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ELECTRICITY (SUPPLY) ACT, 1948 [REPEALED]

Ministry of Law and Justice

Act nº 54 of 1948


  • Chapter I
  • Chapter II
  • Chapter III. State Electricity Boards, Generating Companies, State Electricityconsultative Councils and Local Advisory Committees
  • Chapter IV. Powers and Duties of State Electricty Boards and Generating Companies
  • Chapter V. The Works and Trading Procedure of the Board and the Generating Company
  • Chapter VI
  • Chapter VI
  • Schedules
  • Act nº 54 of 1948

Preamble

THE ELECTRICITY (SUPPLY) ACT, 1948

[Act No. 54 of 1948]1

[10th September, 1948]

PREAMBLE

An Act to provide for the rationalisation of the production and supply of electricity, and generally for taking measures conducive to 2 [electrical development].

whereas it is expedient to provide for the rationalisation of the production and supply of electricity, for taking measures conducive to 2 [electrical development] and for all matters incidental thereto;

It is hereby enacted as follows: -

1. For Statement of Objects and Reasons, see Gazette of India, 1947, Part V, Page 514, and for Report of Select Committee, see Gazette of India, 1948, pp.201-203.

The Act has been extended to Dadra and Nagar Haveli by Reg. 6 of 1963, Section 2 and Schedule 1 w.e.f. 1-7-1965.

2. Substituted by the A.O. 1950, for "the electrical development of the Provinces of India".


Chapter I

Section 1. Short title, extent and commencement

(1) This Act may he called the Electricity (Supply) Act, 1948.

(2) It extends to the whole of India 1 [except the State of Jammu and Kashmir].

2 [(3) This section and sections 2, 3, 4, 4A, 4B, 4C, 15A, 18A, 26A, 28 to 34 (both inclusive), sub-section (2) of section 39, section 42, sub-section (3) of section 43 and sections 57. 57A, 57B, 58, 75A, 76, 77, 77A, 77B, 77C, 82 and 83 and the provisions of the 3 [Sixth Schedule] shall come into force at once.]

(4) The remaining provisions of this Act shall come into force in a State on such date, not later than two years from the coming into force of the sections, Schedule and Table mentioned in sub-section (3), as the State Government may, by notification in the Official Gazette, appoint:

Provided that the Central Government may as respects any State extend the said period of two years and in such event the remaining provisions of the Act shall come into force in that State on such date, not later than the extended period, as the State Government may, by notification in the Official Gazette, appoint.

4 [(5) Notwithstanding anything contained in sub-section (4), -

(a) where any provision of this Act, to which sub-section (4) applies, is in force in any State immediately before the commencement of the Electricity (Supply) Amendment Act, 1978 (23 of 1978), that provision as amended by the Electricity (Supply) Amendment Act, 1978 (23 of 1978), shall on and from such commencement, be in force in that State;

(b) the provisions of this Act, to which sub-section (4) applies, which are not in force in any Stale on the commencement of the Electricity (Supply) Amendment Act, 1978 (23 of 1978), shall come into force in that State on such date as the State Government may, with the concurrence of the Central Government, by notification in the Official Gazette, appoint.]

1. Substituted by Act 3 of 1951, Section 3 and Schedule, for "except Part BStates".

2. Substituted by Act 101 of 1956, Section 2 w.e.f. 30-12-1956 and again subs, by Act 115 of 1976, Section 2, for sub-section (3) w.r.e.f. 8-10-1976.

3. Substituted by Act 23 of 1978, Section 2, for "Sixth and Seventh Schedules", w.e.f. 3-6-1978.

4. Inserted by Act 23 of 1978, Section 2 w.e.f. 3-6-1978.


Section 2. Interpretation

In this Act, unless there is anything repugnant in the subject or context, -

(1) "Authority" means the Central Electricity Authority constituted under section 3;

(2) "Board" means a State Electricity Board constituted under section 5;

(3) "bulk-licensee" means a licensee who is authorized by his licence to supply electricity to other licensees for distribution by them;

1 [(3A) "competent government" means the Central Government in respect of a Generating Company wholly or partly owned by it and in all other cases the Government of the State in which the generating station of a Generating Company is located or proposed to be located;]

