COMMERCIAL

LOSSES
 T & D Losses
• Commercial Losses
– Due to pilferage and theft of energy
– Defective metering
– Wrong billing
• Technical Losses
– Loss due to resistance in the lines
– Loss due to corona
– Loss due to improper design of network
– Loss due to over loading of transformers etc.
TECHNICAL LOSSES

 Losses due to resistance in the wires

 Loss due to corona

 Loss due to improper design of network

 Loss due to overloading of transformer,etc.

 See 39 Theft of Energy
before amendments

 Whoever dishonestly abstracts, consumes or

uses any energy shall be deemed to have
committed theft within the meaning of the Indian
penal code; and the existence of artificial
means for such abstraction shall be prima face
evidence of such dishonest abstraction
Section 379 – Punishment for theft:

 Whoever commits theft shall be punished

with imprisonment of either description for a
term, which may extend to three years or
with fine or with both
 See 39 Theft of Energy
AS AMENDED IN 1980 &1986 IN IE ACT 1910

 Whoever dishonestly abstracts ,consumes or uses any

energy,shall be punishable with imprisonment for a term which
may extend to three years,or with fine which shall not be less
than one thousand rupees or with both:and if it is proved that
any artificial means or any means not authorised by the
licensee exists for the abstraction ,consumption or the use of
energy by the consumer ,it shall be presumed ,until the contrary
is proved,that any abstraction consumption or use of energy
has been dishonestly caused by such consumer
STATISTICS ON THEFT OF ENERGY
CASES DETECTED
YEAR NO.OF CASES AMOUNT OF REVENUE

