Profile
Settings
Refer your friends
Sign out
The power sector in India is one of the most important sectors responsible for the generation, transmission, and distribution of electricity. There are ant laws, acts, and policies that together govern and regulate the power sector. The electricity supply act 1948 was established for rationalisation, production, and electricity supply, and the act was to take necessary measures for electricity development.
However, over time, there have been multiple changes and reforms in India’s power sector. Currently, the electricity Act 2003 is the National Electricity Policy that is involved in the generation, distribution, transmission, and trading of power. The Indian Electricity Sector before this act was guided and regulated by the India Electricity Act, 1910 and the electricity supply act, 1948.
Interpretation under the electricity supply act 1948
The act protects and helps with the electricity regulation in India by handling all the aspects related to the supply and generation of electricity.
The Central Electrical Authority was the authority for providing advice on the laws and policies related to the power sector.
Under Section 5 of the law, the state electricity boards were boards involved in regulating electricity in the individual states.
An electricity generating company is a company registered under the Companies Act. The licensee is licensed under the Indian Electricity Act 1910 for the supply of energy and engaging in the business of supply of power.
The objective of the electricity supply act 1948
India’s development and electricity regulation were established on a regional basis, which required coordination for production and supply. The electricity supply act 1948 was responsible for bringing the electricity control under a continuous control known as a grid system. The Indian Electricity Act 1910 was not enough to secure and control the existing licensees’ leasing expansion. Hence, the electricity supply act 1948 deals with all functions and statutory power of the Central Electricity Authority, Electricity Generating Companies, and State Electricity Boards. The National Electricity Policy is associated with the overall generation and regulation of electricity across different states in India. It has general objectives such as
1. Taking conducive measures for developing the electricity industry in the country.
2. Making an Act to consolidate the laws related to generation, transmission, distribution, trading and use of electricity by taking measures.
3. Supplying of electricity to all users·
4. Protecting the consumer Interests and rationalization of electric tariffs across the country·
5. Transparency in policies regarding subsidies and Promoting efficient & environmentally friendly policies constituted by Central Electricity Authority (CEA), Regulatory commissions & establishment of Appellate tribunal
The Central Electricity Authority acts as an advisory on the various acts and policies related to the power sector in India. The state electricity boards (SEBs) are responsible for regulating and managing electricity generation, transmission, and distribution in a particular state only.
Importance of the National Electricity Policy of India
The National Electricity Policy provides the necessary guidelines for developing and managing the power sector in India. It lays the guidelines for electricity supply across all areas, protects the consumer interest and keeps in check the availability of the resources. The aim and objective of the National Electricity Policy includes
Access to electricity for all the households across the country
The electricity supply act 1948 has laid the foundation for national policy. The objective was to overcome the energy shortage and generate adequate electricity.
The supply and distribution of the electricity to the consumer at an affordable and reasonable rate
Increase in the per capita availability of electricity by over 1000 unit
Improve the pricing viability as well as improve the financial turnover of the power sector
Make electricity affordable and protect the consumer’s interest.
Understanding various schemes for the electricity supply act 1948
Section 2 of the electricity supply act 1948 proposes a few reforms. One of the clauses is to remove the exclusion of the private sector from the definition of generating a company. This is because clause (4-A) of the act allows only the companies formed by either the central government or state government or jointly involved as electricity-generating companies.
The electricity supply act 1948 includes section 43-A, which includes all the terms and conditions and the overall tariff for the electricity sales by the electricity-generating companies.
Section 29 of the act includes submitting schemes to the Central Electricity Authority that involves capital expenditure beyond five crores. This helps in escalating the cost of the projects and revising the cost from time to time.
Section 55 of the act provides licensee compliance. This ensures all the generating companies comply with all the regulations and directions issued by the coordinating agencies for the overall production and supply of electricity.
- The electricity supply act 1948 is important and protects the power sector. It deals with the statutory function of the central electricity authority (CEA), electricity generation companies and the state electricity boards. The main role was to increase the involvement and scope for participation of the private sectors for the overall generation of power, its supply and distribution.
Conclusion
The electricity regulation in India is governed by many laws and regulations that help generate electricity along with its supply and distribution. The Electricity Supply Act 1948 is an act that was established for taking necessary measures for the production and supply of electricity. In summary, it coordinated with the central electricity authority, which is an advisory for the policies and laws related to the power sector. It also includes the state electricity boards (SEBs) responsible for handling the power sector in the respective states. However, after 1990, there were many reforms and changes in the law regulating the power sector by allowing private investment and players to be included. The article provides information regarding inclusion in the policies and discusses a few important sections under the act.
