Handbook of Electricity Laws

This volume is a useful compilation of the texts of the Indian Electricity Act, 1910, Electricity (Supply) Act, 1948 and Indian Electricity Rules, 1956.

The book will help those private/foreign entrepreneurs who want to enter 'electricity generation and supply ' business.

The notes under each section are concise, coherent, illustrative and instructive and include important cases of the Supreme Court. The incorporation of various State Rules makes the text rich in material and a complete source of information on the subject. It is a book of invaluable utility to those who deal with the subject.

• All India Reporter :

This compilation will be found handy and useful as it contains the latest changes in the Electricity Laws.

• Cuttack Law Times :

The consumers of electricity, the electricity authorities and Bench and the Bar can find the hand-book prepared by Malik on Electricity Laws, very handy.

• National Institute of Construction Management and Research :

... this book would serve as a very useful handbook to entrepreneurs, corporate planners, administration staff and electrical engineers in both private and public sector enterprises.

• Gujarat Law Reporter :

This book exhaustively covers the up-to-date case-law with exhaustive commentary.

PART I : GUIDELINES FOR ELECTRICITY GENERATION, SUPPLY AND
DISTRIBUTION BY PRIVATE SECTOR 

Limit for Power Plant raised 1
Policy for Electricity Generation, Supply and
Distribution by Private Sector 2
Policy for Electricity Generation, Supply and Distribution
by Private Sector-Scheme 6
Method for the Calculation of depreciation by Generating 
Company/Board 9
Tariff for Sale of Electricity by Generating Companies 12
Notification 18
Method for providing depreciation in annual statement 18

PART I : PRELIMINARY 

Short title, extent and commencement 1
Definitions 1

PART II : SUPPLY OF ENERGY
LICENCES 

Grant of licences 3
Revocation or amendment of licences 5
Amendment of licences 7
Provisions where licence of a licensee is revoked 7
Purchase of undertakings 11
STATE AMENDMENT
Uttar Pradesh : S. 6-A. Revocation of licences
and acquisition of undertaking 19
Vesting of the undertaking in the purchaser 20
Determination of purchase price 22
STATE AMENDMENTS
Gujarat : S.7-AA. Power to take forcible delivery of
possession of undertaking 30
Uttar Pradesh : 7-AA. Power to take forcible delivery of
possession of undertaking 30
West Bengal : S. 7-B. Special provision for safeguarding
the interest of the employee 31
Provisions where no purchase and licence revoked
with consent of licensee 32
Licensee not to purchase, or associate himself with,
other licensed undertakings or transfer his undertaking 32
General Power for Government to vary terms of purchase 33
Annual accounts of licensee 33

WORKS 

Provisions as to the opening and breaking-up of streets,
railways and tramways 33
Notice of new works 35
Alteration of pipes or wires 36
Laying of electric supply-lines or other works near sewers,
pipes or other electric supply-lines or works 38
Streets, railways, tramways, sewers, drains or
tunnels brokenup to be reinstated without delay 39
Notice to telegraph authority 39
Overhead lines 40
Compensation for damage 40
Point where supply is delivered 41
Power for licensee to enter premises and to remove
fittings or other apparatus of licensee 41
Restrictions on licensee's controlling or
interfering with use of energy 42
Obligation on licensee to supply energy 43
Powers of State Government to give direction to a licensee
in regard to the supply of energy to certain class of consumers 43
Power to control the distribution and consumption of energy 44
Charges for energy to be made without undue preference 45
Discontinuance of supply to consumer neglecting to pay charge 45
Exemption of electric supply-lines or other apparatus
from attachment in certain cases 46
Meters 46
Supply of energy outside area of supply 48

PART III : SUPPLY, TRANSMISSION AND USE OF ENERGY BY 
NON-LICENSEES 

Sanction required by non-licensees in certain cases 49
STATE AMENDMENT
Gujarat : S. 28-A. Purchase price of undertaking
of sanction-holder purchased according to sanction 50
Uttar Pradesh : S. 28-A. Revocation of sanction
given under Section 28 50
Power for non-licensees to break-up streets 50
Application of Section 18 to overhead lines maintained by railways 51
Control of transmission and use of energy 51

