Section 40 of EA 2003, Electricity Act : Section 40: Duties Of Transmission Licensees

Explanation using Example

Imagine a company, Green Energy Pvt. Ltd., which generates solar power in the state of Rajasthan. They want to supply electricity to a factory in Punjab. The transmission lines are owned by NorthTransmit Ltd., a transmission licensee. According to Section 40 of the Electricity Act, 2003:

1. NorthTransmit Ltd. must ensure that their transmission system is efficient and well-maintained to handle the transfer of electricity from Rajasthan to Punjab.
2. They must follow orders from the relevant Load Despatch Centres to manage the power flow effectively.
3. Green Energy Pvt. Ltd. can request non-discriminatory access to NorthTransmit Ltd.'s transmission system and, upon paying the required charges, can send their electricity to the factory in Punjab.

If a consumer in Punjab, like the factory, wants direct access to Green Energy's power, it can also be granted, subject to the State Commission's rules, and additional surcharges may apply, which will be used to offset the costs of cross-subsidies.

However, if the factory sets up its own solar plant and uses NorthTransmit Ltd.'s lines solely to transport this power for its own use, the additional surcharge would not apply.