By Babita Jha March 22, 2025 Minor Acts

What are the legal provisions related to electricity theft in the country?

The most important law related to electricity in India is the Indian Electricity Act, 2003. This Act provides for rules and guidelines related to production, transmission, and distribution of electricity, whether by the consumer or by the electricity supplying company or department.

According to the Constitution, electricity is a subject of the concurrent list. This means that both the Central Government and the State Government can make laws on it. Therefore, there may be slight differences in the laws of different states. But the Central Act of 2003 is generally applicable everywhere with slight changes.

Today in this article, we will talk about the legal provisions related to some of the major problems faced by a common man related to electricity.

Table of Contents

How many types of electricity related crimes are there?

1. Violation of service conditions while using electricity in a legal or authorized manner, such as not paying electricity bill on time. In such cases, there is no jail but the electricity connection can be disconnected under section 56 of the Act.

2. Using electricity in an illegal or unauthorized manner, such as theft of electricity. For this, fine and imprisonment can also be given.

Unauthorized use can be put into two categories:

1. Where there is no dishonest intention, such crimes are mentioned in section 126. Sometimes, due to mistake or negligence, electricity is consumed in excess of the authorized limit, or one has a license for one category but consumes electricity of another category. In such cases, only a fine is imposed.

2. Where there is dishonest intention, such crimes are mentioned in section 135, such as theft of electricity. For such crimes, there can be imprisonment along with fine. Electricity theft can also be classified into two categories:

3. Theft of electricity, and

4. Theft of equipment used in production, transmission and distribution of electricity, such as stealing wires.

Some categories of electricity theft are considered less serious i.e. non-cognizable while some categories are considered more serious i.e. cognizable. Cognizable means that in such a case the police can arrest without the permission of the court. Such serious cases are generally non-bailable i.e. only the court can grant bail in such a case. The first category comes under section 126 and the second under section 135. Although the method of calculating the amount of fine is the same in both, but in the first case there is no police action while in the second one there can be.

What is electricity theft? (Section 135)

Broadly, it can be said that electricity theft has taken place in these situations:

1. If a person makes a connection to any cable or wire of the electricity company/department without permission. This cable or wire can be overhead, underground or under water. A person can include any consumer, such as a company.

2. Alters the electricity meter, transformer, loop connection or any other device so as to alter the record of electricity usage. For example, some people use magnets which can alter the meter reading, or use certain electrical appliances by bypassing the meter even though they have a valid connection and meter in their house.

3. Breaks, cuts or damages the electricity meter, or any other device, or wire, thereby hindering the correct accounting of electricity consumption.

4. Uses electricity for a purpose other than the purpose for which he has been given the connection, or in more quantity than is permitted; for example, uses electricity for commercial purposes on a domestic connection.

5. Using electricity at a place other than the place for which the connection has been approved is also considered theft. A unit coming under a campus will be considered as one unit, like a room, kitchen, store, washroom, street light etc. will also be included under a house, provided it does not exceed 20% of the approved load limit. But if a connection is taken in another campus nearby, then a separate connection and meter will have to be taken for it.

It is clear, that electricity theft does not only include taking a connection of electricity or current, but also taking or altering any of its equipment in an unauthorized manner.

What are the main offence related to electricity under the Indian Electricity Act, 2003?

1. Electricity theft, the definition of which has been mentioned earlier. This is a offence under section 135;

2. Using electricity without a valid license or permission. Taking a connection or using any equipment or meter without the permission of the legitimate owner has been made a crime under section 136;

3. Damaging electricity infrastructure, such as substations, transmission lines, distribution network, is an offence of the third category;

4. Fraud related to the sale, consumption or distribution of electricity is also a crime. Making such changes in the meter that gives wrong readings are crimes of this category.

5. Section 136 says that it is an offence to ‘dishonestly’ move any electrical equipment such as wires, poles, transformers, meters, etc. from one place to another without the permission of the electricity department. It does not matter whether the person carrying it has received any benefit from it or not.

6. According to section 137, keeping or taking stolen electrical goods is also a punishable offense.

7. According to section 138, making any alteration, adding or removing anything in any equipment of the electricity department such as meter, etc. is an offence. If a person’s electricity connection has been disconnected by the department. But all the equipment is kept as it is, in such a situation, if he reconnects the meter, pole, PVC, T-joint, etc. through any means, then he will be guilty under this section.

