LexThe Himachal Pradesh Electricity Distribution Management Responsibility Act, 2014
Himachal Pradesh · state statute
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THE HIMACHAL PRADESH ELECTRICITY DISTRIBUTION
MANAGEMENT RESPONSIBILITY ACT, 2014
ARRANGEMENT OF SECTIONS
Sections:
1. Short title, applicability, extent and commencement.
2. Definitions.
3. State Electricity Distribution Management Statement to be laid
before the State Legislature.
4. Long term planning for sustainability of State Dist ribution
Licensee.
5. Financial Restructuring Plan for State Distribution Licensee.
6. Accounting measures.
7. Corporate Governance.
8. Regulatory compliance and tariff filings.
9. Memorandum of understanding.
10. Monitoring Mechanism.
11. Measures to enforce compliance.
12. Power of State Government to make rules.
13. Rules to be laid before State Legislature.
14. Protection of action taken in good faith.
15. Application of other laws not barred.
16. Power to remove difficulties.
17. Act not to apply in certain cases.
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THE HIMACHAL PRADESH ELECTRICITY DISTRIBUTION
MANAGEMENT RESPONSIBILITY ACT, 2014
(ACT NO. 5 OF 2015)1
(Received the assent of the Governor on the 20 th January, 2015 and
was published both in Hindi and English in the Rajp atra, Himachal Pradesh,
dated the 22 nd January, 2015, pp. 5726-5747).
1. Passed by the Himachal Pradesh VidhanSabha. For Statement of Objects and
Reasons see the Rajpatra, Himachal Pradesh, dated 1 1 th December, 2014, pp.
4956-4957and 4968-4969.
2 THE HIMACHAL PRADESH ELECTRICITY DISTRIBUTION MANAGEMENT
RESPONSIBILITY ACT, 2014
An Act to provide for responsibilities of the State Government to ensure
financial and operational turn-around and long-term
sustainability of the State-owned Distribution Lice nsee to enable
adequate electricity supply to consumers through fi nancial
restructuring, support on sustainable basis in the areas of long
term planning, corporate governance, regulatory com pliances,
and laying down of policy directives and various ot her measures
connected therewith or incidental thereto.
B
E it enacted by the Legislative Assembly of Himachal Pradesh in the
Sixty-fifth Year of the Republic of India as follows:-
1. Short title, applicability, extent and commencem ent.- (1) This
Act may be called the Himachal Pradesh State Electr icity Distribution
Management Responsibility Act, 2014.
(2) The provisions of this Act shall, in accordance with the objectives
of the Financial Restructuring Plan, apply to the S tate Distribution Licensee
owned by the State Government or the Board or the D epartment under the
State Government engaged in distribution of electricity.
(3) It extends to the State of Himachal Pradesh.
(4) It shall come into force on such date as the St ate Government
may, by notification in the Official Gazette, appoint.
2. Definitions.- (1) In this Act, unless the context otherwise requires–
(a) “Action Plan” shall have the meaning assigned to it in section
3 of this Act;
(b) “Aggregate Technical and Commercial Loss” or “A T& C
Loss” means the difference between the energy input into the
distribution system and the energy realised wherein the
energy realised shall be equal to the product of en ergy billed
and collection efficiency;
(c) “Authority” means the Central Electricity Autho rity referred
to in sub- section (1) of section 70 of the Electricity Act;
(d) “Board” shall have the meaning assigned to it u nder the
Electricity Act, 2003;
(e) “Collection efficiency” means the ratio of tota l revenue
realized to the total revenue billed for the same year;
(f) “Electricity Act” means the Electricity Act, 20 03 as in force;
(g) “fiscal responsibility and budget management li mit” means
limit imposed on State Government borrowings from C entral
Government under the statute relating to fiscal res ponsibility
and budget management of the State, as may be in fo rce from
time to time;
(h) “Financial Restructuring Plan or “FRP” means a plan for
THE HIMACHAL PRADESH ELECTRICITY DISTRIBUTION MANAGEMENT 3
RESPONSIBILITY ACT, 2014
financial restructuring of the Distribution Licensee as notified
by the State Government in accordance with the provisions of
the Financial Restructuring Scheme notified by the Central
Government in terms of Office Memorandum No.
