LexThe Gujarat Electricity Industry (Reorganisation and Regulation) Act, 2003
Gujarat · state statute
Open in Lexace · Ask the AI about this actGUJARAT ACT NO. 24 OF 2003.
THE GUJARAT ELECTRICITY INDUSTRY (REORGANISATION
AND REGULATION) ACT, 2003.
Sections
C O N T E N T S
Page No.
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement. 1
2. Definitions. 2
CHAPTER II
ESTABLISHMENT AND CONSTITUTION OF
COMMISSION
3. Establishment and incorporation of Commission. 3
4. Headquarters of Commission. 4
5. Constitution of Commission. 4
6. Constitution of Selection Committee and its
functions.
5
7. Term of office and conditions of members. 6
8. Oath of office and secrecy. 6
9. Disqualifications. 6
10. Removal and resignation of member. 7
11. Prohibition of appearance before Commission, etc.
on ceasing to be a member.
8
12. Proceedings of Commission. 8
13. Officers and employees of Commission. 9
14. Consultants. 10
15. Funding of expenses of Commission. 10
16. Acts and proceedings presumed to be valid. 10
CHAPTER III
FUNCTIONS AND POWERS OF
COMMISSION
17. Functions of Commission. 10
18. Powers of Commission. 12
CHAPTER IV
LICENSING OF TRANSMISSION AND
SUPPLY OF ELECTRICITY
19. Prohibition against business of transmission,
distribution or supply of electricity.
14
20. Grant of Licence. 15
21. Powers of License. 18
22. Amendment of License. 19
23. Revocation of License. 20
ii
24. Provisions where licence is revoked. 22
25. Restrictions on Licenses. 24
26. Exemption from the requirement to have a license. 25
27. Sanction by State Government in case of
emergency.
25
CHAPTER V
REORGANISATION OF GOVERNMENT
ELECTRICITY INDUSTRY
28. Reorganisation of Government Electricity Industry. 26
29. Provisions relating to transfer of personnel. 29
30. Variation of transfer. 29
31. Furnishing of information regarding establishment
of generating stations.
30
CHAPTER VI
TARIFFS
32. Tariffs. 30
33. Financial assistance to license by State
Government.
33
CHAPTER VII
COMMISSION’S POWER TO PASS ORDERS
AND ENFORCE DECISIONS
34. Orders for preventing contraventions by licenses. 33
35. Final orders for preventing contraventions. 35
36. Power to modify or revoke final order. 36
37. Enforcement of orders. 36
38. Power of Commission to assume management or
control of undertaking of a license in certain cases.
36
39. Fines and charges. 36
40. Co-operation of police. 37
CHAPTER VIII
ADVISORY COMMITTEE, STANDARDS OF
PERFORMANCE AND DISCLOSURE OF
INFORMATION BY LICENSEES
41. Advisory Committee. 37
42. Performance of standards of supply of electricity. 38
43. Information on standards of performance. 39
44. Information with respect to level of performances. 39
45. Restriction on disclosure of information. 40
CHAPTER IX
ACCOUNTS, AUDIT AND REPORTS
46. Budget of Commission. 41
47. Accounts and audit of Commission. 41
48. Annual report of Commission. 41
iii
CHAPTER X
ARBITRATION AND APPEALS
49. Arbitration by Commission. 42
50. Appeals against the orders of the Commission. 42
51. Finality of decision of Commission. 43
52. Bar of jurisdiction of civil court. 43
CHAPTER XI
OFFENCES AND PENALTIES
53. Penalty for contravention of section 19. 43
54. General penalty. 43
55. Offences by companies. 44
56. Cognisance of offences. 44
57. Compounding of offences. 45
CHAPTER XII
MISCELLANEOUS
58. Recovery of fees, fines, charges, etc. 45
59. Application of fine. 45
60. Proceedings before Commission. 45
61. Members, officers and servants of the Commission
and members of Selection Committee to be public
servants.
46
62. Protection of action taken in good faith. 46
63. Power of the State Government to give directions. 46
64. Power of State Government to make rules. 46
65. Power of Commission to make regulations. 47
66. Power to remove difficulties. 49
67. Amendment of IX of 1910. 50
68. Amendment of 54 of 1948. 50
CHAPTER XIII
EFFECT ON EXISTING CENTRAL
LEGISLATION
69. Effect of Act on IX of 1910 and 54 of 1948. 51
70. Effect of the Act on 14 of 1998. 52
71. Application of section 7 of Bom. I of 1904. 54
72. Saving. 54
iv
The following Act of the Gujarat Legislature, having been
assented to by the President on the 3 rd May, 2003 is hereby published
for general information.