1980-81 23 15 Lakhs

1981-82 40 48 Lakhs

1983-84 586 164 Lakhs

1984-85 742 336 Lakhs

1985-86 769 231 Lakhs

1986-87 701 892 Lakhs

1987-88 489 1119 Lakhs

STATISTICS ON THEFT OF ENERGY
CASES DETECTED (contd)
YEAR NO.OF CASES AMOUNT OF REVENUE

1998-99 407 1082

1999-2000 482 2195

2000-01 1552 1472

2001-02 2358 3510

2002-03 2507 2019

2003-04 3720 3394

2004-05
 MOTIVES FOR THEFT OF ENERGY

• Monetary Gains
• To overcome the restrictions imposed by
the Government on the use of energy.
• Out of necessity for immediate
requirement of Energy
• Just for the thrill and amusement of it.
 Act Provisions For Theft Of Energy
MODUS – OPERANDI
• Theft of energy with
artificial means
• Theft of energy by
tampering meter connection
• Theft of energy by
counterfeit security seals
(MRT seal or terminal cover
seals etc.)
• Illegal Restoration of supply
• Fence Energisation with
direct tapping on the line.
SECTIONS OF IE ACT AND
OTHERS THAT REALATED
TO THE OFFICE
Section 39(1) of IE act
1910
Section 44(c) & 39(1) of
IE Act 1910
Sec 39(1),44(c) of IE Act
& Section 484 IPC
Section 44(aa) and 39(1)
of I.E. Act 1910
Sec 40 & 44(d) of I.E.
Act 1910 and 336 IPC.
 MODUS OPERANDI
(A) Direct tapping from L.T lines.
(B) Tampering of meters.
a. Tampering the terminal cover seal for
- Connecting the lead for reverse condition.
- Shortening the incoming and outgoing leads.
- Removing potential link whenever the internal
links are not provided.
b. By tampering MRT security seal for
- Reducing the reading tin the dial.
- Arresting the disc rotation.
- Delinking the gear to the counter assembly.
- Changing the gear wheels to record lesser
consumption.
- Open circuiting the potential coil supply.
- Tampering the error adjustment.
 MODUS OPERANDI(continuation)
c. Drilling minute hole in the meter cover to give access
for thin foreign object for arresting the disc rotation at
the will and pleasure of the customer.
d. By tampering the cotton rubber beading provided
between the meter body and by inserting thin insula-
ting material such celluloid film or tongue cleaner
through the gap meter cover and the body to arrest the
disc rotation.
(C) By cutting the neutral connection connection of the
meter in case of single phase meter.
(D) By tilting the meter board to keep the meter in slanting
or horizontal position and there by abstructing the disc
rotation.
 MODUS OPERANDI(continuation)
(E) By introducing external strong magnetic field to cause
improper functioning of meter.
(F) By-passing meter externally.
(G) In HT services shortening the CT secondary or CT
primary.
(H) Tampering potential circuit in HT service by introduc-
ing heavy load in the potential indicator circuit and
thereby causing interference in the proper function of
meter.
(I) Opening the potential circuit without tampering the seal.
(J) By illegal restoration of supply in disconnected services
 Records To Be Furnished For
Successful Prosecution
• Agreement between Board and consumer
• Original and revised Test reports.
• Service connection Register extract
• Meter reading registers extract.
• Meter change registers extract.
• MRT Test record or sealing register extract
• Running License to prove that the business is
conducted by accused in the premises
 Records To Be Furnished For
Successful Prosecution (Cont’d)
• Copy of authorization given by Board to Territorial AEE
to lodge complaint as aggrieved person
• Copy of amended Act.
• Copy of affidavit filed by the consumer is the civil court
• Copy of appropriate clauses of Terms and condition of
supply.
•  Copy of License issued by local body.
• Copy of photos and negatives
• Specimen MRT seals for investigation by sending M.O.
for comparison at Forensic Sciences Laboratory
 Records To Be Furnished For
Successful Prosecution (Cont’d)
DIRECT HOOKS
• Photos and negatives.
• VAO’s certificate for the correctness of the
occupant of the premises if it is a houses
• VAO’s certificate to certify the extend of land and
nature of standing crop, ownership and sources of
water for cultivation in the case of energy is
tapped for Agricultural purposes.
• Copy of Act provisions.
 Records To Be Furnished For
Successful Prosecution (Cont’d)
LIVE FENCING
• Photos and negatives.
• VAO’s certificate for ownership and person
cultivating the field during current.
• Copy of IE Act provision.
Copy of authorization to lodge complain
 Records To Be Furnished For
Successful Prosecution (Cont’d)
ILLEGAL RESTORATION OF SUPLY.
•   Application for supply by the consumer.
• Test Report.
• VAO certificate to certify that the accused is the
occupant of the premises if he is a person
different from consumer and there is no recorded
evidence to show that he is the tenant present
occupant.
• Service connection Register extract.
•   D/C order by AE/SE.
 Records To Be Furnished For
Successful Prosecution (Cont’d)
•      D/C Report by Wiremen.
• D/C R/C Register extract.
•     The top carrier removed by Wiremen shall be
handed over to investigating officer.
• Copy of working sheet.
•      Copy pf Amended IE Act.
•      Copy of authorization given by Board to ADE
to lodge complaint.
•      Photos and negative.
Important Sections of
IEAct 1910
SECTION 20 (2)

 A licensee or any person authorized as aforesaid may also in

pursuance of a special order in this behalf made by a
magistrate of the first class or in a presidency town by the
presidency magistrate at any reasonable time between sun rise
and sun set and or informing the occupier of his intention.
– Enter upon any premises or land referred to in sub-section
(1) for any of the purposes mentioned therein.
– Enter any premises which energy is to be supplied by him,
for the purpose of examine and testing the electric wires,
fittings, works and apparatus for the use of energy belongs
to the consumer provided that sufficient notice shall in every
case be given to enable the inmates of any apartment
appropriated to female in withdraw to some part of the
premises where their privacy may be preserved.
SECTION 20 (3)

 Where a consumer refuses in allow a licensee or any

person authorised as aforesaid to enter his premises or land in
pursuance of the provision of sub-section (1) or sub-section (2)
or when such licensee or person has so entered, refuses to
allow him to perform any act, which he is authorised by those
sub-section to perform or fails to give reasonable facilities for
such entry or performance the licensee may after expiry of 24
hours from the service of a notice in writing on the consumer
and cut off the supply to the consumer for so long a such
refusal or failure continues but for no longer.
SECTION (24) (1-A)

 Where and officer not lower in rank than a Divisional Engineer of Tamil
Nadu Electricity Board on Personal inspection, is satisfied that any
electric supply line or other works which have been cut or
disconnected under sub-section (1) by the licensee has been
reconnected unauthorisedly by any consumer then without prejudice to
any other penalty that may be imposed under section 44 or under any
other provision of this Act such officer may, for reasons to be recorded
in writing order that energy shall not be supplied to such consumer for
a period not exceeding one year as may be specified in such order.

