Power theft is set be a cognizable offence, once Parliament passes the Electricity (Amendment) Bill, 2005. The Bill was taken up for consideration and passing in the Lok Sabha on Friday.
Even though a discussion on the Bill did take place, it could not be passed. It is likely to be passed in the course of the next week. With the passage of this Bill, 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 levels in the country are as high as 30-35%. Put simply, almost 35% of the power generated in the country is not paid for, burning 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.
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 register a case without permission from a magistrate. Murder, robbery, theft, rioting and counterfeiting are examples of a cognizable offence. Bail is also more difficult for cognizable offences compared to non-cognizable ones. The amendment will make it easier for power companies to book consumers who tap power illegally.
Even though a discussion on the Bill did take place, it could not be passed. It is likely to be passed in the course of the next week. With the passage of this Bill, 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 levels in the country are as high as 30-35%. Put simply, almost 35% of the power generated in the country is not paid for, burning 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.
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 register a case without permission from a magistrate. Murder, robbery, theft, rioting and counterfeiting are examples of a cognizable offence. Bail is also more difficult for cognizable offences compared to non-cognizable ones. The amendment will make it easier for power companies to book consumers who tap power illegally.
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