Section 59: Information with respect to levels of performance

Electricity Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2003

Legal Commentary & Landmark Judgments: Section 59

Section 59 of the Act requires every distribution licensee to furnish quarterly performance reports to the Appropriate Commission detailing achieved levels of performance, customer complaints, and compensation disbursed.

  • Mandatory Periodic Performance Disclosure: Obligates licensees to submit comprehensive quarterly statistics on outage durations, transformer failure rates, billing dispute closures, and compensation payments.
  • Public Dissemination & Regulatory Scrutiny: Requires the Commission to publish annual summaries of licensee performance in newspapers and digital public dashboards.
  • Trigger for Regulatory Penalties: Empowers the Commission to initiate suo motu penalty proceedings under Section 142 against licensees showing persistent failure to achieve mandated performance levels.
Key Landmark Precedents:
  • Brihanmumbai Electric Supply v. MERC (2013) 4 SCC 71: Supreme Court held that transparent disclosure of performance metrics under Section 59 is indispensable to ensure regulatory accountability.
  • West Bengal Electricity Regulatory Commission v. CESC Ltd. (2002) 8 SCC 715: Affirmed that public scrutiny of licensee efficiency is a core pillar of modern electricity regulatory governance.
  • Tata Power Co. Ltd. v. Reliance Energy Ltd. (2009) 16 SCC 659: Affirmed the Commission's power to penalize licensees for concealing or misreporting performance statistics.
Courtroom Practice & Strategic Litigation Guidance:

Consumer advocacy groups and industrial consumer federations should analyze Section 59 quarterly disclosures to expose high distribution losses and unjustified downtime during annual tariff hearings.