V. M. KOTHARE,
Secretary to the Government of Gujarat,
Legislative and Parliamentary Affairs Department.
GUJARAT ACT NO. 24 OF 2003.
(First published after having received the assent of the
President in the “ Gujarat Government Gazette ”, on the 12 th May,
2003).
AN ACT
to provide for reorganisation and rationalisation of electricity industry in the
State of Gujarat and for establishing an Electricity Regulatory Commission
in the State for regulating the electricity industry
and for matters connected therewith or incidental thereto.
It is hereby enact ed in the Fifty -fourth Year of the Republic of India
as follows:-
CHAPTER I
PRELIMINARY
1. (1) This Act may be called the Gujarat Electricity Industry
(Reorganisation and Regulation) Act, 2003.
(2) It extends to the whole of the State of Gujarat.
(3) It shall come into force on such date as the State Government may,
by notification in the Official Gazette, appoint.
2. In this Act, unless the context otherwise requires,-
(a) “Advisory Committee” means a committee constituted under section
41;
(b) “Central Act” means the Electricity Regulatory Commissions Act,
1998;
(c) “Central Commission” means the Central Electricity Regulatory
Commission established under sub-section (1) of sectio n 3 of the
Central Act;
(d) “Chairperson” means the Chairperson of the Commission;
(e) “Commission” means the Gujarat Electricity Regulatory Commission
established or deemed to be established under section 3;
Short title, extent
and
commencement
Definitions.
14 of 1998.
H -68-1
v
(f) “electricity industry” means business or activities of generation,
transmission, distribution or supply of electricity, the operation of
power system and activities and matters connected thereto;
(g) “High Court” means the High Court of Gujarat;
(h) “Licence” means a licence granted under section 20 or deemed to be
granted under section 19;
(i) “Licensee” means a person holding a licence;
(j) “Local authority” means a municipal corporation, nagar panchayat,
municipal council, district panchayat, taluka panchayat, notified area
committee or Cantonment Board constituted under the relevant local
authority law;
(k) “Member” means a member of the Commission and includes the
Chairperson;
(l) “prescribed” means prescribed by rules;
(m) “regulations” means regulations made under this Act;
(n) “relevant local authority law” means-
(i) in relation to a City, the Bombay Provincial Municipal
Corporations Act, 1949;
(ii) in relation to a municipal borough, transitional area, smaller
urban area and notified area, the Gujarat Municipalities Act,
1963;
(iii) in relation to a taluka and district, the Gujarat Panchayats
Act, 1993;
(iv) in relation to a cantonment, the Cantonments Act, 1924;
(o) “rules” means rules made under this Act;
(p) “Selection Committee” means the Selection Committee constituted
under section 6;
(q) “undertaking” means an unit engaged in generation, transmission,
distribution or supply of electricity or in any other activity connected
with the operation of power system in the State;
(r) words and expressions used but not defined in this Act and defined in
the Central Act shall have the meanings respectively assigned to them
in that Act;
(s) words and expressions used but not defined either in this Act or in the
Bom. LIX of
1949.
Guj. 34 of 1964.
Guj. 18 of 1993.
2 of 1924.
9 of 1910.
54 of 1948.
vi
Central Act and defined in the Indian Electricity Act,1910, or in the
Electricity (Supply) Act, 1948 shall have the meanings respectively
assigned to them in those Acts.
CHAPTER II
ESTABLISHMENT AND CONSTITUTION OF COMMISSION
3. (1) For the purpose of regulating electricity industry in the State, the
State Government shall, by notification in the Official Gazette , establish a
Commission by the name of the Gujarat Electricity Regulatory Commission.
(2) The Commission shall be a body corporate, with perpetual succession
and common seal and may sue or be sued in its corporate name and shall,
subject to the provisions of this Act, be competent to acquire, hold or dispose
of property both movable and immovable, and to contract and do all things
necessary for the purposes of this Act.
(3) (a) Notwithstanding that by virtue of section 70, the provisions of
the Central Act in so far as they relate to State Commission have
ceased to apply, the Gujarat E lectricity Regulatory Commission
established under sub-section (1) of section 17 of the Central Act and
functioning immediately before the date of commencement of this
Act (hereinafter in this section referred to as “the said Commission”)
shall be deemed t o be first Commission established under sub-section
(1);
(b) The Chairperson and members of the said Commission
holding office immediately before the said date, shall respectively be
the Chairperson and members of the first Commission;
(c) the Chairperson and the members of the first Commission
shall hold office for the period for which they would have held office
under the Central Act subject, however, to the provisions relating to
disqualifications, resignation, removal and vacancy in this Act.