(4) "controlled station" means a generating station designated in a scheme sanctioned under Chapter V as a controlled station;

2 [(4A) "Generating Company" means a company registered under the Companies Act 1956 (1 of 1956) and which has among its objects the establishment operation and maintenance of generating stations;]

(5) "generating station" or "station" means any station for generating electricity, including any building and plant 3 [(with step-up transformer, switch-gear, cables or other appurtenant equipment, if any)] used for that purpose and the site thereof, a site intended to be used for a generating station, and any buildings used for housing the operating staff of a generating station, and where electricity is 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 4 [***];

(6) "licensee" means a person licensed under Part II of the Indian Electricity Ac), 1910 (9 of 1910) to supply energy or a person who has obtained sanction under section 28 of that Act to engage in the business of supplying energy 5 [but, the provisions of section 26, or 26A of this Act notwithstanding, does not include the Board or a Generating Company];

(7) "main transmission lines" means all height pressure cables and over-head lines (not being an essential part of the distribution system of a licensee) transmitting electricity from a generating station to another generating station or to a sub-station, together with any step-up and step-down transformers, switch-gear and other works necessary to and used for the control of such cables or overhead lines, and such buildings or part thereof as may be required to accommodate such transformers, switch-gear and other works and the operating staff thereof;

7 [(8) "maximum demand" in relation to any period shall, unless otherwise provided in any general or special order of the State Government, mean twice the largest number of kilowatt-hours or kilo-volt-ampere-hours supplied and taken during any consecutive thirty minutes in that period;]

8 [(8A) "power system" means all aspects of generation, transmission, distribution and supply of energy; and includes the following or any combination thereof-

(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;]

(9) "prescribed" means prescribed by rules 9 [made under this Act];

10 [(9A) "Regional Electricity Board" means a Board constituted by resolution of the Central Government for a specified region for facilitating the integrated operation of the power systems in that region;

(9B) "Regional Load Despatch Centre" means the Centre so designated for a specified region where the operation of the power system in that region and the integration of the power system with other regions and areas (within the territory of India or outside) are co-ordinated;]

11[(9C) "State Load Despatch Centre", in relation to a State, means the Centre so designated where the operation of the power system in that State and integration of such State power system with other power system are co-ordinated;]

(10) "regulations" means regulations made by the Board under section 79;

(11) "Reserve Bank" means the Reserve Bank of India;

12 [(11A) "sub-station" means a station for transforming or converting electricity for the transmission or distribution thereof and includes transformers, converters, switch-gear, capacitors, synchronous condensers, structures, cables and other appurtenant equipments and any buildings used for that purpose and the site thereof, a site intended to be used for any such purpose and any buildings used for housing the staff of the sub-station;

(11B) "tie-line" means a line for the transfer of electricity between two, power systems together with switch-gear and other works necessary to, and used for, the control of such line;]

13 [(12) "transmission lines" means all works mentioned in sub-section (7) used wholly or partially for the purposes of distribution or transmission of energy;]

(13) "year" means, in relation to the Board 12[or a Generating Company], the year commencing on the 1st day of April;

(14) "year of account" means, in relation to a licensee, his financial year;

(15) other expressions have the meanings respectively assigned to them in the Indian Electricity Act, 1910 (9 of 1910).

1. Inserted by Act 50 of 1991, Section 3 w.e.f. 15-10-1991.

2. Clause (4A) Inserted by Act 115 of 1976 Section 2 w.r.e.f. 8-10-1976 and Substituted by Act 50 of 1991, Section 3 w.e.f. 15-10-1991.

3. Inserted by Act 115 of 1976, Section 3 w.r.e.f. 8-10-1976.

4. The words "for transforming, converting or distributing electricity" omitted by Act 115 of 1976, Section 3 w.r.e.f. 8-10-1976.

5. Substituted by Act 115 of 1976, Section 3, for "but, the provisions of section 26 of this Act notwithstanding does not include the Board" w.r.e.f. 8-10-1976.

7. Substituted by Act 101 of 1956, Section 3, for clause (8) w.e.f. 30-12-1956.

8. Clause(8A) Inserted by Act 115 of 1976, Section 3 w.r.e.f. 8-10-1976and Substituted by Act 22 of 1998, Section 9 w.e.f. 31-12-1998.

