The Electricity Act, 2003

What does the term “Appropriate Commission” refer to, and what are its responsibilities under the Act?

The term “Appropriate Commission” refers to the Central Regulatory Commission for interstate matters, the State Regulatory Commissions for state-level issues, and Joint Commissions for regions comprising more than one state. These commissions are responsible for setting tariffs, issuing licenses, promoting efficiency, ensuring the availability of electricity to all consumers, and fostering competition within the electricity sector. 

What are the key components of the National Electricity Policy as outlined in the Electricity Act, 2003?

The National Electricity Policy is to be prepared by the Central Government in consultation with State Governments Central Electricity Authority to develop a power system optimally utilizing resources such as coal, natural gas, nuclear materials, hydro, and renewable energy sources. The Policy should be published and reviewed periodically, and a National Electricity Plan be prepared every five years. This plan involves inviting suggestions from stakeholders and the public, and it must be approved by the Central Government before finalization.

What are the duties of generating companies under Act?

The Act defines a generating company as any company or corporate or association or artificial juridical person, which owns or operates or maintains an electricity generating station. These companies are required to establish, operate, and maintain generating stations and associated infrastructure like tie-lines, sub-stations, and dedicated transmission lines. They may supply electricity to licensees and consumers, subject to regulations. Additionally, generating companies must submit technical details of their stations to the Appropriate Commission and the Authority and coordinate with Central or State Transmission Utilities for electricity transmission.

What are the provisions regarding the works of distribution licensees in the transmission of electricity under the Act?

Licensees are authorized to open and break up streets, railways, or tramways, and to lay down or place electric supply lines. They must follow the rules specified by the Appropriate Government, which include obtaining necessary consents, serving notices before commencing works, and compensating affected persons. Distribution licensees must also follow procedures for works near utilities like sewers, pipes, and telegraph lines.

How is the tariff for electricity determined according to the Act?

The tariff is determined by the Appropriate Commission based on the supply of electricity by generating companies to distribution licensees, transmission, wheeling, and retail sale of electricity. The commission may set minimum and maximum tariff ceilings during shortages to ensure reasonable prices. Tariffs should not be amended more than once a year, except for specific changes like fuel surcharge adjustments. Licensees or generating companies must furnish detailed information for tariff determination. 

What is the structure and function of the Central Electricity Authority (CEA)?

The CEA, established under the Electricity (Supply) Act, 1948, consists of up to fourteen members, including a chairperson appointed by the Central Government. Members should be experts in fields like engineering, finance, commerce, and economics. The key functions of the CEA include advising the Central Government on matters relating to National Electricity Policy, formulating short-term and long-term plans for the development of the electricity system, and coordinating planning activities for the optimal utilization of resources to serve the national economy and provide reliable, affordable electricity for all consumers. Additionally, the CEA specifies technical standards for the construction of electrical plants, electric lines, and grid connectivity, and sets safety requirements for the construction, operation, and maintenance of electrical plants and lines.

What roles do the Regulatory Commissions play according to the Act?

Regulatory Commissions, both Central and State, are responsible for regulating tariffs of Central Government-owned generating companies, overseeing inter-State transmission of electricity, determining tariffs for such transmission, issuing licenses for inter-State transmission and electricity trading, and resolving disputes involving generating companies or transmission licensees among a list of other functions. 

What is the function of the Appellate Tribunal for Electricity as established by the Electricity Act, 2003?

The Appellate Tribunal for Electricity hears appeals against orders of the Regulatory Commissions and adjudicates disputes. It ensures that decisions are made fairly and in compliance with the law. The tribunal's decisions are binding, but appeals can be made to the Supreme Court on substantial questions of law.

Focus by Arunima Mandwariya.