This Article is written by Advika Dwivedi, a Fourth-Year Law Student of Christ Academy Institute of Law

INTRODUCTION

Access to basic human needs such as electricity imposes an obligation on the State from its distribution to transmission. Subjects such as ‘Electricity’[1] and ‘Tax on consumption or sale of Electricity’[2] Is reflected under both the concurrent list and State List in the Seventh Schedule. Adhering to such duty the State passed the ‘Electricity Act of 2003’[3], a consolidation of laws governing the Energy Sector. The leading legislation ensures energy security, regulates energy production, and promotes environmentally beneficial practices. This Article provides a descriptive analysis of laws concerning the energy sector.

SIGNIFICANCE OF THE CONSTITUTION OF INDIA

The supreme law of the land is laid down in the Constitution of such a nation. In India, the Constitution imposes constitutional duties on the state and guarantees fundamental rights to its citizens. Parallel, it also empowers both the Union Government and State Government through Entry No. 38 in the Concurrent List and Entry No. 53 in the State List provided under the Seventh Schedule of the Constitution of India.

The Constitution, notably Article 48A, directs the state to conserve the environment, which has an indirect impact on energy law by encouraging the use of cleaner, alternative sources of energy. Similarly, Article 51A(g) directs citizens to sustainably sustain the environment. The right to Access Electricity is regarded as a basic human right as far as essential needs for survival are concerned.[4] However, it must be noted that no proclamation or treaty expresses that access to electricity is a universal human right.[5] [6] The Convention on the Elimination of All Forms of Discrimination Against Women is an international convention that women must have sufficient living conditions, including access to electricity and water.[7] Thus, The Judiciary in the case of T.M. Prakash and Ors. v. The District Collector and The Superintending Engineer, Tamil Nadu Electricity Board[8] upheld that electricity is vital to living a dignified life and enshrined it as one another fettered rights under Article 21 of the Constitution.

STATUTES AND REGULATORY BODIES CONCERNING ENERGY LAWS IN INDIA

Since independence, the Indian government has worked to fulfill its mission of abandoning British legislation and enacting laws that are better suited for Indian conditions. At the pathway of same, Energy Sector has also undertaken a reform with the same motto.

History

The Electricity Act of 1887 was the country's first statute overseeing electricity generation, supply, and consumerism. The statute was enacted to safeguard the public. The Indian Electricity Act of 1903 superseded the previous legislation and included explicit requirements for electricity generation and regulation.[9] Later, the Indian Electricity Act of 1910, and the Electricity (Supply) Act of 1948 along side with the Electricity Regulatory Commissions Act of 1998 and State Electricity Boards were responsible for regulating the power sector.[10] The said acts were succeeded by the Electricity Act of 2003, a consolidation of rules governing all facets of electricity. Further, numerous Regulatory Bodies and Tribunals have been established for effective governance over the energy sector.

i. Electricity

On June 2nd, 2003, the Electricity Act came into force to reform the power sector of India. The legislation encompasses regulation on the generation, distribution, trading, and transmission of electricity in India. It aims at protecting the interests and rights of electricity consumers and suppliers. The Central Electricity Regulatory Commission[11] was founded to regulate tariffs for power-generating companies.

The State Electricity Regulatory Commission [12], National Load Dispatch Centers, Regional Load Dispatch Centers[13], State Load Dispatch Centre[14] alongside of Central Electricity Authority[15] Shall be constituted for effective application of the Act. It also envisages penalties and punishment for violation of any provision. The Appellate Tribunal for Electricity was set up in 2005 to hear appeals against an adjudicating officer or any Central or State Electricity Regulatory Commission orders issued under the Electricity Act of 2003. The second appeal falls before the Supreme Court only on acute issues of law.

ii. Petroleum and Natural Gas

Irrespective of the absence of any consolidated statute governing the Natural Gas Sector in the country, the governance falls in the hands of the Director General of Hydrocarbon, under the executive authority of the Government orchestrates the execution of Exploration & Production operations in India. However, it must be noted that the Petroleum Act of 1934 and the Oilfields (Regulation and Development) Act of 1948 oversee certain aspects of upstream operations in the nation. The Petroleum and Natural Gas Regulatory Board is a regulatory body under the Petroleum and Natural Gas Regulatory Board Act, 2006 [16] Ensure compliance with respective rules and regulations. The Appellate Tribunal for Electricity is responsible for handling appeals against orders issued by the Petroleum and Natural Gas Regulatory Board. The New Exploration Licensing Policy introduced in the 1990s was succeeded by the Hydrocarbon Exploration and Licensing Policy (HELP) encompassing the provision of licensing for every hydrocarbon product along with Exploration & Production operations in India.

