 of the first-mentioned Act shall apply to the works of the Board.

2*[(2) A Generating Company may, for the placing of wires, poles, wall brackets, stays apparatus and appliances for the transmission of electricity, or for the transmission of telegraphic or telephonic communications necessary for the proper co-ordination of the works of the Generating Company, exercise all or any of the powers which the Board may exercise under sub-section (1) and subject to the conditions referred to therein,]

---------------------------------------------------------------------------------------------------------------------------------------------------------

1. Section 42 re-numbered as sub-section (1) thereof by Act 115 of 1976, Section 24 w.r.e.f. 8-10-1976.

2. Inserted by Act 115 of 1976, Section 24 w.r.e.f. 8-10-1976.

---------------------------------------------------------------------------------------------------------------------------------------------------------



(1) The Board may enter into arrangements with any person producing electricity within the State for the purchase by the Board on such terms as may be agreed, of any surplus electricity which that person may be able to dispose of.

(2) Where a sanctioned scheme so provides, the Board may, on such terms as may be agreed upon, enter into arrangements with any Government or person for the purchase or sale of electricity (to be generated or used outside the State:

Provided
that the Board may not enter into such arrangements with any such Government or person without the consent of the State Government, or into arrangements with any such person without the consent of the Government of the State within which the electricity is to be generated or used.

1[***]

43A - 2* Terms, conditions and tariff for sale of electricity by Generating Company

(1) A Generating Company may enter into a contract for the sale of electricity generated by it-

(a) With the Board constituted for the State or any of the States in which a generating station owned or operated by the company is located;

(b) With the Board constituted for any other Slate in which it is carrying on its activities in pursuance of sub-section (3) of section 15A; and

(c) With any other person with consent of the competent government or governments.

(2) The tariff for the sale of electricity by a Generating Company to the Board shall be determined in accordance with the norms regarding operation and the Plant Load Factor as may be laid down by the Authority and in accordance with the rates of depreciation and reasonable return and such other factors as may be determined, from time to time, by the Central Government, by notification in the Official Gazette:

Provided that the terms, conditions and tariff for such sale shall, in respect of a Generating Company, wholly or partly owned by the Central Government, be such as may be determined by the Central Government and in respect of a Generating Company wholly or partly owned by one or more State Governments be such as may be determined, from time to time, by the government or governments concerned.]

---------------------------------------------------------------------------------------------------------------------------------------------------------

1. Sub-section (3) Inserted by Act 115 of 1976, Section 25 w.r.e.f. 8-10-1976 and omitted by Act 50 of 1991, Section 10 w.e.f. 15-10-1991.

2. Inserted by Act 50 of 1991, Section 11 w.e.f. 15-10-1991.

---------------------------------------------------------------------------------------------------------------------------------------------------------



(1) Notwithstanding anything contained in any either law for the time being in force or in any licence, but subject to the provisions of this Act, it shall not be lawful for a licensee, or any other person, not being the Central Government or any Corporation created by 1* [a Central Act] 2*[or any Generating Company], except with the previous consent in writing of the Board, to establish or acquire a new generating station or to extend or replace any major unit of plant or works pertaining to the generation of electricity in a generating station:

Provided that such consent shall not, except in relation to a controlled station, be withheld unless within three months from the date of receipt of an application-

(a) For consent to the establishment or acquisition of a new generating station, the Board-

(i) Gives to the applicant being a licensee an undertaking that it is competent to, and will, within twenty-four months from the said date, afford to him a supply of electricity sufficient for his requirements pursuant to his application; or

(ii) Shows to the applicant that the electricity required by him pursuant to his application could be more economically obtained within a reasonable time from another appropriate source;

(b) For consent to the extension of any major unit of plant or works as aforesaid, the Board-

(i) Gives to the applicant being a licensee an undertaking that within twenty-four months from the said date either the station to which the application pertains will become a controlled station in terms of section 34, or the Board will make a declaration to the applicant in terms of section 35 offering him a supply of electricity sufficient for his requirements pursuant to his application, or the Board will make a declaration to him in terms of section 36; or