PART IV : GENERAL
PROTECTIVE CLAUSES 

Protection of railways, aerodromes and canals,
docks, wharves and piers 52
Protection of telegraphic, telephonic and electric signalling lines 52
Notice of accidents and inquiries 53
Prohibition of connection with earth, and power for Government
to interfere in certain cases of default 53
Administration and Rules
Advisory Boards 54
Appointment of Electrical Inspectors 55
Central Electricity Board 55
[Repealed] 56
Power for Board to make rules 56
STATE AMENDMENT
Andhra Pradesh : S. 37-A. Power of State Government
to establish bodies for licensing purpose 57
Further provisions respecting rules 57

CRIMINAL OFFENCES AND PROCEDURE 

Theft of energy 58
Abetment 58
Penalty for maliciously wasting energy or injuring works 60
Penalty for unauthorized supply of energy by non-licensees 60
Penalty for illegal or defective supply or for non-compliance
with order 60
STATE AMENDMENTS
Gujarat : S. 42-A Penalty for refusal or failure
to deliver possession of undertaking or its property
and for obstructing the taking of possession thereof 61
Uttar Pradesh : S. 42-A Penalty for damaging or removing etc.,
any part of undertaking after service of notice
under Section 6 or furnishing false information 61
S. 42-AA Penalty for refusal or failure to deliver possession
of undertaking or its property and for obstructing
the taking of possession thereof 62
Penalty for illegal transmission or use of energy 62
Penalty for interference with meters of licensee's works
and for improper use of energy 62
STATE AMENDMENTS
Haryana    : S. 44-A. Abetment 63
Penalty for extinguishing public lamps 64
Penalty for negligently wasting energy or injuring works 64
Penalty for offences not otherwise provided for 64
Penalties not to affect other liabilities 65
Penalties where works belong to Government 65
Offence by companies 65
STATE AMENDMENT
Uttar Pradesh : S. 49-B. Certain offences to be
cognizable and non-bailable 65
Institution of prosecutions 66
STATE AMENDMENTS
Haryana : S. 50-A. Certain offences to be cognizable 66
S. 50-B. Summary trial 66
Tamil Nadu S. 50-A. Certain offences under the
Act to be cognizable 66
Uttar Pradesh : [Omission of Section 50] 66

SUPPLEMENTARY 

Exercise in certain cases of powers of telegraph authority 67
State Government to have powers and obligations of a
licensee under this Act 67
Arbitration 68
Service of notices, orders or documents 69
Recovery of sums recoverable under certain provisions of Act 69
Delegation of certain functions of State Government
to Electrical Inspectors 70
Protection for Acts done in good faith 70
Amendments of the Land Acquisition Act, 1894 70
Repeals and savings 70
THE SCHEDULE 71

PART III : ELECTRICITY (SUPPLY) ACT, 1948
CHAPTER I : INTRODUCTORY 

Short title, extent and commencement 2
Interpretation 3

CHAPTER II : THE CENTRAL ELECTRICITY AUTHORITY 

Constitution of the Central Electricity Authority 5
Power to require accounts, statistics and returns 7
Directions by Central Government to the Authority 7
Power of Central Government to make rules 7
Power of Authority to make regulations 8

CHAPTER III : STATE ELECTRICITY BOARDS, GENERATING 
COMPANIES, STATE ELECTRICITY CONSULTATIVE COUNCILS
AND LOCAL ADVISORY COMMITTEES 

Constitution and composition of the State Electricity Boards 9
Inter-State agreement to extend Board's
jurisdiction to another State 10
Effect of inter-State agreement 10
Term of office and conditions for re-appointment
of members of the Board 11
Members not to hold interest in certain concerns 11
Removal or suspension of members   12
Power of State Government to declare certain transactions void 13
Temporary absence of members 13
Incorporation of Board 13
Board may have capital structure 13
Authentication of orders and other instruments of the Board 14
Meetings of the Board 14
Appointment of staff 14
[Omitted] 14
State Electricity Consultative Council 15
Local Advisory Committee 16