20/11/2012-APDRP, dated 5
th October, 2012;
(i) “Key Performance Indicators (KPIs)” means the p erformance
standards laid by the State Commission, if any, and /or in the
Financial Restructuring Plan, if any, and till such time the
KPIs are laid down, the KPIs as provided for in the Schedule
to this Act;
(j) “Nodal Bank” means the bank nominated by the De partment
of Financial Services, for the purposes of financia l
restructuring of the State Distribution Licensee an d for the
purposes of co-ordination with the State Government , State
Distribution Licensee and the participating Lenders;
(k) “prescribed” means prescribed by rules made by the State
Government under this Act;
(l) “Schedule” means Schedule appended to this Act ;
(m) “State Commission’’ means the Himachal Pradesh Electricity
Regulatory Commission constituted under section 82 of the
Electricity Act, 2003 (36 of 2003);
(n) “State Distribution Licensee” or “Distribution Licensee”
means the Himachal Pradesh State Electricity Board Ltd.
constituted under sub-section (1) of section 5 of t he
Electricity (Supply) Act, 1948 (54 of 1948) or the
Government Company or the Department under the Stat e
Government engaged in distribution of electricity; and
(o) “State Government” means the Government of Hima chal
Pradesh.
(2) All other words in this Act, not expressly defi ned herein, shall
have the meanings assigned thereto under the Financ ial Restructuring Plan,
the Electricity Act, 2003, or notifications, rules, and regulations made
thereunder.
3. State Electricity Distribution Management Statement to be laid
before the State Legislature.- (1) The State Government shall lay, in each
financial year during the Budget Session, before th e State Legislature, a State
Electricity Distribution Management Statement on th e measures taken by the
State Government in relation to electricity distrib ution in the State including,
in the areas of long-term planning, consumer protec tion, regulatory
compliance, corporate governance, financial restruc turing of the State
Distribution Licensee, so as to bring about the ope rational and financial
viability of the State Distribution Licensee, on su stainable basis and which
shall comprise of the following:-
4 THE HIMACHAL PRADESH ELECTRICITY DISTRIBUTION MANAGEMENT
RESPONSIBILITY ACT, 2014
(a) State Electricity Distribution Strategy Stateme nt laying down
the policies and strategies of the State Government for
achieving the Key Performance Indicators, for the e nsuing
financial year, relating to the conditions or provi sions
provided under sections 4, 5, 6 and 8 and descripti on of other
activities which have potential implications on fin ancial and
operational turn-around of the State Distribution Licensee;
(b) action plan, on long-term, medium term and sho rt-term basis,
laying down time bound programme to-
(i) execute strategic priorities to achieve Key Per formance
Indicators;
(ii) monitor and ensure compliance of the Key Perf ormance
Indicators, and strategic priorities;
(iii) feedback loop for in/mid-course corrections; and
(iv) such other actions as may be required to meet the
obligations cast under this Act on the State Government
and achieve the objectives of this Act:
Provided that the action plan shall contain steps f or
eliminating and minimizing deviation in actual performance
and Key Performance Indicators; and
(c) State Electricity Distribution Performance Sta tement laying
down an assessment of compliance, by the State Elec tricity
Distribution Licensee or the State Government, as t he case
may be, with the conditions or provisions provided under
sections 4, 5, 6 and 8 of this Act.
(2) The State Electricity Distribution Management S tatement shall be
in such form as may be prescribed.
(3) The State Electricity Distribution Management S tatement shall be
without prejudice to any consequences to which the State Distribution
Licensee may be liable under the Electricity Act, 2 003 in particular, the
timeline referred to in section 55 of the said Act, and any orders and directions
of the authorities in relation to any of the requir ements under the said
enactment:
Provided that nothing in this section shall imply r elaxation of any
requirement under the Electricity Act, 2003.