 Provided that no such order shall be made, unless the consumer has
been given an opportunity for making his representations.
SECTION 40: PENALTY FOR MALICIOULY WASTING ENERGY
OR INJURING WORKS

Whoever maliciously causes energy to be

wasted or diverted or with intent to cut off the
supply of the energy, cuts or injures or
attempts to cut or injure any electric supply
line works shall be punishable with
imprisonment for a term which may extend to
two years or with fine which may extended to
one thousand rupees or with both.
SECTION 41: PENALTY FOR UNAUTHORISED SUPPLY OF
ENERGY BY NON LIENSEES

Whoever in contravention of the provisions of

section 28 engages in the business of
supplying energy shall be punished with fine,
which may extend to three thousand rupees
and in the case of a continuing
contravention, with a daily fine which may
extend to three hundred rupees.
 SECTION 44 (1):

 Who ever
 Connects any meter referred to in section 26 sub-section (1) or any
meter indicator or apparatus referred to in section (7) with any
electric supply lines through which energy is supplied by a licensee
or disconnects the same from any such electric supply line or
 (aa) Unauthorisedly reconnects with any electric supply or other
works being the properly of the licensee through which energy may
be supplied when the said electric supply line or other works has
been cut or disconnected under sub-section (1) of section 24 or
 Lays or causes to be I connection up any works for the purpose of
communicating with any other works belonging to a licensee or
 Maliciously injures any meter referred to in section 26, sub-section
(1) or any meter indicator or apparatus referred to in section 26 sub-
section (7) or willfully prevents any such meter indicator or
apparatus from duly registering or
 Improperly uses the energy of a licensee shall be punishable with
imprisonment for a term which may extend to three years or with
fine which may extend to one thousand rupees or with both.
 SECTION 44 (2):
 If any person having been convicted of an
offence punishable under subsection (1) is
again guilty of an offence punishable
under that sub-section, he shall be
punishable with imprisonment for the
second or subsequent offence for a term
which shall not be less than three months
but which may extend to five years and
shall also be liable to fine
SECTION 50: INSTITUTION OF
PROSECUTION

• No prosecution shall be instituted

against any person for any offence against
this act or any rule, licensee or other there
under, except at the instance of the Govt.
or an Electrical inspector or of a person
aggrieved by the same.
SECTION 50 (A)

• Certain offenses under the act to be

cognizable not with standing anything
contained in the code of criminal section
44 of this act shall be deemed to be
cognizable offence with in the meaning of
that code.
SECTION 56 (1) PROTECTION FOR ACTS
DONE IN GOOD FAITH

 No suit, prosecution or other proceedings

shall lie against any public officer or any
servant of a local authority for any thing
done or in good purporting in be done,
under this Act.
 ACTS AND RULES
GOVERNING THE OFFENSES:

INDIAN PENAL CODE

 Section 484 – Counterfeiting a
mark used by a public servant
Whoever counterfeits any property marks used by a
public servant or any mark used by a public
servant to denote that any property has been
manufactured by a particular person or at a
particular time or place or that the property is
of particular quality or has passed through a
particular office or that it is entitled to any
exemption or uses as genuine as any such
unmark knowing the same to be counterfeit,
shall be punished with imprisonment of with a
description for a term which may extend to
three years and shall also be liable to fine.
50B – Power to compound affiances – (1)

