Electricity Rules, 2005
[Electricity Rules, 2005][1]
[8th
June, 2005]
In exercise of the powers
conferred by Section 176 of the Electricity Act, 2003 (Act 36 of 2003), the
Central Government hereby makes the following rules, namely.
Rule - 1. Short title and commencement.
(1) These rules shall be called
the Electricity Rules, 2005.
(2) These rules shall come into
force on the date of their publication in the Official Gazette.
Rule - 2. Definitions.
In these rules, unless the
context otherwise requires:
(a)
“Act”
means the Electricity Act, 2003;
(b)
the
words and expressions used and not defined herein but defined in the Act shall
have the meaning assigned to them in the Act.
Rule - 3. Requirements of Captive Generating Plant.
(1) No power plant shall
qualify as a ‘captive generating plant’ under Section 9 read with clause (8) of
Section 2 of the Act unless.
(a)
in
case of a power plant.
(i)
not
less than twenty-six per cent of the ownership is held by the captive user(s),
and
(ii)
not
less than fifty-one per cent of the aggregate electricity generated in such
plant, determined on an annual basis, is consumed for the captive use:
Provided that in case of
power plant set up by registered cooperative society, the conditions mentioned
under paragraphs at (i) and (ii) above shall be satisfied collectively by the
members of the co-operative society:
Provided further that in
case of association of persons, the captive user(s) shall hold not less than
twenty-six per cent of the ownership of the plant in aggregate and such captive
user(s) shall consume not less than fifty-one per cent of the electricity
generated, determined on an annual basis, in proportion to their shares in
ownership of the power plant within a variation not exceeding ten per cent;
(b)
in
case of a generating station owned by a company formed as special purpose
vehicle for such generating station, a unit or units of such generating station
identified for captive use and not the entire generating station satisfy(ies)
the conditions contained in paragraphs (i) and (ii) of sub-clause (a) above
including.
Explanation. (1) The
electricity required to be consumed by captive users shall be determined with
reference to such generating unit or units in aggregate identified for captive
use and not with reference to generating station as a whole; and
(2) The equity shares to be
held by the captive user(s) in the generating station shall not be less than
twenty-six per cent of the proportionate of the equity of the company related
to the generating unit or units identified as the captive generating plant.
Illustration. In a
generating station with two units of 50 MW each namely Units A and B, one unit
of 50 MW namely Unit A may be identified as the Captive Generating Plant. The
captive users shall hold not less than thirteen per cent of the equity shares
in the company (being the twenty-six per cent proportionate to Unit A of 50 MW)
and not less than fifty-one per cent of the electricity generated in Unit A
determined on an annual basis is to be consumed by the captive users.
(2) It shall be the obligation
of the captive users to ensure that the consumption by the Captive Users at the
percentages mentioned in sub-clauses (a) and (b) of sub-rule (1) above is
maintained and in case the minimum percentage of captive use is not complied
with in any year, the entire electricity generated shall be treated as if it is
a supply of electricity by a generating company.
Explanation. (1) For the
purpose of this rule,
(a)
“Annual
Basis” shall be determined based on a financial year;
(b)
“Captive
User” shall mean the end user of the electricity generated in a Captive
Generating Plant and the term “Captive Use” shall be construed accordingly;
(c)
“Ownership”
in relation to a generating station or power plant set up by a company or any
other body corporate shall mean the equity share capital with voting rights. In
other cases ownership shall mean proprietary interest and control over the
generating station or power plant;
(d)
“Special
Purpose Vehicle” shall mean a legal entity owning, operating and maintaining a
generating station and with no other business or activity to be engaged in by
the legal entity.
Rule - 4. Distribution System.
The distribution system of
a distribution licensee in terms of sub-section (19) of Section 2 of the Act
shall also include electric line, sub-station and electrical plant that are
primarily maintained for the purpose of distributing electricity in the area of
supply of such distribution licensee notwithstanding that such line,
sub-station or electrical plant are high pressure cables or overhead lines or
associated with such high pressure cables or overhead lines; or used
incidentally for the purposes of transmitting electricity for others.
Rule - 5. Compliance with the directions by Transmission Licensee.
(1) The National Load Despatch
Centre, Regional Load Despatch Centre, as the case may be, or the State Load
Despatch Centre, may, under Section 26, sub-section (3) of Section 28,
sub-section (1) of Section 29, sub-section (2) of Section 32 and sub-section
(1) of Section 33 read with clause (b) of Section 40 of the Act, give such
directions, as it may consider appropriate for maintaining the availability of
the transmission system of a Transmission Licensee and the Transmission
Licensee shall duly comply with all such directions.
(2) The Appropriate Commission,
on an application filed by the National Load Despatch Centre, the Regional Load
Despatch Centre or the State Load Despatch Centre and after hearing the
Transmission Licensee, if satisfied that the Transmission Licensee has
persistently failed to maintain the availability of the transmission system,
may issue such directions to the National Load Despatch Centre, the Regional
Load Despatch Centre or the State Load Despatch Centre to take control of the
operations of the transmission system of such Transmission Licensee for such
period and on such terms, as the Commission may decide.
(3) The direction under
sub-rules (1) and (2) above shall be without prejudice to any other action
which may be taken against the Transmission Licensee under other provisions of
the Act.
Rule - 6. The surcharge under Section 38.
