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Elec act
- 1.
- 2. • Electricity Act,2003came into force w e f 10.06.2003 • Received the assent of the President on 02.06.2003 • Act extends to Whole of India except J&K • Sec 185 of EA,2003 repeals the Ind EA,1910, ESA,1948, ERC Act,1998
- 3. • Important Definitionsunder Sec 2: • Sub Sections – 8,10, 12, 26, 27, 28, 30, 32, 38, 39, 42, 47, 48, 49, 50, 53, 54, 55, 56, 61, 66, 67, 69, 70, 71, 73, 74, 75, 76, 77
- 4. • Sec –3: • Cntrl Govt to prepare National Electricity Policy and tariff policy • CEA to prepare National Electricity Plan every five years
- 5. Sec 12 • Noperson to • Transmit • Distribute • Trade in Electricity w/o licence u/s 14 or exemption from licence u/s 13
- 6. Sec 13 • ERCmay exempt following from licence requirements • Local authority • Panchayat instn • Users’ association • Co-op socities • NGOs • Franchisees
- 7. Sec 14 • ERCto grant • Transmission licence • Distribution licence • Trading licence
- 8. Sec 14 contd. •Deemed Licensees: • Persons engaged in T or D under earlier laws • CTU/STU • Cntr/St Govt • DVC • SEB reorganised into Govt Cos • Distbn licensee don’t need licence for trading • > 1 person allowed distbn licensee in one area
- 9. Sec 17 • Priorapproval of ERC for sale, lease, transfer of utilities and for M&A of utilities of other licensees within same state • No prior approval for M&A with utilities of other licensees situated in other states
- 10. Sec 24 • ERCcan suspend licence if quality supply not provided, duties not performed, broken terms of licence • Upon suspension, can be sold to other licensees u/s 20
- 11. Sec 26,27,28,29 • NationalLoad Despatch Centre & Regional Load Despatch Centres established by CGovt for optimum scheduling and despatch of electricity in Inter state transmission • NLDC & RLDCs not to trade electricity • RLDCs may levy prescribed fees from licensees; no fee collection for NLDC specified
- 12. Sec 30 • SGovtto establish SLDC to facilitate optimum scheduling & despatch of electicity in Intra State transmission • SLDC not to trade • SLDC may collect prescribed fees from licensees
- 13. Sec 42 Duties ofDistbn licensee and Open access • To develop and maintain efficient distribution system • SERC to allow open access • If a person requires supply from a licensee other than the distbn licensee of his area, wheeling charges to be paid; distbn licensee duty bound as a common carrier to provide non-discriminatory open access
- 14. Sec 43,44 –Duty to supply & Exceptions • Distbn licensee to supply electricity within one month from date of application by owner or occupier of any premises • If extn of distbn mains or SS involved, time specified by ERC • Failure to supply on time, penalty of Rs. 1000 per day • Above not applicable, in case of cyclone, floods, storm or other occurences beyond his control
- 15. Sec 52 -Trader • ERC to specify technical requirements, capital adequacy, creditworthiness for being an electricity trader
- 16. Sec 55 -meters • No supply of electricity without metering • CEA may direct installation of meters by licensee on generation, T&D, trading of electricity and at such locations for proper energy accounting and audit
- 17. Sec 56 -Disconnection • In case of default of any charges by any person due to licensee or GC, supply to be disconnected on 15 days notice • No sum due from a consumer recoverable from the first date it became due, unless shown continuously as recoverable as arrear charges (2 yrs Limitation)
- 18. Sec 62 –Tariff Determination • ERC to fix minimum & maximum tariff for purchase/sale of power between GC & licensee • To fix only maximum ceiling of tariff for retail sale of energy by DLs to promote competition • Any Tariff subsidy to be paid by SGovt in advance
- 19. SEC 70 -Central Electricity Authority • CEA under ESA,48 to continue • Members – Max 14 • -- Full time 8(Max) • Areas of specilisation • Engineering - design, constn • Engineering – tranmsn, supply • Applied Research in Electricity • Applied Eco, A/c, Comm, Fin
- 20. SEC 70 -Central Electricity Authority contd.. • Tenure of members – at the pleasure of the CGovt • Hqrs at Delhi • To advise CGovt on policy matters • To specify technical stds, grid stds, safety measures etc
- 21. Sec 76 –Central Electricity Regulatory Commission • Members – Chairperson & 3 members appointed by CGovt on Sel Comm recommendation Eng – 1, Fin – 1, Eco, Comm, Law, Mgt - 2
- 22. Sec 79 –Functions of CERC • To regulate tariff for CGovt GCs, inter state transmission • To issue licences for tranmsn licensees, elec traders for inter state operations • To specify Grid code • Guided by NEP, NEPlan, tariff policy u/s 3
- 23. Sec 80 –Central Advisory Committee • CERC to establish CAC • 31 members max • To advise CERC on policy, quality of service, compliance to licence, consumer interest, overall performance stds of utilities
- 24. Sec – SERC •SGovt to establish SERC • Members –Max 3 incl Chairperson, appointed by SGovt on Sel Comm recommendation • Functions – same as for CERC with intra state orientation • SAC – by SERC, max 21 members • Functions – to advise SERC on same matters as CAC
- 25. Sec 99,103 –CERC Fund/SERC Fund • Credited with loans, grants from Cgovt/Sgovt, all fees, sums received by Commission • To expended on • Salary & allowances of members & staff • Expenses in discharge of functions, objects of Act • Cgovt/Sgovt may, after consulting CAG, prescribe manner of applying Fund for above expenses in discharge of function, meeting objects, purpose of Act.