 Not withstanding anything contained in this act or any

other for time being in force, the State Government or
Tamil Nadu Electricity board or any other person who
competent to institute prosecution under this act may
accept from any person who has committed or is
reasonably suspected of having committed an offence
punishable under this act or the rules made there under,
by the way of composition of such offences
 If such offence is punishable under section 39 or section
39-A or section 44, a sum of money not exceeding one
thousand rupees or twice the rate of tariff payable in
respect of the electrical energy involved in such offence,
whichever is greater; and
 if such offence is punishable any other provisions of this
act, a sum of money not exceeding one thousand rupees
 50B – Power to compound
affiances
(2) On payment of the sum of money
specified in the subsection (1) the person
concerned, if in custody, shall be
discharged and no further proceeding in
respect of the offence shall be taken
against such person.
How Theft of energy
classified in Electricity Act
2003
Electricity Act
2003(Contd)
 135. (1) whoever, dishonestly, --
 (a) taps, makes or causes to be made any connection with
overhead, underground or under water lines or cables, or service
wires, or service facilities of a licensee; or
 (b) tampers a meter, installs or uses a tampered meter, current
reversing transformer, loop connection or any other device or
method which interferes with accurate or proper registration,
calibration or metering of electric current or otherwise results in a
manner whereby electricity is stolen or wasted; or
 (c) damages or destroys an electric meter, apparatus, equipment,
or wire or causes or allows any of them to be so damaged or
destroyed as to interfere with the proper or accurate metering of
electricity, so as to abstract or consume or use electricity shall be
punishable with imprisonment for a term which may extend to
three years or with fine or with both:
Electricity Act 2003
 where the load abstracted, consumed, or used or attempted
abstraction or attempted consumption or attempted use -

 (i) does not exceed 10 kilowatt, the fine imposed on first conviction
shall not be less than three times the financial gain on account of
such theft of electricity and in the event of second or subsequent
conviction the fine imposed shall not be less than six times the
financial gain on account of such theft of electricity;

 (ii) exceeds 10 kilowatt, the fine imposed on first conviction shall

not be less than three times the financial gain on account of such
theft of electricity and in the event of second or subsequent
conviction, the sentence shall be imprisonment for a term not less
than six months but which may extend to five years and with fine
not less than six times the financial gain on account of such theft
of electricity:
 Electricity Act 2003
 Provided further that if it is proved that any
artificial means or means not authorized
by the Board or licensee exist for the
abstraction, consumption or use of
electricity by the consumer, it shall be
presumed, until the contrary is proved, that
any abstraction, consumption or use of
electricity has been dishonestly caused by
such consumer.
 Electricity Act 2003
 (2) Any officer authorized in this behalf by the State Government
may -

 (a) enter, inspect, break open and search any place or premises in
which he has reason to believe that electricity has been, is being, or
is likely to be, used unauthorizedly;

 (b) search, seize and remove all such devices, instruments, wires
and any other facilitator or article which has been, is being, or is
likely to be, used for unauthorized use of electricity;

 (c) examine or seize any books of account or documents which in

his opinion shall be useful for or relevant to, any proceedings in
respect of the offence under sub-section (1) and allow the person
from whose custody such books of account or documents are
seized to make copies thereof or take extracts there from in his
presence.
 Electricity Act 2003
 (3) The occupant of the place of search or any person on
his behalf shall remain present during the search and a
list of all things seized in the course of such search shall
be prepared and delivered to such occupant or person
who shall sign the list: Provided that no inspection,
search and seizure of any domestic places or domestic
premises shall be carried out between sunset and
sunrise except in the presence of an adult male member
occupying such premises.
 (4) The provisions of the Code of Criminal Procedure,
1973, relating to search and seizure shall apply, as far as
may be, to searches and seizure under this Act.
Punishments Specified For Theft
of Energy

 136 (2) If a person, having been convicted of an

offence punishable under sub-section (1) is
again guilty of an offence punishable under that
subsection, he shall be punishable for the
second or subsequent offence for a term of
imprisonment which shall not be less than six
months but which may extend to five years and
shall also be liable to fine which shall not be less
than ten thousand rupees.
 Electricity Act 2003
 138. (1) Whoever, -
 (a) unauthorisedly connects any meter, indicator or apparatus with any
electric line through which electricity is supplied by a licensee or disconnects
the same from any such electric line; or

