Electricity Act • Official Statutory Text & Practice Guide
Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2003
Section 46 of Electricity Act: Electricity Supply & Regulatory Procedure
Official Bare Act Text
Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary
The State Commission may, by regulations, authorise a distribution licensee to charge from a person requiring a supply of electricity in pursuance of section 43 any expenses reasonably incurred in providing any electric line or electrical plant used for the purpose of giving that supply.
Legal Commentary & Landmark Judgments: Section 46
Section 46 of the Electricity Act, 2003 authorizes the distribution licensee to recover from an applicant the reasonable expenses incurred in providing any electric line or electrical plant necessary to give supply, subject to regulatory cost-schedules approved by the Commission.
Recovery of Service Line and Network Capital Expenses: Empowers the licensee to charge the applicant for capital expenditures incurred in installing dedicated service lines, transformers, sub-stations, and switchgear necessary for connection.
Mandatory Regulatory Prior Approval of Cost Schedules: Requires that expenditure demands must strictly conform to the schedule of rates and cost data book approved in advance by the Appropriate Commission, precluding arbitrary billing.
Statutory Prohibition on Unjust Enrichment and Double Recovery: Bars the licensee from recovering capital expenditure from a consumer for assets whose cost has already been capitalized and incorporated into the utility's regulated Aggregate Revenue Requirement (ARR).
Key Landmark Precedents:
Punjab State Power Corporation Ltd. v. Empee Sugars and Chemicals Ltd. (2016) 1 SCC 443: The Supreme Court held that expenses recoverable under Section 46 are strictly compensatory and limited to actual or regulatory normative expenditure incurred in laying dedicated infrastructure for the consumer.
Superintending Engineer, APTRANSCO v. Sai Renewable Energy (P) Ltd. (2011) 11 SCC 34: The Supreme Court held that utilities cannot levy speculative network development charges under Section 46 outside the cost norms expressly sanctioned by the State Electricity Regulatory Commission.
Courtroom Practice & Strategic Litigation Guidance:
In industrial connection disputes where a utility demands astronomical estimates for dedicated feeder or transformer installation, file an objection before the Consumer Grievance Redressal Forum (CGRF) challenging the estimate against the SERC's approved Section 46 Cost Data Book.
Legal Commentary & Landmark Judgments: Section 46
Section 46 of the Electricity Act, 2003 authorizes the distribution licensee to recover from an applicant the reasonable expenses incurred in providing any electric line or electrical plant necessary to give supply, subject to regulatory cost-schedules approved by the Commission.
In industrial connection disputes where a utility demands astronomical estimates for dedicated feeder or transformer installation, file an objection before the Consumer Grievance Redressal Forum (CGRF) challenging the estimate against the SERC's approved Section 46 Cost Data Book.