ELECTRICITY ACT 2003 – AN OVER-VIEW OF IMPORTANT PROVISIONS. By: P. H ELECTRICITY ACT 2003 – AN OVER-VIEW OF IMPORTANT PROVISIONS. By: P.H.Mavani Superintending Engineer Zonal Office, PGVCL - Bhavnagar

SOURCE OF LEGISLATIONS CONSTITUTIONAL PROVISIONS- “ELECTRICITY” SOURCE OF LEGISLATIONS CONSTITUTIONAL PROVISIONS- Contd.

WHY POWER SECTOR REFORMS Cross Subsidization. Non-sustainable Tariff Structure – Slow pace of Rural Electrification. Huge investment inevitable in the Power Sector.

THE ELECTRICITY ACT, 2003 - OBJECTIVES To consolidate the Laws relating to:- Generation Transmission Distribution Trading & Use of Electricity Contd..

Contd.. THE ELECTRICITY ACT, 2003 - OBJECTIVES AND generally for taking Measures Conducive to development of electricity industry :- promoting competition therein protecting interest of consumers Contd..

Policy Formulation:- National Electricity Policy. Contd.. THE ELECTRICITY ACT,2003 - OBJECTIVES (Part- II – Sections 3-6) Policy Formulation:- National Electricity Policy. National Tariff Policy. Rural Electrification Policy.

V. DISTRIBUTION OF ELECTRICITY (Part-VI – Sections 42-60) Licensing : (Sec. 14) License required Multiple Licenses for distribution within same area – through their own Distribution System No separate license for trading Can undertake Generation- option to increase efficiency Contd..

Contd.. DISTRIBUTION OFELECTRICITY DISTRIBTUION LICENSEE – WHO? Means a Licensee authorized to operate and maintain a Distribution System for supplying electricity to the consumers in his area of supply [Sec. 2 (17)] Duties (Sec. 42) to develop and maintain efficient, coordinated and economical Distribution System in his Area of Supply; & to supply electricity in accordance with the provisions of the Act. (Sec. 42) Contd..

IX. CONSUMER REDRESSAL FORUM FOR REDDRESSAL OF CONSUMER GRIEVANCIES [Sec. 42(5)] Creation by Distribution Licensee within 6 months from the Appointed date/ date of grant of licence – whichever is earlier, mandatory. Ombudsman Sec 42(6) – to be appointed by the Commission to hear representation/appeal against decision given by the Forum. Contd..

Contd.. CONSUMER REDRESSAL Commission to specify guidelines for reddressal of Consumers’ grievances to be followed by the Forum. Grievance Reddressal remedy without prejudice to other rights of Consumers. -x-x-x-

Contd.. DISTRIBUTION OF ELECTRICITY Duty to Supply on Request (Sec. 43) **Save as otherwise provided in this Act, supply within one month of **Application. Penalty up to Rs.1000/-per day of default for failure to supply. Extension of time for establishing the required infrastructure e.g. extension of Dist. Mains, or commissioning of New Sub-stations. **“Application” means the Application complete in all respects in the form required by the Distribution Licensee along-with documents showing payment of necessary charges and other compliances. **w.e.f. 15.06.2007 Contd..

contd.. DISTRIBUTION OF ELECTRICITY Exemptions if prevented by Cyclone, Floods, Storms –occurrences beyond control (Sec. 44) Price for supply to be determined by the ERC (Sec 45) Distributor can require reasonable Security for payment of monies due to him (Sec. 47) Reasonable Security to be determined by GERC Regulations Licensee shall pay Interest Not required security for pre-payment meter Contd..

contd.. DISTRIBUTION OF ELECTRICITY #Electricity Supply Code (Sec. 50) The State Commission to specify Elec.Supply Code to provide for :- recovery of electricity charges Billing intervals Disconnection Restoration Measures for preventing Tampering, distress/damage to electrical Plant lines or Meter Entry for disconnection, repairing, replacing, altering or maintaining electric lines or electrical plants, or removing meter *and such other matter # Substituted w.e.f. 15.6.2007 against old section 50. Contd..

contd.. DISTRIBUTION OF ELECTRICITY Theft :- (Order dtd. 08.06.2005 of Ministry of Power) method of assessment of electricity charges payable in case of theft of electricity disconnection of supply of electricity; and removing the meter, electric line, electric plant and other apparatus in case of theft or unauthorized use of electricity; & Contd..

contd.. DISTRIBUTION OF ELECTRICITY measures to prevent diversion of electricity, theft or unauthorized use of electricity or tampering, distress or damage to electrical plant, electric lines or meter. Disconnection of Supply In default of payment (Sec. 56) Disconnection only after giving 15 days clear Notice in writing, Without prejudice to rights of recovery by Suit, Contd..

