The Electricity Act, 2003

(1) This Act may be called the Electricity Act, 2003. (2) It extends to the whole of India 1***. (3) It shall come into force on such date2as the Central Government may, by notification, appoint: Provided that different dates may be appointed for different provisions of this Act and any referencein any such provision to the commencement of this Act shall be construed as a reference to the cominginto force of that provision.

this Act, unless the context otherwise requires,-- (1)"Appellate Tribunal" means the Appellate Tribunal for Electricity established under section 110; (2) "appointed date" means such date as the Central Government may, by notification, appoint; (3) "area of supply" means the area within which a distribution licensee is authorised by his licence tosupply electricity; (4) "Appropriate Commission" means the Central Regulatory Commission referred to insub-section (1) of section 76 or the State Regulatory Commission referred to in section 82 or the JointCommission referred to in section 83, as the case may be; (5) "Appropriate Government" means,-- (a) the Central Government,-- (i) in respect of a generating company wholly or partly owned by it; (ii) in relation to any inter-State generation, transmission, trading or supply of electricityand with respect to any mines, oil-fields, railways, national highways, airports, telegraphs,broadcasting stations and any works of defence, dockyard, nuclear power installations; (iii) in respect of National Load Despatch Centre and Regional Load Despatch Centre; (iv) in relation to any works or electric installation belonging to it or under its control; (b) in any other case, the State Government, having jurisdiction under this Act; (6) "Authority" mean the Central Electricity Authority referred to in sub-section (1) of section 70; (7) "Board" means a State Electricity Board, constituted before the commencement of this Act, undersub-section (1) of section 5 of the Electricity (Supply) Act, 1948 (54 of 1948); (8) "Captive generating plant" means a power plant set up by any person to generate electricityprimarily for his own use and includes a power plant set up by any co-operative society or association ofpersons for generating electricity primarily for use of members of such co-operative society orassociation; (9) "Central Commission" means the Central Electricity Regulatory Commission referred to insub-section (1) of section 76; (10) "Central Transmission Utility" means any Government company which the Central Governmentmay notify under sub-section (1) of section 38; (11) "Chairperson" means the Chairperson of the Authority or Appropriate Commission or theAppellate Tribunal, as the case may be; (12) "Cogeneration" means a process which simultaneously produces two or more forms of usefulenergy (including electricity); (13) "company" means a company formed and registered under the Companies Act, 1956 (1 of 1956)and includes any body corporate under a Central, State or Provincial Act; (14) "conservation" means any reduction in consumption of electricity as a result of increase in theefficiency in supply and use of electricity; (15) "consumer" means any person who is supplied with electricity for his own use by a licensee orthe Government or by any other person engaged in the business of supplying electricity to the publicunder this Act or any other law for the time being in force and includes any person whose premises are forthe time being connected for the purpose of receiving electricity with the works of a licensee, theGovernment or such other person, as the case may be; (16) "dedicated transmission lines" means any electric supply-line for point to point transmissionwhich are required for the purpose of connecting electric lines or electric plants of a captive generatingplant referred to in section 9 or generating station referred to in section 10 to any transmission lines orsub-stations, or generating stations, or the load centre, as the case may be; (17) "distribution licensee" means a licensee authorised to operate and maintain a distribution systemfor supplying electricity to the consumers in his area of supply; (18) "distributing main" means the portion of any main with which a service line is, or is intended tobe, immediately connected; (19) "distribution system" means the system of wires and associated facilities between the deliverypoints on the transmission lines or the generating station connection and the point of connection to theinstallation of the consumers; (20) "electric line" means any line which is used for carrying electricity for any purpose andincludes-- (a) any support for any such line, that is to say, any structure, tower, pole or other thing in, on, byor from which any such line is, or may be, supported, carried or suspended; and (b) any apparatus connected to any such line for the purpose of carrying electricity; (21) "Electrical Inspector" means a person appointed as such by the Appropriate Government undersub-section (1) of section 162 and also includes Chief Electrical Inspector; (22) "electrical plant" means any plant, equipment, apparatus or appliance or any part thereof usedfor, or connected with, the generation, transmission, distribution or supply of electricity but does notinclude-- (a) an electric line; or (b) a meter used for ascertaining the quantity of electricity supplied to any premises; or (c) an electrical equipment, apparatus or appliance under the control of a consumer; (23) "electricity" means electrical energy-- (a) generated, transmitted, supplied or traded for any purpose; or (b) used for any purpose except the transmission of a message; (24) "Electricity Supply Code" means the Electricity Supply Code specified under section 50; (25) "electricity system" means a system under the control of a generating company or licensee, asthe case may be, having one or more-- (a) generating stations; or (b) transmission lines; or (c) electric lines and sub-stations, and when used in the context of a State or the Union, the entire electricity system within the territoriesthereof; (26) "electricity trader" means a person who has been granted a licence to undertake trading inelectricity under section 12; (27) "franchisee" means a persons authorised by a distribution licensee to distribute electricity on itsbehalf in a particular area within his area of supply; (28) "generating company" means any company or body corporate or association or body ofindividuals, whether incorporated or not, or artificial juridical person, which owns or operates ormaintains a generating station; (29) "generate" means to produce electricity from a generating station for the purpose of givingsupply to any premises or enabling a supply to be so given; (30) "generating station" or "station" means any station for generating electricity, including anybuilding and plant with step-up transformer, switch-gear, switch yard, cables or other appurtenantequipment, if any, used for that purpose and the site thereof; a site intended to be used for a generatingstation, and any building used for housing the operating staff of a generating station, and where electricityis generated by water-power, includes penstocks, head and tail works, main and regulating reservoirs,dams and other hydraulic works, but does not in any case include any sub-station; (31) "Government company" shall have the meaning assigned to it in section 617 of the CompaniesAct, 1956 (1 of 1956); (32) "grid" means the high voltage backbone system of inter-connected transmission lines,sub-station and generating plants; (33) "Grid Code" means the Grid Code specified by the Central Commission under clause (h) ofsub-section (1) of section 79; (34) "Grid Standards" means the Grid Standards specified under clause (d) of section 73 by theAuthority; (35) "high voltage line" means an electric line or cable of a nominal voltage as may be specified