The Electricity Act 2003: The Scheme

In one line

One Act replaced three, and it opens with four policies the Central Government must make, one of them about renewable energy.

What the Act replaced

Section 2(58) defines repealed laws as the Indian Electricity Act, 1910, the Electricity (Supply) Act, 1948, and the Electricity Regulatory Commissions Act, 1998, and says they are repealed by section 185.

That definition is the shortest statement of what the 2003 Act is. A licensing statute of 1910, a public-sector supply statute of 1948 that created the State Electricity Boards, and a regulatory statute of 1998 that created the Commissions, replaced by a single Act.

Section 1 gives the short title, extends the Act to the whole of India, and commences it on such date as the Central Government may notify, with a proviso that different dates may be appointed for different provisions.

Section 2, and the definitions a resource answer needs

Section 2 has seventy seven definitions. Nine of them decide most questions in this module.

Electricity, in clause (23), is electrical energy generated, transmitted, supplied or traded for any purpose, or used for any purpose except the transmission of a message. The exception keeps telegraphy out.

Generating station, in clause (30), includes the building, the plant with its step-up transformer, the switch-gear and switch yard, and the site thereof, and where electricity is generated by water power it includes penstocks, head and tail works, main and regulating reservoirs, dams and other hydraulic works. A hydro station is therefore a dam in the eyes of this Act, which is why the module I chapters on dams and this module meet.

Captive generating plant, in clause (8), is a plant set up by any person to generate electricity primarily for his own use, and includes a plant set up by a co-operative society or association of persons for the use of its members.

Cogeneration, in clause (12), is a process which simultaneously produces two or more forms of useful energy, including electricity. It is the word that appears again in section 61(h).

Conservation, in clause (14), is any reduction in consumption of electricity as a result of increase in the efficiency in supply and use of electricity. The Act therefore has a definition of conservation of its own, alongside the Energy Conservation Act.

Stand alone system, in clause (63), is the electricity system set up to generate power and distribute electricity in a specified area without connection to the grid. It is the subject of section 4.

Open access, in clause (47), is the non-discriminatory provision for the use of transmission lines or distribution system or associated facilities by any licensee or consumer or a person engaged in generation, in accordance with the regulations specified by the Appropriate Commission.