The Haryana Electricity Reform Act, 1997

75
THE HARYANA ELECTRICITY REFORM ACT, 1997
(HARYANA ACT NO. 10 OF 1998)
TABLE  OF  CONTENTS
Sections :
  1. Short title, extent and commencement.
  2. Definitions.
  3. Establishment and Constitution of the Commission.
  4. Constitution of the selection committee to select members.
  5. Conditions for appointment as member of the Commission.
  6. Term of office, conditions of service, etc. of members.
  7. Removal of Members.
  8. Appointment of the Secretary, Staff and consultants of the
Commission.
  9. Proceedings of the Commission.
10. Powers of the Commission.
11. Functions of the Commission.
12. General Powers of the State Government.
13. Constitution and functions of the Transco.
14. Licensing.
15. Grant of licences by the Commission.
16. Exemptions from the requirement to have a licence.
17. General duties and powers of the licensees.
18. Revocation of licences.
19. Amendment of licences.
20. Provisions where licence is revoked.
21. Restrictions on licensees and Generating Companies.
22. Annual accounts of licensee.
23. Reorganisation of State Electricity Board.
24. Provisions relating to personnel.
25. Variation of transfers by Agreement.
26. Licensee’s revenues and tariffs.
27. Finances of licensees.
28. Interim orders for securing compliance.
29. Final Orders for securing compliance.
30. Effect and enforcement of interim and final orders and emergency
provision.
31. Fines and Charges.
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31A. General control of the Commission.
32. Commission Advisory Committee.
33. Consumer Protection; Standards of Performance.
34. Electricity Supply; Overall Performance Standards.
35. Information with respect to levels of performance.
36. Restriction on disclosure of information.
37. Arbitration by the Commission.
38. Appeals from decisions of Electrical Inspector.
39. Appeals against the orders of the Commission.
40. Penalty for contravention of section 14.
41. Penalties for contravention of other provisions.
42. Offences by Companies.
43. Power to compound offences.
44. Cognizance of offences.
45. Penalties and proceedings not to prejudice other actions.
46. Recovery of Fees, Fines and Charges.
47. Application of fine and charges.
48. No part of the fines or penalties imposed to be passed on.
49. Protection of action taken in good faith.
50. Bar of Jurisdiction.
51. Power to remove difficulties.
52. Proceedings before the Commission to be judicial proceedings.
53. Members and staff of Commission to be public servants.
54. Power to make regulations.
55. Power to make rules.
56. Effect of the Act on the Indian Electricity Act, 1910 and the Electricity
(Supply) Act, 1948.
57. Savings.
SCHEDULE
I. Annual Financial Statement.
II. Accounts and Audit.
III. Remuneration, etc.
IV. Official Seal.
V. Performance of functions.
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1THE  HARYANA  ELECTRICITY  REFORM
ACT, 1997
(Haryana Act No. 10 of 1998)
[Received the assent of President of India on the 20th February, 1998, and
was first published for general information in the Haryana Government Gazette
(Extraordinary), Legislative Supplement Part I of the 10th March, 1998].
Year No. Short title Whether repealed or otherwise
affected by Legislation
  1  2      3                 4
1998 10 The Haryana Electricity —
Reform Act, 1997
AN
ACT
to provide for the constitution of an Electricity Regulatory Commission,
restructuring of the electricity industry, rationalization of the generation,
transmission, distribution and supply of electricity, avenues for participation
of private sector entrepreneurs in the electricity industry and generally for
taking measures conducive to the development and management of the
electricity industry in an efficient, economic and competitive manner
and for matters connected therewith or incidental thereto.
Be it enacted by the Legislature of the State of Haryana in the forty-eighth
Year of the Republic of India, as follows: -
PART-I
PRELIMINARY
1. (1) This Act may be called the Haryana Electricity Reform
Act, 1997.
(2) It extends to the whole of the State of Haryana.
2[(3) It shall come into force on such date as the State Government
shall notify in the Official Gazette.]
2. In this Act, unless the context otherwise requires,—
(a) “area of transmission” means the area within which the holder
or a transmission licence is for the time being authorised by
licence to transmit energy;
1 For Statement of Objects and Reasons, see Haryana Government Gazette (Extraordinary),
dated 21-7-1997, page-1665.
2. This Act came into force with effect from the 14th August, 1997 vide Haryana Government,
Power Department Notification No. SO-105/HA/10/1998/S.1998, dated the 13th August, 1998.