4. The headquarters of the Commission shall be at Ahmedabad or at
such other place as the State Government may, by a notification in the
Official Gazette, specify.
5. (1) The Commission shall consist of a Chairperson and two other
members to be appointed by the State Government on the recommendation
of a Selection Committee constituted under section 6.
(2) Out of three members, -
(a) one shall be a person who has special knowledge and professional
experience in the field of engineering related to generation,
transmission, distribution or supply of electricity;
Establishment
and
incorportation of
Commission
Headquarters of
Commission.
Constitution of
Commission.
vii
(b) the other two shall be the persons who have special knowledge and
professional experience in the field of finance, commerce,
economics, regulation of industry, law or management:
Provided that not more than one member shall be appointed having
professional knowledge and experience in the same field.
(3) A member of the Commission shall render whole time service and
shall not hold any other office during his tenure of office.
(4) On occurrence of any vacancy in the office of a member due to death,
resignation or any other reason, the same shall be filled in by the State
Government in the manner provided in this Act.
6. (1) The State Government shall for the purpose of selecting persons
for being appointed as members of the Commission, constitute at such times
as specified in sub -section (3), a Selection Committee consisting of the
following three members, namely :-
(a) a Judge of the High Court designated by the Chief Justice to
be the Chairperson ex-officio;
(b) the Chief Secretary to the Government of Gujarat ex-officio;
(c) the Chairman of the Authority or a member thereof
nominated by the Chairman ex-officio.
(2) The Secretary to the Government of Gujarat in Energy and
Petro-chemicals Department shall be the Secretary ex-officio.
(3) The State Government shall, within one month from the date of
occurrence of any vacancy in the office of a Chairperson or member by
reason of his death, resignation or removal or within six months before the
superannuation of or the end of tenure of the Chairperson or a member
constitute the Selection Committee and make a reference to it for
recommending persons for being selected for appointment in the vacancy.
(4) The Selection Committee shall, after satisfying itself that the persons
who are being recommended by it possess the qualifications mentioned in
sub-section (2) of section 5 and ar e not disqualified under section 9,
recommend within two months from the date on which the reference is
received by it a panel of names of two persons for each vacancy in the office
of a Chairman or, as the case may be, a member.
(5) The Selection Commit tee may, for the purpose of recommending
persons under sub-section (4) follow such procedure as deemed fit including
the appointment of a search committee consisting of such persons as the
Selection Committee considers appropriate to suggest the panel of p ersons
possessing the requisite qualification and experience and suitable for being
considered for appointment as Chairperson or member of the Commission.
Constitution of
Selection
Committee and
its functions.
viii
(6) The State Government shall within fifteen days from the date of the
recommendation by the Sel ection Committee under sub -section (4), appoint
one of the two persons recommended by the Selection Committee for the
vacancy.
7. (1) A member shall hold office for a period of five years from the
date on which he enters upon his office:
Provided that he shall cease to be a member on the day on which he
attains the age of sixty-five years.
(2) No person shall be appointed as a member after he has attained the
age of sixty-two years.
(3) A member sh all not be eligible for re -appointment after the expiry of
the term of his office.
(4) The salary and allowances payable to and other conditions of service
of the members shall be such as may prescribed:
Provided that the salary and allowances and other conditions of
service of a member shall not be varied to his disadvantage during the tenure
of his office.
8. The Chairperson and every member shall, before entering upon his
office, make and subscribe to an oath of office and of secrecy in such form
and in such manner and before such authority as may be prescribed.
9. A person shall be disqualified for being appointed or being a member
of the Commission, if-
(a) he is a member of the Parliament or of any Sta te Legislature
or any local authority ; or
(b) he is a member of a political party;
(c) he is, or at any time, has been adjudged an insolvent or he has
suspended payment of his debts or has compounded with his
creditors;
(d) he is of unsound mind and stands so declared by a competent
court;
(e) he is, or has been convicted of any offence which in the
opinion of the State Government, involves moral turpitude;
Term of office
and conditions of
members.
Oath of office and
secrecy.
Disqualifications.
H-68-2
ix
(f) he has either directly or indirectly any financial or other
interest which is likely to affect prejudicial ly his functioning
as a member;
(g) he has either directly or indirectly any financial or other
interest in -
(i) generation, transmission, distribution or supply of
electricity,
(ii) manufacture, sale or supply of any fuel for generation
of electricity,
(iii) manufacture of, or any dealings in, plant and
machinery, equipments, apparatus or fittings for the
matters specified in sub-clause (i), or
(iv) any body which provides professional services in
relation to matters specified in the aforesaid
sub-clauses.