bythe Authority from time to time; (36) "inter-State transmission system" includes-- (i) any system for the conveyance of electricity by means of main transmission line from theterritory of one State to another State; (ii) the conveyance of electricity across the territory of an intervening State as well as conveyancewithin the State which is incidental to such inter-State transmission of electricity; (iii) the transmission of electricity within the territory of a State on a system built, owned,operated, maintained or controlled by a Central Transmission Utility; (37) 'intra-State transmission system' means any system for transmission of electricity other than aninter-State transmission system; (38) 'licence" means a licence granted under section 14; (39) "licensee" means a person who has been granted a licence under section 14; (40) "line" means any wire, cable, tube, pipe, insulator, conductor or other similar thing (including itscasing or coating) which is designed or adapted for use in carrying electricity and includes any line whichsurrounds or supports, or is surrounded or supported by or is installed in close proximity to, or issupported, carried or suspended in association with, any such line; (41) "local authority" means any Nagar Panchayat, Municipal Council, municipal corporation,Panchayat constituted at the village, intermediate and district levels, body of port commissioners or otherauthority legally entitled to, or entrusted by the Union or any State Government with, the control ormanagement of any area or local fund; (42) "main" means any electric supply-line through which electricity is, or is intended to be,supplied; (43) "Member" means the Member of the Appropriate Commission or Authority or JointCommission, or the Appellate Tribunal, as the case may be, and includes the Chairperson of suchCommission or Authority or Appellate Tribunal; (44) "National Electricity Plan" means the National Electricity Plan notified under sub-section (4) ofsection 3; (45) "National Load Despatch Centre" means the Centre established under sub-section (1) ofsection 26; (46) "notification" means notification published in the Official Gazette and the expression "notify"shall be construed accordingly; (47) "open access" means the non-discriminatory provision for the use of transmission lines ordistribution system or associated facilities with such lines or system by any licensee or consumer or aperson engaged in generation in accordance with the regulations specified by the AppropriateCommission; (48) "overhead line" means an electric line which is placed above the ground and in the open air butdoes not include live rails of a traction system; (49) "person" shall include any company or body corporate or association or body of individuals,whether incorporated or not, or artificial juridical person; (50) "power system" means all aspects of generation, transmission, distribution and supply ofelectricity and includes one or more of the following, namely:-- (a) generating stations; (b) transmission or main transmission lines; (c) sub-stations; (d) tie-lines; (e) load despatch activities; (f) mains or distribution mains; (g) electric supply-lines; (h) overhead lines; (i) service lines; (j) works; (51) "premises" includes any land, building or structure; (52) "prescribed" means prescribed by rules made by the Appropriate Government under this Act; (53) "public lamp" means an electric lamp used for the lighting of any street; (54) "real time operation" means action to be taken at a given time at which information about theelectricity system is made available to the concerned Load Despatch Centre; (55) "Regional Power Committee" means a committee established by resolution by the CentralGovernment for a specified region for facilitating the integrated operation of the power systems in thatregion; (56) "Regional Load Despatch Centre" means the Centre established under sub-section (1) ofsection 27; (57) "regulations" means regulations made under this Act; (58) "repealed laws" means the Indian Electricity Act, 1910 (9 of 1910), the Electricity (Supply) Act,1948 (54 of 1948) and the Electricity Regulatory Commissions Act, 1998 (14 of 1998) repealed bysection 185; (59) "rules" means rules made under this Act; (60) "Schedule" means the Schedule to this Act; (61) "service-line" means any electric supply-line through which electricity is, or is intended to be,supplied-- (a) to a single consumer either from a distributing main or immediately from the DistributionLicensee's premises; or (b) from a distributing main to a group of consumers on the same premises or on contiguouspremises supplied from the same point of the distributing main; (62) 'specified" means specified by regulations made by the Appropriate Commission or theAuthority, as the case may be, under this Act; (63) "stand alone system" means the electricity system set-up to generate power and distributeelectricity in a specified area without connection to the grid; (64) "State Commission" means the State Electricity Regulatory Commission constituted undersub-section (1) of section 82 and includes a Joint Commission constituted under sub-section (1) ofsection 83; (65) "State Grid Code" means the State Grid Code specified under clause (h) of sub-section (1) ofsection 86; (66) "State Load Despatch Centre" means the centre established under sub-section (1) of section 31; (67) "State Transmission Utility" means the Board or the Government company specified as such bythe State Government under sub-section (1) of section 39; (68) "street" includes any way, road, lane, square, court, alley, passage or open space, whether athoroughfare or not, over which the public have a right of way, and also the roadway and footway overany public bridge or causeway; (69) "sub-station" means a station for transforming or converting electricity for the transmission ordistribution thereof and includes transformers converters, switch-gears, capacitors, synchronouscondensers, structures, cable and other appurtenant equipment and any buildings used for that purposeand the site thereof; (70) "supply", in relation to electricity, means the sale of electricity to a licensee or consumer; (71) "trading" means purchase of electricity for resale thereof and the expression "trade" shall beconstrued accordingly; (72) "transmission lines means all high pressure cables and overhead lines (not being an essentialpart of the distribution system of a licensee) transmitting electricity from a generating station to anothergenerating station or a sub-station, together with any step-up and step-down transformers, switch-gear andother works necessary to and used for the control of such cables or overhead lines, and such buildings orpart thereof as may be required to accommodate such transformers, switch-gear and other works; (73) "transmission licensee" means a licensee authorised to establish or operate transmission lines; (74) "transmit" means conveyance of electricity by means of transmission lines and the expression"transmission" shall be construed accordingly; (75) "utility" means the electric lines or electrical plant, and includes all lands, buildings, works andmaterials attached thereto belonging to any person acting as a generating company or licensee under theprovisions of this Act; (76) "wheeling" means the operation whereby the distribution system and associated facilities of atransmission licensee or distribution licensee, as the case may be, are used by another person for theconveyance of electricity on payment of charges to be determined under section 62; (77) "works" includes electric line, and any building, plant, machinery, apparatus and any other thingof whatever description required to transmit, distribute or supply electricity to the public and to carry intoeffect the objects of a licence or sanction granted under this Act or any other law for the time being inforce.

