Section 48: Additional terms of supply

Electricity Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2003

Legal Commentary & Landmark Judgments: Section 48

Section 48 of the Electricity Act, 2003 authorizes the distribution licensee to impose additional terms of supply, enabling the regulation of power factor, harmonics, dedicated feeder usage, and specific technical parameters approved by the Appropriate Commission.

  • Statutory Authorization for Additional Supply Terms: Permits the distribution licensee to establish special terms and conditions of supply governing specific consumer classes or technical installation categories.
  • Regulation of Power Quality, Harmonics, and Power Factor: Enables the enforcement of power-factor surcharges, harmonic distortion injection limits, reactive energy compensation requirements, and installation of power-quality filters.
  • Mandatory Commission Approval for Contractual Enforceability: Directs that any additional terms of supply imposed under Section 48 must be approved by the Appropriate Commission, precluding arbitrary or unapproved unilateral utility covenants.
Key Landmark Precedents:
  • Southern Electricity Supply Co. of Orissa Ltd. v. Sri Seetaram Rice Mill (2012) 2 SCC 108: The Supreme Court held that terms of supply formulated under Section 48 form part of the statutory contract between utility and consumer, empowering licensees to penalize load violations and power factor defaults.
  • Adani Power Ltd. v. Gujarat Electricity Regulatory Commission (2019) 19 SCC 9: The Supreme Court recognized that additional terms governing supply must remain strictly consistent with the parent provisions of the Electricity Act and cannot defeat universal service obligations.
Courtroom Practice & Strategic Litigation Guidance:

When a utility levies heavy power factor penalties or harmonics surcharges on an industrial plant, check whether the specific penalty formula was formally approved by the SERC under Section 48, challenging unauthorized computational methods before the Electricity Ombudsman.