10. (1) Notwithstanding anything contained in sub -section (1) of
section 7, the State Government may, at any time, remove any member from
office, if, in its opinion, such a member -
(a) is or has become, subject to any of the disqualifi cations
mentioned in section 9,
(b) has been guilty of misconduct in discharge of his duties,
(c) has become physically or mentally incapable of discharging
his duties as a member,
(d) has so abused his position as to render his continuance in
office prejudicial to public interest, or
(e) has without reasonable cause refused or failed to perform his
duties for a period of not less than three months:
Provided that no member shall be removed from his
office-
(i) on the ground specified in clause (f) or (g) of section 9 or
clause (b), (c), (d) or (e) of this sub -section, unless the High
Court on a reference made to it in this behalf by the State
Government, has on an inquiry, reported that the member is
liable to be removed on such ground;
(ii) on any ground speci fied in clauses (a) to (e) of section 9,
unless an opportunity of being heard is given to the member.
Removal and
res ignation of
member.
x
(2) Pending an inquiry against Chairperson or a member under sub-
section (1), the State Government may on the recommendation of the High
Court suspend the Chairperson or the member from his office.
(3) Any member may resign from his office by giving notice in writing,
for such period as may be prescribed, to the State Government, and on such
resignation being accepted by the State Government, h e shall be deemed to
have vacated his office.
11. A person who ceases to be a member shall not -
(a) be entitled to appear in any proceedings before the
Commission as a representative of any person for a period of
three years from the date of such cesser;
(b) acquire either directly or indirectly any financial or other
interest of the nature specified in clause (g) of section 9 for a
period of two years from the date of such cesser;
(c) be a ppointed directly or indirectly in the service of the State
Government or any company, body corporate, institution or
undertaking, owned or controlled by the State Government or
any electricity industry in the State, or in any subsidiary or
associated company or firm of such electricity industry for a
period of two years from the date of such cesser.
.
12. (1) The Commission shall meet on such day and at such time and
place as the Chairperson or, in his absence, a senior member fixes and shall,
subject to sub-sections (2), (3) and (4), observe such rules of procedure with
regard to transaction of its business at its meetings as may be provided by
regulations.
(2) Every meeting shall be presided over by the Chairperson, if he i s
present at the time appointed for holding the same, and, if the office of the
Chairperson is vacant or if the Chairperson is, for any reason, absent, by a
member who is senior.
(3) (a) No business shall be transacted at a meeting of the
Commission unless at least two members are present from the
beginning to the end of such meeting;
(b) All questions at a meeting of the Commission shall be decided
by a majority of votes.
(4) If, by reason of disability of a Chairperson or a member or of a
vacancy in the office of the Chairperson or a member, there are two members
present at the meeting, then in the event of equality of votes, the presiding
authority shall have and exercise a second or casting vote.
Prohibition of
appearance
before
Commission, etc.
on ceasing to be
member.
Proceedings of
Commission.
xi
(5) Notwithstanding anything contained herein, th e Commission may
decide urgent matters by the procedure of circulation subject to the following
conditions:
(a) Where a matter is required to be decided by the Commission
urgently, the Chairperson may, instead of bringing the matter
for discussion at a me eting of the Commission, direct that it
may be circulated to the members for opinion and if all the
members are unanimous and the Chairperson thinks that a
discussion at a meeting of the Commission is not necessary,
the matter shall be decided without such discussion.
(b) If the members are not unanimous or if the Chairperson thinks
that a discussion at a meeting is necessary, the matter shall be
discussed at a meeting of the Commission.
13. (1) The Commission in ord er to enable it to perform its functions,
may,-
(a) with the approval of the State Government, determine the
number and category of officers and employees, and
(b) appoint Secretary, officers and other employees having regard
to the number and category of offic ers and employees
determined under clause (a).
(2) The manner of recruitment of, the salary and allowances payable to,
and other conditions of service of the Secretary, officers and other
employees, shall be such as may be determined by the Commission by
regulations.
14. The Commission may, for the purpose of enabling it to perform its
functions, appoint consultants on such terms and conditions as may be
determined by the regulations.
15. (1) The expendi ture of the Commission shall be charged upon the
Consolidated Fund of the State.
(2) The Commission may also levy on licensees and other persons
seeking any approval, consent, order or directions from the Commission or
making any other application to the Commission such fees and charges as the
Commission may specify in the regulations and utilise the amounts collected
thereof towards meeting the expenses of the Commission.
Provided that:
Officers and
employees of
Commission.
Consultants.