(ii) Shows to the applicant that the electricity required by him pursuant to his application could be more economically obtained within a reasonable time from another appropriate source or by other appropriate means;

(c) For consent to the replacement of any major unit of plant or works, the Board-

(i) Gives to the applicant being a licensee an undertaking that within eighteen months from the said date either the station to which the application pertains will become a controlled station in terms of section 34 or the Board will make a declaration to him in terms of section 36; or

(ii) Shows to the applicant that the electricity required by him pursuant to his application could be more economically obtained within a reasonable time from another appropriate source or by other appropriate means.

(2) There shall be stated in every application under this section such particulars as the Board may reasonably require of the station plant or works, as the case may he, in respect of which it is made, and where consent is given thereto, in acting in pursuance of such consent, the applicant shall not, without the further consent of the Board, make any material variation in the particulars so stated.

2*[(2A) The Board shall, before giving consent under sub-section (1), to the establishment or acquisition of a new generating station or to the extension or replacement of any major unit of plant or works, consult the Authority, in cases where the capacity of the new generating station or, as the case may be, the additional capacity proposed to be created by the extension or replacement exceeds twenty-five thousand kilowatts.]

(3) Any difference or dispute arising out of the provisions of this section shall be referred to the arbitration of the Authority.

------------------------------------------------------------------------------------------------------------------------------------------------------

1. Substituted by the A.O. 1950, for "legislation enacted by the Central Legislature".

2. Inserted by Act 115 of 1976, Section 26 w.r.e.f. 8-10-1976.
 
------------------------------------------------------------------------------------------------------------------------------------------------------



(1) If any licensee fails to close down his generating station pursuant to a declaration of the Board under section 36, or if any person establishes or acquires a new generating station or extends or replaces any plant or works in any generating station in contravention of section 44, the Board may authorise any of its officers to enter upon the premises of such station and shut down the station or the plant or works, as the case may be, in respect of which the failure or contravention has occurred.

(2) Any expenses incurred by the Board under this section shall be recoverable by it from the licensee or person concurred as an arrear of land revenue, and for such purpose the Board shall be deemed to be a public officer within the meaning of section 5 of the Revenue Recovery Act, 1890 (1 of 1890).

(3) Any difference or dispute arising out of the provisions of this section shall be referred to the arbitration of the Authority.



(1) A tariff to be known as the Grid Tariff shall, in accordance with any regulations made in this behalf, be fixed from time to time by the Board in respect of each area for which a scheme is in force, and tariffs fixed under this section may, if the Board thinks fit, differ for different areas.

(2) Without prejudice to the provisions of section 47, the Grid Tariff shall apply to sales of electricity by the Board to licensees where so required under any of the First, Second and Third Schedules, and shall, subject as hereinafter provided, also be applicable to sale of electricity by the Board to licensees in other cases:

Provided that if in any such another case it appears to the Board that, having regard to the extent of the supply required, the transmission expenses involved in affording the supply are higher than those allowed in fixing the Grid Tariff, the Board may make such additional charges as it considers appropriate.

(3) The Grid Tariff shall be so framed as to include as part of the charge, and show separately a fixed kilowatt charges component and a running charges component:

Provided
that if in respect of any area the electricity to be sold by the Board is wholly or substantially derived from hydro-electric sources, the running charges component may be omitted.

(4) The fixed kilowatt charges component in the Grid Tariff may be framed so as to vary with the magnitude of maximum demand.

(5) Where only a portion of a licensee's maximum demand for the purposes of his undertaking is chargeable at the Grid Tariff the price payable for that portion shall not be greater than the average price which would have been payable had the whole of the said maximum demand of the licensee been chargeable at the Grid Tariff.

(6) The Grid Tariff may contain provisions for -

(a) Adjustment of price having regard to the power factor of supply taken or the cost of fuel or both;

(b) A minimum charge related to a pastor prospective demand of a licensee on the Board.