Short title, extent
and
commencement.
Definitions.
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(b) “Commission” means the Haryana Electricity Regulatory
Commission constituted under sub-section (1) of section 3;
(c) “licence” means a licence granted under Part VI of this Act;
(d) “licensee” or “licence holder” means a person licensed under
part VI of this Act to transmit or supply energy including
Transco;
(e) “member or members” means the members of the Commission
and shall include the Chairman of the Commission;
(f) “prescribed” means prescribed by the rules or regulations made
under this Act;
(g) “Public Service Commission” means the Public Service
Commission for the State established pursuant to Article 315
of the Constitution of India;
(h) “regulations” means regulations made by the Commission under
the Act;
(i) “rules” means rules made by the State Government under this
Act;
(j) “selection committee” means the selection committee
constituted under section 4 of this Act;
(k) “State” means the State of Haryana;
(l) “State Government” means the Government of the State;
(m) “supply licence” means a licence under sub-section (1) (b) of
section 15;
(n) “transco” means the Transmission Corporation of Haryana
incorporated as a transmission company under the Companies
Act, 1956 for the purpose of undertaking transmission of
electricity under a licence granted under this Act;
(o) “transmission licence” means a licence under sub-section (1)
(a) of section 15;
(p) “transmit” in relation to electricity, means the transportation or
transmission of electricity by means of a system operated or
controlled by a licensee which consists, wholly or mainly, of
extra high voltage and extra high tension lines and electrical
plant and is used for transforming and for conveying and/or
transferring electricity from a generating station to a sub-station,
from one generating station to another or from one sub-station
to another or otherwise from one place to another;
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(q) words and expressions used but not defined in this Act
and defined in the Electricity (Supply) Act, 1948 (Act No. 54
of 1948) have the meanings respectively assigned to them in
that Act;
(r) Words and expressions used but not defined either in this Act
or in the Electricity (Supply) Act, 1948 (Act No. 54 of 1948)
and defined in the Indian Electricity Act, 1910 (Act No.IX
of 1910), have the meanings respectively assigned to them in
these Acts.
PART II
HARYANA ELECTRICITY REGULATORY COMMISSION
3. (1) For the purposes of this Act, within three months of the Act
coming into force, the State Government shall establish by notification in the
Official Gazette a Commission to be known as the Haryana Electricity Regulatory
Commission, which shall be a body corporate with perpetual succession and a
common seal with power to acquire and hold property, movable and immovable,
and shall, by the said name, be entitled to sue and be sued.
(2) The Commission shall consist of three members to be appointed
by the State Government from persons selected by the selection committee
constituted for the purpose, in the manner provided in section 4 of this Act.
(3) The person to be appointed as a member of the Commission for
the first time for a period of three years in terms of proviso to sub-section (1) of
section 6 shall be the first Chairman of the Commission and thereafter at all times
the most senior member of the Commission shall act as Chairman, such seniority
being reckoned from the date of the appointment of the members. In case two or
more persons are selected at the same time the seniority amongst them shall be
determined by the State Government while making the appointment.
(4) When the Chairman of the Commission is unable to discharge
the functions owing to absence, illness or any other cause, the next senior member
of the Commission shall discharge the functions of the Chairman, until the day on
which the Chairman assumes the charge of his functions.
(5) No act or proceedings of the Commission shall be invalid by
reason only of the existence of any vacancy among its members or any defect in
the constitution thereof.
4. (1) The State Government shall expeditiously constitute a selection
committee, as often as may be required to select persons for appointment as
members.
(2) The selection committee shall consist of five members:—
(i) the Vice Chancellor of a Haryana University-Chairman.
Establishment and
Constitution of the
Commission.
Constitution of the
selection
committee to
select members.
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(ii) a Member of the Haryana Public Service Commission
– Member.
(iii) the Chairman or a Member of Central Electricity Authority
– Member,
(iv) the Secretary in charge of Finance Department,
Government of Haryana – Member,
(v) the Secretary incharge of the Power Department,
Government of Haryana – Member.
The Secretary incharge of the Department of Power
Government of Haryana shall also act as the convenor of the
selection committee.
(3) The selection committee shall act expeditiously and shall
generally finalise the selection within a period of two months to enable the State
Government to make the final selection and appointment in time for the new
member to take effective charge at the expiry of the term of the retiring member.
