Act Number: 36

Act Name: The Electricity Act, 2003

Year: 2003

Enactment Date: 2003-05-26

Long Title: An Act to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity and generally for taking measures conducive to development of electricity industry, promoting competition therein, protecting interest of consumers and supply of electricity to all areas, rationalisation of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmentally benign policies, constitution of Central Electricity Authority, Regulatory Commissions and establishment of Appellate Tribunal and for matters connected therewith or incidental thereto.

Ministry: Ministry of Power

Department:

Section 40: Duties of transmission licensees.
    It shall be the duty of a transmission licensee--
         (a) to build, maintain and operate an efficient, co-ordinated and economical inter-State transmission system or intra-State transmission system, as the case may be;
         (b) to comply with the directions of the Regional Load Despatch Centre and the State Load Despatch Centre, as the case may be;
         (c) to provide non-discriminatory open access to its transmission system for use by--
             (i) any licensee or generating company on payment of the transmission charges; or
             (ii) any consumer as and when such open access is provided by the State Commission under sub-section (2) of section 42, on payment of the transmission charges and a surcharge thereon, as may be specified by the State Commission:
     Provided that such surcharge shall be utilised for the purpose of meeting the requirement of current level cross-subsidy:
     Provided further that such surcharge and cross subsidies shall be progressively reduced 1 *** in the manner as may be specified by the Appropriate Commission:
     2 *                             *                             *                             *                             *
     Provided also that the manner of payment and utilisation of the surcharge shall be specified by the Appropriate Commission:
     Provided also that such surcharge shall not be leviable in case open access is provided to a person who has established a captive generating plant for carrying the electricity to the destination of his own use.
Notes:
1. The words and eliminated omitted by s. 6, ibid. (w.e.f. 15-6-2007).
2. The third proviso omitted by Act 26 of 2007, s. 6 (w.e.f. 15-6-2007)
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