(7) The Grid Tariff may contain such other terms and conditions, not inconsistent with this Act and the regulations, as the Board thinks fit.



Notwithstanding anything contained in sections 34to 37 and sub-section (2) of section 46 but subject to any regulations made in this behalf, the Board may make such arrangements as may be mutually agreed with any licensee whose area of supply is situate within an area for which a scheme is in force, in regard to the purchase or sale of electricity and the price thereof, or the purchase, operation or control of any generating station or main transmission line:

Provided
that in making any such arrangement the Board shall not show undue preference to any licensee.



Where under any provision of this Act the Board is authorised or required to enter into arrangements with any licensee for any purpose, then notwithstanding anything contained in any law or in any licence, memorandum of association or other instrument regulating the constitution or powers of the licensee, it shall be lawful for the licensee to enter into and carry out any such arrangements.



(1) Subject to the provisions of this Act and of regulations, if any made in this behalf, the Board may supply electricity to any person not being a licensee upon such terms and conditions as the Board thinks fit and may for the purposes of such supply frame uniform tariffs.

(2) In fixing the uniform tariffs, the Board shall have regard to all or any of the following factors, namely:-

(a) The nature of the supply and the purposes for which it is required;

(b) The coordinated development of the supply and distribution of electricity within the State in the most efficient and economical manner, with particular reference to such development in areas not for the time being served or adequately served by the licensee;

(c) The simplification and standardisation of methods and rates of charges for such supplies;

(d) The extension and cheapening of supplies of electricity to sparsely developed areas.

(3) Nothing in the foregoing provisions of this section shall derogate from the power of the Board, if it considers it necessary or expedient to fix different tariffs for the supply of electricity to any person not being a licensee, having regard to the geographical position of any area, the nature of the supply and purpose for which supply is required and any other relevant factors.

(4) In fixing the tariff and terms and conditions for the supply of electricity, the Board shall not show undue preference to any person.]

---------------------------------------------------------------------------------------------------------------------------------------------------------

1. Substituted by Act 30 of 1966, Section 11, for section 49 w.e.f. 16-9-1966.

---------------------------------------------------------------------------------------------------------------------------------------------------------



Nothing contained in sections 34, 35 and 36shall apply in any case where under section 19, it is not permissible for the Board to supply electricity directly to a licensee owning a generating station; and nothing in sections 46, 47and 49 shall empower the Board to supply electricity directly to any licensee or person to whom it is not otherwise entitled so to supply electricity.



Where the price to be paid for electricity by or to the Board under this Act cannot he finally ascertained until after the end of a year of account, the amount to be paid shall be ascertained as soon as practicable thereafter, but the party from whom the payment is due shall make to the other monthly payments on account of the net amounts due in accordance with estimates made for the purpose, subject to adjustment as soon after the end of the year of account as the actual liability can be ascertained.



Unless otherwise agreed between the Board and the licensee, no supply of electricity taken by a licensee from the Board under this Act shall be taken at an average power factor below 0.85 during the period of maximum demand of the licensee in any month, and in the event of the average power factor as aforesaid being lower than 0.85, the licensee shall within a reasonable time take such measures, the cost of which shall not be borne by the Board, as may be necessary to raise it to a value not lower than 0.85.



(1) Where the Board for the purposes of any arrangements which it has made with any licensee under this Act requires accommodation on, in, under or over the premises of the licensee for any works or apparatus to be provided by the Board, the licensee shall, if suitable and sufficient accommodation exists, grant such accommodation free of cost to the Board, or if such accommodation does not exist, it shall be provided upon such terms and conditions as may be agreed between the Board and the licensee.

(2) The Board and any licensee shall each have a right of access at all times to his own property on, in, over and under the property of the other.



The Board shall have power to connect with the apparatus of any licensee any such correct meters, switch-gear and other equipment as may be necessary to enable it to carry out the provisions of this Act, and such meters, switch-gear and other equipment shall, unless otherwise agreed, be provided and maintained by the Board at its own cost.