(4) The selection committee shall select two suitable persons for
each vacancy in the Commission who have such qualification and experience as
provided in the Act and notify the State Government of the persons shortlisted by
the selection committee. The State Government shall appoint one of the two
candidates shortlisted by the selection committee as a member of the Commission.
(5) All decisions of the selection committee shall be by majority.
(6) The method and manner of the selection and appointment of
members and designation of one of the members as Chairman shall be as prescribed
by the State Government from time to time by the rules.
5. (1) The members of the Commission shall be persons of ability,
integrity and standing who have adequate knowledge or experience of, or have
shown capacity in dealing with problems relating to engineering, economics,
commerce, finance, accountancy, law or administration and further that at all
times—
(a) at least one member shall be an electrical engineer with
adequate experience of either generation, transmission or
distribution of electricity;
(b) at least one member shall have qualification and adequate
experience in any of the other disciplines, namely
economics, commerce, finance, accountancy, law or
administration; and
(c) the third member shall have the qualification and
adequate experience in any of the disciplines mentioned
above.
The selection and appointment of the members at all times shall be
made strictly in accordance with the above qualification and experience.
Conditions for
appointment as
member of the
Commission.
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(2) A person shall be disqualified from being appointed a member
of the Commission if he is a member of Parliament or of any State Legislature or
any local authority or holds any post in a political party.
(3) The persons who are considered for appointment as members of
the Commission shall notify the convenor of the selection committee—
(a) of any office, employment or consultancy agreement or
arrangement which he has in his own name or in any firm,
association of person or body corporate; or in the names
of any relative, carrying on any of the following
businesses—
(i) generation, transmission, distribution or supply of
electricity;
(ii) manufacture, sale or supply of any fuel for generation
of electricity;
(iii) manufacture, sale, lease, hire or otherwise supply of
or dealing in machinery, plant, equipment, apparatus
or fittings for the generation, transmission,
distribution, supply or use of electricity; and
(iv) any entity providing professional services to any of
the businesses referred to in sub-clauses (i), (ii) and
(iii) above;
(b) such other details and information as may be prescribed
in the rules.
Explanation.— For the purpose of this section the term relative shall have
the same meaning as defined under section 6 of the Companies Act, 1956.
(4) The details received from the persons shall be placed for
consideration of the selection committee at the time of selection and
recommendation of the person for appointment as member.
(5) Each member of the Commission shall, before taking charge of
the office as member or within such time not exceeding three months after taking
charge as may be allowed by the State Government on the recommendation of the
selection committee, divest himself from the interest in the businesses mentioned
in sub-section (3) of this section as a condition of his appointment.
(6) If a person to be appointed as a member of the Commission
holds any office under the State or Central Government or any public sector
corporation or any Government body he shall submit his resignation or take
voluntary retirement from that service and shall not seek reappointment in the
service of the Government or any Government corporation or body dealing with
the power sector at any time after he ceases to be a member of the Commission.
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(7) So long as the person holds the office of the member and for a
period of two years after he ceases to be a member for any reason whatsoever, he
shall not acquire, hold or maintain, directly or indirectly any office, employment
or consultancy arrangement or businesses mentioned in sub-section (3) of this
section and if he acquires any such interest involuntarily or by way of succession
or testamentary disposition he will divest himself from such interest within a period
of three months of such interest being acquired.
(8) Before recommending any person as a member of the
Commission, the selection committee shall satisfy itself that the person does not
have any financial or other interest as referred to in sub-section (3) or otherwise
which is likely to affect prejudicially his functions as a member.
6. (1) Every member shall hold office for a period of five years from
the date of his appointment as member or until the age of sixty-five years, whichever
is earlier and he shall not be eligible for re-appointment at any time after the
expiry of his term of appointment:
Provided that the first three members shall be appointed for varying
periods of three years, four years and five years respectively so as to avoid the
retirement of all the members at the same time and ensure continuity in the
functioning of the Commission:
Provided further that no person shall be appointed as member after
he has attained the age of sixty two years so that he has a minimum tenure of three
years as member.
(2) The Chairman of the Commission and other members shall
receive such remuneration and other allowances as provided in Schedule I and
shall be governed by such conditions of service as may be prescribed from time to
time under the rules:
Provided that the terms shall not be varied to their disadvantage during
the tenure of the appointment.
