Electricity Act • Official Statutory Text & Practice Guide
Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2003
Section 23 of Electricity Act: Electricity Supply & Regulatory Procedure
Official Bare Act Text
Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary
If the Appropriate Commissionis of the opinion that it is necessary or expedient so to do for maintaining the efficient supply, securing the equitable distribution of electricity and promoting competition, it may, by order, provide for regulating the supply, distribution, transmission or use of electricity.
Legal Commentary & Landmark Judgments: Section 23
Section 23 of the Electricity Act, 2003 confers broad regulatory authority upon the Appropriate Commission to issue binding directions to licensees for regulating supply, distribution, consumption, or use of electricity to maintain equitable distribution during power deficits.
Statutory Power to Regulate Supply and Allocation: Empowers the Appropriate Commission to issue general or specific orders regulating the generation, transmission, distribution, supply, and consumption of electricity in public interest.
Equitable Distribution and Planned Load-Shedding: Authorizes the Commission to enforce mandatory load-shedding schedules, energy rationing, peak-load restrictions, and priority allocations to essential services during severe shortages.
Overriding Binding Force on Licensees and Consumers: Directs that orders issued under Section 23 supersede existing bilateral power supply contracts and standard tariff schedules during the declared currency of the deficit.
Key Landmark Precedents:
Kothari Industrial Corpn. Ltd. v. T.N. Electricity Board (2016) 4 SCC 252: The Supreme Court held that the regulatory power under Section 23 is designed to handle systemic power deficits and crisis situations, enabling Commissions to alter supply priorities and impose power cuts uniformly across industrial classes.
Adani Power (Mundra) Ltd. v. Gujarat Electricity Regulatory Commission (2019) 19 SCC 9: The Supreme Court observed that regulatory directions under Section 23 cannot be used by utilities as a back-door mechanism to permanently evade contractual PPA obligations without establishing bona fide grid emergencies.
Courtroom Practice & Strategic Litigation Guidance:
When challenging discriminatory load-shedding orders or arbitrary industrial power curtailments, petition the SERC under Section 23 showing that the distribution licensee is violating the statutory principle of equitable distribution by favoring select consumer classes without objective technical justification.
Legal Commentary & Landmark Judgments: Section 23
Section 23 of the Electricity Act, 2003 confers broad regulatory authority upon the Appropriate Commission to issue binding directions to licensees for regulating supply, distribution, consumption, or use of electricity to maintain equitable distribution during power deficits.
When challenging discriminatory load-shedding orders or arbitrary industrial power curtailments, petition the SERC under Section 23 showing that the distribution licensee is violating the statutory principle of equitable distribution by favoring select consumer classes without objective technical justification.