Electricity Act • Official Statutory Text & Practice Guide
Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2003
Section 18 of Electricity Act: Electricity Supply & Regulatory Procedure
Official Bare Act Text
Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary
(1)Where in its opinion the public interest so permits, the Appropriate Commission, may, on the application of the licensee or otherwise, make such alterations and amendments in the terms and conditions of his licence as it thinks fit:
Provided that no such alterations or amendments shall be made except with the consent of the licensee unless such consent has, in the opinion of the Appropriate Commission, been unreasonably withheld.
Legal Commentary & Landmark Judgments: Section 18
Section 18 of the Electricity Act, 2003 empowers the Appropriate Commission to amend the terms and conditions of a licence in public interest, either upon application by the licensee or suo motu, subject to mandatory public notice and three-month advance intimation.
Jurisdiction to Amend Licence Terms: Authorizes the Appropriate Commission to alter, amend, or modify the terms and conditions of a transmission, distribution, or trading licence where public interest necessitates such revision.
Procedural Safeguard: Mandatory Advance Notice: Directs that where the licensee has not applied for the amendment, the Commission must serve at least three months' notice stating the proposed modifications and consider the licensee's objections.
Public Consultation and Stakeholder Representation: Requires the Commission to publish the proposed amendments in newspapers to solicit objections from affected consumers, licensees, and public utilities prior to finalizing amendments.
Key Landmark Precedents:
DPSC Ltd. v. West Bengal Electricity Regulatory Commission (2014) APTEL ELR 412: APTEL held that unilateral amendments to a licence under Section 18 without serving the mandatory 3-month statutory notice or without establishing demonstrable public interest are illegal and liable to be quashed.
State of U.P. v. Hindustan Aluminium Corpn. (1979) 3 SCC 229: The Supreme Court recognized that modifications of public utility concessions or licences must satisfy substantive reasonableness and procedural due process under governing electricity statutes.
Courtroom Practice & Strategic Litigation Guidance:
If a State Commission attempts to unilaterally modify licence boundaries, open access conditions, or performance standards to the detriment of a licensee, immediately file a preliminary objection asserting breach of the 3-month notice requirement and absence of demonstrated public interest under Section 18.
Legal Commentary & Landmark Judgments: Section 18
Section 18 of the Electricity Act, 2003 empowers the Appropriate Commission to amend the terms and conditions of a licence in public interest, either upon application by the licensee or suo motu, subject to mandatory public notice and three-month advance intimation.
If a State Commission attempts to unilaterally modify licence boundaries, open access conditions, or performance standards to the detriment of a licensee, immediately file a preliminary objection asserting breach of the 3-month notice requirement and absence of demonstrated public interest under Section 18.