 (b) unauthorisedly reconnects any meter, indicator or apparatus with any

electric line or other works being the property of a licensee when the said
electric line or other works has or have been cut or disconnected; or

 (c) lays or causes to be laid, or connects up any works for the purpose of
communicating with any other works belonging to a licensee; or

 (d) maliciously injures any meter, indicator, or apparatus belonging to a

licensee or willfully or fraudulently alters the index of any such meter,
indicator or apparatus or prevents any such meter, indicator or apparatus
from duly registering, shall be punishable with imprisonment for a term
which may extend to three years, or with fine which may extend to ten
thousand rupees, or with both
 Negligently wasting electricity
or injuring works.

 139. Whoever, negligently causes electricity to be

wasted or diverted or negligently breaks, injures, throws
down or damages any material connected with the
supply of electricity, shall be punishable with fine which
may extend to ten thousand rupees. penalty for
maliciously wasting electricity or injuring works.
 140. Whoever, maliciously causes electricity to be
wasted or diverted, or , with intent to cut off the supply of
electricity, cuts or injures, or attempts to cut or injure, any
electric supply line or works, shall be punishable with fine
which may extend to ten thousand rupees. extend to ten
thousand rupees
 .Extinguishing public lamps

 141. Whoever, maliciously extinguishes

any public lamp shall be punishable with
fine which may be extend to two thousand
rupees..
Special additional
Provisions made in this act
 Court Juridiction
 Civil court not to have jurisdiction Punishment for
non-compliance of orders or directions.
 142. In case any complaint is filed before the Appropriate
Commission by any person or if that Commission is
satisfied that any person has contravened any provisions of
this Act or rules or regulations made thereunder, or any
direction issued by the Commission, the Appropriate
Commission may after giving such person an opportunity
of being heard in the matter, by order in writing, direct
that, without prejudice to any other penalty to which he
may be liable under this Act, such person shall pay, by way
of penalty, which shall not exceed one lakh rupees for each
contravention and in case of a continuing failure with an
additional penalty which may extend to six thousand
rupees for every day during which the failure continues
after contravention of the first such direction.
 Authority to Implement Provisions
of this act
 143 (1) For the purpose of adjudging under
this Act, the Appropriate Commission shall
appoint any of its Members to be an adjudicating
officer for holding an inquiry in such manner as
may be prescribed by the Appropriate
Government ,after giving any person concerned a
reasonable opportunity of being heard for the
purpose of imposing any penalty.
 Authority to Implement Provisions of this act
(2) While holding an inquiry, the adjudicating officer shall have
power to summon and enforce the attendance of any person
acquainted with the facts and circumstances of the case to
give evidence or produce any document which in the opinion
of the adjudicating officer, may be useful for or relevant to the
subject-matter of the inquiry, and if, on such inquiry, he is
satisfied that the person has failed to comply with the
provisions of section 29 or section 33 or section 43, he may
impose such penalty as he thinks fit in accordance with the
provisions of any of those sections.144. While adjudicating
the quantum of penalty under section 29 or section 33 or
section 43, the adjudicating officer shall have due regard to
the following factors, namely:-
(a) the amount of disproportionate gain or unfair advantage,
wherever quantifiable, made as a result of the default;
(b) the repetitive nature of the default
Authority to Implement Provisions
of this act
145. No civil court shall have jurisdiction to
entertain any suit or proceeding in respect of any
matter which an assessing officer referred to in
section 126 or an appellate authority referred to
in section 127 or the adjudicating officer
appointed under this Act is empowered by or
under this Act to determine and no injunction
shall be granted by any court or other authority
in respect of any action taken or to be taken in
pursuance of any power conferred by or under
this Act
 146. Whoever, fails to comply with any order or direction
given under this Act, within such time as may be
specified in the said order or direction or contravenes or
attempts or abets the contravention of any of the
provisions of this Act or any rules or regulations made
thereunder, shall be punishable with imprisonment for a
term which may extend to three months or with fine,
which may extend to one lakh rupees, or with both in
respect of each offence and in the case of a continuing
failure, with an additional fine which may extend to five
thousand rupees for every day during which the failure
continues after conviction of the first such offence.
Penalties not to affect other liabilities.
 147. The penalties imposed under this
Act shall be in addition to, and not in
derogation of, any liability in respect of
payment of compensation or, in the case
of a licensee, the revocation of his
license which the offender may have
incurred.
Penalty where works
belong to Government

