Power sector in India has been undergoing a major reform since the last two decades. As part of the power sector reform process, the Government of Nagaland launched the Communitisation programme in the state. Communitisation is a unique way of decentralization of electricity management through community empowerment. This study is an attempt to evaluate the effectiveness of Communitisation programme in rural areas of Nagaland. The study is based on primary data collected by conducting field survey. The data so collected were analyzed using statistical measures like average, percentage and weighted average. The study reveals that Communitisation programme has been effective in improving the revenue collection efficiency, controlling the power theft and reduction of technical and commercial losses in rural areas. However, the study shows that no improvement has been witnessed in service delivery after Communitisation.