4. Long term Planning for sustainability of State D istribution
Licensee.- The State Government shall take, appropriate measures, to provide
for the following matters, namely:-
(a) that the State Distribution Licensee estimates the demand,
Aggregate Technical and Commercial loss and availab ility of
electricity on long term basis and contracts with t he approval
of the State Commission, through long or medium or short
THE HIMACHAL PRADESH ELECTRICITY DISTRIBUTION MANAGEMENT 5
RESPONSIBILITY ACT, 2014
term agreements for purchase of power to meet the demand;
(b) that the State Distribution Licensee prepares, with the
approval of the State Commission, a time bound road map for
Aggregate Technical and Commercial loss reduction:
Provided that the road map shall be prepared within six
months from the date of coming into force of this Act;
(c) that the State Distribution Licensee undertake s energy
accounting and auditing of all 33 kV feeders, 11 kV feeders
and Distribution Transformers alongwith consumer in dexing
and time bound metering of each category of consume rs and
in doing so the Distribution Licensee should consid er latest
developments in metering technologies:
Provided that the road map in relation to energy
accounting and auditing and time bound metering of all
consumers shall be prepared within six months from the date
of coming into force of this Act and approval for t he same
shall be sought from the State Commission:
Provided further that the consumer indexing shall b e
completed within two years from the date of coming into
force of this Act:
Provided further that the State Distribution Licens ee
shall submit to the Authority and the State Commiss ion half
yearly progress reports with respect to energy acco unting,
auditing, metering and feeders and Distribution Tra nsformers
wise consumer indexing;
(d) that if the State Government requires the gran t of any subsidy
to any consumer or class of consumers, the State Government
shall declare the quantum of subsidy in advance cat egorically
stating the consumer or the class of consumers to w hom it is
to be provided and in doing so, the State Government shall be
guided by the Regulations for Multi Year Distributi on Tariff
evolved by Forum of Regulators;
(e) create annual budgetary provision and also tim ely release of
subsidies, if committed, in accordance with section 65 of the
Electricity Act, 2003 on actual basis;
(f) ensure that there are no arrears of electricity charges for
electricity supplied to various Departments and Institutions of
the State Government on or before the date of comin g into
force of this Act, and in case of failure to do so, it would be
adjusted against the budgetary grant:
Provided that the State Government shall make
budgetary provisions including grants, to ensure pa yment to
the State Distribution Licensee within due date of the charge
6 THE HIMACHAL PRADESH ELECTRICITY DISTRIBUTION MANAGEMENT
RESPONSIBILITY ACT, 2014
for electricity supplied to its various Departments and
Institutions;
(g) set up, within one year from the date of coming into force of
this Act, special courts, where it has not been don e, to tackle
theft of electricity in accordance with sections 15 3 to 157 of
the Electricity Act, 2003;
(h) ensure that the State Load Despatch Centre is operated within
six months from the date of coming into force of th is Act, by
a Government company or any authority or corporation (other
than the State Transmission Utility) established or constituted
by or under any State Act, as may be notified by th e State
Government, and provide for other measures which sh all
ensure functional and financial autonomy, independe nt and
sustainable revenue streams and adequate manpower:
Provided that such Government company or any
authority or corporation shall not engage in any fu nctions
other than those specified under sections 32 and 33 of the
Electricity Act, 2003;
(i) provide for the formation of subsidiaries, joi nt venture
companies or other schemes of division, amalgamatio n,
merger or reconstruction or arrangements in relatio n to the
State Distribution Licensee which shall promote the
profitability and viability of the resulting entity , ensure
economic efficiency, public private partnership, en courage
competition and protect consumer interests; and
(j) such other measures as may be prescribed.
5. Financial Restructuring Plan for State Distribut ion Licensee.-
(1) In the event that a Financial Restructuring Pla n has been notified, inter-
alia, to operationalize the financial restructuring of the State Distribution
Licensee, the State Government shall take appropria te measures, to ensure
that the trajectories of the operational and financ ial parameters in the
Financial Restructuring Plan, are achieved within the stipulated time frame.