CHAPTER IV POWERS AND DUTIES OF STATE ELECTRICITY
BOARDS AND GENERATING COMPANIES

General duties of the Board 16
Duties of Generating Company 17
Powers of the Board to supply electricity 17
Power to Board to engage in certain undertaking 19
Leasing out, etc., of generating stations 19
Powers of Board in relation to water-power 19
Power to Board to conduct investigations 20
Loans by Board to licensees 20
Power to Board to contribute to certain associations 20
Consulting engineers 20
Board to have powers and obligations of licensee
under Act 9 of 1910 20
Applicability of the provisions of Act 9 of 1910 to
Generating Company 21
Other functions of the Board or a Generating Company 22

CHAPTER V : THE WORKS AND TRADING PROCEDURE OF THE
BOARD AND THE GENERATING COMPANY 

Preparation and sanctioning of schemes 22
Submission of schemes for concurrence of Authority, etc. 23
Matters to be considered by the Authority 24
Concurrence of Authority to scheme submitted to it by Board or
Generating Company 24
Power to alter or extend schemes 25
Provisions applicable to scheme prepared by
State Government 25
Controlled stations 25
Supply by the Board to licensees owning generating stations 25
Power to Board to close down generating stations 25
Purchase of generating stations or undertakings
or main transmission lines by the Board 26
[Omitted] 27
Operation of Board's generating stations 27
Provision regarding connections with main transmission
lines purchased by the Board 27
Use by Board of transmission lines 27
Powers to Board for placing wires, poles, etc. 28
Power to Board to enter into arrangement for purchase
or sale of electricity under certain conditions 28
Terms, conditions and tariff for sale of electricity by
Generating Company 28
Restriction on establishment of new generating stations
or major additions or replacement of plant in generating stations 29
Power to Board to enter upon and shut down generating
stations in certain circumstances 30
The Grid Tariff 31
Power to Board to make alternative arrangements with licensees 31
Powers to licensee to carry out arrangements under this Act 31
Provision for the sale of electricity by the Board to persons
other than licensees 32
Board not to supply electricity in certain circumstances 33
Provisional payments 33
Lower limit of power factor in supply by Board 34
Provision of accommodation and right of way 34
Power to Board to connect meters, etc., to apparatus of licensees 34
Compliance of directions of the Regional Electricity Board,
etc., by licensees or Generating Companies 34
Leases of generating stations 34
Licensee's charges to consumers 35
Rating committees 35
Power of rating committee to call for information, etc. 37
Power to direct amortisation and tariffs policies of
licensees being local authorities 37

CHAPTER VI : THE BOARD'S FINANCE, ACCOUNTS AND AUDIT 

General principles for Board's finance 38
Board to assume obligations of State Government in respect
of matters to which this Act applies 38
Period of limitation extended in certain cases 40
Annual financial statement 40
Restriction on unbudgeted expenditure 40
Subventions to the Board 41
Loans to the Board 41
Power of Board to borrow 41
Guarantee of loans 41
Conversion of amount of loans into capital 42
Priority of liabilities of the Board 42
Interest on loans advanced by State Government to be
paid only after other expenses 42
Charging of depreciation by Board 42
Accounts and audit 43

