By S&S Co. Advocates & Solicitors · Published 27 August 2026 · Informational content, not legal advice. See our disclaimer
Theft vs. Unauthorised Use: A Key Distinction
The Electricity Act, 2003 treats "theft of electricity" under Section 135 and "unauthorised use of electricity" under Section 126 as distinct categories, though they are frequently confused. Section 135 covers deliberate acts such as tampering with a meter, making a direct or indirect connection bypassing the meter, or using electricity through a means designed to avoid the correct recording of consumption: conduct that carries criminal consequences. Unauthorised use under Section 126, by contrast, typically covers consumption exceeding a sanctioned load or for a purpose (such as commercial use on a domestic connection) not authorised under the existing agreement, and is dealt with primarily as a civil assessment matter, though it can escalate to Section 135 territory if it involves actual tampering.
The Presumption of Responsibility
Where an inspection reveals evidence of theft (such as a bypass arrangement) on premises in a consumer's occupation and control, courts have held that a presumption arises that the occupant is responsible, which the occupant must then rebut with credible evidence rather than a bare denial. This evidentiary presumption is one of the more consequential practical features of Section 135 proceedings for consumers.
Special Courts and the Compounding Route
Sections 153 to 155 of the Act provide for the constitution of Special Courts to try offences under Section 135, intended to expedite disposal given the volume of theft cases. Separately, Section 152 permits compounding of a first-time Section 135 offence on payment of a specified compounding amount, offering an accused a route to resolve the matter without a full criminal trial, subject to conditions the Act and applicable state rules prescribe.
Civil Liability: Assessment and Compensation
Independent of any criminal prosecution, Section 135 and 126 findings both typically trigger a civil assessment of the electricity consumed but not properly billed, computed under the state's electricity supply code based on connected load and the assessed period of unauthorised use or theft: this assessed amount is recoverable as arrears of electricity charges and is a separate track from any criminal proceeding.
Defending an Unauthorised-Use or Theft Notice
A consumer served with a theft or unauthorised-use notice should respond promptly and specifically: challenging the inspection procedure itself where it deviated from prescribed protocol, disputing the connected-load or consumption-period assumptions underlying the assessment, and (where genuinely applicable) presenting credible evidence to rebut the presumption of responsibility, rather than relying on a general denial that courts have consistently found insufficient.
Frequently Asked Questions
What is the difference between electricity theft and unauthorised use?
Theft under Section 135 involves deliberate acts like meter tampering or bypass connections and carries criminal consequences; unauthorised use under Section 126 typically covers exceeding a sanctioned load or using power for an unauthorised purpose, dealt with mainly as a civil assessment matter.
Can a first-time electricity theft offence be compounded?
Yes. Section 152 permits compounding of a first-time Section 135 offence on payment of a specified compounding amount, subject to conditions in the Act and applicable state rules.
Who tries offences under Section 135?
Special Courts constituted under Sections 153 to 155 of the Electricity Act, intended to expedite disposal of electricity theft cases.
What should a consumer do on receiving a theft or unauthorised-use notice?
Respond promptly with specific objections: challenging the inspection procedure if it deviated from protocol, disputing the assessment's connected-load or time-period assumptions, and presenting credible rebuttal evidence rather than a general denial.
References & Further Reading
This article references the following statutory provisions. Readers should always verify current rules, fees and timelines against the applicable statute and rules as amended, since these are revised from time to time.
- Electricity Act, 2003, Sections 126, 135, 152, 153-155.
- Applicable state electricity supply code provisions on assessment of unauthorised use and theft.
- Central Electricity Authority guidelines on inspection procedure for theft detection.