Funding of
expenses of
Commission.
H -68-3
xii
(a) the extent of such fees and charges to be levied by the
Commission shall be consistent with the budget submitted by
the Commission under section 46; and
(b) to the extent of the amount available to the Commission from
such fees and charges there shall be no charge on the
Consolidated Fund of the State.
16. (1) No act or proceeding of the Commission shall be questioned or
be invalid on the ground merely of the existence of any vacancy in, or any
defect in, the constitution of the Commission.
(2) No act done by any person acting in good faith as a member shall be
deemed to be invalid merely on the ground that he was disqualified to be a
member or that there was any other defect in his appointment.
CHAPTER III
FUNCTIONS AND POWERS OF COMMISSION
17. Subject to the provisions of this Act, the Commission shall perform
the following functions, namely:-
(a) to regulate purchase, transmission, distribution, supply and utilisation
of electricity, the quality of service and the tariff and charges payable
for the transmission, distribution or supply of electricity having
regard to the interest of both the consumers and other persons
availing the services and the utilities;
(b) to regulate the procedure-
(i) for purchase and procurement of electricity from any source
for transmission, sale, distribution and supply thereof in the
State; and
(ii) for the determination of the price for such purchase or
procurement;
(c) to promote efficiency, economy and safety in the use of the electricity
in the State;
(d) to determine the t ariff for electricity; wholesale, bulk, grid or retail in
accordance with the provisions of this Act;
(e) to determine the tariff payable for the use of the intra -State
transmission facilities in accordance with the provisions of this Act;
Acts and
proceedings
presumed to be
valid.
Functions of
Commission.
xiii
(f) to issue licences in accordance with the provisions of this Act and
determine the conditions to be included in the licences;
(g) to levy fees, charges and fines in accordance with the provisions of
this Act and retain the same for its expenses;
(h) to regulate the working of the licensees and to enable that the
working of licensees is efficient, economical and equitable;
(i) to require licensees to formulate prospective plans and schemes in co-
ordination with the other persons for the promotion of generation,
transmission, distribution, supply and use of electricity;
(j) to require the licensees to collect data and forecast the demand for
use of electricity;
(k) to set and enforce standards for the electricity industry in the State
including standards relating to safety, quality, continuit y and
reliability of service;
(l) to promote competitiveness in the electricity industry in the State;
(m) to formulate standards, codes and practices for operation of the State
Grid and the power system;
(n) to promote efficient utilisation and conservation of elec tricity,
reduction of wastes and losses in the use of electricity;
(o) to give such advice to the State Government, as the Commission
deems appropriate, on matters concerning generation, transmission,
distribution, supply and utilisation of electricity in the State;
(p) to refer, if the Commission deems appropriate, matters to other
agencies and bodies dealing with consumer disputes, restrictive and
unfair trade practices and management and administration of the
affairs of the licensees;
(q) to adjudicate upon the disputes and differences between the licensees
and to refer matters for arbitration, if considered necessary in
accordance with the provisions of this Act; and
(r) to undertake all incidental or ancillary functions that the Commission
may consider appropriate.
18. (1) The Commission shall, for the purposes of any inquiry under this
Act have the powers of a civil court while trying a suit under the Code of
Civil Procedure, 1908, in respect of the following matters, namely:
(a) summoning and enforcing the attendance of any witness and
examining him on oath;
(b) requiring the discovery and production of any document or
other material object producible as evidence;
Powers of
Commission. 5 of 1908.
xiv
(c) receiving of evidence on affidavits;
(d) requisitioning of any public record or a copy thereof from any
court or office;
(e) issuing commissions for examination of witnesses or
documents;
(f) review of its decisions, directions and orders; and
(g) any other matter which may be specified by the Commission
by regulations.
(2) The Commission shall have the power to pass such interim order in
any matter before it, as it may consider appropriate.
(3) Where the Commission is of the opinion that it is necessary so to do
for the purposes of this Act, it may require by an order in writing to any
person-
(a) to produce before, or to allow examination by, an officer
specified in the said order such books, accounts, or other
documents in the custody or control of that person, relating
to any matter concerning the transmission, distribution,
supply or use of electricity, as may be specified in the order,
and
(b) to furnish to the officer specified in the order such
information in his possession, power or control as may be
specified in the order.
(4) Where during any inquiry or proceedings under this Act, the
Commission has reason to believe that any books or accounts or documents
of or relating to any person engaged in transmission, distribution and supply
or use of electricity in relation to whom such inquiry is made or proceedings
are undertaken are bein g or may be destroyed, mutilated, altered, falsified or
secreted, the Commission may by written order authorise any officer of the
Commission to enter and search any place of business of the person or any
other place where the Commission has reason to beli eve that the person
keeps or is for the time being keeping the books, or accounts or documents
and to seize the same and after granting a receipt therefore retain the same
for so long as is necessary in connection with such inquiry.