CHAPTER VII : MISCELLANEOUS 

Effect of other laws 43
Rights and options to purchase under Act 9 of 1910
to vest in Board [Repealed by the Indian Electricity
(Amendment) Act, 1959 (32 of 1959), Section 41. 44
Water-power concessions to be granted only to the Board or a
Generating Company 44
Co-ordination between the Board's schemes and 
multi-purpose schemes 44
Powers of entry 44
Annual reports, statistics and returns 44
Annual reports and accounts of Generating Company 45
Arbitration 46
Penalties 47
Source from which fines may be paid 47
Offences by companies 47
Cognizance of offences 47
Power to make rules 48
Directions by the State Government 48
Power to make regulations 49
Laying of certain rules and regulations before
State Legislature 50
Provision relating to income-tax and super-tax 50
Members and officers and other employees of the
Board to be public servants 50
Protection of persons acting under this Act 50
Saving of application of Act 50
THE FIRST SCHEDULE 50
THE SECOND SCHEDULE 59
THE THIRD SCHEDULE 59
THE FOURTH SCHEDULE 63
THE FIFTH SCHEDULE 64
THE SIXTH SCHEDULE 65
THE SEVENTH SCHEDULE [Omitted] 75
THE EIGHTH SCHEDULE 75
THE NINTH SCHEDULE   76

PART IV : INDIAN ELECTRICITY RULES, 1956
CHAPTER I : PRELIMINARY 

Short title and commencement 1
Definitions 1
Authorization 5

CHAPTER II : INSPECTORS 

Qualifications of Inspectors 7
Appointment of officers to assist Inspectors 8
Qualifications of officers appointed to assist the Inspectors 8
Entry and inspection 9
Appeals 9
Amount of fees 10
Incidence of fees recoverable in the cases of dispute 10
Submission of records 10
List of consumers 11

CHAPTER III : LICENCE 

Application for licence 11
Copies of maps and draft licence for public inspection 12
Contents of draft licence 12
Form of draft licence 12
Advertisement of application and contents thereof 13
Amendment of draft licence 13
Local inquiries 13
Approval of draft licence 13
Notification of grant of licence 13
Date of commencement of licence 14
Deposit of maps 14
Deposit of printed copies 14
Application for written consent of State 
Government in certain cases 14
Amendment of licence 14
Sale of plans 15
Preparation and submission of accounts 15
Model conditions of supply 15
Forms of requisitions 15

CHAPTER IV : GENERAL SAFETY REQUIREMENTS 

Construction, installation, protection, operation and
maintenance of electric supply lines and apparatus 16
Service lines and apparatus on consumer's premises 16
Cut-out on consumer's premises 17
Identification of earthed and earthed neutral conductors and
position of switches and cut-outs therein 17
Earthed terminal on consumer's premises 18
Accessibility of bare conductors 19
Danger notices 19
Handling of ele`ctric supply lines and apparatus 19
Supply to vehicles, cranes, etc. 20
Cables for portable or transportable apparatus 20
Cables protected by bituminous materials 20
Street boxes 21
Distinction of different circuits 21
Distinction of the installations having more than one feed 21
Accidental charge 21
Provisions applicable to protective equipment 21
Instructions for restoration of persons
suffering from electric shock 22
Intimation of Accident 23
Precautions to be adopted by consumers, owners, occupiers,
electrical contractors, electrical workmen and suppliers 23
Periodical inspection and testing of consumer's installation 25

CHAPTER V : GENERAL CONDITIONS RELATING 
TO SUPPLY AND USE OF ENERGY 

Testing of consumer's installation 26
Precautions against leakage before connection 27
Leakage on consumer's premises 27
Supply and use of energy 27
Additional provisions for supply and use of energy in
multi-storeyed buildings (more than 15 metres in height) 29
Provisions applicable to medium, high or
extra-high voltage installations 29
Appeal to Inspector in regard to defects 31
Cost of inspection and test of consumer's installation 31
Declared voltage of supply to consumer 31
Declared frequency of supply to consumer 32
Sealing of meters and cut-outs 32
Meters, maximum demand indicators and other
apparatus on consumer's premises 32
Point of commencement of supply 33
Precautions against failure of supply : Notice of failures 33

CHAPTER VI : ELECTRIC SUPPLY LINES, SYSTEMS 
AND APPARATUS FOR LOW AND MEDIUM VOLTAGES 

Test for resistance of insulation 34
Connection with earth 34
Earth leakage protective device 36
Systems at medium voltage 36