(3) The Chairman of the Commission and every other member shall
before entering upon his office, make and subscribe to an oath of office and of
secrecy in such form, in such manner and before such authority as may be
prescribed.
7. (1) The Governor of the State may remove from office any member
of the Commission, in accordance with sub-section (2) who—
(a) has been adjudged an insolvent; or
(b) has been convicted of an offence involving moral
turpitude; or
(c) has become physically or mentally incapable of acting as
such member; or
(d) has without reasonable cause refused or failed to act for a
period of at least six months; or
Term of office,
conditions of
service, etc., of
members.
Removal of
Members.
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(e) ceases to fulfill any of the conditions of his appointment
as member; or
(f) has acquired such financial or other interest that can affect
prejudicially his functions as a member; or
(g) has conducted himself in a manner or has so abused
his position as to render his continuance in office
prejudicial to the public interest or to the objects and
purpose of the Act.
(2) Except where a member admits the charge, in writing, no
member of the Commission shall be removed from his office on the grounds
specified in clauses (c), (d) (e) (f) and (g) of sub-section (1) until a sitting judge of
the High Court of Punjab & Haryana, as recommended by the Chief Justice of the
High Court at the relevant time, has carried out an investigation and has forwarded
a report to the Governor of the State.
(3) The Governor and the State Government shall act in accordance
with the recommendation in the final report under sub-section (2) and the State
Government shall communicate its decision to the member concerned within a
period of two months of the receipt of such report.
(4) A member who has been removed shall not be eligible for re-
appointment as a member or in any other capacity in the Commission or in the
State Government or in any State Government undertakings.
(5) If the member removed under this section is the Chairman of
the Commission, he shall cease to be the Chairman of the Commission.
(6) The vacancy caused by the removal of the member shall be
filled in the same manner as provided for the appointment of a member or
designation of the Chairman of the Commission.
8. (1) The Commission shall appoint a person as Secretary of the
Commission to assist the Commission to discharge its functions.
(2) The Commission shall, in consultation with the State
Government, determine the number, nature and categories of other officers and
employees required to assist the Commission in the discharge of its functions.
(3) The salaries and allowances payable to the members and the
administrative expenses, including salaries, allowances and pensions payable to
or in respect of the Secretary, officers and other employees of the Commission,
shall be charged to the Consolidated Fund of the State.
(4) The method and manner of selection of the Secretary, officers
and other employees and the terms and conditions of their service may be
prescribed by the Commission by regulations.
(5) The Commission shall be entitled to appoint, from time to time,
consultants required to assist the Commission in the discharge of its functions on
terms and conditions to be decided by the Commission.
Appointment of
the Secretary, Staff
and Consultants of
the Commission.
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PART III
PROCEEDINGS, POWERS AND FUNCTIONS OF THE COMMISSION
9. (1) The headquarters of the Commission shall be at Panchkula,
Haryana, but the Commission shall be entitled to conduct its proceedings,
consultations and hearings at any place in the State.
(2) The Commission shall have the exclusive power to frame
regulations for the conduct of its proceedings and discharge of its functions and
all such regulations framed shall be published in the Official Gazette.
(3) In case of a difference of opinion among the members of the
Commission, the opinion of the majority shall prevail and the opinion of the
Commission shall be expressed in terms of the views of the majority. Each member
of the Commission shall have one vote only. The Chairman shall have no casting
or second vote.
(4) The quorum for the meeting of the Commission shall be two;
provided that for a meeting of the Commission to review any previous decision
taken by the Commission or for consideration of any issue which could not be
decided on account of equality of votes in favour of and against the resolution
proposed, the quorum for the meeting shall be all members being personally present.
(5) The Chairman of the Commission may instruct the Secretary to
call a meeting of the Commission to be held at such time and at such place as the
Chairman may direct. In addition, any member of the Commission may request a
meeting of the Commission at any time by sending a notice in writing to the other
members and with a copy to the Secretary. The notice of all meetings shall be
given to the members in writing, unless all the members waive the notice in writing.
(6) The Commission shall be entitled to decide urgent matters by
circulation of the papers to members.
(7) All decisions, directions and orders of the Commission shall be
in writing and shall be supported by reasons. The decisions, directions and orders
of the Commission shall be available for inspection by any person and copies of
the same shall also be made available in a manner the Commission may prescribe.
