(1) It shall be the duty of a distribution licensee to develop and maintain an efficient, co-ordinated and economical distribution system in his area of supply and to supply electricity in accordance with the provisions contained in this Act.
(2) The State Commission shall introduce open access in such phases and subject to such conditions, (including the cross subsidies, and other operational constraints) as may be specified within one year of the appointed date by it and in specifying the extent of open access in successive phases and in determining the charges for wheeling, it shall have due regard to all relevant factors including such cross subsidies, and other operational constraints:
Provided that such open access shall be allowed on payment of a surcharge in addition to the charges for wheeling as may be determined by the State Commission:
Provided further that such surcharge shall be utilised to meet the requirements of current level of cross-subsidy within the area of supply of the distribution licensee:
Provided also that such surcharge and cross subsidies shall be progressively reduced in the manner as may be specified by the State Commission:
Provided also that such surcharge shall not be leviable in case open access is provided to a person who has established a captive generating plant for carrying the electricity to the destination of his own use.
Legal Commentary & Landmark Judgments: Section 42
Section 42 of the Electricity Act prescribes the duties of distribution licensees, the phased introduction of open access for retail consumers, and the mandatory constitution of the Consumer Grievance Redressal Forum (CGRF) and Ombudsman under Section 42(5).
Under sub-section (6), any consumer aggrieved by non-redressal by the Forum may appeal to an independent Ombudsman appointed by the State Commission.
Section 42(5) and (6) provide a rapid, two-tier dispute resolution machinery for electricity consumers. A consumer disputing an inflated electricity bill, wrong tariff classification, or delay in new connections can approach the CGRF without court fees, with further appeal lying before the Electricity Ombudsman whose orders are binding on the discom.