Contd.. DISTRIBUTION OF ELECTRICITY Only till charge or sum with expenses for cutting off/ re-connecting the supply paid; No longer. Deposit “under Protest” Pending disposal of dispute:- No disconnection if person concerned deposits under protest claimed sum or the electricity charges due for each month calculated on average charge paid by him during preceding 6 months, which ever is less, pending disposal of any dispute between him and the licensee. Contd..

contd.. DISTRIBUTION OF ELECTRICITY Unless dues of consumer continuously shown as recoverable as arrears of charges for electricity supplied, no sum due under this Section be recoverable after 2 years and Licensee cannot cut of supply of electricity also. -x-x-x-

VII. INVESTIGATION AND ENFORCEMENT [PART – XII – Sections 126-130] Unauthorized use of electricity (Sec. 126) “UNAUTHORIZED USE OF ELECTRICITY” means:- The usage of electricity:- By any artificial means, or By means not authorised by the concerned person or authority or licensee; or Through a tempered meter; or Contd..

Contd.. INVESTIGATION AND ENFORCEMENT For the purpose other than for which the usage of electricity was authorized; or *For the premises or areas other than those for which the supply of electricity was authorized. (* added w.e.f. 15.06.2007) Contd..

Contd.. INVESTIGATION AND ENFORCEMENT PROCEDURE :- On the spot Assessment, as per Supply Code provisions. Opportunity of hearing by the Assessing officer before passing final order of assessment is made mandatory*. Time-frame of 30 days* stipulated for passing the final order of assessment from the date of service of provisional assessment order. The period of assessment for all categories of consumers made uniform. *(Added w.e.f. 15.06.2007) Contd..

Contd.. INVESTIGATION AND ENFORCEMENT Assessment to be made for the entire period of unauthorized use of electricity, If actual period of unauthorized use of electricity cannot be ascertained, assessment for minimum period of 12 months immediately preceding the date of inspection. Contd..

Contd.. INVESTIGATION AND ENFORCEMENT Appeal to Appellate Authority Sec. 127 Any person aggrieved by a final Assessment Order under Sec. 126 may:- Within 30 days of the said Order prefer an Appeal in the specified form, accompanied by specified fees. Deposit an amount equal to *half of the Assessed amount with the Licensee through cash or bank draft with the licensee and documentary evidence is enclosed with the appeal. No appeal shall lie to the Appellate Authority against the final order made with the consent of the parties. The order of appellate authority shall be final and no appeal can be filed against it. The only recourse available is fling of Special Civil Application in the High Court. *[“half” of the assessed amount w.e.f. 15.6.2007]

VIII. OFFENCES & PENALTIES (PART-XIV – Sections 135-152) THEFT OF ELECTRICITY (Sec.135) Stringent deterrent measures against theft of electricity. DISHONEST (Mens Rea) Tapping of lines, cables, wires, etc. Tampering with meters Using tampered Meter,Current Reversing Transformer or other device/Method to stole/waste electricity Contd..

Contd.. OFFENCES & PENALTIES Illegal Connection Damaging / Destroying an electric meter, Apparatus, equipment or wire, so as to interfere with proper and accurate Metering. *Using electricity through tampered meter; *using electricity for the purpose other than for which the usage of electricity was authorized. Added w.e.f. 15.06.2007 Contd..

Contd.. OFFENCES & PENALTIES Section 135 : Theft of Electricity:- [Electricity (Amendment) Act, 2007 – w.e.f. 15.06.2007 Stringent deterrent measures against theft of electricity. Provision for immediate disconnection of supply of electricity on detection of theft.

