INDIA Law and Practice Contributed by: Anupam Varma, Poonam Verma Sengupta, Sakshi Kapoor and Rajesh Jha, JSA
complex and high-stakes disputes and has successfully represented them in several precedent- setting commercial and regulatory matters before the Supreme Court, the High Courts, the Appellate Tribunal for Electricity, Electricity Commissions (Central and States) and various other forums. He also holds experience in handling commercial arbitrations and white-collar criminal defence. Mr Jha is a licensed advocate at the Bar Council of Delhi.
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1. Structure and Ownership of the Power Industry 1.1 Law Governing the Structure and Ownership of the Power Industry Primary Legislation The Electricity Act, 2003 (“Electricity Act”) is the pri- mary central legislation governing the generation, transmission, trading, supply and distribution of elec- tricity in India. The Act establishes a unified regula- tory framework for the power industry and seeks to promote a competitive market structure, protect con- sumer interests and incentivise investments. The Electricity Act is supplemented by: (i) the Electric- ity Rules, 2005, which provide a detailed regulatory framework for the Act’s effective implementation; (ii) the National Electricity Policy, 2005, which lays down guidelines for accelerated development of the power sector; and (iii) the Tariff Policy, 2016, which estab- lishes principles for attracting investment and ensur- ing reasonable consumer charges.
Electricity is a concurrent subject under the Consti- tution of India, meaning both Parliament and State Assemblies may legislate on it. State-level regulations issued by State Electricity Regulatory Commissions (SERCs) also apply within individual states. The Energy Conservation Act, 2001 further governs obligations relating to energy efficiency and renew- able energy consumption by designated consumers. Unbundling India’s power sector has undergone unbundling since the enactment of the Electricity Act. The former State Electricity Boards (SEBs) have been restructured into separate generation companies and distribution com- panies (“Discoms”) across most states. Power trading is recognised as a distinct licensed activity. System operation has been similarly unbundled. The National Load Despatch Centre (NLDC), Regional
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