9. Substituted by Act 115 of 1976, Section 3, for "made under section 78" w.r.e.f. 8-10-1976.

10. Clauses (9A) and (9B) Inserted by Act 50 of 1991, Section 3 w.e.f. 15-10-1991 and Substituted by Act 22 of 1998, Section 9 w.e.f. 31-12-1998.

11. Clause (9C) Inserted by Ac 22 of 1998, Section 9 w.e.f. 31-12-1998.

12. Inserted by Act 115 of 1976, Section 3 w.r.e.f. 8-10-1976.

13. Substituted by Act 22 of 1998, Section 9 w.e.f. 31-12-1998.


Chapter II

Section 3. Constitution of the Central Electricity Authority

(1) The Central Government shall constitute a body called the Central Electricity Authority generally to exercise such functions and perform such duties under the Act and in such manner as the Central Government may prescribe or direct, and in particular to-

(i) develop a sound, adequate and uniform national power policy, 1 [formulate short-term and perspective plans for power development and co-ordinate the activities of the planning agencies] in relation to the control and utilisation of national power resources;

(ii) act as arbitrators in matters arising between the State Government or the Board and a licensee or other person as provided in this Act;

2 [(iii) collect and record the data concerning the generation, distribution and utilisation of power and carry out studies relating to cost, efficiency, losses, benefits and such like matters;]

(iv) make public from time to time information secured under this Act and to provide for the publication of reports and investigations;

3 [(v) advise any State Government, Board, Generating Company or other agency engaged in the generation or supply of electricity on such matters as will enable such Government, Board, Generating Company or agency to operate and maintain the power system under its ownership or control in an improved manner and, where necessary, in co-ordination with any other Government, Board, Generating Company or other agency owning or having the control of another power system;

(vi) promote and assist in the timely completion of schemes sanctioned under Chapter V;

(vii) make arrangements for advancing the skill of persons in the generation and supply of electricity;

(viii) carry out, or make arrangements for, any investigation for the purpose of generating or transmitting electricity;

(ix) promote research in matters affecting the generation, transmission and supply of electricity;

(x) advise the Central Government on any matter on which its advice is sought or make recommendation to that Government on any matter if, in the opinion of the Authority, the recommendation would help in improving the generation, distribution and utilisation of electricity; and

(xi) discharge such other functions as may be entrusted to it by or under any other law.]

(2) The Authority shall consist of 4 [not more than fourteen members of whom not more than eight shall be full-time members] appointed by the Central Government 5 [***].

6 [(2A) A full-time member shall be a person who has experience of, and has shown capacity in, -

(a) design, construction, operation and maintenance of generating stations;

(b) transmission and supply of electricity;

(c) applied research in the field of electricity;

(d) applied economics; or

(e) industrial, commercial or financial matters.]

(3) The Central Government shall appoint [one of the full-time members] to be the Chairman of the Authority.

(4) All the members of the Authority shall hold office during the pleasure of the Central Government.

7 [(4A) The Chairman of the Authority and the other full-time members shall receive such salaries and allowances as may be determined by the Central Government and the other members shall receive such allowances and fees for attending the meetings of the Authority, as the Central Government may prescribe.

(4B) The other terms and conditions of service of the members of the Authority [including, subject to the provisions of sub-section (4), their terms of office] shall be such as the Central Government may prescribe.]

(5) No full-time member of the Authority shall 8 [have any share or interest for his own benefit, whether in his own name or otherwise,] in any company or other body corporate or an association of persons (whether incorporated or not), or a firm engaged in the business of supplying electrical energy or 9 [fuel, in whatever form, for the generation of electricity or in the manufacture of electrical equipment].

(6) The Authority may appoint a Secretary and such other officers and 10 [employees] as it considers necessary for the performance of its functions under this Act on such terms as to salary, remuneration, fee, allowance, pension, leave and gratuity, as the Authority may, in consultation with the Central Government, fix:

Provided that the appointment of the Secretary shall be subject to the approval of the Central Government.

11 [(7) The Chairman of the Authority may, by order, appoint any two or more members of the Authority to act on behalf of the Authority in relation to any matter referred to in clause (ii) of sub-section (1).