10. (1) The Commission shall, for the purposes of any inquiry or
proceedings under this Act shall have the powers as are vested in a Civil Court
under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit in respect
of the following matters, namely:—
(a) the summoning and enforcing of attendance of any witness
and examining on oath;
(b) the discovery and production of any document or other
material object producible as evidence;
(c) the reception of evidence on affidavits;
Proceedings of the
Commission.
Powers of the
Commission.
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(d) the requisition of any public record from any court or
office;
(e) the issue of commission for examination of witnesses;
(f) the appearance of parties and consequences of non-
appearance;
(g) the grant of adjournments at the hearing; and
(h) the review of its decisions, directions and orders.
(2) _________________  Deleted _______________.
(3) The Commission shall have the power to require any person—
(a) to produce before, and allowed to be examined and kept
by, an officer of the Commission specified in this behalf,
such books, accounts, or other documents in the custody
or under the control of the person so required as may be
specified or described in the requisition, being documents
relating to any matter concerning the generation,
transmission, distribution and supply or use of electricity,
the functioning of any undertaking involved in the above
areas and other matters, the examination of which the
Commission considers is necessary or relevant for the
purposes of this Act or the discharge of the functions by
the Commission under this Act; and
(b) to furnish to an officer so specified such information as
may be required for the purposes of this Act or such other
information as may be in his possession in relation to any
activity carried on by any other person.
(4) For the purpose of enforcing the attendance of witnesses the
local limits of the jurisdiction of the Commission shall be the limits of the territory
of India.
(5) Where, during any inquiry or proceedings under this Act, the
Commission has any grounds to believe that any books or papers or documents
of, or relating to any unit or person in relation to which such inquiry is being made
or which the owner of such unit may be required to produce in such inquiry, are
being, or may be, destroyed, mutilated, altered, falsified or secreted, it may, by a
written order authorise any officer of the Commission to exercise the powers of
entry, search and seizure as may be exercised by an Inspector appointed for
inspection under sections 240 and 240-A of the Companies Act, 1956 (1 of 1956).
(6) Notwithstanding anything contained in any other law for the
time being in force, the Commission may, by a general or special order, call upon
any person including the generating companies or the licensees to furnish to the
Commission periodically or as and when required any information concerning
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the activities carried on by such person related to generation, transmission,
distribution and supply or use of electricity, the connection between such person
and any other person or undertaking including such other information relating to
the organisation, business, cost of production, conducts, etc. as may be prescribed
to enable the Commission to carry out its functions under this Act.
(7) In the discharge of its functions the Commission shall be entitled
to and shall consult to the extent the Commission considers appropriate from
time to time such persons or group who may be affected or are likely to be affected
by the decisions of the Commission.
(8) The Commission shall be entitled to exercise the above
mentioned powers to call for information, details, books, accounts and other
documents from any person and make inquiry for the purposes of providing the
same to the Central Electricity Authority, the Central Government, the State
Government or other persons. The Central Electricity Authority, the Central
Government and the State Government shall be entitled to ask the Commission to
make such inquiry and provide the information, details and documents to them.
(9) All persons to whom notices may be issued shall have a statutory
obligation under this Act to duly, faithfully and effectively furnish the information,
details, books, accounts and other documents, which the Commission considers
relevant in connection with its functions under this Act or which may be required
to be obtained at the directions of the Central Electricity Authority, the Central
Government or the State Government as the case may be and shall be proceeded
with and punishable for any failure or delay to comply with such requirements
and the directions and orders issued by the Commission.
(10) Notwithstanding anything contained in sections 12 to 16 (both
inclusive) and sections 18 and 19 of the Indian Electricity Act, 1910, for the placing
of the electric supply lines, appliances and apparatus for transmission, distribution
and supply of energy, the Commission may, by order in writing, confer upon
licensees or any other person engaged in the business of transmission, distribution
or supply of energy to the public under the Act, subject to such conditions and
restrictions as the Commission may provide, any of the powers which the telegraph
authority possess under the Indian Telegraph Act, 1885 with respect to placing of
telegraph lines and post.
11. (1) Subject to the provisions of this Act, the Commission shall be
responsible to discharge, amongst others, the following functions:—
(a) to aid and advise, in matters concerning electricity
generation, transmission, distribution and supply in the
State;
(b) to regulate the working of the licensees and to promote
their working in an efficient, economical and equitable
manner;
Functions of the
Commission.
