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    PreambleAn Act to consolidate the laws relating to

    generation, transmission, distribution, tradingand use of electricity and generally for takingmeasures conducive to development ofelectricity industry, promoting competition

    therein, protecting interest of consumers andsupply of electricity to all areas, rationalizationof electricity tariff, ensuring transparent policiesregarding subsidies, promotion of efficient and

    environmentally benign policies constitution ofCentral Electricity Authority, RegulatoryCommissions and establishment of AppellateTribunal and for matters connected therewith orincidental thereto.

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    Background

    The Government of India has enactedElectricity Act, 2003 which seeks to bringabout qualitative transformation of theelectricity sector. The Act seeks to createliberal framework of development for thepower sector by distancing Govt. fromregulations. It replaces the earlier threelegislations, namely, Indian Electricity

    Act, 1910, the Electricity (Supply) Act,1948 and the Electricity RegulatoryCommission Act, 1998.

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    The Salient Features of the ElectricityAct, 2003.

    The Central Government to prepare a National Electricity Policyin consultation with State Governments (Section 3)

    Thrust to complete the rural electrification and to provide formanagement of rural distribution by Panchayats, CooperativeSocieties, non-Government organisations, franchisees etc.(Section 4, 5 &6)

    Provision for Licence free generation and distribution in ruralareas (Section 14)

    Generation being delicensed and captive generation beingfreely permitted. Hydro projects would, however need clearancefrom the Central Electricity Authority (Section 7, 8 &9)

    Transmission Utility at the Central as well as State level to be aGovernment company with a responsibility for planned andcoordinated development of transmission network (Section 38 &39)

    Provision for private licensees in transmission and entry in

    distribution through an independent network (Section 14)

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    The Salient Features of theElectricity Act, 2003. Distribution Licensees would be free to

    undertake generation and generatingcompanies would be free to take up distributionbusinesses (Section 7, 12)

    Metering of all electricity supplied mademandatory (Section 55)

    An Appellate Tribunal to hear appeals againstthe decision of the CERC and SERCs (Section

    111) Provisions relating to theft of electricity made

    more stringent (Section 135-150)

    Provisions safeguarding consumers interests(Section 57-59, 166)

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    Section 26:

    The National Load Dispatch Centre:

    The Central Government to establish a centreat the National Level for optimum scheduling

    and dispatch of electricity among Regional

    Load Dispatch Centre. (State owned NavratnaPSU Power Grid Corporation of India, located

    at New Delhi)

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    Section 28: Function of Regional Load

    Dispatch Centre

    To be the apex body to ensure integratedoperation of power system in the concernedregion.

    To comply guidelines in respect of wheeling

    and optimum scheduling and dispatch ofelectricity as the central commission mayspecify in grid code.

    Shall be responsible for optimum scheduling

    and dispatch of electricity within the region.

    monitor grid operations.

    Keep accounts of quantity of electricity

    transmitted through the regional grid.

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    Section 79: Functions and duties of Central

    Electricity Authority:

    Advice the central government on matters related to policy, plan fordevelopment of electricity system, coordinate the activities of planningagencies and to provide reliable and affordable electricity for allconsumers.

    Advice the appropriate government , commission on technical matters.

    Specify technical standards for construction of electrical plants, lines, andgrid connectivity.

    Specify safety requirements for constructions operations and maintenanceof electrical plants and lines.

    Grid standards.

    Assist in timely completion of scheme and projects for improving andaugmenting the system.

    To collect and record data.

    To promote research in connected matters

    To carry out any investigation for the purpose of generating or transmittingor distributing electricity.

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    Section 79: Function of Central

    Commission: To regulate the tariff of generating companies

    owned or controlled by central govt. and othergenerating companies if enter into an sale of

    electricity in more than one state.

    To regulate the inter-state transmission ofelectricity

    To issue licenses to persons to functions as

    transmission licenses and electricity traders.

    To adjudicate upon disputes involving generatingcompanies/transmission licenses.

    To specify and enforce standards w.r.t quality ,

    continuity and reliability of services by licences.

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    The Indian Electricity Rules,1956

    Rule:3 Authorization

    No person shall be authorised to operate and maintaingenerating stations/substations above 100MW /132KV

    unless adequately qualified and undergone special training

    (NPTI).

    In every registered factory where 250KW and above loadis connected, an authorized person appointed by the

    management shall ensure safety provisions of the Act and

    the Rules made thereunder are observed and complied

    and all the records shall be maintained by him.