The surcharge on
transmission charges under Section 38, the manner of progressive reduction of
such surcharge and the manner of payment and utilization of such surcharge to
be specified by the Central Commission under sub-clause (ii) of clause (d) of
sub-section (2) of Section 38 shall be in accordance with surcharge on the
charges for wheeling, the manner of progressive reduction of such surcharge and
the manner of payment and utilization of such surcharge as may be specified by
the Appropriate Commission of the State in which the consumer is located under
sub-section (2) of Section 42 of the Act.
Rule - 7.[* * *] Ombudsman.
(1) [2][* * *]
(2) The Ombudsman to be
appointed or designated by the State Commission under sub-section (6) of
Section 42 of the Act shall be such person as the State Commission may decide
from time to time.
(3) The Ombudsman shall
consider the representations of the consumers consistent with the provisions of
the Act, the rules and regulations made hereunder or general orders or
directions given by the Appropriate Government or the Appropriate Commission in
this regard before settling their grievances.
(4) (a) The Ombudsman shall
prepare a report on a six monthly basis giving details of the nature of the
grievances of the consumer dealt by the ombudsman, the response of the
licensees in the redressal of the grievances and the opinion of the ombudsman
on the licensee's compliance of the standards of performance as specified by
the Commission under Section 57 of the Act during the preceding six months.
(b) The report under
sub-clause (a) above shall be forwarded to the State Commission and the State
Government within 45 days after the end of the relevant period of six months][3].
Rule - 8. Tariffs of generating companies under Section 79.
The tariff determined by
the Central Commission for generating companies under clause (a) or (b) of
sub-section (1) of Section 79 of the Act shall not be subject to
re-determination by the State Commission in exercise of functions under clauses
(a) or (b) of sub-section (1) of Section 86 of the Act and subject to the above
the State Commission may determine whether a Distribution Licensee in the State
should enter into Power Purchase Agreement or procurement process with such
generating companies based on the tariff determined by the Central Commission.
Rule - 9. Inter-State trading licence.
A licence issued by the
Central Commission under Section 14 read with clause (e) of sub-section (1) of
Section 79 of the Act to an electricity trader for Inter-State Operations shall
also entitle such electricity trader to undertake purchase of electricity from
a seller in a State and resell such electricity to a buyer in the same State,
without the need to take a separate licence for intra-State trading from the
State Commission of such State.
Rule - 10. Appeal to the Appellate Tribunal.
In terms of sub-section (2)
of Section 111 of the Act, the appeal against the orders passed by the
adjudicating officer or the appropriate commission after the coming into force
of the Act may be filed within forty-five days from the date, as notified by
the Central Government, on which the Appellate Tribunal comes into operation.
Rule - 11. Jurisdiction of the courts.
The jurisdiction of courts
other than the special courts shall not be barred under sub-section (1) of
Section 154 till such time the special court is constituted under sub-section
(1) of Section 153 of the Act.
Rule - 12. Cognizance of the offence.
(1) The police shall take
cognizance of the offence punishable under the Act on a complaint in writing
made to the police by the Appropriate Government or the Appropriate Commission
or any of their officer authorized by them in this regard or a Chief Electrical
Inspector or an Electrical Inspector or an authorized officer of Licensee or a
Generating Company, as the case may be.
(2) The police shall
investigate the complaint in accordance with the general law applicable to the
investigation of any complaint. For the purposes of investigation of the
complaint the police shall have all the powers as available under the Code of
Criminal Procedure, 1973.
(3) The police shall, after
investigation, forward the report along with the complaint filed under
sub-clause (1) to the court for trial under the Act.
(4) Notwithstanding anything
contained in sub-clauses (1), (2) and (3) above, the complaint for taking
cognizance of an offence punishable under the Act may also be filed by the
Appropriate Government or the Appropriate Commission or any of their officer authorized
by them or a Chief Electrical Inspector or an Electrical Inspector or an
authorized officer of Licensee or a Generating Company, as the case may be
directly in the appropriate court.
(5) Notwithstanding anything
contained in the Code of Criminal Procedure, 1973, every special court may take
cognizance of an offence referred to in Sections 135 to 139 of the Act without
the accused being committed to it for trial.
(6) The cognizance of the
offence under the Act shall not in any way prejudice the actions under the
provisions of the Indian Penal Code.
Rule - 13. Issue of Orders and Practice Directions.
The Central Government may
from time-to-time issue orders and practice directions in regard to the
implementation of these rules and matters incidental or ancillary thereto as
the Central Government may consider appropriate.
[1] Vide Ministry of
Power, Noti. No. G.S.R. 379(E), dated June 8, 2005, published in the Gazette of
India, Extra., Part II, Section 3(i), dated 8th June, 2005, pp. 6-14, No. 248.
[2] Sub-rule (1) and the
proviso omitted by G.S.R. 817(E), dated 31-12-2020 (w.e.f. 31-12-2020). Prior
to omision it read as:
“(1)
The distribution licensee shall establish a Forum for Redressal of Grievances
of Consumers under sub-section (5) of Section 42 which shall consist of
officers of the licensee. The Appropriate Commission shall nominate one
independent member who is familiar with the consumer affairs:
Provided
that the manner of appointment and the qualification and experience of the
persons to be appointed as member of the Forum and the procedure of dealing
with the grievances of the consumers by the Forum and other similar matters
would be as per the guidelines specified by the State Commission.”
[3] The words “Consumer
Redressal Forum and” omitted by G.S.R. 817(E), dated 31-12-2020 (w.e.f.
31-12-2020).