Electric Power Generation is the commercially generation of electric power from any kind of energy resources by using any technology.

Electric Power Distribution means the distribution of electric power systematically with specified voltage, current, and frequency to the users of the electric power.

In case of medium and small scale electric power generation and distribution business which are not connected to the national grid and the Region or State have the right to manage other than the large scale electric power generation and distribution which the Union have the right to manage, the Region or State Government which has the right to issue permit may issue permit to any person or entities who desire to invest from the local or foreign country in accord with the existing laws.

Small-Scale Electrical Business means the electrical business which generates up to 10 megawatts.

Medium-Scale Electrical Business means the electrical business which generates more than 10 megawatts to 30 megawatts.

Large-Scale Electrical Business means the electrical business which generates more than 30 megawatts.

Electrical Business means any business relating to exploration, construction, generation, transmission, distribution, utilization, trading, exchanging, controlling the electric power system, testing the electricity and inspection of the electrical business.

Permit means the permit issued by a person who is determined as a person who is enable to issue the permit under section 7 to operate any electrical business.

The person from local or foreign who desires to invest and operate in any electrical business shall apply to obtain the permit to the authorized person to issue permit in accord with the stipulations.

Ministry means the relevant Union Ministry authorized by the Union Government to carry out the functions and duties contained in this Law.

In case of large scale electrical businesses which the Union have the right to manage, the Ministry which has the right to issue the permit may, with the approval of the Union Government, issue the permit to any person or entities who desire to invest from the local or foreign country.

National Grid means the nation-wide system of the electric power generation, transmission and distribution interconnecting with the power plants, primary sub-stations, transmission lines, distribution lines and sub-stations.

If the permit holder desires to sell electric power to the national grid, he shall apply to the Ministry. The Ministry may allow or refuse such application after scrutinizing.

Electrical Authority means the authority for enabling to operate and grant the electrical businesses.

The relevant Leading Body of Self-Administered Division or Self-Administered Zones may issue the permit to any person or entities who desire to invest from the local or foreign country in respect of electrical authority for towns and villages within the respective areas after coordinating with the relevant Region or State Government in accord with the existing laws.

Electric Power Distribution means the distribution of electric power systematically with specified voltage, current, and frequency to the users of the electric power.

Certificate of Electrical Safety means a certificate issued by the Chief Inspector after the inspection of the electrical business in accordance with stipulations.

Chief Inspector means the person appointed by the Ministry with the approval of the Union Government to exercise the duties and powers of this Law.

The permit holder shall have the right to carry out electric power generation and distribution businesses only if the electrical safety certificate is received from the Chief Inspector.

If the permit holder desires to carry out the business contained in the permit jointly with other entities, transfer the business to other entities and sell, mortgage, lease, exchange and give the whole or part of the business contained in the permit, he shall apply to the authorized person to issue the permit in accord with the stipulations;

The permit holder shall, if causes damages and losses to any person and entity for failing to abide by this laws, rules, procedures, regulations, bye-laws, order and directives and failing to abide by the prescribed qualities and standardization, be liable according to law.

The permit holder shall be liable for causing any damage or loss due to the negligence by him to any person or entity.

If damages or losses arise in any electrical business operating by the permit holder to any person or entity due to any force majeure including in the event of natural disasters, he shall not be liable according to law.

The permit holder shall transfer regarding the business to be retransferred in its original form or in accord with the terms and conditions at the time of receiving the permit as agreement to whom it concerns at the end of permission period.

The permit holder shall abide by as follows:

(a) exploration of electric power shall be carried out in accord with the law;

(b) for generation, transmission and distribution of electric power:

(i) it shall be generated only the electric power prescribed under the electrical permit in generating the electric power;

(ii) it shall be systematically installed, maintained and used the measuring and protective equipment of electric power in accord with the stipulations.

Electric Power Utilization means procuring and utilizing the electric power which has the specified voltage, current, and frequency in accord with the stipulations.

In the event of electricity hazard occurs in respect of generation, transmission, distribution and utilization of electric power, the permit holder and the electrical authorized person shall report to the Chief Inspector and in-charge of the relevant department as soon as possible.

The permit holder to carry out importing, manufacturing and selling of electrical equipment shall abide by the specification of quality and standardizations of electrical equipment contained in the rules, regulations, bye-laws and procedures issued by this Law.

The permit holders shall carry out in accord with the rules, standardizations and procedures issued by the Ministry and shall be subjected to necessary inspection of relevant Government department and organizations.

An authorized person to issue permit may, if the permit holder violates any by-law contained in the permit or any order or directive issued by whom it concerned, or convicted any offence contained in this Law, take the following actions:

(a) imposing a fine;

(b) suspending or cancelling the permit for a limited period.

No person shall operate the electrical business without permit.

No permit holder shall operate any other electrical business except the business contained in the permit.

Electrical Professional Certificate means a skilled certificate in respect of electricity issued by the Chief Inspector in order to carry out the specified electrical business.

No person shall operate the electrical installation and repair without obtaining the electrical professional certificate.

No person shall operate the generation, transmission, connection of electric power without obtaining the electrical safety certificate.

Inspection of Electrical Equipment means the inspection of strength and standards of electrical equipment, machinery, electric lines, electrical measuring equipment used in electrical business.

No person shall operate the importing, manufacturing in the country, exporting, distributing and selling of the electrical equipment which are not consistent with the prescribed norm and standard.

No permit holder shall operate the electrical business in collaboration with any other entity without the approval of the relevant department and organization.

No permit holder shall sell, mortgage, lease, exchange or transfer by any other means the permit the whole or any part of the business contained in the permit without the approval of the relevant Government department or Government organization which has issued the permit.

Electric Line Area means the perimeter area specified by the Ministry for safety purposes from electricity hazards along the transmissions lines.

No person shall operate the construction of building, planting of trees or other activities within the area of the electric line.

Electric Power means the electric power generated by using any kind of energy resources.

No person shall connect, waste, utilize the electric power without the permission of the permit holder.

No person shall divert the electric current, cut-off the electric power line, destroy any equipment being used in any electrical business.

If a person is injured, or disabled or killed by the electric shock or outbreak of fire due to negligence or default of the permit holder or the person designated by him, the aggrieved person shall have the right to claim for compensation from the permit holder as follows:

(a) if the aggrieved person is applied to the existing Workmen’s Compensation Act, the compensation prescribed under such law;

(b) if the aggrieved person is not applied to the existing Workmen’s Compensation Act, the compensation prescribed by the rules issued under this Law.

The offences contained in this Law are determined as cognizable offences.