(8) No act or proceeding of the Authority shall be invalid merely on the ground of the existence of any vacancy in, or any defect in the constitution of, the Authority.]

1. Substituted by Act 115 of 1976, Section 4, for "and particularly to co-ordinate the activities of the planning agencies" w.r.e.f. 8-10-1976.

2. Substituted by Act 115 of 1976, Section 4, for clause (iii) w.r.e.f. 8-10-1976.

3. Inserted by Act 115 of 1976, Section 4 w.r.e.f. 8-10-1976.

4. Substituted by Act 115 of 1976, Section 4, for "not more than six members" w.r.e.f. 8-10-1976.

5. The words "of whom at least three shall be full-time members" omitted by Act 57 of 1949, Section 3.

6. Inserted by Act 115 of 1976, Section 4 w.r.e.f. 8-10-1976.

7. Substituted by Act 115 of 1976, Section 4, for "one of the members" w.r.e.f. 8-10-1976.

8. Substituted by Act 115 of 1976, Section 4, for "be directly or indirectly concerned or interested in or have any share or interest" w.r.e.f. 8-10-1976.

9. Substituted by Act 115 of 1976, Section 4, for "fuel, solid or liquid, for the generation of electricity" w.r.e.f. 8-10-1976.

10. Substituted by Act 23 of 1978, Section 3 for "servants" w.e.f. 3-6-1978.

11. Substituted by Act 115 of 1976, Section 4, for sub-section (7) w.r.e.f. 8-10-1976.


Section 4. Power to require accounts, statistics and returns

It shall be the duly of each 1 [State Electricity Board, Generating Company,] Slate Government Electricity Department or other licensee or person supplying electricity for public or private purposes, or generating electricity for its or his own use 2 [or consuming electricity] to furnish to the Authority such accounts, statistics, 3 [returns or other information] relating to the generation supply and use of electricity as it may require and at such times and in such form and manner as it may direct.

1. Substituted by Act 115 of 1976, Section 5, for "State Electricity Board" w.r.e.f. 8-10-1976.

2. Inserted by Act 115 of 1976, Section 5, w.r.e.f. 8-10-1976.

3. Substituted by Act 115 of 1976, Section 5, for "and returns" w.r.e.f. 8-10-1976.


Section 4A. Directions by Central Government to the Authority

1[4A. Directions by Central Government to the Authority

(1) In the discharge of its functions, the Authority shall be guided by such directions in matters of policy involving public interest as the Central Government may give to it in writing.

(2) If any question arises as to whether any such direction relates to a matter of policy involving public interest, the decision of the Central Government thereon shall be final.]

1. Sections 4A, 4B and 4C Inserted by Act 115 of 1976, Section 6 w.r.e.f. 8-10-1976.


Section 4B. Power of Central Government to make rules

(1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Chapter.

(2) In particular and without prejudice to the generality of the foregoing powers, such rules may provide for alt or any of the following matters, namely:

(a) the functions and duties of the Authority and the manner in which such functions and duties shall be exercised and performed, under sub-section (1) of section 3;

(b) the terms and conditions of service of the Chairman and other members of the Authority (including the allowances and fees payable to members, but not including the salaries and allowances payable to the Chairman and other full-time members, of the Authority) under sub-section (4A) and sub-section (4B) of section 3;

(c) any other matter which is required to be, or may be, prescribed by the Central Government.

(3) Every rule made by the Central Government under this Chapter shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should no be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

Section 4C. Power of Authority to make regulations

1 [(1)] The Authority may 2 [by notification in the Official Gazette,] make regulations, not inconsistent with the provisions of this Act and the rules made by the Central Government thereunder, to provide for all or any of the following matters, namely: -

(a) summoning and holding of meetings of the Authority, the times and places at which such meetings shall be held, the conduct of business thereat and the number of members required to constitute a quorum;

(b) any other matter arising out of the functions of the Authority under this Act for which it is necessary or expedient to make regulations.]

2 [(2) The Central Government shall cause every regulation made under this section to be laid, as soon as after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the regulation, or both Houses agree that the regulation should not be made, the regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall he without prejudice to the validity of anything previously done under that regulation.]

