Power theft in India

As we all know that the power has become the most essential part of every organization in the world.
India is a developing nation and the demand of electricity has increasing day by day in all the economic
sectors. The process of power supplies starts from the Power Generation, power distribution, and then
power transmission in different areas to their destination. India is losing crores of revenues due to
power theft and affecting our GDP. The unbilled consumptions and illegal power supply has become the
main reason of this theft. Apart from this the technical losses like dissipation in power supply line, faulty
transmissions, sub- standard power distribution lines, out date transformers are also the main reason of
power loss. The electricity theft has become a huge problem in India and regulate and keep a check on it
the parliament enacted the Electricity Act, 2003. This Act provides for a punishments so that the
offenders get deter from it and the theft can be reduced.

Reasons of Power Theft:

There are several reasons that people steal electricity.

1. High tariff rates

The high tariff rates are the reason that increases the cost of power and to avoid paying such
high amount the people start stealing the powers. This helps them to escape from the high
billed usage.
2. Low financial status
In India the poverty rate is high and millions of people live below poverty, so for their survival
they rely on very low income. Because of their low income they don’t have a capacity to pay for
the electricity consumption so they try to steal the power.
3. High Commercial usage
The commercial usage of power in India is so expensive that due to high electricity bills their
profit margins gets reduced, so to save their earnings they try to steal the electricity and save
their profits.

Electricity Theft Methods

There are many ways the people use for power theft and some of these methods are as under: -

1. Power theft by tampering the meters and by- passing the meters so that they show less
readings.
2. By tampering the live wires or underground cables so that the electricity comes directly without
the meters.
3. By putting cables directly in the transformers.
4. By manipulating the meter readings.
5. By hooking the live wires.
6. By avoiding the bill payments.
7. By using alternate neutral lines.

Laws Governing Electricity Sector

Before the electricity Act, 2003 there were several laws i.e The Indian Electricity Act 1910, The Electricity
(Supply) Act, 1948 and the Electricity Regulatory Commission Act, 1998.
The Act of 2003 was enacted with broader aspects to regulate the electricity
norms of India. This Act specifically deals to prevent the Electricity Theft. In this
Act the Electricity theft is treated as an offence. Part XIV of this Act deals with
the offences and penalties.

Section 135 of the Act defines Electricity Theft. According to this section any
dishonest taping of electricity, tampering of an electric meter in any manner,
using reversing transformer, damaging the wire or electric meter in any form so
as to interfere with the proper accurate reading of electricity etc. will be treated
as electricity theft. According to this section if a person is required to make
liable for the offence of theft the two elements are to be fulfilled: -

1. Mental Element (Mens Rea)

The word ‘Dishonesty’ is being used in this section which denotes that if a
person who is committing any act under this section shall have a malafide
intentions to do so. However, it is difficult to prove because the supply lines
should be within the premise of the occupier.

2. Actus Reas.

The section describes the term ‘Act’. To commit the offence of theft the physical
act is necessary. This section also states that any artificial method or any
unauthorized method is used to acquire electricity then that will also be
considered as theft.

Punishments for Theft

Under this law the punishment is imposed based on the amount of load that is
stolen, and the number of times the offence is repeated. The table below
explains how the punishment is being calculated.

Amount of Load First conviction Second Offence

Lesser than 10 Watt Punishment shall be not Punishment shall not be
less than thrice of less than six times of
financial gains received. financial gains.
More than 10 Watt Punishment shall not 1. Imprisonment not
less than thrice of less than six
financial gains months which can
exceed upto 5
years.
2. Fine not less than
six times of
financial gains.
Section 136 punishes the one who cuts the electric lines and material for
wrongful gain and convenience. This act is treated as an offence and is
punishable with imprisonment that may extent up to 3 years with fine or both.
And if the person commits the subsequent offence then he shall be punished for
not less than 6 months which me extend to 5 years. Section 138 says about the
unauthorized interference with meters or the works of the electricity
departments as to cause wrongful loss to the government. The offender shall be
made punishable with imprisonment which may be extend to 3 years or with
fine up to Rs. 10000/- . And if the offender is a continuing offence daily fine
upto 500/-.