Section 18: Amendment of licence

Electricity Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2003

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.