(5) The p rovisions of the Code of Criminal Procedure, 1973 relating to
searches shall apply so far as may be, to the search made under sub-
section (4).
(6) The Commission may, by a general or special order call upon any
person to furnish to the Com mission periodically or, as and when required,
any information concerning his activities related to generation, transmission,
distribution and supply or use of electricity.
2 of 1974.
xv
(7) Notwithstanding anything contained in sections 12 to 16 (both
inclusive) and sections 18 and 19 of the Indian Electricity Act, 1910, the
Commission may for the purpose of placing of the electric supply lines,
appliances and apparatus for transmission, distribution and supply of
electricity, by order in writi ng, confer upon a licensee or any other person
engaged in transmission, distribution or supply of electricity any of the
powers which the telegraph authority possesses under the Indian Telegraph
Act, 1885 with respect to placing of telegraph lines and post s subject to such
conditions as the Commission may specify in such order.
CHAPTER IV
LICENSING OF TRANSMISSION AND SUPPLY OF ELECTRICITY
19. (1) No person shall car ry on business of transmitting, distributing or
supplying (whether in bulk or not) electricity in the State except-
(a) the Board constituted under section 5 of the Electricity
(Supply) Act, 1948,
(b) a Government company or a body corpora te owned or
controlled by the State Government to which undertakings
vested in the State alongwith functions, duties, powers and
obligations, are transferred under sub -section (3) of
section 28 by schemes published in the Official Gazette,
hereunder,
(c) under a licence granted under section 20 or exemption granted
by the Commission under section 26 or under a sanction
granted by the State Government under section 27,
(d) under a licence granted by the State Government under
section 3 o f the Indian Electricity Act, 1910 before the
commencement of this Act or under sanction given by the
Government under section 28 of that Act before such
commencement so long as such licence or sanction is
subsisting:
Provided that the Board referred to in clause (a) and the
Government company or body corporate owned or controlled by the
State Government referred to in clause (b) shall carry on business of
transmitting or supplying (whether in bulk or not) electricity subject
to such terms and conditio ns as the Commission may, by notification
in the Official Gazette, specify:
Provided further that the persons to whom a licence or
sanction referred to in clause (d) has been granted or given shall -
9 of 1910.
13 of 1885.
Prohibition
against business
of transmission,
distribution or
supply of
electricity.
54 of 1948.
9 of 1910.
H -68-4
xvi
(i) be deemed to be licensees or exemption holders under this
Act on the terms and conditions on which the licence or
sanction had been granted;
(ii) the provisions of this Act applicable to a licensee shall mutatis
mutandis apply to such deemed licensees or exemption
holders; and
(iii) the licence, or sanction granted to the deemed licensees or
exemption holders shall be subject to such modification as
the Commission may make consistent with the objective and
purpose of the Act.
(2) Where any difference or dispute arises as to whether any person is
or is not engaged or about to engage in the business of transmitting or
supplying or distributing electricity, the matter shall be referred to the
Commission and the decision of the Commission thereon shall be final.
(3) No licensee shall, on or after the date of the commencement of this
Act, supply electricity to any consumer unless a meter is installed for
ascertaining the quantity of electricity supplied to the consumer:
Provided that a licensee who on the date of the commencement of
this Act supplies electricity without installation of a meter to an occupant of
land assessed or held for the purpose of agriculture in the specified area of
supply of the licensee may continue to supply till 30 th June, 2006 electricity
to such occupant without installation of a meter:
Provided further that the licensee shall before the said date install
meters for ascertaining the quantity of electricity supplied to such occupants
in a specified area of supply of the licensee in accordance with a scheme for
progressive installation of meters formulated by the Commission.
(4) No licence to distribute or supply electricity in a specified area of
distribution or supply shall be granted to a generating company-
(a) if grant of such licence is likely t o adversely affect the
operation of the power system or organised development of
electricity industry or is not in public interest or in the interest
of the consumers in the specified area of distribution or
supply, or
(b) unless the generating company u ndertakes to charge such
tariff to the consumers in a specified area of distribution or
supply of an existing licensee as is equal to or less than the
3tariff charged by such licensee in such area.