    All suppliers i/c generating, transmitting and distributing

    companies to appoint a safety officer for proper

    observance of safety measures in construction, operation,

    and maintenance of power stations, transmission and

    distribution lines.

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    Chapter IVGeneral Safety Requirements

    Rule 29. Construction, installation,protection, operation and maintenance ofelectric supply lines and apparatus:

    All electric supply lines and apparatus of sufficient

    power, insulation, estimated fault current andmechanical strength shall be so constructed,installed, protected , worked and maintained as toensure the safety of humans beings , animals andproperty.

    The relevant code of practices of the Bureau ofIndian Standards including the National ElectricalCode if any may be followed.

    The material and apparatus shall conform to

    relevant BIS specifications.

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    Rule 30. Service Lines and apparatus on

    consumers premises:

    The supplier to ensure that electric supply

    lines, wires, fittings and apparatus at the

    consumers premises are in safe condition

    and to avoid dangers arising on suchpremises.

    Underground service lines (armoured

    cables) placed by the supplier on the

    premises shall be so insulated andprotected against electrical, mechanical,

    chemical or other injury to the insulation.

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    Rule 31. Cut-out on consumers

    premise:

    The supplier shall provide a suitable cut-out

    in each conductor of every service-line other

    than an earthed or neutral conductor. Such a

    cut-out shall be contained within anadequately enclosed fire-proof receptacle.

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    Rule 32: Identification of earthed and

    earthed neutral conductor and position of

    switches and cut-outs therein:An identification of permanent nature shall be

    provided by the owner of the earthed or earthed

    neutral conductor, or the conductor which is tobe connected there-to, to enable suchconductor to be distinguished from any liveconductor.

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    Rule 33. Earthed terminal on

    consumers premises: The supplier shall provide and maintain on

    the consumers premises a suitable earthed

    terminal in an accessible position at or near

    the point of commencement of supply. The consumer shall take all reasonable

    precautions to prevent mechanical damage to

    the earthed terminal and its leads belonging

    to the supplier.

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    Rule 34. Accessibility of bare

    conductors:

    Where bare conductors are used in building,

    the owner of such conductors shall ensure

    that they are inaccessible and take such

    other safety measures as are considerednecessary by the inspector.

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    Rule 35. Danger notices:

    The owner of every medium, high and extra-

    high voltage installation shall affix

    permanently in a conspicuous position a

    danger notice in Hindi or English and thelocal language of the district, with a sign of

    skull and bones of a design as per the

    relevant standard on every motor,

    transformer, generator, and other electrical

    plant and equipment.

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    Rule.36 Handling of electric

    supply lines and apparatus:

    Before any conductor or apparatus ishandled, adequate precautions shall betaken, by earthing or suitable means, to

    discharge electrically such conductors orapparatus.

    Every person who is working on an electricsupply line or apparatus shall be provided

    with tools and devices such as gloves,rubber shoes, safety belts, ladders, earthingdevices, helmets, line tester for protectinghim from mechanical and electrical injury.

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    Continued

    No person shall work on any liveelectric supply line or apparatus unlesshe is authorized in that behalf and takes

    the safety measures approved by theinspector.

    Every telecommunication line onsupports carrying a high or extra-high

    voltage line shall for working thereonshall be deemed to be a high voltageline.

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    Rule 37: Supply to vehicles,

    cranes etc.:

    Every person owning a vehicle, travelling

    crane to which energy is supplied from an

    external source, shall ensure that it is

    efficiently controlled by a suitable switchenabling all voltages to be cut off in one

    operation and that it is ensured that the body

    /rails are electrically continuous and earthed.

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    Rule 38: Cables for portable or

    transportable apparatus: Flexible cables shall not be used for

    portable or transportable motors,generators, transformers, rectifiers,electric drills, welding sets etc. unless they

    are heavily insulated and adequatelyprotected from mechanical injury.

    The cables shall be three-core type andfour-core type for portable andtransportable apparatus working on singlephase and three phase respectively andthe wire meant to be used for groundconnection shall be easily identifiable.

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    Rule 42: Accidental Charge

    The owners of all circuits and apparatus

    shall arrange them that there shall be no

    danger of any part thereof becoming

    accidentally charged to any voltage beyondthe limits of voltage for which they are

    intended.

    Where A.C. and D.C. circuits are installed onthe same support they shall be so arranged

    and protected that they shall not come into

    contact with each other when live.