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(c) to issue licences in accordance with the provisions of this
Act and determine the conditions to be included in the
licences;
(d) to promote efficiency, economy and safety in the use of
the electricity in the State including and in particular in
regard to quality, continuity and reliability of service and
enable all reasonable demands for electricity to be met;
(e) to regulate the purchase, distribution, supply and
utilization of electricity, the quality of service, the tariff
and charges payable keeping in view both the interest of
the consumer as well as the consideration that the supply
and distribution cannot be maintained unless the charges
for the electricity supplied are adequately levied and duly
collected;
(f) to promote competitiveness and progressively involve
the participation of private sector, while ensuring fair deal
to the customers;
(g) to collect data and forecast on the demand for and use of
electricity and to require the licensees to collect such data
and forecast;
(h) to require licensees to formulate perspective plans and
schemes in coordination with others for the promotion of
generation, transmission, distribution and supply of
electricity;
(i) to set appropriate code of conduct and standards for the
electricity industry in the State;
(j) to regulate the assets, properties and interest in properties
concerning or related to the electricity industry in the
State; and
(k) to undertake all incidental or ancillary things.
(2) The Commission shall always act consistent with the objectives
and purposes for which the Commission has been established as an independent
statutory body corporate and all acts, decisions and orders of the Commission
shall be pursuant to and shall seek to achieve such object and purpose.
(3) Notwithstanding the provisions of section 52 of the Indian
Electricity Act, 1910 or the provisions of section 3 (1) (ii) and section 76 of the
Electricity (Supply) Act, 1948, the Commission shall have the power to act as
arbitrator or nominate arbitrator or arbitrators to adjudicate and settle the disputes
arising between the licenses in accordance with the regulations to be prescribed
and this shall be a condition of the grant of licences.
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PART IV
POWERS OF THE STATE GOVERNMENT
12. (1) The State Government shall have the power to issue policy
directions on matters concerning electricity in the State including the overall
planning and coordination. All policy directions shall be issued by the State
Government consistent with the objects sought to be achieved by this Act and
accordingly shall not adversely affect or interfere with the functions and powers
of the Commission including but not limited to determination of the structure of
tariffs for supply of electricity to various classes of consumers.
(2) If any dispute arises between the Commission and the State
Government as to whether or not a question is a matter of policy or whether a
policy direction issued by the State Government adversely affects or interferes
with the exercise of the functions of the Commission, the same shall be referred to
the Central Electricity Authority and the decision given by the Central Electricity
Authority shall be final and binding. The Central Electricity Authority may appoint
one or more members of the Authority to act on behalf of the Authority in relation
to any matter referred to under this sub-section.
(3) The State Government shall be entitled to issue policy
directions concerning the subsidies to be allowed for supply of electricity to any
class or classes of persons in addition to the subsidies adjusted by the Commission
while regulating and approving the tariff structure provided that the State
Government shall contribute the amount to compensate such concerned body or
unit affected by the grant of the subsidies by the State Government to the extent
of the subsidies granted. The Commission shall determine the amounts and the
terms and conditions on which such amounts are to be paid by the State
Government.
(4) The State Government shall consult the Commission in relation
to any proposed legislation or rules concerning any policy direction and shall
duly take into account the recommendation by the Commission on all such matters.
PART V
TRANSCO
13. (1) Within sixty days of the Act coming into force, the State
Government shall cause Transco to be incorporated and organised under the
provisions of the Companies Act, 1956, as the Transmission Corporation of Haryana
Limited, with the principal objects of engaging in the business of procurement,
transmission and supply of electric energy.
(2) Subject to the powers of the State Government under section
12, the Transco established by the State Government in terms of sub-section (1)
shall be the principal company to undertake all planning and coordination in
regard to transmission, undertaking the works connected with transmission,
determining the electricity requirements in the State in coordination with the
Generating companies, State Government, the Commission, the Regional
Electricity Board and the Central Electricity Authority; the operation of the power
system.
General powers of
the State
Government.
Constitution and
functions of the
Transco.
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(3) Transco shall own the extra high voltage transmission system,
shall be responsible for the transmission system operation and shall operate the
power system in an efficient manner.
(4) Transco shall undertake the functions specified in this section
and such other functions as may be assigned to it by the licence to be granted to it
by the Commission under this Act.