- 26. Sec 100,104 –Accounts & Audit of CERC/SERC • To maintain proper accounts and records • To prepare annual accounts as prescribed by Cgovt/Sgovt in consultation with CAG • Accounts to be audited by CAG at such intervals as specified by him • Expn on CAG audit to be paid by ERC to CAG
- 27. • Persons appointedby CAG for audit has same rights and authority as with audit of Govt accounts in demanding production of books, accounts, records etc and to inspect any offices of the ERC • Certified accounts along with CAG’s Audit report to submitted to CGovt/SGovt which lay the same before Parliament/State Legislature
- 28. • Annual Reportprepared by ERC giving summary of activities during the previous year also forwarded to Cgovt/Sgovt for placement before Parliament/State Legislature • ERC to prepare yearly budget for next financial year showing estimated receipts and expenditure and forward the same to the Appropriate Govt.
- 29. Sec 110 Appellate Tribunal •Cgovt to establish AT to hear appeals against orders of ERCs within 45 days from the date receipt of order • Members – Chairperson plus 3 other members(atleast one judicial member & one technical member) • Term of office – 3 years • Higher appellate authority – Supreme Court
- 30. Sec 126 Assessment •If assessing officer concludes on inspection, unauthorised use of electricity at any premises, 1.5 times of applicabe tariff charged • Unauthorised use – artificial means, unauthorised means, tampered meter, unauthorised purpose • If aggrieved, appeal available in ERC
- 31. Sec 135 –Theft of Electricity • Line Tapping • Meter tampering, loop connection etc resulting in stolen electricity • Damaging meter, equipment • If the above results in load consumed - • Not Exceeding 10 kilowatt - • fine on first conviction, shall not be less than 3 times the financial gain • Fine on subsequent conviction, min 6 times the financial gain
- 32. •Exceeding 10 Kilowatt, •Firstconviction, Min 3 times the financial gain •Second conviction, Min 6 times the financial gain and 6 months – 5 years imprisonment
- 33. Sec 136 Theftof materials • First offence, imprisonment 3 years or fine ( not quantified) or both • Subsequent offences, 6 months – 5 years imprisonment or fine of Rs. 10000 or both
- 34. • Negligent wastingof electricity, injuring works, Max fine Rs.10000 • Malicious extinguishing public lamps – Max fine Rs. 2000
- 35. • Special Courtsmay be established to try offences u/s 135, 136 • Arbitration under Arbitration and Conciliation Act,1996
- 36. • Licensee empoweredu/s 163 to enter premises for inspection, testing, repair, removing of any fittings, apparatus. • U/s 166, Cgovt/Sgovt should constitute a Coordinaiton Forum comprising CERC, Chairperson of CEA/SERC, GCs, Trans Licensees engaged in inter/intra state transmission for smooth & coordinated power system in the country/state. • Cgovt to constitue forum of regulators comprising Chairpersons of CERC & SERCs.
- 37. Sec 172 Transitional provisions •SEB under earlier laws deemed to be STU and a Licensee under EA, 2003 for one year • Sgovt may authorise SEB to continue as STU or licensee beyond one year as may be mutually agreed by CGovt and Sgovt
- 38. Superseding laws –Sec 173 • Consumer Protection Act,1986 • Atomic Energy Act, 1962 • Railways Act, 1989 • EA, 2003 not applicable to Defence, Atomic & other similar ministries as may be notified by Cgovt.
- 39. • Cgovt/Sgovt tomake rules u/s 176/180 • CERC/SERC to make regulations u/s 178/181 • CEA to make regulations u/s 177 • Rules & Regulations to be laid before respective legislating bodies
- 40. Sec 185 Repeal& Saving • Indian Electricity Rules, 1956 made under IE Act, 1910 holds good till regulations under section 53 are made • Elec Supply Annual Accounts Rules, 1985 under ESA,1948 applicable as long as SEBs function as STU/Licensee.
- 41. ABBREVIATIONS • KWH –KILOWATT HOUR • SLDC,RLDC, NLDC • RPC – REGIONAL POWER COMMITTEE • CAC • SAC • NCES • NEP • ESC
- 42. • STU • CTU •TP • CEA • AT • SEB • CrPC • CEI/EI – CHIEF ELECTRICAL INSPECTOR/ELECTRICAL INSPECTOR • CEIG – CHIEF ELECTRICAL INSPECTOR TO GOVT
- 43. • NLDC –NEW DELHI – 2 MAR 2005 • POWER SYSTEM OPERATION CORPORATION LTD, A SUBSIDIARY OF PGCIL, OPERATES NLDC AND 5 RLDCs • NORTH RLDC – NEW DELHI • SOUTH - BANGALORE • EAST - KOLKATA • WEST - MUMBAI • N E – SHILLONG • CERC CONSTITUTED ON 24 JULY 1998 UNDER ERC ACT 1998 – NEW DELHI • POWER EXCHANGE INDIAL LTD, INDIA ENERGY EXCHANGE LTD – POWER EXCHANGES IN INDIA • REC – RENEWABLE ENERGY CERTIFICATES