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    Rule 43. Provisions applicable to protectiveequipment:

    Fire buckets filled with clean dry sand and ready forimmediate use for extinguishing fires, fire extinguisherssuitable for dealing with electrical fires to be kept in allgenerating stations, enclosed substations and switchstations in convenient situations. Fire extinguishers shallbe tested for satisfactory operations at least once a year

    and record of such tests shall be maintained. First-aid boxes or cupboards equipped with such contents

    as specified shall be provided and maintained in verygenerating stations, enclosed sub-station and enclosedswitch station .

    Adequate number of gas masks shall be provided andmaintained at accessible places in every generatingstation / sub-station with a capacity less than 5 MW and 5MVA respectively if so desired by the inspector.

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    Rule 44: Instruction for restoration of

    persons suffering from electric shock:

    Instructions in English or Hindi and thelocal language of the district and whereHindi is a local language, for the

    restoration of persons suffering fromelectric shock, shall be affixed by theowner in a conspicuous place in everygenerating station, enclosed sub-station,

    enclosed switch- station and in everyfactory as defined in clause (m) ofSection 2 of the Factories Act, 1948.

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    Rule 44-A: Intimation of

    accident

    If any accident occurs in connection with

    generation , transmission, supply or use of

    energy of any person and the accident

    results in or is likely to have resulted in lossof life or injury to human or animal :

    telegraphic report within 24 hours

    written report within 48 hours

    To be sent to the Electrical Inspector by theJunior Engineer in a laid down format.

    R l 45 P ti t b d t d b

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    Rule 45: Precaution to be adopted by consumers,

    owners, occupiers, electrical contractors, electrical

    workmen and suppliers: No electrical installation work, alteration,

    repairs and adjustments to existing installationexcept replacement of lamps, fans, fuses,

    switches, low voltage domestic appliancesand fittings as in no way alters its capacityshall be carried except by an licensedelectrical contractor under the supervision of

    the person holding certificate of competency. No electrical installation work in contravention

    of sub-rule(1) shall either be energized orconnected to the works of any supplier.

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    Rule 46: Periodical inspection

    and testing of installation. Where an installation is already connected

    to the supply system: inspection & testing at intervals not exceeding

    five years either by Inspector/supplier to be

    carried out.

    Periodical inspection & testing of highvoltage/extra high voltage installation ofsupplier

    to be carried out not exceeding five years by theinspector or any officers appointed to assist theinspector .

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    continued

    The fees for such inspection/ testing shall be

    determined by central / state govt. and shall bepayable in advance by the consumer.

    In the event of failure of any consumer to payfees or to rectify the defects in his installationspointed out by the inspector: such installations shall be liable to be disconnected

    under the directions of the inspector after serving anotice to the owner.

    The consumer shall at all times be solelyresponsible for the maintenance of hisinstallations and in such conditions as to be freefrom danger

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    Chapter V: General Conditions Relating

    to Supply and Use of Energy

    Rule 47: Testing of Consumers Installation:

    The supplier shall inspect and test the

    applicants installation.

    The supplier may refuse to connect or

    reconnect the supply if he satisfied that the

    installation is likely to constitute danger and

    shall only connect when the same arerectified.

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    Rule 47-A. Installation & Testing of Generating

    Units:

    30 days notice to be given by the consumer to thesupplier and Inspector to commission the

    installation/generating plant.

    No consumer to commission a generating plant

    exceeding 10KW without the approval in writing of

    the inspector.

    Rule 48: Precaution against leakage before

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    Rule 48: Precaution against leakage before

    connection:

    The supplier not to connect with his works the

    installation or apparatus on the premises of theapplicant for supply unless he is reasonably satisfied.

    Compliance to be verified by measuring IR as given

    below:

    Electrical equipment to have IR values as per IS.

    IR valves for low voltage equipment at 500 Volts DC

    shall be at least 1 M for a period of 1 minute.

    IR valves for high voltage equipment at 2500 Volts DCshall be at least 5 M for a period of 1 minute.

    Reason for decline to make connection to be given in

    writing to the consumer if any.

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    Rule 50: Supply and Use of Energy :

    The following controls of requisite capacity to carry

    and break the current are to be placed after the pointof supply:

    SFU/Breaker for low/medium voltage consumers. SFU/Breaker for HV consumers having aggregate equipment

    capacity.

    - upto 1000 KVA to be supplied at a voltage upto 11 KV.

    - upto 2500 KVA to be supplied at a voltage above 11 KV but

    not exceeding 33 KV.

    Breaker for HV consumers having aggregate

    equipment capacity

    - above 1000 KVA to be supplied at a voltage upto 11 KV. - above 2500 KVA to be supplied at a voltage above 11

    KV but not exceeding 33 KV.