(2) The State Government shall, subject to any orde r or direction of
the State Commission, notify a Plan to undertake fi nancial liabilities of the
State Distribution Licensee and for achieving the o perational and financial
trajectories considered in the Financial Restructur ing Plan for financing of
operational losses and interest of the State Distri bution Licensee and such
other measures as may be specified in the Financial Restructuring Plan or any
other financial restructuring scheme:
Provided that these fiscal responsibilities shall b e consistent with the
budgetary constraints/fiscal limits available in th e State fiscal responsibility
and budget management limit, if any:
Provided further that the State Government shall no t adjust any
THE HIMACHAL PRADESH ELECTRICITY DISTRIBUTION MANAGEMENT 7
RESPONSIBILITY ACT, 2014
financial liability, after it has taken them over, as loan to the State Distribution
Licensee:
Provided further that if the fiscal space including Debt- Gross State
Domestic Product ratio under the Fiscal Responsibil ity and Budget
Management Act, 2005, if any, is available, the Sta te Government shall not
exceed its net borrowing ceiling of the relevant fi scal year as notified by the
Finance Commission from time to time:
Provided further that if in a particular year the S tate Government has
fiscal space available more than the originally pro jected, it shall take over the
additional liabilities as soon as possible.
(3) The State Government shall make Financial Restr ucturing Plan or
such other financial scheme a part of the State bud get statements for effective
monitoring of its impact on the State finances.
(4) The State Government shall ensure that the Stat e Distribution
Licensee does not resort to short-term loans for fu nding operational losses
except as provided in the Financial Restructuring Plan.
6. Accounting Measures.- (1) The State Government shall ensure
that the State Distribution Licensee establishes, w ithin six months from the
date of coming into force of this Act, an Empowered Committee to ensure
identification, provisioning and write offs of receivables and bad and doubtful
debts in the books of accounts of the State Distribution Licensee:
Provided that the State Distribution Licensee shall prepare accounting
policies which shall provide for its financial mana gement and management of
its receivables and provisioning for bad and doubtf ul debts containing
timeline for writing them off.
(2) The State Government shall ensure that the Dist ribution Licensee
completes physical verification and preparation of fixed assets register on a
commonly accepted definition of fixed assets under the financial accounting
standards within two years from the date of coming into force of this Act:
Provided that the said plan referred to in sub-sect ion (2) shall be
submitted to the State Commission for approval.
(3) The State Government, by notification, shall es tablish an
Empowered Committee consisting of,-
(i) Principal Secretary (Finance) to the
Government of Himachal Pradesh
Chairperson ;
(ii) Principal Secretary (Power) to the
Government of Himachal Pradesh
Member; and
(iii) Head of the State Distribution Licensee Member-Secretary.
7. Corporate Governance.- ( 1) It shall be duty of the State
Government to ensure that the Board of Directors of the State Distribution
Licensee has an optimum combination of functional, nominee and
independent directors:
8 THE HIMACHAL PRADESH ELECTRICITY DISTRIBUTION MANAGEMENT
RESPONSIBILITY ACT, 2014
Provided that the number of functional directors (including Chairman-
cum-Managing Director/Managing Director) shall not exceed fifty percent of
the actual strength of the Board:
Provided further that the number of nominee Directo rs appointed by
the State Government shall be restricted to a maximum of two:
Provided further that the number of Independent Dir ectors shall be as
per provisions under the Companies Act, 2013.
Explanation:-‘Independent Director’ shall mean a part-time direc tor
of the distribution licensee who,-
(a) apart from receiving director’s remuneration, does not have
any material pecuniary relationship or transaction with the
State Distribution Licensee, its Directors, its sen ior
management, its holding company, its subsidiaries a nd
associates, and the State Government, which may aff ect the
independence of the Director;
(b) is not related to persons occupying management positions at
the Board level or at one level below the Board;
(c) is not a partner or an executive, or was not a partner or an
executive during the preceding three years, of any of the
following:-
(i) the statutory audit firm or the internal audit firm or tax
audit firm or energy audit firm or management audit firm
or risk audit firm or insurance audit firm, that is associated
with the State Distribution Licensee; and
(ii) the panel of advocate(s) or legal firm(s) or consultant(s) and
consulting firm(s) or expert(s) that have a materia l
association with the State Distribution Licensee;
(d) is not a material supplier, service provider o r customer or a
lessor or lessee of the State Distribution Licensee, which may
affect the independence of the Director;
(e) is not a substantial shareholder of the State Distribution
Licensee i.e. owning 2% or more of the block of vot ing
shares; and
(f) is a person of ability, integrity and standing, having
qualification in engineering or law or economics or commerce
or finance or management and having knowledge and
experience in the areas of generation or transmissi on or
distribution of electricity.