20. (1) The Commission may, on an appli cation made to it in such form
and on payment of such fee as may be specified by regulations, grant a
licence to any person-
(a) to transmit electricity in a specified area of transmission; or
(b) to distribute electricity in a specified area of distribution; or
Grant of license.
xvii
(c) to supply electricity in a specified area of supply; or
(d) to supply electricity in bulk to any other licensee; or
(e) to engage in one or more of the activities mentioned in clauses
(a) to (d):
Provided that no application for a licence to transmit
electricity shall be entertained unless the applicant has obtained the
approval of the State Transmission Utility in such manner as may be
specified by regulations.
Explanation.- For the purpose of this Chapter and Chapter
VI, the expression `specified area’ means the area specified in the
licence.
(2) (a) (i) A person who applies for a licence under sub -section (1)
shall publish a notice of his application for the information of the
public specifying therein that if there is any objection to the
application, the same may be sent to the Commission for its
consideration;
(ii) the notice of his application shall be published within such
time, in such manner and containing such particulars as the
Commission may specify by regulations.
(b) The Commission shall not grant a licence until,-
(i) all objections and suggestions received by the
Commission with reference to the application have
been considered by the Commission:
Provided that no objection or suggestion shall be
considered unless it is received before the expiration of such
period not being less than a month from the date of the first
publication of the notice under clause (a), as the Commission
may by regulations specify; and
(ii) in the case of an application for a licence for an area
including the whole or any part of any cantonment,
aerodrome, fortress, arsenal, dockyard or camp or of
any building or place in the occupation of the Central
Government for defence purposes, the Commission
has ascertained that there is no objection from the
Central Government to the grant of the licence.
(c) Where an objection is received from any local authority
concerned, the Commission shall, if in its opinion, the
objection is untenable, record the opinion in writing and
communicate it to such local authority alongwith rea sons
therefore.
(3) (a) There shall be specified in a licence -
xviii
(i) the specified area of transmission, or
(ii) the specified area of distribution, or
(iii) the specified area of supply, or
(iv) other licensee or person to whom electricity may b e
supplied in bulk, and
(v) such terms and conditions including those relating to
transmission or distribution or supply as may be
specified by regulations.
(b) The Commission may specify by regulations the conditions to
be included in a licence requiring a licensee to-
(i) enter into an agreement with another person permitting
such person to use electric lines, electrical plant and
associated equipment operated by the licensee;
(ii) furnish information and documents which the
Commission may require for its purpose;
(iii) inform the Commission of any scheme permitted by
the licence which the licensee proposes to undertake;
(iv) undertake such functions and obligations of the Board
under the Indian Electricity Act, 1910 and t he Electricity (Supply) Act, 1948
as the Commission may specify by regulations;
(v) refer a disspute arising under the licence for
determination by the Commission or by an arbitrator
appointed by the Commission;
(vi) supply electricity in bulk to other licensees or
exemption holder or sanction holder in the State or to
any person outside the State;
(vii) comply with any direction given by the Commission;
and
(viii) act in accordance with the terms and conditions of the
licence.
(4) A licence granted f or transmission of electricity may authorise the
licensee to construct, maintain or operate any intra -State transmission system
under the direction, control and supervision of the State Transmission Utility.
(5) The provisions contained in the Schedule to the Indian Electricity
Act, 1910 shall be deemed to be incorporated with, and to form part of, every
licence granted under this Chapter save in so far as they are expressly added
to, varied or excluded by the licence and shall, subject to any such additions,
9 of 1910.
54 of 1948.
9 of 1910.
H-68-5
xix
variations or exceptions which the Commission may make, apply to the
undertaking authorised by the licence in relation to its activities in the State:
Provided that where a licence is granted by the Commission for the
bulk s upply of electricity to other licensees for distribution or supply by
them, then in so far as such licence relates to such bulk supply, the
provisions of clauses IV, V, VI, VII, VIII and XII of the said Schedule shall
not be deemed to be incorporated in the licence.
(6) The grant of a licence to a person shall not in any way hinder or
restrict the power of the Commission to grant a licence to another person
within the same specified area for a like purpose.
21. (1) Subject to the provisions of this Act, the provisions of sections 12
to 26 of the Indian Electricity Act, 1910 shall have effect as if reference to a
licensee in those provisions is a reference to a licensee under this Act.
(2) (a) Where-
(i) any person neglects to pay any charge for electricity or any
sum other than a charge for electricity due from him to the
Board, or a licensee (hereinafter in this sub -section referred to
as “the licensee”) in respect of the supply of electricity to him,
and
(ii) the Board or the licensee to whom such charge or other sum is
due is a Government company or a corporation owned or
controlled by the State Government,
such charge or other sum or the aggregate of such charge and other
sum due to the Board or the licensee shall be recoverable as arrears of
land revenue.