    Breaker for EHV consumer.

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    Continued:

    In every transformer the following shall beprovided:

    SFU/breaker of adequate capacity so as to carry

    the full load current on the primary side.

    Breaker on secondary side in case oftransformers transforming HV to EHV; MV to LV.

    Adequate precautions to be taken to ensure

    that no live parts are exposed as to causedanger.

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    Rule 50-A: Additional provisions for supply and use of energy

    in multi storeyed building:

    Approval of the inspector to be obtained for commencementor recommencement (if dead for six months or more) by

    occupier/owner of the building.

    Supplier /owner shall provide cut out or breaker at a point of

    commencement at height not more than 2.75 m above theground.

    owner/occupier to ensure that the installations/works are

    installed and maintained as per the relevant code of

    practices. No other services to be laid provided along the power

    cables. Fire barriers to be provided at each floor crossing.

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    Rule 51: Provisions applicable to medium, high or

    extra-high voltage installations : (Electrical Panels)

    All conductors (except overhead lines) to be

    completely enclosed (Electrical panel) and

    accessible to authorised person.

    All metals works associated with installation to beconnected to earthing system.

    Every switchboard to comply with required spacing

    in front and rear sides.

    Flameproof , dust tight totally enclosed electrical

    fixtures to be provided depending on Hazardous

    zones.

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    Rule 54: Declared voltage of supply to

    consumer

    Supplier shall not permit the voltage at any point ofcommencement to vary form the declared voltage:

    low & medium voltage by more than 6%

    High voltage (+) 6% or (-)9%

    Extra High Voltage (+)10% or (-) 12.5% Frequency of the alternating current not to be more

    than 3% than the declared frequency.

    All meters (MD meter) of appropriate capacity to limit

    its errors as per relevant IS and ()3% absoluteaccuracy at all loads.

    For EHV consumers errors shall be ()1%

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    Chapter VII: Electric Supply Lines , Systems and

    Apparatus for High and Extra-high voltages:

    Rule 63: Approval by Inspector:

    Approval in writing to be obtained from the

    inspector for commencing /recommencing

    supply (Rule 65 to Rule 69 to be complied)

    Every high/extra high circuits or additions to

    be tested (other than overhead lines).

    Any additions/alterations carried out by theowner of any high/EHV installation to be got

    approved in writing by the inspector.

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    Rule 64: Use of Energy at High and Extra High

    voltage: The following minimum safety working

    clearances shall be maintained for bare conductor

    or live parts of any apparatus in outdoor sub-station, excluding overhead lines of HV and EHV

    installations.

    Highest System Voltage (KV) Safety working clearance(Metres)

    12 2.6

    36 2.8

    72.5 3.1

    145 3.7

    245 4.3

    420 6.4

    800 10.3

    6 f f

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    Rule 64-A: Additional Provisions for use of energy at

    High and extra high voltage:

    The following additional provisions shall beobserved:

    Inter-locks: Isolator & Controlling Ckt to be interlocked

    Isolators & corresponding earthing switches to beinterlocked.

    Two or more Xmer when operating in parallel thesystem to be arranged for the primary to trip.

    All gates/doors having access to live parts of an

    installation shall be interlocked. Two or more generators operating in parallel ,

    interlock to be provided with neutral connected toearthing system.

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    Continued: Protection:

    All systems and circuits to automatically

    disconnect under abnormal conditions Following protections to be provided over

    current , earth fault

    Trip & alarm to be provided on Xmers ofratings 1000KVA & above. (winding and oil

    temp., gas pressure type)

    Xmers above 10MVA to be protected against

    incipient faults by differential protection

    All generators of 100 KVA and above shall be

    protected against earth fault/leakage.

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    Rule 65: Testing , operation and maintenance.

    Routine tests under relevant IS conducted byOEM to be produced before approval

    No new HV or EHV apparatus , cable, orsupply line to be commissioned unless

    subjected to test as per relevant IS.Additional tests to be carried out if desired by

    the Inspector.

    All installation to be kept in healthy conditions& tests periodically done as per relevant IS.

    Records of all test, tripping, maintenance to bekept and preserved for comparison with

    historical ones.

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    Offences and Penalties:

    Theft of electricity (Section -135)

    Theft of electricity lines and materials(Sction-136)

    Punishment for receiving stolen property (Section137)

    Interference with meters or works of licensee(Section 138)

    Negligently breaking or damaging works (Section139)

    Extinguishing public lamps (Section 141) Punishment for non-compliance of directions by

    appropriate commission (Section 142)