ELECTRICITY THEFT PENALTY CALCULATOR (Assessment and summon / Compounding charges)

What is electricity Theft according to the electricity act 2005–

  1. If any person illegally made a connection with an overhead line, cable, and make a katiya connection.
  2. Or if the consumer did a tampers in his installed meter placed on his premise or change calibration or metering of electric current or otherwise results in a manner whereby electricity is being theft.
  3. If the owner of a premise uses electricity for the purpose other than for which the usage of electricity was authorized. This means if a connection was taken for domestic purposes but is being used for commercial purposes.


If any person or consumer who caught in electricity theft then the electricity theft punishment would be imprisonment for a term which may extend to three years or with fine or with both:

In case if person, who committed or who is reasonably suspected of having committed an offense of theft of electricity punishable under this Act may accept hos crime of electricity theft. And pay a sum of money by way of compounding of the offense as specified in the Table below then he will be

spared from being imprisoned. But assessment (energy kwh) of electricity stolen have to be paid furthermore.

Compounding of offenses-

Electricity theft is a criminal offense. If there is solid proof of theft then a sum of money has to be deposited by the person by way of compounding the offense.

Rate of compounding for electricity theft punishment

Domestic- 4000/ kw




Any other- 4000/kw

This amount of compounding has to be deposited to quash the case.

 Government of India, MOP clarification letter dated 26.10.2005 has clearly said that the compounding fees shall go to the credit of the State Government like UP government in case of UPPCL, and the electricity department may receive the assessed amount. Means assessment of stolen energy has to be deposited by the person who stole energy along with summoning sulk/compounding.

How to inspect in electrical theft case

The way for Inspection. First of all on getting information regarding theft how the inspecting officer conduct inspection and what step are necessary to inspection are as follows- 

  1. department officer according to under section 135 of the Act, on receipt of information regarding any theft, he shall promptly conduct an inspection of such premises with a team. 
  2. the officer will conduct a search and will do seizure of cable, evidence also applies. 
  3. The member of a family of the place of search or any person on his behalf shall remain present during the inspection. during the inspection, a list of all things seized in the course of such search shall be listed and delivered to such occupant or person present on his behalf who shall sign the prepared list. 
  4. In all cases of inspection, a checking report shall be made at the site showing all details of connected load, in which a line diagram of theft will be shown in the checking report.
  5. In checking prima facie for theft inferred shall be shown clearly. The report shall be signed by each officer of the inspection team and it would be given to the consumer or his / her behalf at the site immediately with proper receiving a copy of the checking report shall be sent to the consumer under Registered Post / Speed post either on the day or the next day of the inspection. 

Disconnection of line on theft

Electric supply to such premises shall be disconnected forthwith on the spot by the department officers and it shall be restored only after the reason of theft is removed to the satisfaction of officers and the culprit pays the assessment framed., with but person must have to be given an opportunity for representation regarding assessment amount. 

In case the premises where the theft of electricity has been found and the person does not have regular legal electricity connection, the officers on checking shall immediately disconnect the supply to that premises, and the line would be connected again only when the person has paid all the dues to be paid on account of charges assessed /assessment for theft of electricity in full and would take legal new connection with all document.

After that, we initiate sending of Provisional Assessment and notice to the person.


A. To calculate assessment in case of unauthorized use of electricity 

the formula for Units Assessed is = L * F * D * H. 

 Where every letter will stand for as following

 L = stands for the connected load or sanction load in kW /kva. 

 H = approximate hours to supply in that area in which theft was conducted. It also depends on the categories of load.

So, for different categories H (HOUR) will be as follows: 

1.for Agriculture load: 10 hrs 

2.for a commercial load like shop hotel- 20 hrs 

3.industrial load /tariff Continuous process industry: 24 hrs 

4.Domestic load: 8 hrs 

5.for Temporary connections: 12 hrs 

D = no. of days during which supply may be used.

For domestic and agricultural 90 days 

For commercial load- 180

Based on the report and evidence, the no. of days can be decided

or actual no. of days of use, if a solid proof is available.

F = connected load factor for different types of supply as given below: 

  1. For domestic useing consumers F = 0.30 
  2. For commercial L & F and power consumers F = 0.50 
  3. For industrial load and Small and Medium power consumers F= 0.50 
  4. For large and heavy power consumer load F = 0.75 
  5. for irrigation pump F=0.30 
  6. Categories not covered above F= 0.50 

1.unit calculated using the above formula called assessed unit and it shall be charged at two times the rate per unit of the tariff applicable to the consumer category after adjusting the amount paid by the consumer or person for the energy consumption assessed for the assessment period if any. 

2.In cases where fix monthly rates like unmetered consumers monthly assessment shall be made at two times the monthly rate. 

  1. For cases where consumer use electricity in higher tariff for other than he was authorized. 
  2. if it is found consumer is using electricity in higher tariff for another purpose than he was authorized. means the energy supplied is used for a purpose on which higher tariff is applicable, the total calculated energy using above formula in the previous 3 (Three) months in case of domestic or agriculture consumer and 6 (Six) months for all other categories like a commercial, it will be shall be charged at 2 times the rate applicable for the category for which load was found to have been used. and the amount paid in the lower tariff will be adjusted.

    B. Assessment of Energy in cases of direct theft 

Assessment of energy in the cases of theft shall be done using the below formula

 The formula for Unit Assessed will be = L*F*H*D, same as in unauthorized use of electricity.

  1. The only change for direct theft is ’F’ would be in this case = 1.0 (100%). 
  2. The consumption calculated or assessed, would be charged at 2 times the normal tariff applicable, and payment made low lower tariff would be adjusted. 

  (b) Hearing for Assessment

  1. within 3 days of inspection assessing officer /ex en officer will analyze the theft case.
  2. If the Assessing Officer/ ex en he will serve the provisional assessment bill along with show-cause notice to the consumer for hearing and asked for representation, giving 7 working days, 

   calculation of assessment will be done as per the above-mentioned formula LHFD.

  1. The provisional bill and notice shall invite objections in writing from the person who did theft, it requires the presence of the consumer to answer to all the charges imposed on him by the assessing officer. 
  2. if after the presentation by the person if the assessing officer finds that a case of theft has been established, calculation of assessment will be done as per the above-mentioned formula. And compounding and assessment both at the same time have to be deposited by the person/consumer who did theft.
  3.  if the person doesn’t deposit the assessment and compounding. a copy of the order shall be served to the consumer under proper receipt through Registered Post / Speed Post 
  4. The assessing officer may accept payment in installment.


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