CHAPTER VII : ELECTRIC SUPPLY LINES, SYSTEMS 
AND APPARATUS FOR HIGH AND EXTRA-HIGH VOLTAGES 

Approval by Inspector 37
Use of energy at high and extra-high voltage   37
Additional provisions for use of energy at
high and extra-high voltage 40
Testing, Operation and Maintenance 41
Metal sheathed electric supply lines :
Precautions against excess leakage 41
Connection with earth 42
General conditions as to transformation and control of energy 43
Pole type sub-stations 43
Condensers 44
Additional provisions for supply to high voltage
luminous tube sign installation 44
Additional provisions for supply to high voltage electrode boilers 45
Supply to X-Ray and high frequency installation 45

CHAPTER VIII : OVER-HEAD LINES, UNDERGROUND 
CABLES AND GENERATING STATIONS
 
Material and strength 47
Joints 48
Maximum stresses : Factors of safety 48
Clearance above ground of the lowest conductor 49
Clearance between conductors and trolley wires 49
Clearance from buildings of low and medium
voltage lines and service lines 50
Clearance from buildings of high and extra-high voltage lines 50
Conductors at different voltages on same supports 51
Erection of or alteration to buildings, structures,
flood banks and elevation of roads 51
Transporting and Storing of material near over-head lines 52
Clearances : General 52
Routes : Proximity to aerodromes 53
Maximum intervals between supports 53
Conditions to apply where telecommunication lines and
power lines are carried on same supports 53
Lines crossing or approaching each other 54
Guarding 55
Service-lines from over-head lines 56
Earthing 56
Safety and protective devices 57
Protection against lightning 58
Unused over-head lines 58

CHAPTER IX : ELECTRIC TRACTION 

Additional rules for electric traction   58
Voltage of supply to vehicle 59
Insulation of lines 59
Insulation of returns 59
Proximity to metallic pipes, etc. 59
Difference of potential on return 59
Leakage on conduit system 59
Leakage on system other than conduit system 60
Passengers not to have access to electric circuit 60
Current density in rails 60
Isolation of sections 60
Minimum size and strength of trolley-wire 60
Height of trolley-wire and length of span 60
Earthing of guard wires 60
Proximity to magnetic observatories and laboratories 61
Records 61

CHAPTER X : ADDITIONAL PRECAUTIONS TO BE ADOPTED 
IN MINES AND OIL-FIELDS
 
Application of Chapter 61
Responsibility for observance 61
Notices 62
Plans 62
Lighting, communications and fire precautions 63
Isolation and fixing of transformer, switchgear etc. 63
Method of earthing 63
Protective equipment 63
Earthing metal, etc. 64
Voltage Limits 64
Transformers 65
Switchgear and terminals 65
Disconnection of supply 65
Cables 66
Flexible cables 67
Portable and transportable machines 68
Sundry precautions 69
Precautions where gas exists 69
Shot-firing 72
Signalling 72
Haulage 72
Earthing of neutral points 73
Supervision 73
Exemptions 74

CHAPTER XI : MISCELLANEOUS 

Relaxation by Government 74
Relaxation by Inspector 74
Supply and use of energy by non-licensees and others 74
Responsibility of Agents and Managers 75
Mode of entry 75
Penalty for breaking seal 75
Penalty for breach of Rule 44-A 75
Penalty for breach of Rule 45 75
Penalty for breach of Rule 82 75
Penalty for breach of Rules 77, 79 or 80 76
Penalty for breach of rules   76
Application of rules 76
Repeal 76
ANNEXURES
ANNEXURE I 77
ANNEXURE II 77
ANNEXURE III 77
ANNEXURE IV 81
ANNEXURE V 84
ANNEXURE VI 110
ANNEXURE VII 121
ANNEXURE VIII 121
ANNEXURE IX 123
ANNEXURE IX-A 124
ANNEXURE X 135
ANNEXURE XI 136
ANNEXURE XII 138
ANNEXURE XIII 138
ANNEXURE XIV 139

CENTRAL ELECTRICITY AUTHORITY REGULATIONS, 1979