Section 57 of EA 2003, Electricity Act : Section 57: Standards Of Performance Of Licensee

Explanation using Example

Imagine a scenario where a local electricity distribution company, PowerGrid Corp, is mandated by the state's electricity regulatory commission to maintain an uptime of 99% for its residential consumers. This standard of performance is set after consulting with various stakeholders, including PowerGrid Corp and consumer advocacy groups, as per Section 57(1) of The Electricity Act, 2003.

However, due to outdated infrastructure, PowerGrid Corp experiences frequent outages, resulting in an uptime of only 95% over the course of a year. This failure to meet the specified standard of performance leads to a series of complaints from affected residents.

Taking cognizance of the situation, the regulatory commission initiates proceedings against PowerGrid Corp. After giving the company an opportunity to present its case, the commission, as per Section 57(2), determines that the company must compensate the affected residents for the inconvenience and disruptions caused by the frequent power outages.

PowerGrid Corp is then ordered to pay the determined compensation to the affected residents within ninety days, as stipulated by Section 57(3). This enforcement ensures that PowerGrid Corp is held accountable for its performance and incentivizes the company to improve its infrastructure to meet the regulatory standards.