iii. Liquefied Natural Gas

Liquefied Natural Gas though not regulated by any specific legislation still mandates registration of any entity working in the construction, installation, and operation of terminals for import of Liquefied Natural Gas in India with the Petroleum and Natural Gas Regulatory Board. The Board is also responsible for ensuring compliance with operative rules concerning the Liquefied Natural Gas power sector.[17]

iv. Coal

Due to numerous irregularities in the process allocation of coal mines, the Supreme Court of India in 2014 canceled such allocation of 204 coal mines.[18] The Government of India passed the Coal Mines (Special Provisions) Act of 2015 to reallocate the coal mines through competitive tender bidding. The Mines And Minerals (Development And Regulation) Act, 1957, amended as per the requirement is empowered for the conduct of such allocation tender.[19]

v. Renewable Energy

The Electricity Act of 2003 is in charge of promoting the use of renewable energy while maintaining economies of scale. The Central Electricity Regulatory Commission is empowered to issue renewable energy certificates to offset renewable energy generation. The Act directs State-Level Electricity Regulatory Commissions to set forth targets and requires distribution companies to generate power from renewable sources in the targeted areas. The Solar Energy Corporation of India is responsible for humongous renewable energy procurement. The Act also encourages the purchase of power from wind-solar hybrid projects. The General Network Access Regulations have been introduced to accelerate the process of connecting renewable energy projects to the national grid.[20]

Conclusion

India's energy sector is governed by a robust legislative and regulatory structure that ensures long-term growth and security. Key legislative frameworks, such as the Electricity Act of 2003, seek to modernize the power industry by increasing competition, protecting consumer rights, and encouraging private sector involvement. Regulatory authorities such as the Central Electricity Regulatory Commission and State Electricity Regulatory Commissions play an important role in regulating prices and licensing, as well as promoting efficiency throughout the power value chain.

Furthermore, India's energy strategy is becoming more in line with global environmental goals, boosting renewable energy expansion while decreasing reliance on fossil fuels. The government's National Electricity Plan (2023-2027) emphasizes a strategic shift toward carbon emissions reduction by postponing the construction of new fossil fuel power facilities in favor of renewable sources such as solar and wind. This transformation necessitates robust regulatory institutions that strike a balance between market demands and long-term growth.

References:

1. Sakya Singha Chaudhuri, Tangled wires: Energy laws in India, Asia business Law Journal (2024) https://law.asia/energy-laws-in-india/#:~:text=The%20Electricity%20Act%2C%202003%20(EA03,conventional%20and%20renewable%20energy%20sources. (last visited on 23rd Sep.)

2. Piyush Joshi, RV Anuradha and Sumiti Yadava, Energy Laws In India, Mondaq (2020) https://www.mondaq.com/india/oil-gas-electricity/885580/energy-laws-in-india (last visited on 23rd Sep.)

3. Dr. Ganesh Dubey, Sources Of Electricity Law In India: An Analytical Study, Research Ambition: An International Multidisciplinary e-Journal, Vol. 6 (2021) https://www.redalyc.org/journal/7039/703973426001/html/#redalyc_703973426001_ref32 (last visited on 23rd Sep.)

4. Hemant Sahai, Molshree Bhatnagar, Parichita Chowdhury, Energy Laws and Regulations 2024, Global Legal Insights (2024), https://www.globallegalinsights.com/practice-areas/energy-laws-and-regulations/india/ (last visited on 23rd Sep.)

5. Lars Löfquist, Is there a universal human right to electricity? The International Journal of Human Rights Vol. 24 (2020), https://www.tandfonline.com/doi/full/10.1080/13642987.2019.1671355 (last visited on 23rd Sep.)

[1] The Constitution of India, Seventh Schedule, List III, Entry 38

[2] The Constitution of India, Seventh Schedule, List II, Entry 53

[3] [No.36 of 2003] https://cercind.gov.in/Act-with-amendment.pdf

[4] Sanjit Kumar Chakraborty, The ‘Fundamental’ Right To Access Energy: Issues, Opportunities And Challenges In India, Energy Law and Policy in India : NLSIU Book Series- 2 (2019) (last visited on 23rd sep.)

[5] Olasupo Owoeye’s, ‘Access to Energy in Sub-Saharan Africa: A Human Rights Approach to the Climate Change Benefits of Energy Access’ Environmental Law Review 284 (2016) (last visited on 23rd sep.)

[6] Adrian J Bradbrook and Judith G Gardam, ‘Placing the Access to Energy Services Within a Human Rights Framework’, Human Rights Quarterly 389 (2006) (last visited on 23rd sep.)

[7] Note 4

[8] [2014] 1 MLJ 261

[9] Meenakshi Prasad and Apurv Parashari, The Electricity Act, 2003 – Liberalizing The

Power Sector, Energy Law and Policy in India : NLSIU Book Series- 2 (2019) (last visited on 23rd sep.)

[10] Ibid.

[11] Section 76 of the Electricity Act, 2003

[12] Section 82 of the Electricity Act, 2003

[13] Section 26 of the Electricity Act, 2003

[14] Section 31 & 32 of the Electricity Act, 2003

[15] Section 70(1) of the Electricity Act, 2003

[16] Piyush Joshi, RV Anuradha and Sumiti Yadava, Energy Laws In India, Mondaq (2020) (last visited on 23rd sep.)

[17] Piyush Joshi, RV Anuradha and Sumiti Yadava, Energy Laws In India, Mondaq (2020) (last visited on 23rd sep.)

[18] Manohar Lal Sharma vs The Principle Secretary & Others on 25 August, 2014

[19] Sakya Singha Chaudhuri, Tangled wires: Energy laws in India, Asia business Law Journal (2024) (last visited on 23rd sep.)

[20] Ibid.