(5) Upon the grant of licence to the Transco under clause (a) of
sub-section (1) of section 15 of this Act, the Transco shall discharge such powers,
duties and functions of the Haryana State Electricity Board including those under
the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948 or the
rules framed thereunder as the Commission may specify in the licence and it shall
be the statutory obligation of the Transco to undertake and duly discharge the
powers, duties and functions so assigned.
(6) Subject to sub-sections (1) and (2) and subject to the overall
supervision and control of the Transco, a number of subsidiary or associated
transmission companies may be established in the State and the Commission may
grant licences under the terms of this Act to such transmission companies, in
consultation with the Transco.
PART VI
LICENSING OF TRANSMISSION AND SUPPLY
14. (1) No person, other than those authorised to do so by licence or by
virtue of exemption under this Act or authorised to or exempted by any other
authority under the Electricity (Supply) Act, 1948, shall engage in the State in the
business of—
(a) transmitting electricity; or
(b) supplying electricity.
(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
electricity as described in sub-section (1), the matter shall be referred to the
Commission and the decision of the Commission shall be final.
(3) The Commission shall have the power to order any unlicensed
person to cease operating and disconnect its apparatus.
(4) Notwithstanding anything contained in other provisions of this
Act and until the establishment of the Commission in terms of section 3, the State
Government shall for the period of six months from the date, this Act comes into
force have the power to grant provisional licences under this section having a
duration not exceeding six months to any person or persons to engage in the State
in the business of transmission for supply of electricity on such terms and conditions
Licensing.
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90
as the State Government may determine consistent with the provision of this Act,
subject however, to the following conditions:—
(a) upon the establishment of the Commission, each of the
provisional licences granted by the State Government
shall be placed before the Commission and shall be deemed
to constitute an application for grant of a licence by the
Commission under the provisions of this Act; and
(b) each provisional licence granted under this section shall
cease to be valid and effective on the date on which the
Commission communicates the decision.
(5) The State Government shall be entitled to confer on the
provisional licensees under sub-section (4) such powers, rights and authorisation
as the Commission is entitled to grant to the licensees under this Act.
15. (1) The Commission may on an application made in such form and
on payment of such fee, if any, as it may prescribe, grant a licence authorizing any
person to—
(a) transmit electricity in a specified area of transmission;
and/or
(b) supply electricity in a specified area of supply.
(2) In respect of the grant of any such licence the following
provisions shall apply—
(a) any person applying for a licence shall publish a notice of
his application in such manner, and with such particulars
as may be prescribed by the Commission within 14 days
after making the application;
(b) the Commission shall not grant a licence until—
(i) all objections received relating to the application
for the licence have been considered by the
Commission; provided that no objection shall be
considered by the Commission unless it is received
within three months of the date of the first
publication of the notice under clause (a) above;
and
(ii) in the case of an application for a licence to supply
or transmit in an area which includes 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 to the grant of the licence
on the part of the Central Government;
Grant of licences
by the
Commission.
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91
(c) where an objection is received from any local authority
concerned, the Commission shall, if in its opinion the
objection is insufficient, record in writing and
communicate to such local authority its reasons for such
opinion; and
(d) no application for a licence shall be made by any local
authority except pursuant to a resolution passed at a
meeting of such authority held after one month’s previous
notice of the same specifying the purpose thereof has been
given in the manner in which notices of meetings of such
local authority are usually given.
(3) A licence may prescribe the duration, extent to which, and the
terms and conditions under which the transmission or supply of energy is to be
made and contain such other conditions as the Commission may consider
appropriate for achieving the purposes of the Act.
(4) Without prejudice to the generality of sub-section (3), conditions
included in a licence by virtue of that sub-section may require the licensee to—
(a) enter into agreements on specified terms with other persons
for the use of any electric lines, electrical plant(s) and
associated equipment operated by the licensee;
(b) comply with any direction given by the Commission;
(c) act in accordance with the terms of the licence;
(d) refer all disputes arising under the licence for
determination by the Commission;
(e) furnish information, documents and details which the
Commission may require for its own purpose or for the
purposes of the Central or State Government or Central
Electricity Authority;
(f) comply with the requirements of the Indian Electricity
Act, 1910 and the Electricity (Supply) Act, 1948 or rules
framed thereunder in so far as they are applicable;
(g) undertake such functions and obligations of the Haryana
State Electricity Board under the Indian Electricity Act,
1910 and Electricity (Supply) Act, 1948 as the
Commission may prescribe;
(h) obtain the approval of the Commission of such things
that are required under the licence conditions or for
deviation from the same;
(i) notify the Commission of any scheme that he is proposing
to undertake including the schemes in terms of the
provisions of the Electricity (Supply) Act,1948;
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(j) purchase of the power in an economical manner and under
a transparent power purchase procurement process; and
(k) supply in bulk to other licensees or to customers.