(b) For the purpose of effecting recovery of the charge or sum or both the
charge and sum due from a person under clause (a) as the arrears of
land revenue, such officer as may be appointed by the State
Government in this behalf by notification in the Official Gazette,
shall have and exercise all the powers and perform all the duties of
the Collector under the Bombay Land Revenue Code, 1879.
(c) No suit or other legal proceeding shall lie in any civil court against
the recovery of charge or other sum due as arrears of land revenue
unless the person from whom such charge or sum is due deposits the
amount of such charge or sum with the Board or the licensee:
Provided that the court may, in the case of hardship caused to
the person from whom such charge or sum is due, in depositing the
whole amount, dispense with deposit of the amount to the extent of
not more than twenty-five percent of the amount due.
Powers of
licensee. 9 of 1910.
Bom. V of 1879.
xx
22. (1) Where in it s opinion the public interest so requires, the
Commission may, on the application of the licensee and if the licensee is not
a local authority, on the application of the local authority concerned or
otherwise, may make such amendments in the terms and cond itions of a
licence as it thinks fit having regard to the object and purposes of this Act:
Provided that no such amendment, other than an amendment by
virtue of a term or condition of a licence or of a term or condition imposed
under sub-section (5) of se ction 23, shall be made except with the consent of
the licensee.
(2) Where the licensee has made an application under sub -section (1)
proposing an amendment in his licence, the following provisions shall apply,
namely:-
(a) the licensee shall invite obj ections from interested persons by
publishing a notice of the application in such manner and with such
particulars as the Commission may specify by regulations;
(b) the Commission shall not make any amendment until all objections
received by it with re ference to the application within one month
from the date of the first publication of the notice have been
considered;
(c) in the case of an application proposing an amendment in an area of
supply or distribution comprising the whole or any part of the
cantonment, aerodrome, fortress, arsenal, dockyard or camp or of any
building or place in the occupation of the Central Government for
defence purposes, the Commission shall not make the amendment
except with the consent of the Central Government.
(3) Before making any amendment in a licence otherwise than on the
application of the licensee, the Commission shall publish the proposed
amendment in such manner and with such particulars as the Commission
may specify by regulations and consider all objections r eceived by it with
reference to the proposed amendment within one month from the date of the
publication of the notice.
23. (1) The Commission may inquire into the functioning of any
licensee in carrying out the obligations under this Act or regulations made
thereunder or the terms and conditions of the licence,-
(a) upon receiving a complaint relating to the functioning of the licensee
from a consumer or association of consumers; or
(b) upon a reference made to it by the State Government, Central
Government, the Central Commission, Central Electricity Authority
or any other Authority; or
(c) on its own motion.
Amendment of
license.
Revocation of
licence.
xxi
(2) If upon making such inquiry, the Commission is of the opinion, that
the public interest so requires, it may revoke a licence in any of the following
cases, namely:-
(a) where the licensee, in the opinion of the Commission, has
committed a willful or unreasonably prolonged default in
doing anything required by or under this Act or regulations;
(b) where the licensee commits a breach of any of the terms and
conditions of the licence, the breach of which is expressly
declared by such licence to render it liable to revocation;
(c) where the licensee fails within the period specified in the
licence or any longer p eriod that the Commission may, by
order, allow -
(i) to show, to the satisfaction of the Commission, that he
is in a position to discharge the duties and obligations
imposed on him by the licence; and
(ii) to make the deposit or furnish the security required by
the licence;
(d) where in the opinion of the Commission the financial position
of the licensee is such that the licensee is unable to discharge
the duties and obligations imposed on him; and
(e) where the licensee, in the opinion of the Commission ha s
made default in complying with a direction given by the
Commission.
(3) Where in its opinion the public interest so requires, the Commission
may, on the application or with the consent of the licensee, and if the
licensee is not a local authority, after consulting the local authority
concerned, revoke a licence as to the whole or any part of the area of
transmission, distribution or supply upon such terms and conditions as it
thinks fit.
(4) No licence shall be revoked under sub -section (2) unless the
Commission has given to the licensee not less than thirty days’ notice in
writing, stating the grounds on which it is proposed to revoke the licence and
has considered any cause shown by the licensee within the period of that
notice, against the proposed revocation.
(5) The Commission may, instead of revoking the licence under
sub-section (2), permit it to remain in force subject to such modifications or
such further terms and conditions as it thinks fit to impose and the terms and
conditions so imposed shall be binding upon, and be complied with by, the
licensee, and be of like force and effect as if they were contained in the
licence.
xxii
Excerpt shown. Open the full act in Lexace.