An inspection team visits the premises, and a few days later a notice arrives: a provisional assessment under Section 126 of the Electricity Act, 2003, often for a substantial amount. The first thing to understand is what this notice is — and what it is not.
It is not a theft charge
Section 126 deals with “unauthorised use of electricity” (UUE) — a civil assessment, not a criminal prosecution. Theft of electricity (tampered meters, bypassing the meter, dishonest abstraction) is a separate and more serious matter under Section 135. A Section 126 notice, by itself, does not mean a criminal case.
What counts as “unauthorised use”?
Broadly, using electricity:
- for a purpose other than the sanctioned one — the classic example is running a shop or office on a domestic connection;
- for premises other than those for which supply was sanctioned;
- through unauthorised means, or in excess of what was authorised for certain categories of use.
How the assessment works
- Inspection — an assessing officer inspects the premises and records what was found.
- Provisional assessment — a provisional order is served on the consumer.
- Objections and hearing — the consumer is entitled to file objections and be heard before any final order; the Act contemplates the final assessment order being passed within a short, fixed period after the provisional one.
- The amount — assessment is made at twice the applicable tariff rate, for the period of unauthorised use. Where that period cannot be ascertained, the Act caps it at the twelve months immediately preceding the inspection.
The appeal — and its strict conditions
An appeal against a final assessment lies under Section 127 to the designated appellate authority, ordinarily within 30 days. Two points make this remedy unforgiving:
- Pre-deposit: the appeal cannot be entertained unless half of the assessed amount is deposited;
- Deadlines are short and are applied strictly.
Note that the CGRF (the consumer grievance forum) has no jurisdiction over Section 126 assessments — Section 127 is the designated route.
What to do if you receive a notice
- Do not ignore it. Time limits at every stage are short, and an unanswered provisional assessment usually hardens into a final one.
- Respond with documents: the sanction letter, tariff category, load details, rent agreement or ownership papers, and anything showing the actual use of the premises.
- Attend the hearing and ask for a copy of the inspection report if it was not supplied.
- Diary the appeal deadline the moment a final order is received, and plan for the 50% deposit if an appeal is contemplated.
- Where payment is made to avoid disconnection, consider recording that it is made under protest.
This note is for general information only and is not legal advice. The provisions summarised here are subject to amendment and judicial interpretation; readers should verify the current position or take independent professional advice on their specific facts.