Who Pays for Free Electricity? Section 65 Explained

Under Section 65 of the Electricity Act, 2003, a state government cannot enforce subsidized power tariffs without paying the subsidy amount in advance. If the state fails to make this advance payment, the regulatory commission's regular tariff applies. The law also distinguishes government subsidies from cross-subsidies regulated under Section 61. In this video you will learn: • States must pay electricity subsidies in advance under Section 65 of the Electricity Act, 2003. • Without advance payment, the state direction fails and the full commission tariff applies. • Section 61 provides for the progressive reduction of cross-subsidies between consumer classes. Statutory provisions discussed: • Section 65, Electricity Act 2003 • Section 61, Electricity Act 2003 Useful for: LL.B. (3-year and 5-year integrated), UGC NET Law, CLAT PG and University semester exams. Free notes, quizzes & more: https://www.thelaweasy.com #Shorts #EnergyLaw #ElectricityAct #LawEasy