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Section 40

Duties of Transmission Licensees.

The Electricity Act, 2003
It shall be the duty of a transmission licensee--

(a) to build, maintain and operate an efficient, co-ordinated and economical inter-State transmission system or intra-State transmission system, as the case may be;

(b) to comply with the directions of the Regional Load Despatch Centre and the State Load Despatch Centre, as the case may be;

(c) to provide non-discriminatory open access to its transmission system for use by--

(i) any licensee or generating company on payment of the transmission charges; or

(ii) any consumer as and when such open access is provided by the State Commission under sub-section (2) of section 42, on payment of the transmission charges and a surcharge thereon, as may be specified by the State Commission:


Provided that such surcharge shall be utilised for the purpose of meeting the requirement of current level cross-subsidy:


Provided further that such surcharge and cross subsidies shall be progressively reduced 1 *** in the manner as may be specified by the Appropriate Commission:


2 * * * * *


Provided also that the manner of payment and utilisation of the surcharge shall be specified by the Appropriate Commission:


Provided also that such surcharge shall not be leviable in case open access is provided to a person who has established a captive generating plant for carrying the electricity to the destination of his own use.




1. The words and eliminated omitted by s. 6, ibid. (w.e.f. 15-6-2007).

2. The third proviso omitted by Act 26 of 2007, s. 6 (w.e.f. 15-6-2007)