Introduction To Energy Law

INTRODUCTION

India is a developing nation that has to balance its energy goals and at the same time survive the wrath of nature in the form of climate change. India faces an uphill task. Thus it is clear in light of the climate change negotiation and the mounting international pressure for developing countries like India that the carbon emission has to be cut down substantially. This is because even if the current estimate India’s emission says that it emits 5% of the global GHG emissions, it is expected to multiply manifold in the next two decades. So, India’s energy policy has to be structured in a manner that is effective in not only meeting the energy goals but also the binding commitments in emission reduction. In light of the available resources for countries like India, as already mentioned above the only viable and effective options are nuclear, hydroelectric and renewable energy. The Government of India has been taking a number of initiatives to curb climate change and these initiatives cover almost all possible areas, be it science and research policy development, policy implementation, international cooperation or forestry. While renewable energy sources may not be sufficient to meet the demand, nuclear and hydroelectric energy are desperately needed by countries like India to reduce the demand-supply gap in a short span of time. It is a known fact that these forms of energy are expensive and nuclear energy is definitely the cheapest source for generating electricity. This is so because nuclear energy poses the least risks in terms of morality per billion-megawatt hours of generation and once constructed the operational costs are very low due to inexpensive fuel.

If we need to strike a balance between the basic principles like common concerns of mankind and the right to sustainable development, we need to adopt a more lenient approach and consider the limitations of the developing nations, be it economic, geographical or technological . If climate change is to be effectively addressed from a long-term perspective, it has to be done in a sustainable manner by also addressing the economic development of the developing countries. Since energy independence is key to the economic development of the developing countries cannot combat climate change unless they attain energy efficiency.

ELECTRICITY AND HUMAN RIGHTS

The Electricity Act, 1887 was the first legislation regulating the generation, supply and use of electricity in India. It was intended to protect the public by means of rules that dealt with the use of electrical energy. It is often been argued that electricity is a basic necessity to ensure a quality of life for people across the world. Be it healthcare, education or industrial growth, we cannot move on without electricity. It is important to survive and that’s the reason why international level access to electricity is often seen as a basic human right. The Right to development is nothing but the ability to participate in, contribute to and enjoy political, economic, cultural and social development. Since it is recognized as a Universal Human Right this puts an individual at the core of the sustainable development paradigm. The realization of the right to information access is dependent upon technology and sophisticated infrastructure of telecommunications which in turn are entirely dependent upon the availability of an electrical connection. In today’s time, rights such as freedom of expression or cultural participation, which is associated with the right to information access are also practically realized through multimedia options with the help of electricity.

ACCESS TO ELECTRICITY IN INDIA

India is the 5th largest electrical system in the world with an installed capacity of 180GW. India’s power demand is going double by the year 2035. Thus it is going to be a huge challenge for India to meet its energy demands. Access to electricity is a prerequisite to basic human needs namely, improving the standard of living, right to education, maintain good human health, alleviating poverty and facilitating sustainable development and the right to clean environment. Lack of access to electricity, among other things is a major cause for the increase in income disparities, increase in population, especially in rural areas and an increase in the number of child labor. Hence due to the lack of electricity can be a major constraint to economic growth.

STATUTORY FRAMEWORK IN INDIA

The legal provisions on “access to electricity” in India are contained in The Indian Constitution. Electricity is Entry 38 in List II of the 7th Schedule of the Constitution of India, 1950. It is a subject in the concurrent list and both the State Government and the Central Government of India have the power to legislate on matters relating to the electricity industry except nuclear power which is only in the domain of the Central Government.

• Electricity Act, 2003
• Electricity Rules, 2005
• National Electricity Policy, 2005
• Rural Electrification Policy, 2006
• Central Electricity Authority Regulation, 2006
  are the various schemes of the Central Government.

SALIENT FEATURES OF ELECTRICITY ACT, 2003

The most significant legislation came in the form of the Electricity Act, 2003 which is the applicable law for electricity generation and regulation. The Act repealed and replaced the Electricity (Supply) Act, 1948. The Indian Parliament is presently considering an amendment to this act in the form of the Energy Conservation (Amendment) Bill, 2010. The act of 2003 was subject to two amendments; in the year of 2003 and 2007.

(1) The preamble lays down that this Act of 2003 consolidates the laws relating to the generation, transmission, distribution, trading, and use of electricity and generally for taking measures conducive to the development of electric industry, promoting competition therein, protecting the interest of consumers and supply of electricity to all areas, rationalization of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmental policies, Constitution of Central Electricity Authority, Regulatory Commissions and also for the establishment of Appellate Tribunal.

CASE LAW

T.M PRAKASH & ORS v THE DISTRICT COLLECTOR & THE SUPERINTENDING ENGINEER, TAMIL NADU ELECTRICITY BOARD OR T.M PRAKASHCASE

This case is a landmark decision for the first time to access electricity as a human right. The case stresses the importance of accessing electricity which is necessary for the fulfillment of the social goals and human rights. The right to access electricity must be read as a part of Article 21 of the Indian Constitution.

To conclude, The Electricity Act, 2003 remains a massive step in the liberalization of the power sector in the whole of India. The Electricity Act, 2003 should be viewed as a point in a long line of reforms. The proposed Electricity amendment Act, 2010 promises to introduce further reforms.

[The author, Upasana Borah is a 4th Year law student at NEF LAW COLLEGE, ASSAM affiliated to Gauhati University]

1. https://www.slideshare.net/AnshuKumar83/competition-project-60086260
2. Energy law in India by Mohammad Naseem 2nd Edition
3. ELECTRICITY ACT, 2003 (BARE ACT)
4. CONSTITUTION OF INDIA, 1950 (BARE ACT)