(5) Without prejudice to the generality of sub-section (3), conditions
included in a licence granted by the Commission may require the holder of such
a licence to establish a tariff or to calculate its charges from time to time in
accordance with the requirements prescribed by the Commission.
(6) 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 supply licence granted under this Part save in so far as they are expressly
varied or excepted by the supply licence and shall, subject to any such additions,
variations or exceptions which the Commission is empowered to make having
regard to the purposes of the Act, apply to the undertaking authorised by the
licence in relation to its activities in the State :
Provided that where a supply licence is granted by the
Commission for the supply of energy to other licensees for distribution by them,
then in so far as such licence relates to such supply, the provisions of clauses IV,
V, VI, VII, VIII and XII of the said Schedule shall not be deemed to be incorporated
within the supply licence.
(7) The conditions included in a licence may contain provision for
the conditions to cease to have effect or be modified at such times, in such manner
and in such circumstances as may be specified in or determined by or under the
conditions.
(8) Any provisions included by virtue of sub-section (7) above in
a licence shall have effect in addition to the provision made by sub-section (5) of
section 18 and section 19 with respect to the amendment of the conditions of a
licence.
(9) If so indicated in the terms of a licence, the grant of a licence
under this section to a person shall not in any way hinder or restrict the grant of a
licence to another person within the same area of supply for a like purpose, the
licensee shall not claim any exclusivity.
(10) The licence granted by the Commission in terms of this Act
may provide that the licensee shall have the powers and authorities to take
appropriate actions for revenue realization, prosecution for theft, meter tampering,
diversion of electricity, and all such and similar matters affecting the distribution
and supply of electricity to the consumer.
(11) The Commission shall be entitled to authorise the licensees
and persons to exercise such power and authority as the licensees and persons
could be given under the provisions of the Indian Electricity Act, 1910 and the
Electricity (Supply) Act, 1948.
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16. (1) The Commission may make regulations to grant exemption
from the requirement to have a supply licence, but subject to compliance with
such conditions, if any, as may be specified in the order:
Provided that the Commission shall not, under any such regulation,
grant any exemption except with the consent—
(i) of the local authority, if any, constituted in the area where energy
is to be supplied;
(ii) in any case where energy is to be supplied in any area forming
part of any cantonment, aerodrome, fortress, arsenal, dockyard
or camp or any building or place in the occupation of the Central
Government for defence purposes, of the Central Government;
(iii) in any area falling within the area of supply of a licensee, of
that licensee:
Provided that, except in a case falling under sub-clause (ii) no such
consent shall be necessary if the Commission is satisfied that such consent has
been unreasonably withheld.
(2) An exemption may be granted—
(a) to persons of a particular category; or
(b) to a particular person; or
(c) for a particular period
and an exemption to persons of a particular category or to a particular person shall
be published in such manner as the Commission considers appropriate for bringing
it to the attention of that person or persons of that category and of the public in
general.
(3) The exemption granted may be revoked by the Commission at
any time for reasons to be recorded in writing.
(4) An exemption, unless previously revoked, shall continue in
force for such period as may be specified in or determined by or under the exemption.
(5) Every regulation or exemption made by the Commission under
this Act shall be published in the Official Gazette.
17. (1) It shall be the duty of the holder of a supply licence or a
transmission licence in respect of a particular area to develop and maintain an
efficient, coordinated and economical system of electricity supply or transmission
in the area of transmission or area of supply, as the case may be.
(2) Each licensee and Generating Company in discharge of its
duties shall comply with the provisions of the regulations framed from time to
time governing the terms and conditions for the operation and maintenance of
power system and electric supply lines.
Exemptions from
the requirement to
have a licence.
General Duties and
Powers of the
licensees.
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94
(3) Subject to sub-section (4), sections 12 to 19 of the Indian
Electricity Act, 1910 (which relate to the carrying out of Works) shall have effect
in relation to a person authorised by a licence under this Act to transmit or supply
electricity, as if he is a licensee in that Act.
(4) Where any of the sections mentioned in sub-section (3) above
is applied to a licence holder by his licence, it shall hav

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