 148. The provisions of this Act shall, so

far as they are applicable, be deemed to
apply also when the acts made
punishable thereunder are committed in
the case of electricity supplied by or of
works belonging to the Appropriate
Government
Money To be Collected by way of
Compounding of the offence
Rate at which the sum of money for
Nature of Service compounding to be collected per Kilowatt
(KW) / Horse Power (HP) or part thereof for
Low Tension (LT) supply and per Kilo Volt
Ampere (KVA) of contracted demand for
High tension (HT)

1. Industrial Service twenty thousand rupees;

2. Commercial Service ten thousand rupees;

3. Agricultural Service Two thousand rupees

4. Other Services four thousand rupees

Money To be Collected by way of
Compounding of the offence
 Provided that the Appropriate Government may, by notification in the
Official Gazette, amend the rates specified in the Table above

 Provided that the Appropriate Government may, by notification in the

Official Gazette, amend the rates specified in the Table above(2) On
payment of the sum of money in accordance with sub-section (1), any
person in custody in connection with that offence shall be set at liberty and
no proceedings shall be instituted or continued against such consumer or
person in any criminal court.

 The acceptance of the sum of money for compounding an offence in

accordance with sub-section (1) by the Appropriate Government or an
officer authorised in this behalf empowered in this behalf shall be deemed
to amount to an acquittal within the meaning of section 300 of the Code of
Criminal Procedure, 1973.

 The Compounding of an offence under sub-section (1) shall be allowed

only once for any person or consumer
Indian Electricity
Rules 1956
Some Important section Related
to Inspection of customer’s
premises
 Rule 46. Periodical Inspection and testing
of installations

 Where an installation is already connected to the

supply system of the supplier ,every such
installation shall be periodically inspected and
tested at intervals not exceeding five years either
by the inspector or any officer appointed to assist
the inspector
 The inspector shall report the on the condition of
the installation to the consumer concerned in the
approved form ( Annexure IX-A).
 Nothing contained in this section shall have any
effect on the application of rule49.
Rule49. Leakage on
consumer’s premises
 If the Inspector or any authorized officer appointed for this purpose has
the reason to believe that there is leakage in the system of a customer to
affect injuriously the use of energy by the supplier or by other persons or
which is likely to cause danger, he may give the customer reasonable
notice in writing that he desires to inspect and test the consumer’s
installation.

 (2) If On such notice being given-

 (a) the consumer does not give any reasonable facilities for inspection and
testing of his installation, or
 (b) when the insulation resistance at the consumers installation is so low to
prevent safe usage of energy

 the supplier may ,and if directed so by the Inspector shall disconnect the
supply of energy after giving 48 hours notice in writing and shall not
recommence supply until the cause for the leakage has been removed.
Rule 56.Sealing of meters
and cut - outs
 (1) A supplier may affix one or more seals to
any cut out and any meter , maximum demand
indicator or other apparatus placed upon a
consumers premises in accordance with the
provisions of sec.26, and no other person other
than the supplier shall break any such seal.
 (2)The consumer shall use all reasonable
means in his power to ensure that no such seal
is broken otherwise than by the supplier
Rule 138. Penalty for
breaking seal
 Where in contravention of rule 56, any seal
referred in that rule is broken ,-
 (a) the person breaking the seal is punishable
with fine which may extend to two hundred
rupees; and
 (b) the consumer when he has not himself not
broken the seal shall be punishable with a fine
which may extend to fifty rupees unless he
proves that he used all reasonable means in
his power to ensure that the seal shall not be
broken.