(1) The Central Government shall, from time to time,prepare the National Electricity Policy and tariff policy, in consultation with the State Governments andthe Authority for development of the power system based on optimal utilisation of resources such as coal,natural gas, nuclear substances or materials, hydro and renewable sources of energy. (2) The Central Government shall publish National Electricity Policy and tariff policy from time totime. (3) The Central Government may, from time to time, in consultation with the State Governments andthe Authority, review or revise, the National Electricity Policy and tariff policy referred to insub-section (1). (4) The Authority shall prepare a National Electricity Plan in accordance with the National ElectricityPolicy and notify such plan once in five years: Provided that the Authority while preparing the National Electricity Plan shall publish the draftNational Electricity Plan and invite suggestions and objections thereon from licensees, generatingcompanies and the public within such time as may be prescribed: Provided further that the Authority shall- (a) notify the plan after obtaining the approval of the Central Government; (b) revise the plan incorporating therein the directions, if any, given by the Central Governmentwhile granting approval under clause (a). (5) The Authority may review or revise the National Electricity Plan in accordance with the NationalElectricity Policy.

The Central Government shall, after consultation with the State Governments, prepare and notify anational policy, permitting stand alone systems (including those based on renewable sources of energyand other non-conventional sources of energy) for rural areas.

The CentralGovernment shall also formulate a national policy, in consultation with the State Governments and theState Commissions, for rural electrification and for bulk purchase of power and management of localdistribution in rural areas through Panchayat Institutions, users associations, co-operative societies,non-Governmental organisations or franchisees.