Electricity theft control act, 2058
Electricity Theft Control Act, 2058 (2002)
Date of Authentication and Publication
2058.10.10(23 Jan 2002)
Republic Strengthening and Some Nepal
Laws Amendment Act, 2066(2010)1
2066.10.7 (21 Jan. 2010)
Act Number 13 of the year 2058 (2002)
An Act Made To Provide For Controlling Electricity Theft
Preamble: Whereas, it is expedient to make necessary legal provisions for
controlling electricity theft;
Now, therefore, Parliament has made this Act in the first year of reign of
His Majesty King Birendra Bir Bikram Shah Dev.
1. Short title and commencement: (1) This Act may be called as
“Electricity Theft Control Act, 2058 (2002)”.
(2) It shall come into force immediately.
2. Definitions: Unless the subject or the context otherwise requires, in
(a) "Electricity" means electric power generated from water, mineral
oil, coal, gas, solar energy, wind energy, atomic energy or any
1 This Act came into force on 15 Jestha 2065 (28 May 2008). 2 Deleted by Republic Strengthening and Some Nepal Laws Amendment Act, 2066(2010).
(b) "Distributor" means the electricity seller, distributor as referred to
in Section 3.
(c) "Customer" means a person or institution whose name is
registered in the list of customers using the electricity service
sold and distributed by a distributor, and this term also includes
the chief of any institution or office and, where rgistered
customer has died, the heir to such a registered customer in
accordance with the prevailing laws.
(d) "User" means a person or institution using the electricity service
sold and distributed by a distributor.
(e) "House" or "building" means a residential or non-residential
house or building, and this term also includes a house, building or
shed where an institution, office, shop, godown, factory etc. are
situated, and the compound of the house, building or shed.
(f) "Offense" means the offense relating to the electricity theft as
referred to in Section 7.
(g) "Offender" means a person who is involved in the offense
relating to the electricity theft as referred to in Section 7, and this
term also includes an employee of the distributor involved in that
(h) "Energy measurement machine" includes an energy measurement
machine installed with the house or building of a customer on
behalf of a distributor to count the units of electricity used by the
user, and other equipment related therewith.
(i) "Institution" means an institution established pursuant to the laws
(j) "Investigation authority" means an investigation authority
designated pursuant to Sub-section (1) of Section 12.
(k) "Prescribed" or "as prescribed" means prescribed or as
prescribed in the Rules framed under this Act.
Provisions Relating to Electricity Distributor
and Electricity Theft
3. Electricity distributor : In the case of the electricity as follows, the
following person or institution shall be considered as the electricity
(a) The licensee, in the case of the electricity sold and distributed
with or without using the national grid upon having obtained the
license to generate and sell and distribute pursuant to Section 4 of
the Electricity Act, 2049 (1992),
(b) The Government of Nepal, in the case of the electricity to be sold
and distributed by using the national grid upon purchasing the
same by the Government of Nepal pursuant to Section 21 of the
Electricity Act, 2049 (1992), and in the case of the electricity sold
and distributed upon being purchased through any other
(c) The concerned importer, in the case of the electricity imported
into and sold and distributed in …………3 Nepal pursuant to
Sub-section (1) of Section 22 of the Electricity Act, 2049 (1992),
(d) In the case of the electricity generated and developed, and sold
and distributed by the Government of Nepal itself pursuant to
Section 34 of the Electricity Act, 2049 (1992), theGovernment of
(e) In the case of the electricity sold and distributed upon concluding
a contract with the Government of Nepal in relation t the sale 3 Deleted by Republic Strengthening and Some Nepal Laws Amendment Act, 2066 (2010).
and distribution of electricity pursuant to Section 35 of the
Electricity Act, 2049 (1992), the person or institution making
concluding such a contract,
(f) In the case of the electricity to be sold and distributed upon
obtaining the electricity from another point by wheeling the same
from one point by using the distribution system of one distributor,
the person or institution who so obtains the electricity at the last
4. Liability of distributor : It shall be the duty of the distributor
institution and its employees to act taking into best account of the
interests of its customers. The other provisions in relation thereto shall
be as prescribed, and provisions shall be made for compensation as
prescribed in the case of the violations of the rights of consumers.
5. Code of conduct: Upon the commencement of this Act, a code of
conduct shall be prepared and enforced in the case of the distributor
institution and its employees. Its violator shall be liable to punishment as
if it were a criminal offense, and the other provisions in relation thereto
shall be as prescribed.