Contd.. OFFENCES & PENALTIES Contd.. S. 135 Lodging of complaint in writing in police station concerned within 24 hours from the time of disconnection made mandatory. Restoration of supply within 48 hours on deposit or payment of the assessed amount or electricity charges mandatory, without prejudice to the obligation to lodge complaint. Contd..

Contd.. (Theft of electricity – Sec. 135) MANDATORY MINIMUM FINES/ SENTENCE: Theft involving load not exceed 10 Kilowatt:- ON FIRST CONVICTION:- Fine not less than 3 times the financial gain; ON SECOND OR SUBSEQUENT CONVICTION:- Fine be not less than 6 times of financial gain Contd..

Contd.. (Theft of electricity – Sec. 135) Theft involving load exceeding 10 Kilowatt ON FIRST CONVICTION: Minimum fine be not less than 3 times the financial gain; Contd..

Contd.. (Theft of electricity – Sec. 135) ON SECOND OR SUBSEQUENT CONVICTION FOR LOAD EXCEEDING 10 K.W.: Minimum sentence be imprisonment for a term not less than 6 months but may extend to 5 years; & with Minimum fine be not less than 6 times the financial gain on account of theft. Debarred from getting power supply for minimum period of 3 months which may be extended to 2 years. Debarred from getting power supply from any other Source/generating Stations also. Contd..

Contd.. OFFENCES & PENALTIES Theft of Electric Lines (Sec. 136) Dishonestly Cutting/Removing/Taking away/ transferring any electric lines, material or meter Receiving stolen property (Sec. 137) Interference with meters or works of Licensee (Sec. 138) Negligent or malicious wasting of electricity or injuring works (Secs. 139 &140) Extinguishing public lamps (Sec. 141) Contd..

Contd.. OFFENCES & PENALTIES Offences – Contd. Non compliance with directions of Central/State Govt. or orders/ directions of this Act. (Sec. 142)- penalty not exceeding Rs. 1 Lack and for continuing failure with an additional penalty of Rs. 6,000 per day. Penalty Sentence of imprisonment up to 3 years or fine or with both for offences under Secs. 135 to 138. Only fine for offences under Secs. 139 to 141. Contd..

Contd.. OFFENCES & PENALTIES Compounding of Offence Offence made Compoundable (Sec. 152) Corrective measures. Compounding of offence allowed only once for any person / Consumer. Focus on revenue enhancement rather than criminal proceedings. -x-x-x-

Abetment (Sec. 150) Abetment of an offence under the Act equated with Commission of the offence – same punishment. Officer/Employee of the SEBs or Licensee involved in the offence of abetment of the theft of electricity specifically made punishable with imprisonment up to 3 years or with fine or with both (Sec. 150). Contd..

Compounding of offences Section - 152 On payment of the sum of money decided by Govt. fixed for category wise & connected load wise then any person / Consumer relief from Criminal offence. compounding for only one time.

THE ULTIMATE OBJECT OF THE ELECTRICITY ACT, 2003. To benefit the consumer in getting – Quality power; At an affordable price; Through competition; & Development of market structure.

IMPORTANT WEB SITE’S ADDRESS Gujarat Urja Vikas Nigam Limited (GUVNL) :- www.guvnl.com Paschim Gujarat Vij Company Limited (PGVCL) :- www.pgvcl.com Uttar Gujarat Vij Company Limited (UGVCL) :- www.ugvcl.com Madhya Gujarat Vij Company Limited (MGVCL):- www.mgvcl.com Dakshin Gujarat Vij Company Limited (DGVCL):- www.dgvcl.com

Contd.. IMPORTANT WEB SITE’S ADDRESS Gujarat State Electricity Corporation Limited (GSECL) :- www.gsecl.com Gujarat Energy Transmission Corporation Limited (GETCO) :- www.getco.com Gujarat Electricity Regulatory Commission (GERC) :- www.gercin.org

IMPORTANT WEB SITE’S ADDRESS Gujarat High Court :– www.gujarathighcourt.nic.in Government of Gujarat, Energy Department:– www.guj-epd.gov.in Central Electricity Regulatory Commission (CERC) :– www.cercind.gov.in Ministry of Power, Central Government :– www.powermin.nic.in

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