(2) The State Government shall lay down a code of c onduct in line
with the Guidelines on Corporate Governance for Pub lic Sector Enterprises,
as notified by the Department of Public Enterprises , Government of India, for
all Board Members and senior management of the State Distribution Licensee,
THE HIMACHAL PRADESH ELECTRICITY DISTRIBUTION MANAGEMENT 9
RESPONSIBILITY ACT, 2014
which shall include but be not limited to a clear d elineation of the roles and
division of responsibilities between the Board and the management.
8. Regulatory Compliance and Tariff Filings.- (1) The State
Government shall, twice in a year, evaluate the sta tus of compliance by the
State Distribution Licensee with the Electricity Ac t, 2003 and Rules and
Regulations made thereunder as also regulatory directives and policies as well
as steps taken to rectify instances of non-complian ces since the last such
evaluation.
(2) The State Government shall ensure regular and t imely filing of
true-up petitions, Aggregate Revenue Requirement an d tariff petitions, and
petitions for adjustments on account of fuel and co st of power purchased by
the State Distribution Licensee, as per the orders or regulations specified by
the State Commission.
(3) Notwithstanding sub-section (2), it shall be th e duty of the State
Government to make fiscal provision or provision of grant to the State
Distribution Licensee if there is an adverse financ ial impact due to the failure
of the State Distribution Licensee to minimize or eliminate the following:-
(a) variations in the actual power purchase cost a nd the power
purchase cost approved by the State Commission;
(b) variations in the actual and approved expendit ure of other
items of the Aggregate Revenue Requirement such as but not
limited to Operation and maintenance expenditure and capital
expenditure; and
(c) variation between average cost of supply and av erage
realization of revenue:
Provided that the variation, if any, between average cost of supply and
average realization of revenue, shall be bridged/fi lled in a period of three to
five years from the date of coming into force of this Act.
(4)The State Government shall ensure that the regul atory assets, if
any, are liquidatedexpeditiously in a period of three to five years from the date
of coming into force of this Act, or within such pe riod stipulated, if any, by
the State Commission, whichever is earlier.
9. Memorandum of Understanding.- ( 1) The State Government and
the State Distribution Licensee, shall, within a pe riod not exceeding six
months from the date of coming into force of this Act in this behalf, enter into
a memorandum of understanding for setting targets f or Key Performance
Indicators and performance evaluation of the State Distribution Licensee for
each financial year:
Provided that the memorandum of understanding shall be aimed at
providing greater autonomy to the State Distributio n Licensee to perform and
comply with its legal and regulatory obligations including but not limited to,-
(a) timely filing of Annual Revenue Requirement and tariff
10 THE HIMACHAL PRADESH ELECTRICITY DISTRIBUTION MANAGEMENT
RESPONSIBILITY ACT, 2014
petitions and adjustments on account of fuel and co st of
power purchased by the State Distribution Licensee;
(b) prudent investment and capital expenditure pla nning; and
(c) financial management, to enable adequate and af fordable
electricity supply to consumers:
Provided also that the memorandum of understanding shall provide
for performance milestones for all the financial an d operational parameters
provided in this Act and State Electricity Distribution Management Statement.
(2) The State Distribution Licensee shall submit ev ery six months, a
report to the State Government, on its operational and financial performance
as required under various provisions of this Act:
Provided that the report shall lay down the strateg y and plan for
achieving the performance milestones and actual per formance against these
performance milestones as may be prescribed by the State Government:
Provided further that the State Distribution Licens ee shall indicate
revised strategies and plans in case they fail to achieve the agreed milestones.