(1) Until otherwise specified by the Central Government, the Central Transmission Utility shall operate the Regional Load Dispatch Centers and the State Transmission Utility shall operate the State Load Dispatch Centers.

(2) The Regional Load Dispatch Center shall be the apex body to ensure integrated operation of the power system in the concerned region.

(3) The Regional Load Dispatch Center may give such directions and exercise such supervision and control as may be required for ensuring integrated grid operations and for achieving the maximum economy and efficiency in the operation of the power system in the region under its control.

(4) Subject to the provisions of sub-section (3), the State Load Dispatch Center in a State may give such directions and exercise such supervision and control as may be required for ensuring the integrated grid operations and for achieving the maximum economy and efficiency in the operation of the power system in that State.

(5) Every licensee, transmission licensee, Board, generating company, generating stations, sub-stations and any other person connected with the operation of the power system shall comply with the directions issued by the Load Dispatch Centers under sub-sections (3) and (4).

(6) All directions issued by the Regional Load Dispatch Centers to any transmission licensee of State transmission lines or any other licensee of (he State or generating company (other than those connected to inter-State transmission system) or sub-station in the State shall be issued through the State Load Dispatch Center and the State Load Dispatch Centers shall ensure that such directions are duly complied by the transmission licensee or licensee or generating company or sub-station.

(7) Subject to the above provisions of this section, the Regional Electricity Board in the region from time to time may mutually agree on matters concerning the smooth operation of the integrated grid and economy and efficiency in the operation of the power system in that region and every licensee, transmission licensee and others involved in the operation of the power system shall comply with the decision of the Regional Electricity Board.

(8) The Regional Load Dispatch Center or the Stale Load Dispatch Center, as the case may he, shall enforce the decision of the Regional Electricity Boards.

(9) Subject to regulations made under the Electricity Regulatory Commissions Act, 1998 (14 of i998) by the Central Commission, in the case of Regional Load Dispatch Centers or the State Commission in the case of State Load Dispatch Centers, any dispute with reference to the operation of the power system including grid operation and as to whether any directions issued under sub-section (3) or sub-section (4) is reasonable or not, shall be referred to the Authority for decision:

Provided
that pending the decision of the Authority, the directions of the Regional Load Dispatch Centers or the State Load Dispatch Centers, as the case may be, shall he complied with.

(10) Until the Central Commission is established, the Central Government and thereafter the Central Commission in the case of Regional Load Dispatch Center and until the State Commission is established, the State Government and thereafter the State Commission in the case of the State Load Dispatch Center of that State, may, by notification, specify the fees and charges to be paid to the Regional Load Dispatch Centers and the State Load Dispatch Centers, as the case may be, for undertaking the load dispatch functions entrusted by the Central Government or by the State Government, as the case may be.

(11) The provision of sub-section (3) of section 4B shall apply in relation to any notification issued by the Central Government or the Central Commission as the case may be under sub-section (10), as they apply in relation to the rules made by that Government under Chapter II.]

--------------------------------------------------------------------------------------------------------------------------------------------------------

1. Substituted by Act 50 of 1991, Section 12 w.e.f. 15-10-1991 and again Substituted by Act 22 of 1998, Section 11 w.e.f. 31-12-1998.

--------------------------------------------------------------------------------------------------------------------------------------------------------



No licensee shall except with the previous approval in writing of the Board and subject to any conditions which the Board may think fit to impose, enter into any arrangement whereby any generating station is to be let or held on lease by him, and any such arrangement entered into in contravention of this sub-section shall be void and of no effect.



The provisions of the Sixth Schedule 2[***] shall be deemed to be incorporated in the licence of every licensee, not being a local authority-

(a) In the case of a licence granted before the commencement of this Act, from the date of the commencement of the licensee's next succeeding year of account; and

(b) In the case of a licence granted after the commencement of this Act, from the date of the commencement of supply,
and as from the said date, the licensee shall comply with the provisions of 3*[the said Schedule] accordingly, and any provisions of the Indian Electricity Act, 1910 (9 of 1910), and the licence granted to him thereunder and of any other law, agreement or instrument applicable to the licensee shall, in relation to the licensee, be void and of no effect in so far as they are inconsistent with the provisions of section 57A and 3 [the said Schedule].