8. Section 139 makes committing a crime by negligence punishable. For example, if a person negligently does any act which damages the meter or any equipment connected with the electricity supply or causes wastage of electricity, he will be punishable under this section. While the previous sections talk of dishonest intention, this section talks of negligence.\

9. Section 140 also makes punishable a similar act which causes wastage, diversion or disconnection of electricity. However, the act must be done with dishonest intension and not negligence. It is not necessary that the person doing the act benefits; the mere doing of the act itself constitutes an offence.

What is the penalty for offence under the Act?

Apart from the category of crime, the amount of loss, the intention behind the act, the frequency of crime etc. are also the basis for the punishment. For example, if someone steals less than 10 kilowatt electricity, then a fine of at least three times the amount obtained by theft will be imposed, but if the same crime is committed again, then the penalty will be at least six times the amount stolen.

If the theft is of more than 10 kilowatt electricity, then in this also the penalty will be at least three times the profit made from the theft for the first time and at least three times for the second or more times. But there can also be a jail sentence for this, which can be from six months to five years. Not only this, the criminal can also be barred from receiving electricity for some time period. This period can be from three months to two years.

What happens when a person is caught stealing electricity?

Any person can complain about electricity theft, such as the person from whom electricity is being taken from a legal connection, himself or any third party. The company i.e. the service provider can take action on its own even without a complaint if it detects theft.

The complaint can be given either to the service provider i.e. the company or directly to the police.

The employees of the electricity department or the police go to the spot and investigate the complaint and collect evidence. If needed, they can also send the meter for investigation.

If the complaint is found to be correct, i.e. if it is proved that electricity theft has taken place, the police can file an FIR against the accused. If it is a small case, the company can impose a fine at its own level. If an FIR has been lodged, then the case will be face trial in the court like other criminal cases and after the crime is proved, the legally prescribed punishment will be given. The punishment can be fine, imprisonment or both. If the crime is non-bailable, then bail will have to be taken from the court during the trial.

What to do if a wrong bill is received from the company?

Many times consumers complain that their bill is more than their consumption. This can sometimes happen due to technical fault. It can also happen that the staff taking the meter reading records the wrong reading, although such problems have reduced with electric meters. Some cases are also seen where some other person is stealing the connection due to which the bill is more. After finding the reason, you should first give your complaint in writing to the Electricity Company or department. If even then the matter is not resolved, you can also go to the police.

Another situation where consumers can get upset can be when the electricity company is accusing you of something which is not correct according to you. Like disconnecting your electricity on a false allegation. In such a case, you can go to the court.

What to do if you are accused of electricity theft?

If you are accused of electricity theft and you know that this allegation is correct, then it would be better to end the case by paying a fine to the company. If you settle in the beginning, then it is possible that the company reduces the amount. Such small cases are also settled in Lok Adalat. But if an FIR has been lodged, then you have the take recourse of law and court only. Since some cases of electricity theft are cognizable and non-bailable. To avoid going to jail in such cases, try to get anticipatory bail from the court. If this is not possible, if you are arrested then you will have to take regular bail. However, going to jail occurs in very serious cases only.

Where to complain about electricity theft?

If someone else steals electricity from your or someone else’s legal connection, then you can complain about it. Complaint can be given by going to the electricity department of your area or by calling the helpline number given by them, or on the website. If you want, you can also give a complaint to the police. Give the complaint in writing and as far as possible with all the necessary details like place, time, method of theft etc. If there is evidence like photo, video etc., it is even better. One more thing. If the complainant wishes, he can hide his identity. Therefore, while giving the complaint, he should write this wish on it and also tell it to the officer.

In which court are electricity related cases heard?

Special courts are establish for this. Since there is a provision for special courts, section 145 of the Electricity Act 2003 prohibits civil courts from trying cases of unauthorized use of electricity, which are crimes under section 126. Section 151 of the same act prohibits taking suo moto cognizance in cases of electricity theft. Since there is a provision for special courts, electricity related cases cannot be heard in consumer forums. Some rights have been given to the department itself. The electricity department appoints special officers to decide such complaints.

By Babita Jha March 22, 2025 Minor Acts