|The basic essentials for survival
are house, water and food. This still holds true but there is an addition in this list - ELECTRICITY.
Now-a-days, with increasing advancements in technologies, automation is the call of the hour. This has
propelled the use of more and more automated appliances for daily operations, e.g., vacuum cleaner
replacing the conventional ways of cleaning.
House A consumed 300 units of electricity in the month of January.
House B consumed 500 units of electricity in the month of January.
House A falls in the slab of 200-400 units per month whose charges are Rs 4.80 per unit.
House B falls under the slab of more than 400units electricity whose charges are Rs 5.70 per unit.
We get the total unit's cost by multiplying the number of units and the cost per unit. So,
House A has to pay Rs 1440 as the unit cost.
House B has to pay Rs 2850 as the unit cost.
The set of rules and regulations that govern the management of electricity are all defined in the Electricity Act 2003. Prior to this Act all the governing was done as per the Indian Electricity Act, 1910 and The Electricity (Supply) Act, 1948. It was mainly the responsibility of the State Electricity Board to manage the supply and distribution of electricity. The first guide book to this Act was written by Mr. Raj Singh Niranjan by the title "Guide to electricity Laws in India".
The Act demolishes power generation completely (except for hydro power projects over a certain size). The Highlight of the act was the focus on using renewable and non-conventional sources of energy because the act aimed at making energy generation eco-friendly. As much as 10% of the entire power supplied in the country should be of this reliable form. The act also establishes licensing schemes for distribution in urban areas and encourages availability in rural areas. But, the constraint with this regime is the 'undefined boundaries of the rural areas' that causes one third distribution yet to be frees up, apart from the 16 states that have defined it.