57A - 4* Rating committees

(1) Where the provisions of the Sixth Schedule 5*[***] are under section 57 deemed to be incorporated in the licence of any licensee, the following provisions shall have effect in relation to the said licensee, namely; -

(a) The Board or where no Board is constituted under this Act, the State Government-

(i) May, if satisfied, that the licensee has failed to comply with any of the provisions of the Sixth Schedule; and

(ii) Shall, when so requested by the licensee in writing, constitute a rating committee to examine the licensee's charges for the supply of electricity and to make recommendations in that behalf to the State Government:

Provided that where it is proposed to constitute a rating committee under this section on account of the failure of the licensee to comply with any provisions of the Sixth Schedule, such committee shall not be constituted unless the licensee has been given a notice in writing of thirty clear days (which period, if the circumstances so warrant may be extended from time to time) to show cause against the action proposed to be taken:

Provided further that no such rating committee shall be constituted if the alleged failure of the licensee to comply with any provisions of the Sixth Schedule raises any dispute or difference as to the interpretation of the said provisions or any matter arising therefrom and such difference or dispute has been referred by the licensee to the arbitration of the Authority under paragraph XVI of that Schedule before the notice referred to in the preceding proviso was given or is so referred within the period of the said notice:

Provided further that no rating committee shall be constituted in respect of a licensee within three years from the date on which such a committee has reported in respect of that licensee, unless the State Government declares that in its opinion circumstances have arisen rendering the orders passed on the recommendations of the previous rating committee unfair to the licensee or any of his consumers;

(b) A rating committee under clause (a) shall,-

(i) Where such committee is to be constituted under sub-clause (i) of that clause, be constituted not later than three months after the expiry of the notice referred to in the first proviso to that clause;

(ii) Where such committee is to be constituted at the request of the licensee be constituted within three months of the date of such request;

(c) A rating committee shall, after giving the licensee a reasonable opportunity of being heard and after taking into consideration the efficiency of operation and management and the potentialities of his undertaking, report to the State Government within three months from the date of its constitution, making recommendations with reasons therefore, regarding the charges for electricity which the licensee may make to any class or classes of consumers so, however, that the recommendations arc not likely to prevent the licensee from earning clear profit sufficient when taken with the sums available in the Tariffs and Dividends Control Reserve to afford him a reasonable return as defined in the Sixth Schedule during his next succeeding three years of account:

Provided that the State Government may, if it so deems necessary, extend the said period of three months by a further period not exceeding three months within which the report of the rating committee may be submitted to it;

(d) Within one month after the receipt of the report under clause (c), the State Government shall cause the report to be published in the Official Gazette, and may at the same time make an order in accordance therewith fixing the licensee's charges of the supply of electricity with effect from such date, not earlier that two months or later than three months, after the date of publication of the report as may be specified in the order and the licensee shall forthwith give effect to such order;

(e) The charges for the supply of electricity fixed under clause (d) shall be in operation for such period not exceeding three years as the State Government may specify in the order:

Provided that nothing in this clause shall be deemed to prevent a licensee from deducting at any time any charges so fixed.

(2) Where a Board is constituted under this Act, the rating committee shall consist of three members as follows:-

(i) One member shall be nominated by the State Government who shall be a person who is or has been a judicial officer not below the rank of a District Judge;

(ii) One member shall be a member of the Board having experience of accounting and financial matters; and

(iii) One member shall be a representative co-opted jointly by the two members referred to in clauses (i) and (ii) from an association of licensees of which the licensee concerned is or is eligible to be a member and if there is no such association, from such Chamber of Commerce or similar body as the Slate Government may direct.