6. Prohibition on electricity theft : No person shall thieve, cause the
theft of electricity or aid another person to commit such act.
7. Offense deemed to be committed: (1) If any person commits any of
the following acts, the person shall be deemed to have committed the
offense of electricity theft:
(a) To haul or install the electricity line directly or
indirectly from other line of the electricity than
through the energy measurement machine,
(b) To haul or install the electricity line from the
electricity line for street light or other purpose,
without approval of the distributor,
(c) To follow other technology than the technology
specified to supply the electricity to the house of
building through the electricity measurement
(d) To take phase from one electricity measurement
machine by reversing its polarity and take neutral
line from another electricity measurement machine
(e) To insert anything into the electricity measurement
machine or crate obstruction in the normal
mobilization of the disk of the electricity
measurement machine in any other manner,
(f) To open the terminal link,
(g) To break, destroy, obliterate the terminal or test
seal affixed to the electricity measurement machine
on behalf of the distributor or use a fake terminal or
(h) To damage the electricity measurement machine by
breaking, destroying, obliterating it or in any other
manner or make it incapable of being mobilized
(i) To temper with the seal of the box containing the
electricity measurement machine, or despite the
existence of the seal, use the seal containing no seal
of the distributor or use the seal containing the seal
of anyone other than the distributor or temper with
(j) Temper with the seal of CT or PT or both, make
reverse the polarity or break out the connection,
(k) To follow any other method to thieve electric
power in any circumstance other than those set
forth in Clause (a) to Clause (j).
(2) Notwithstanding anything contained in Sub-section (1), if, in
making technical examination in the course of investigation and
inquiries into the offense, it appears that the electricity measurement
machine has become disordered not because of any fault o the customer
or user but because of any other technical reason or act beyond human
control, the offense shall not be deemed to have been committed.
8. Liability of offense to be vested: (1) The liability of the offense as
referred to in Section 7 shall be vested in the person, concerned
customer involved in acts relating to that offense and the person who
aids the commission of such offense.
(2) Notwithstanding anything contained in Sub-section (1), the
liability of the offense committed in the following house or building
shall be vested in the following person:
(a) In the case of the offense committed in the house or
building being used by an institution or office, chief
of the concerned institution or office,
(b) In the case of the offense committed in the house or
building being used in rent or otherwise, chief of
the institution or office using such house or
building, and where any person or family has used
such a house or building, main person of such
person or family or house-owner,
(c) In the case of the offense committed in a joint
housing or a house or building where more than one
institution, office, person or family have jointly
resided, chief of the institution or office, person r
main person of the family or house-owner involved
in the offense, out of the institutions, offices,
persons or families using such a house or building,
(d) In the case of the offense committed in the house or
building sold or otherwise transferred by the owner
of any house or building, chief of the institution r
office, person or main person of the family
involved in the offense, out of the institution,
office, person or families using such a house or
Provided that, the burden of proof shall lie
on the owner of any house or building to prove that
such house or building has been rented. Otherwise,
the liability of offense committed in such a house or
building shall be vested in the owner of house or
9. Power to cut electricity line: The electricity line may be cut in the
(a) Failure to pay the electricity tariff within the specified time,
(b) Appearing to have committed the offense as referr d to in Section
10. Power to enforce special provision in area more affected from
electricity theft : The contract or cut out system may be so enforced as
to have the flow of electricity only in such quantity as specified by
publishing a notice in the Nepal Gazette, in the case of any area
in…………. 4 Nepal, which is more affected from the electricity theft.
11. Offender is to pay the amount of loss and damage and
compensation: (1) If any person commits the offense as referred to in 4 Deleted by Republic Strengthening and Some Nepal Laws Amendment Act, 2066(2010).
Section 7 and causes loss and damage, the offender shall pay the amount
for the same and the amount of compensation equal thereto. The
electricity line shall not be installed until the amount and compensation
to be so paid is paid.
(2) If a person who has once paid the loss, damage nd
compensation pursuant to Sub-section (1) again commits the same
offense, that person has to pay the amount of loss and damage that the
distributor has suffered actually and amount of Two Hundred percent
thereof for compensation to the distributor for each instance.
(3) The manner and procedures for the evaluation of the loss and
damage that the distributor has suffered actually pursuant to Sub-
sections (1) and (2) shall be as prescribed.
Investigation and Inquiry
12. Investigation authority: (1) The distributor shall designate the
investigation authority for the investigation and iquiry into the offense
as referred to in this Act.