1. Section 4C re-numbered as sub-section (1) thereof by Act 20 of 1983, Section 2 and Schedule w.e.f. 15-3-1984.

2. Inserted by Act 20 of 1983, Section 2 and Schedule w.e.f. 15-3-1984


Chapter III
State Electricity Boards, Generating Companies, State Electricityconsultative Councils and Local Advisory Committees

1. Substituted by Act 115 of 1976, Section 7, for "STATE ELECTRICITY BOARDS" w.r.e.f. 8-10-1976.


Section 5. Constitution and composition of State Electricity Boards

(1) The State Government shall, as soon as may he after the issue of the notification under sub-section (4) of section 1, constitute by notification in the Official Gazette a State Electricity Board under such name as shall be specified in the notification.

(2) The Board shall consist of not less than three and not more than seven members appointed by the State Government.

1 [***]

2 [(4) Of the members-

(a) one shall be a person, who has experience of, and has shown capacity in, commercial matters and administration;

(b) one shall he an electrical engineer with wide experience; and

(c) one shall be a person who has experience of accounting and financial matters in a public utility undertaking, preferably an electricity supply undertaking.]

(5) One of the members possessing any of the qualifications specified in sub-section (4) shall he appointed by the State Government to be the Chairman of the Board.

(6) A person shall be disqualified from being appointed or being a member of the Board if he is 3 [***] a member of 4 [Parliament] or of any State Legislature or any local authority.

(7) No act done by the Board shall be called in question on the ground only of the existence of any vacancy in, or any defect in the constitution of, the Board.

1. sub-section (3) omitted by Act 57 of 1949, Section 49.

2. Substituted by Act 101 of 1956, Section 4, for sub-section (4) w.e.f. 30-12-1956.

3. words ", or within the twelve months last preceding was," omitted by Act 30 of 1966, Section 2 w.e.f. 16-9-1966.

4. Substituted by the A.O. 1950, for "the Central".


Section 6. Inter-State agreement to extend Board's jurisdiction to another State

(1) Subject to the provisions of this section, the Government of any State may, after it has issued a notification under sub-section (4) of section 1, in lieu of constituting a Board under section 5 enter into an agreement with the Government of a contiguous State to provide that the Board constituted for the latter State shall exercise the functions of a Board under this Act in the former State.

(2) Subject to such modifications (being of a character not affecting the general operation of the agreement) of the terms of the agreement as may from time to time be agreed upon by the State Government concerned, an agreement entered into under this section shall be for a period of not less than twenty-five years but may be determined earlier by mutual consent.

(3) An agreement under this section may

(a) make such financial arrangements between the participating State Governments as may be necessary for the purposes of the agreement;

(b) provide for consultation between the participating State Governments either generally or with reference to particular matters arising under this Act;

(c) generally make such incidental, supplementary or ancillary provisions, not inconsistent with this Act, as may be deemed necessary or expedient for giving effect to the agreement.

Section 7. Effect of inter-State agreement

Where an agreement is entered into under section 6, the participating State Governments shall, by notification in the Official Gazette, declare a date on which the agreement shall come into force, and on and after that date-

(a) the Board constituted for the one State shall have all the powers and duties of a Board under this Act in respect of both States as if they constituted a single State;

1[(b) reference in this Act to-

(i) the State,

(ii) the State Electricity Consultative Council, and

(iii) the State Legislature,

shall, unless the context otherwise requires, be construed as references respectively to-

(A) both States,

(B) where more than one State Electricity Consultative Council has been constituted under section 16, to all such Councils, and

(C) the Legislatures of both States;]

(c) the provisions of section 60 in relation to the assumption by the Board of the rights and liabilities of the State Government arising before the first constitution of the Board shall apply to the assumption by the Board of the rights and liabilities of the Government of the State to which the exercise of its functions under this Act is extended under the agreement, as if in that section for the words "before the first constitution of the Board" there were substituted the words and figure "before the date on which the agreement under section 6 came into force".

1. Substituted by Act 30 of 1966, Section 3, for clause (b) w.e.f. 16-9-1966.


Section 8. Term of office and conditions for re-appointment of members of the Board

1[8. Term of office and conditions for re-appointment of members of the Board

The Chairman and other members of the Board shall hold office for such period, and shall be eligible for re-appointment under such conditions, as may be prescribed.]

1. Substituted by Act 57 of 1949, Section 5, for section 8.