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Union of India - Section
Section 9 in The Indian Electricity Act, 1910
9.
/474Statement of Objects and Reasons.-When the Indian Electricity Act, 1903, was passed it was clearly recognised to be a somewhat tentative measure, and it was anticipated that amending legislation would be called for at an early date. Having regard to the experience gained in the practical working of the Act, the Government of India in 1907 came to the conclusion that the time had arrived for undertaking this amending legislation, and they referred various difficulties which had arisen in its working to a Committee on which electro-technical and commercial interests were represented.The Act as at present framed vests its administration in Local Governments, with whom rests the power to grant licenses; but the authority or the previous sanction of the Governor-General in Council is required in regard to so many matters that the practical result has been a dual administration. In the case of cantonments and similar "places in the occupation of Government for naval or military purposes" the administration of the Act is by section 40 placed in the hands of the Governor-General in Council, but these places are situated within larger areas, in respect to which the Local Government is empowered to grant licenses, with the result that separate, and not necessarily consistent, licenses have been granted by the Governor-General in Council and the Local Government, respectively, to the same licensee for the same purpose, in one and the same place. The practical effect of the present system has been delay, as it has hitherto been virtually impossible for a company to obtain a license under two or three years. Delays of this nature are obviously most detrimental to the attraction of capital for the development of the resources of the country as the financial position may, and in fact frequently does, change completely between the date of the application and the granting of the license.Under the Bill, as now drafted, the general administration of the Act, and subject to the control to the Governor-General in Council, the granting of all licenses are left in the hands of the Local Government. The rule-making power, and the delegation of the powers of the telegraph-authority to licensees, are reserved to the Governor-General in Council.Among the more important modifications in the Bill are the following:-(i) The existing provision making licenses compulsory has been taken out, the question of supply to the public without license being otherwise dealt with. It is by no means certain that licenses are either necessary or desirable in the case of industrial companies of certain classes.(ii) Provision is made for the grant of licenses for "bulk supply", that is to say, to meet cases where the applicant company proposes to generate energy and supply it in large quantities to distributors, who would retail it under a separate license to small consumers.(iii) The amendment of licenses has been provided for. At present it is necessary to revoke a license and grant a fresh one in order to effect this object.(iv) The question of compulsory purchase has been dealt with, in regard both to the splitting up of undertakings and to those cases where purchase may be impracticable. The Act provides for the modification, but not for the omission from a license, of the purchase clauses. But these clauses, conceived as they are in the interests of the local authority concerned in a small area, are entirely out of place, and in Great Britain are regularly omitted, in the case of undertakings covering large areas in which various local authorities intervene. It is proposed, therefore, to modify the provision.(v) Many difficulties have arisen owing to the hard and fast limits of the area of supply over which a license operates, consumers just outside the boundary being debarred from participation in the benefits conferred by the public supply. A new section is proposed to deal with the matter and remove obstacles which are likely to impose quite unnecessary hardships on individuals.(vi) It is proposed to amend the provisions of Part III of the Act so as to make them applicable to mines and binding on the Crown. As regards railways and tramways, the proviso to sub-section (1) of section 3 in Part II and the first proviso to sub-section (1) of section 31 in Part III of the Act as it stands lay down that nothing in these Parts respectively relating to the supply or use of energy shall apply to any railway or tramway subject to the provisions of the Indian Railways Act, 1890. The extent to which it is proposed to modify the latter of these provisions is explained in the Notes on Clauses (clause 30) while it is proposed, as already mentioned, to repeal the former.(vii) A slight amendment of the Land Acquisition Act, 1894, has been proposed with a view to facilitating its application to electrical works.The examination of the provisions of the Act has brought o light many minor defects of substance or arrangement which it is desirable to correct, and the opportunity has, therefore, been taken to repeal and re-enact the Act with the necessary modification.Amendment Act 32 of 1959-Objects and Reasons.