(3) Where no Board is constituted under this Act the rating committee shall consist of five members of whom three members shall be nominated by the State Government, one member shall be nominated by the licensee and one member shall be nominated by the association referred to in sub-section (2) or if there is no such association, by such Chamber of Commerce or similar body as the State Government may direct.

(4) Of the three members to be nominated by the State Government under sub¬section (3), one shall be a person who is or has been a judicial officer not below the rank of a District Judge, one shall he a registered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949), having at least ten years' experience and one shall be a person with administrative experience.

(5) The Judicial member of a rating committee shall he its chairman.

(6) A rating committee may act notwithstanding that one of its members is absent.

(7) The expenditure incurred in connection with a rating committee as certified by it shall he payable-

(a) Where the rating committee was constituted at the request of a licensee, or where the rating committee has held that the licensee has failed to comply with any of the provisions of the Sixth Schedule, by the licensee from that pan of the clear profit to which the licensee is entitled under that Schedule;

(b) In any other case, by the Board or the State Government, as the case may be.

(8) Where a licensee makes default in paying any amount which he is liable to pay under sub-section (7), such amount may, on application to a civil court having jurisdiction, he recovered from the licensee by the distress and sale of any movable property of the licensee.]

57B -6*Power of rating committee to call for information etc.

A rating committee constituted under section 57A may, for the purpose of discharging its functions, by notice in writing, require the licensee to give such information, or to furnish such accounts and other documents in his possession or power, as may be specified in the notice.]

---------------------------------------------------------------------------------------------------------------------------------------------------------

1. Substituted by Act 101 of 1956, Section 14, for section 57 w.e.f. 30-12-1956.

2. The words "and the Seventh Schedule" omitted by Act 23 of 1978, sec, 6 w.e.f. 3-6-1978.

3. Substituted by Act 23 of 1978, Section 6, for "the said Schedules" w.e.f. 3-6-1978.

4. Inserted by Act 101 of 1956, Section 14 w.e.f. 30-12-1956.

5. The words "and the Seventh Schedule" omitted by Act 23 of 1978, Section 7.

6. Inserted by Act 101 of 1956, Section 14 w.e.f. 30-12-1956.

--------------------------------------------------------------------------------------------------------------------------------------------------------



The Board or where no Board is constituted under this Act, the State Government shall have power to direct the amortization and tariffs policies of any licensee, being a local authority, with respect to his licensed undertaking in such manner as the Board or the State Government, as the case may be, after giving the local authority a reasonable opportunity of being heard, considers expedient for the purposes of the Act; and the licensee, being a local authority, the provisions of any other law or of any rules made or directions given thereunder notwithstanding, shall give effect to any such directions of the Board or the State Government, as the case may be:

1*[Provided that the Board shall not issue any directions under this section except after obtaining the prior approval of the State Government.]

--------------------------------------------------------------------------------------------------------------------------------------------------------

1. Inserted by Act 101 of 1956, Section 15 w.e.f. 30-12-1956.

--------------------------------------------------------------------------------------------------------------------------------------------------------
Last updated on July, 2016

Find a Lawyer

Legal Hall of Fame

The current Legal Luminaries of India, the credible names in the legal circle along with those who would be the leading stars of the next decade. These are some of the reliable names in field of law. Nominate the Legal Stars of tomorrow

More

Recent Judgment


Sudha Mishra vs. Surya Chandra Mishra( R.F.A 299 of 2014

The Hon'ble High Court of Delhi in Sudha Mishra vs. Surya Chandra Mishra (R.F.A 299 of 2014)has ruled that a woman has a right over the property of her husband but she cannot claim a right to live in the house of her parents-in-law

More

Bare Acts

Helpline Law provides a user friendly compendium of Indian Law & Bare Acts. Get a complete list & detail of Indian Bare Acts, with amendments and repeals. It comes with easy-to-use features like Search by bare acts & by year. You can even email the information to yourself!

More

Have a Legal Matter ?
Need a Lawyer?

Have a Legal Matter ?

Need a Lawyer?

Male
Female