National policy on electrification and local distribution in rural areas

The electricity act, 2003

PART-II NATIONAL ELECTRICITY POLICY AND PLAN

3. National Electricity Policy and Plan

1. The Central Government shall, from time to time, prepare the national electricity policy and tariff policy, in consultation with the State Governments and the Authority for development of the power system based on optimal utilisation of resources such as coal, natural gas, nuclear substances or materials, hydro and renewable sources of energy.
2. The Central Government shall publish National Electricity Policy and tariff policy from time to time.
3. The Central Government may, from time to time, in consultation with the State Governments and the Authority, review or revise, the National Electricity Policy and tariff policy referred to in sub-section (1).
4. The Authority shall prepare a National Electricity Plan in accordance with the National Electricity Policy and notify such plan once in five years:

   PROVIDED that the Authority in preparing the National Electricity Plan shall publish the draft National Electricity Plan and invite suggestions and objections thereon from licensees, generating companies and the public within such time as may be prescribed:

   PROVIDED FURTHER that the Authority shall -

   (a) notify the plan after obtaining the approval of the Central Government;

   (b) revise the plan incorporating therein the directions, if any, given by the Central Government while granting approval under clause (a).

   (5) The Authority may review or revise the National Electricity Plan in accordance with the National Electricity Policy.

4. National policy on stand alone systems for rural areas and non-conventional energy systems

The Central Government shall, after consultation with the State Governments, prepare and notify a national policy, permitting stand alone systems (including those based on renewable sources of energy and non-conventional sources of energy) for rural areas.

5. National policy on electrification and local distribution in ruralareas

The Central Government shall also formulate a national policy, in consultation with the State Governments and the State Commissions, for rural electrification and for bulk purchase of power and management of local distribution in rural areas through Panchayat Institutions, users associations, co-operative societies, non- Governmental organisations or franchisee.

6. Obligations to supply electricity to rural areas

The Appropriate Government shall endeavor to supply electricity to all areas including villages and hamlets.

COMMENTS

Section 22 of the Indian Electricity Act, 1910 says that where the energy is supplied by a licensee, every person within the area of supply, shall, except insofar as is otherwise provided by the terms and conditions of the license, be entitled, on application, to a supply on the same terms as those on which any other person in the same area is entitled in similar circumstances to a corresponding supply:

PROVIDED that no person shall be entitled to demand, or to continue to receive, from a licensee a supply of energy for any premises having a separate supply unless he has agreed with the licensee to pay to him such minimum annual sum as will give him a reasonable return on the capital expenditure, and will cover other standing charges incurred by him in order to meet the possible maximum demand for those premises, the sum payable to be determined in case of difference or dispute by arbitration.

In as much as supply of electricity to a consumer involves incurring of overhead installation expenses by the Board which do not vary with the quantity of electricity consumed and the installation has to be continued irrespective of whether the energy is consumed or not until the agreement comes to an end.-Bihar State Electricity Board v. Green Rubber 1989 (4)JT 421.

Industries consumers is entitled to avail remission in minimum guarantee charges on account of tripling load shedding, power cuts etc. -Amalgamated Drug & Pharmaceuticals (P) Ltd. v. State AIR 1995 Pat 76.

In case where there Electricity Board is unable to supply electric energy to a consumer a per his demand on account of non-availability of the electric energy or consequent imposition of power cut, there should be reduction in the minimum charges in proportion to the power cut that has been imposed-Man Industrial Corporation v. R.S.E.B. AIR 1986 Raj 137.

There is no authority for the proposition that minimum charges can only be levied under the proviso to s. 22.-Gulab Rai v. Municipal Corporation AIR 1990 Del 249

Where a case of violation of right under art. 14 of the Constitution is made out against the Board, there would be no impediment in granting relief under art. 226 of the Constitution. -0 C MLtd. v. Assistant Engineer AIR 1988Raj 64.

Where the purchaser of an Industrial Unit wants to have new connection, he cannot be compelled to pay dues of previous owner for getting connection.-North East Fertilisers (P) Ltd. v. B.S.E.B. AIR 1995Pat 33

Where the case is one of delayed payment, consumer is liable to pay interest at reasonable rate for the fact that electric energy falls within the term "goods"-Mahavir Sugar Mills v. MSEB 1993 Mah LJ 544.

In assessing damages on account of not payment by the consumer, the provisions of s. 22 could be involved as it would provide adequate machinery for determining with the previous minimum annual sum which will give licensee a reasonable return on the capital expenditure and other charges.-Gulab Rai v. Municipal Corporation AIR 1990Oe1249.