(2) The functions, duties and powers of the investigation
authority as referred to in Sub-section (1) shall be as follows:
(a) Where information is received from any person that
the offense is being committed or going to be
committed or where, despite that no information
has been received, there is a reasonable ground to
doubt that the offense is going to be committed, the
investigation authority shall go to such a place and
carry out necessary technical inquiry, and if the
offense is found to have been committed or have
taken place, the investigation authority shall cut the
line immediately, take in his or her custody the
goods related with the offense and give a slip
thereof, and inquire into the offender and prepare a
deed of public inquiry,
(b) To carry out investigation and inquiry into the
offense and evaluate the actual loss and damage
caused by the offender to the distributor.
(3) It shall be the duty of the local administration, officials of the
local bodies, police and all the concerned to render assistance to the
investigation authority in the course of investigaton and inquiry into the
(4) The investigation authority fine a person who makes
obstruction or objection with or to investigation ad inquiry into the
offense with a sum not exceeding Two Thousand Rupees.
13. Power to make application for review: (1) In the event of
dissatisfaction with the action, evaluation and punishment taken or made
by the investigation authority pursuant to Sub-sections (2) and (4) of
Section 12, the concerned person or institution mayke an application
to the concerned distributor for the review of such a tion, evaluation and
(2) If an application is made pursuant to Sub-section (1), the
distributor shall make review.
(3) The procedures of making review pursuant to Sub-section (2)
shall be as prescribed.
14. To give notice for making payment of loss, damage and
compensation: A notice has to be given, as prescribed, to the
concerned person or institution to make payment of the amount of loss
and damage and compensation accordingly if no application is made
pursuant to Section 13 for the review of the evaluation made pursuant to
Clause (b) of Sub-section (2) of Section 12, and if an application if made
for the review, the amount of actual loss and damage and compensation
for the same as held upon review not later than Thirty Five days.
15. To file cases: (1) If the offender tenders payment of the amount within
the time-limit of the notice given pursuant to Section 13, the amount has
to be received, the action against him or her has to be finalized and
closed. If amount is not tendered for payment, the investigation
authority shall file the case in the concerned district court within Thirty
days after the date of the expiration of the time-limit.
(2) The investigation authority shall, for the pur ose of filing
the case pursuant to Sub-section (1), do as per Section 31 of the Sate
Cases Act, 2049.
(3) In trying and disposing the case filed pursuant to Sub-
section (1), the district court shall follow the procedures on the matters
set forth in this Act and the procedures as referred to in the Summary
Procedure Act, 2028 (1972) in relation to the other matters.
16. Punishment: (1) If, in trying and disposing case by the court, a person
is held to have committed the offense, the claimed amount for the actual
loss and damage that the distributor has sustained a d the amount of
compensation equal to the claimed amount shall be recovered from the
offender to the distributor, and such offender shall be liable to
punishment of a fine of up to Five Thousand Rupees or imprisonment
for a term not exceeding Three months according to the gravity of
offence or both punishments.
(2) If a person who is once held to have committed the offense
commits the same offense again, the claimed amount for the loss and
damage that the distributor has sustained and the amount of
compensation equal to the Two Hundred percent of the claimed amount
shall be recovered from the offender to the distribu or for each instance,
and such offender shall be liable to punishment of a fine of up to Ten
Thousand Rupees or imprisonment for a term not exceeding Six months
or both punishments.
17. To be state cases: The cases under this Act shall be state cases.
18. Reward: (1) after the final disposal of the case, the distribu or shall
give a reward in the sum as prescribed to the person who gives
information relating to the offense.
Provided that, such reward shall not be given to the distributor,
employee of the distributor and his or her family.
(2) The other provisions relating to the reward to be given
pursuant to Sub-section (1) shall be as prescribed.
19. Saving of act done in good faith: No investigation authority or
employee shall be personally liable for any act done in good faith in the
course of performing their duties by the investigation authority and
employee related with such act.
20. Power to frame Rules: The Government of Nepal may frame
necessary Rules to implement the objectives of this Act.
21. Repeal and saving: (1) Of the Electricity Act, 2049 (1992):
(a) Sub-section (3) of Section 38 is, hereby, repealed.
(b) The words "Sub-sections (1) and (2) of Section 38" shall be substituted for the words "Sub-sections (1), (2) and (3) of Section 38" contained in Section 39.
(2) Notwithstanding anything contained in this Act, no provision
contained in this Act shall be deemed to prevent the distributor from
exercising the powers conferred to the distributor pursuant to the
prevailing laws in relation to the controlling of unauthorized
use/consumption of electricity.