PART – IX
Central Electricity Authority
Constitution and functions of Authority
Constitution,etc., of Central Electricity Authority.
Members not to have certain interest.
- There shall be a body to be called the Central Electricity Authority to exercise
such functions and perform such duties as are assigned to it under this Act.
54 of 1948.
- The Central Electricity Authority, established under section 3 of the Electricity
(Supply) Act, 1948 and functioning as such immediately before the appointed date,
shall be the Central Electricity Authority for the purposes of this Act and the
Chairperson , Members, Secretary and other officers and employees thereof shall
be deemed to have been appointed under this Act and they shall continue to hold
office on the same terms and conditions on which they were appointed under the Electricity
(Supply) Act, 1948.
- The Authority shall consist of not more than fourteen Members (including its Chairperson)
of whom not more than eight shall be full-time Members to be appointed by the Central
- The Central Government may appoint any person, eligible to be appointed as Member
of the Authority, as the Chairperson of the Authority, or, designate one of the
full time Members as the Chairperson of the Authority.
- The Members of the Authority shall be appointed from amongst persons of ability,
integrity and standing who have knowledge of, and adequate experience and capacity
in, dealing with problems relating to engineering, finance, commerce, economics
or industrial matters, and at least one Member shall be appointed from each of the
following categories, namely:-
- engineering with specialisation in design, construction, operation and maintenance
of generating stations;
- engineering with specialisation in transmission and supply of electricity;
- applied research in the field of electricity; (d) applied economics, accounting,
commerce or finance.
- The Chairperson and all the Members of the Authority shall hold office during the
pleasure of the Central Government.
- The Chairperson shall be the Chief Executive of the Authority.
- The head quarters of the Authority shall be at Delhi.
- The Authority shall meet at the head office or any other place at such time as the
Chairperson may direct, and shall observe such rules of procedure in regard to the
transaction of business at its meetings (including the quorum at its meetings) as
it may specify.
- The Chairperson, or if he is unable to attend a meeting of the Authority, any other
Member nominated by the Chairperson in this behalf and in the absence of such nomination
or where there is no Chairperson, any Member chosen by the Members present from
among themselves shall preside at the meeting.
- All questions which come up before any meeting of the Authority shall be decided
by a majority of votes of the Members present and voting, and in the event of an
equality of votes, the Chairperson or the person presiding shall have the right
to exercise a second or casting vote.
- All orders and decisions of the Authority shall be authenticated by the Secretary
or any other officer of the Authority duly authorised by the Chairperson in this
- No act or proceedings of the Authority shall be questioned or shall be invalidated
merely on the ground of existence of any vacancy in, or any defect in, the constitution
of, the Authority.
- The Chairperson of the Authority and other full time Members shall receive such
salary and allowances as may be determined by the Central Government and other Members
shall receive such allowances and fees for attending the meetings of the Authority,
as the Central Government may prescribe.
- The other terms and conditions of service of the Chairperson and Members of the
Authority including, subject to the provisions of sub-section (6), their terms of
office shall be such as the Central Government may prescribe.
No Member of the Authority shall have any share or interest, whether in his own
name or otherwise, in any company or other body corporate or an association of persons
(whether incorporated or not), or a firm engaged in the business of generation,
transmission, distribution and trading of electricity or fuel for the generation
thereof or in the manufacture of electrical equipment.
Officers and staff of Authority.
The Authority may appoint a Secretary and such other officers and employees as it
considers necessary for the performance of its functions under this Act and on such
terms as to salary, remuneration, fee, allowance, pension, leave and gratuity, as
the authority may in consultation with the Central Government, fix:
Provided that the appointment of the Secretary shall be subject to the approval
of the Central Government.
Functions and duties of Authority.
The Authority shall perform such functions and duties as the Central Government
may prescribe or direct, and in particular to -
- advise the Central Government on the matters relating to the national electricity
policy, formulate short-term and perspective plans for development of the electricity
system and co- ordinate the activities of the planning agencies for the optimal
utilisation of resources to subserve the interests of the national economy and to
provide reliable and affordable electricity for all consumers;
- specify the technical standards for construction of electrical plants, electric
lines and connectivity to the grid;
- specify the safety requirements for construction, operation and maintenance of electrical
plants and electric lines;
- specify the Grid Standards for operation and maintenance of transmission lines;
- specify the conditions for installation of meters for transmission and supply of
- promote and assist in the timely completion of schemes and projects for improving
and augmenting the electricity system;
- promote measures for advancing the skill of persons engaged in
the electricity industry;
- advise the Central Government on any matter on which its advice
is sought or make recommendation to that Government on any matter if, in the
opinion of the Authority, the recommendation would help in improving the
generation, transmission, trading, distribution and utilisation of electricity;
- collect and record the data concerning the generation,
transmission, trading, distribution and utilisation of electricity and carry out
relating to cost, efficiency, competitiveness and such like matters;
- make public from time to time information secured under this
Act, and provide for the publication of reports and investigations;
- promote research in matters affecting the generation,
transmission, distribution and trading of electricity;
- carry out, or cause to be carried out , any investigation for the
purposes of generating or transmitting or distributing electricity;
- advise any State Government, licensees or the generating
companies on such matters which shall enable them to operate and maintain the
electricity system under their ownership or control in an improved manner and
where necessary, in co-ordination with any other Government, licensee or the
generating company owning or having the control of another electricity system;
- advise the Appropriate Government and the Appropriate
Commission on all technical matters relating to generation, transmission and
distribution of electricity;and
- discharge such other functions as may be provided under this Act.
Certain powers and directions
Power to require statistics and returns.
It shall be the duty of every licensee, generating company or person generating
electricity for its or his own use to furnish to the Authority such statistics,
returns or other information relating to generation, transmission, distribution,
trading and use of electricity as it may require and at such times and in such form
and manner as may be specified by the Authority.
Directions by Central Government to Authority.
- In the discharge of its functions, the Authority shall be guided by such directions
in matters of policy involving public interest as the Central Government may give
to it in writing.
- If any question arises as to whether any such direction relates to a matter of policy
involving public interest, the decision of the Central Government thereon shall