-The Bill is largely based on the recommendations of the Advisory Board appointed by the Government of India in 1953 to suggest amendments to the Indian Electricity Act, 1910 (hereinafter referred to as the Act). In making these recommendations, the Board had, besides consulting the State Governments, given careful consideration to the views of the private sector of the electricity supply industry.2. The main objects of the Bill are-(a) to enlarge the scope of facilities available to consumers of electricity;(b) to extent the same facilities to consumers served by a Government Electricity Department, as are enjoyed by consumers of private licensees and State Electricity Boards;(c) to exercise stricter control over licensees;(d) to take powers to regulate the distribution, supply, consumption and use of energy in certain circumstances; and(e) to provide for the inspection of electric works and installations of the Central Government.3. With a view to making it easier for even scattered consumers to obtain the supply of electricity, the minimum number of persons entitled to get the mains extended to their premises at the licensees cost is being reduced from six to two. Under the existing provisions of the Act, the gross revenue to be guaranteed by a consumer before receiving . the supply of electricity is not definite and varies from undertaking to undertaking. Such gross revenue is now being specified as 15 per cent of the cost of distribution mains (excluding the equipment in the sub-station) required for compliance with the requisition for supply of electricity. This figure is based on the average revenue actually guaranteed by a large majority of consumers of electricity in the country.4. Persons, served by licensees or State Electricity Board are entitled to certain statutory rights and privileges in respect of extension of the distribution mains, requisitioning the supply of energy and meters, supply of energy for public lighting and freedom to use the energy in a prescribed manner. Although the Government Electricity Departments generally extent similar facilities to their consumers, no statutory obligation is imposed upon them in this behalf. It is accordingly proposed to give the same rights to consumers of a Government Electricity Department as are enjoyed by those receiving supply from a State Electricity Board.5. Control over licensees is being tightened by empowering the State Government to forfeit the security deposit of a licensee on account of his failure to complete within the period specified in the license, compulsory works referred to in the Schedule to the Act. Inspectors appointed to investigate the causes of an electrical accident are being vested with powers of a civil Court under the Code of Civil Procedure, 1908, for the purpose of compelling attendance of witnesses and production of documents, etc.6. Difficulty is often experienced on account of licensee neglecting to supply energy promptly to essential services. It is, therefore, proposed to empower State Governments to direct a licensee to supply and to continue to maintain the supply of energy, to essential services within his area of supply. Any dispute with respect to the price or other terms and conditions governing such supply shall be settled by arbitration. With a view to maintaining the supply and equitable distribution of energy, the State Governments are also begin empowered to regulate the distribution, supply, consumption or use of energy.7. In view of the increasing share of the Central Government in the field of generation and utilisation of electricity, it has been found necessary, for ensuring the safety of life and property, to subject their installations in all fields, to inspection and tests, similar to those prescribed in the case of the installations in mines and railways. It is therefore, proposed to authorise the Central Government, to appoint inspectors with powers exercisable by electrical inspectors for mines and railways under the existing provisions of the Act, in respect of all other electric installations under the control of the Central Government.[18th March, 1910]An Act to amend the law relating to the supply and use of electrical energy.Whereas it is expedient to amend the law relating to the supply and use of electrical energy;It is hereby enacted as follows:-| The Act has been extended to - Goa, Daman and Diu by Regn. 12 of 1962, Section 3 and Sch., Goa is now a State, see Act 18 of 1987, Section 3. Dadra and Nagar Haveli by Regn. 6 of 1963, Section 2 and Sch. I, to the whole of the Union Territory of Lakshadweep by Regn. 2 of 1970, Section 2 and Sch. This Act has been amended in U.P. by Uttar Pradesh Act 30 of 1961 and Act 14 of 1976, in Assam by Assam Act 9 of 1973, in Gujarat by Gujarat Act 3 of 1974, in Bihar by Bihar Act 15 of 1975, in M.P. by Madhya Pradesh Act 19 of 1974, in Maharashtra by Maharashtra Act 63 of 1974, in Haryana by Haryana Act 13 of 1975, in Punjab by Punjab Act 10 of 1978 and in Tamil Nadu by Tamil Nadu Act 39 of 1980.Brought into force on 1.1.1911. |