Petition (suo motu) No. 181/2011. Case: In Re: Bhakra Beas Management Board Vs. Central Electricity Regulatory Commission

Case NumberPetition (suo motu) No. 181/2011
JudgesPramod Deo, (Chairperson), M. Deena Dayalan, V.S. Verma, S. Jayaraman, Members
IssueElectricity Law
Judgement DateSeptember 15, 2011
CourtCentral Electricity Regulatory Commission

Order:

  1. The Electricity Act, 2003 (hereinafter "the EA 2003") came into force with effect from 10.6.2003, repealing the earlier Acts such as the Indian Electricity Act, 1910, Electricity Supply Act, 1948 and Electricity Regulatory Commission Act, 1998. Section 173 of the EA 2003 provides that "nothing contained in this Act or any rule or Regulation made there under or any instrument having effect by virtue of this Act, rule or Regulation shall have effect in so far as it is inconsistent with any other provisions of the Consumer Protection Act, 1986 or the Atomic Energy Act, 1962 or the Railways Act, 1989." Further, Section 174 of the EA 2003 provides that "Save as otherwise provided in Section 173, the provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act." After the operation of the EA 2003, all functions and activities covered under the Act shall have overriding effect on similar functions and activities under any other Act in force except in case of the Consumer Protection Act, 1986 or Atomic Energy Act, 1962 or the Railways Act, 1989.

  2. Chapter II of the EA 2003 deals with generation of electricity. Chapter III deals with licensing. Section 12 provides that no person shall transmit or distribute or undertake trading in electricity unless he is authorised to do so by a licence issued under Section 14 of the EA Act. Section 14 provides that the Appropriate Commission may, on an application made to it under Section 15, grant a licence to any person to transmit electricity as a transmission licensee or to distribute electricity as a distribution licensee or undertake trading in electricity as an electricity trader in any area as may be specified in the licence. Chapter v. of the EA 2003 deals with transmission of electricity. Chapter VII deals with determination of tariff for generation, transmission and distribution of electricity. Chapter X deals with the powers and functions of the Central Commission and State Commissions. Section 79 provides for the functions of the Central Commission as under:

    Section 79. (Functions of Central Commission): (1) The Central Commission shall discharge the following functions, namely:

    (a) to regulate the tariff of generating companies owned or controlled by the Central Government;

    (b) to regulate the tariff of generating companies other...

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