The Electricity Act, 2003 is the primary national statute governing the electricity sector in India. Its key purposes are to consolidate and modernize laws relating to generation, transmission, distribution, trading, and use of electricity, promote competition and rationalize tariffs in addition to protecting consumer interests and ensuring transparent subsidies, environmental/ energy-efficient policies, and expand access.
Every entity involved in electricity, from generation companies to consumers and distribution utilities, within India’s territory will be covered in the purview of the act.
This articles will focus on primarily on Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2023. These Regulations superseded the 2010 regulations and came into force from 8 June 2023. They apply to all electrical installations, electrical plants, electric lines, and persons engaged in generation, transmission, distribution, trading or use of electricity.
The Act applies to:
- Manufacturing Establishments
- Commercial, institutional and residential consumers
- Power generators (as Power Plants or Captive consumption)
- Transmission and distribution licensees
- Electricity traders
- Any entity using or handling electrical installations
A structured industry wise breakdown outlining the compliance requirement is important to understand.
- Manufacturing establishments typically operate high-load electrical systems, including HT/LT supply, transformers, DG sets, motors, furnaces, process equipment, and automation systems. Accordingly, Electricity Act, 2003 applies as the principal statute governing use and consumption of electricity and CEA Safety Regulations, 2023 apply to all electrical installations within the factory premises, irrespective of ownership or voltage level. The key compliance requirements are outlined below -
Manufacturing units must ensure that the Design and Installation Safety is installed in prescribed standards.
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Electrical installations conform to prescribed:
- Clearances from structures
- Insulation standards
- Protection systems
- Electrical rooms are:
- Fire-resistant
- Access-controlled
- Properly ventilated
- Modifications to be carried out strictly as per authorisations.
- Earthing and Protection Systems
- Effective earthing of Electrical equipment, Metallic enclosures, Structures supporting electrical equipment
- Installation of Over-current protection, Earth leakage protection, Short-circuit protection
- Periodic testing of earthing resistance
Practically speaking the most common Non-Compliance is usually inadequate or deteriorated earthing pits which should be periodically monitored.
- Operation and Maintenance –
- Implement preventive maintenance schedules
- Conduct periodic inspection of: Transformers,Panels, Cables, Motors
- Immediately isolate defective or unsafe equipment
- Maintain updated single line diagrams (SLDs)
- Electrical Personnel and Licensing - All electrical work must be carried out by Licensed electrical contractors, Certified electricians and supervisors
- Appointment of Electrical Safety Officer is mandatory in –
- High Tension and Extra High Tension (HT/EHT) installations exist
- Large or hazardous electrical systems are operated
- Risk of serious electrical accidents is high
- Electrical Safety Officer needs to ensure compliance with CEA Regulations, Conduct internal safety audits, Supervise electrical work and contractors, Investigate and report electrical accidents and Conduct safety training and awareness
- Electrical Accident Reporting - All electrical accidents (fatal or non-fatal) must be immediately reported to Electrical Inspector, investigated internally and corrective actions should be documented
- Electrical safety under CEA Regulations operates in addition to Factories Act, 1948, State Factory Rules, Fire safety laws, Boiler and pressure equipment regulations.
- Electrical non-compliance can also trigger factory licence issues and insurance claims rejection in addition to specific penalties in the stated laws
Electrical safety often goes unnoticed—until something goes wrong. In a manufacturing setup, taking care of electrical systems is really about taking care of people, processes, and productivity. Small, consistent actions like regular checks, trained handling, and timely maintenance help avoid disruptions and create a safer, more confident workplace. When electrical safety becomes part of everyday thinking rather than an afterthought, it quietly supports smoother operations and long-term stability.
- Commercial, Institutional Consumers (Buildings, Malls, Hospitals, IT Parks)
- Pay correct tariff and regulatory charges.
- Comply with licensing where trading/supply is undertaken.
- Electrical systems must follow detailed safety and installation guidelines.
- High voltage and distribution boards must be supervised by competent electricians.
- Consumer installations nearing supply lines must respect CEA-mandated safe clearance distances.
- Generation of Electricity- (as Power Plants or Captive consumption)
- Comply with grid connectivity technical standards and licensing conditions (if applicable).
- Maintain licenses for transmission/distribution only where required.
- Appoint a qualified Electrical Safety Officer.
- Ensure all electrical installation, overhaul, modification, and repairs follow the prescribed safe-work practices.
- Follow mandated safety clearances and protection rules to prevent hazards.
- Transmission and Distribution Companies (Discoms, TandD Utilities)
- To Hold valid licence for transmission/distribution.
- Enable open access and tariff compliance (as per SERC/CERC).
- Designate Electrical Safety Officers at multiple levels.
- Perform periodic safety audits and compliance reports.
- Ensure infrastructure (lines, substations) adheres to clearances and earthing standards.
- Public and worker safety protocols — e.g., safe distances from structures and proper labeling — must be enforced in all projects. (Enforcement examples have been witnessed where entities issued notices for violations under these rules).
- Residential / Consumer Users
- Pay billed charges and maintain sanctioned connections.
- Unauthorized use (e.g., hooking into supply) is an offense.
- Installation work above low-voltage thresholds must be done by licensed contractors
- Maintain proper earthing, protective devices (e.g., ELCBs), and safety signage as applicable.
Across generators, distribution companies, workplaces, and public buildings, electricity quietly connects people, processes, and everyday life. Its safe and reliable use depends not only on systems and infrastructure, but on awareness, care, and shared responsibility at every level. Whether it is maintaining a factory floor, powering a hospital, managing an office space, or supplying electricity to communities, consistent attention to electrical safety helps prevent disruptions and protect lives. When safety becomes part of daily practice rather than a reaction to incidents, it strengthens trust, supports continuity, and ensures that electricity remains a dependable foundation for growth and well-being.
Disclaimer: This is an effort by Lexcomply.com, to contribute towards improving compliance management regime. User is advised not to construe this service as legal opinion and is advisable to take a view of subject experts.