Cabinet approves amendment to make power theft cognizable offence

NEW DELHI: Power theft will soon be a cognizable offence throughout the country, thanks to an amendment to the Electricity Act 2003, which was approved by the Cabinet on Monday.

With this amendment, civil disputes in the power sector will be dealt through special courts and charges for unauthorised use of power will have to fixed within 30 days.

This amendment, a key aspect of power sector reforms, is expected to substantially improve recoveries of power distribution firms. Average power theft level in the country is 30-35%. Put simply, almost 35% of the power generated in the country is not paid for, burning huge holes in the pockets of power companies. This in turn is holding up fresh investment in the power sector, contributing to the growing shortage of power in the country.

As of now, power theft is a non-cognizable offence. Under the law, the difference between a cognizable and a non-cognizable offence is in terms of the severity of the crime and the power given to the police to act against it. In the case of a cognizable offence, the police can arrest a deemed offender without a warrant, and can’t register a case without permission from a magistrate. Murder, robbery, theft, rioting and counterfeiting are examples of a cognizable offence. Bail is more difficult for cognizable offences than for non-cognizable ones.

The amendment will make it easier for power companies to book consumers who tap power illegally. Distribution companies, which have not been able to do much to control theft so far, will be in a position to get police action in a jiffy. At present, the electricity Act does not recognise this as a cognizable offence. But with this amendment, consumers guilty of stealing power and not paying will be liable for heavy penalties and imprisonment. It is estimated that power thefts in the country account for total losses of about Rs 28,000 crore.

Delhi stands out as one of the worst cases of power thefts. As much as 45% of power generated is stolen in the Capital. And even after three years of privatisation, almost 20% of the power supplied is consumed through illegal means. The thefts are not particular to a specific category of consumers.