10. Monitoring mechanism.- (1) The State Government shall, by
notification, establish a Committee for effective i mplementation of this Act,
consisting of,-
(a) Chief Secretary, Government of
Himachal Pradesh:
Chairperson;
(b) Principal Secretary (Finance) to the
Government of Himachal Pradesh:
Member;
(c) Principal Secretary (Power) to the
Government of Himachal Pradesh:
Member-Secretary;
(d) Head of the State Distribution
Licensee:
Member;
(e) Head of the State owned Generating
Company:
Member;
(f) Head of the State owned
Transmission Licensee:
Member;
(g) Representatives of the Nodal Bank
and three major Lenders of the State
Distribution Licensee:
Member; and
(h) Representative from Central
Electricity Authority
Member.
11. Measures to enforce compliance.- (1) The Committee
established under section 10 shall review and recom mend remedial measures,
if any, every quarter, compliance of the obligation s cast on the State
Government under this Act, and the State Government shall place before the
THE HIMACHAL PRADESH ELECTRICITY DISTRIBUTION MANAGEMENT 11
RESPONSIBILITY ACT, 2014
State Legislative Assembly, the outcome of such reviews.
(2) Except as may be provided under this Act, no de viation in
fulfilling the obligations cast on the State Government under this Act, shall be
permissible without approval of the State Legislative Assembly.
(3) Where owing to unforeseen circumstances, there is a deviation in
fulfilling the obligations cast on the State Govern ment under this Act, the
Committee established under section 10 shall make a statement before the
State Legislative Assembly explaining-
(i) the reasons for deviation in fulfilling the ob ligations cast on
the State Government under this Act;
(ii) whether such deviation is substantial and has potential
implications on financial and operational turn-arou nd of the
State Distribution Licensee; and
(iii) the remedial measures that the State Governm ent proposes to
take on the recommendations made by the Committee
established under section 10.
(4)Non-compliance of the duties by the State Government may attract
appropriate action by the Central Government that m ay render the State
ineligible for power from the unallocated quota, etc.
12. Power of State Government to make rules.- ( 1) The State
Government shall, by notification, make rules for c arrying out the provisions
of this Act.
(2) In particular and without prejudice to the gene rality of the
foregoing power, such rules may provide for all or any of the following
matters, namely:-
(i) the form of the State Electricity Distribution Management
Statement referred to in section 3;
(ii) such other measures for long term planning as may be
required under section 4; and
(iii) any other matter which is required to be, or may be,
prescribed.
13. Rules to be laid before State Legislature.- Every rule made by
the State Government shall be laid, as soon as may be after it is made, before
the State Legislature.
14. Protection of action taken in good faith.- No suit, prosecution or
other legal proceeding shall lie against the State Government or State
Distribution Licensee or any officer of the State G overnment or State
Distribution Licensee, for anything which is in goo d faith done or intended to
be done under this Act.
15. Application of other laws not barred.- The provisions of this
Act shall be in addition to and not in derogation of the provisions of any other
12 THE HIMACHAL PRADESH ELECTRICITY DISTRIBUTION MANAGEMENT
RESPONSIBILITY ACT, 2014
law for the time being in force.
16. Power to remove difficulties.- ( 1) If any difficulty arises in
giving effect to the provisions of this Act, the St ate Government may, by
order published in the Official Gazette, make such provisions, not inconsistent
with the provisions of this Act, as may appear to b e necessary for removing
the difficulty:
Provided that no such order shall be made after the expiry of a period
of three months from the date of coming into force of this Act.
(2) Every order made under this section shall be la id, as soon as may
be after it is made, before the State Legislative Assembly.
17. Act not to apply in certain cases.- (1) Nothing in this Act shall
apply to any Distribution Licensee that is not owned or controlled by the State
Government or to a successor entity of the State Di stribution Licensee that is
not owned or controlled by the State Government.
(2) Notwithstanding sub-section (1), all directives issued by the State
Government under this Act shall continue to apply f or the period for which
such directions were issued by the State Government.
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SCHEDULE
(Sections 2(1)(l) and 3)
Illustrative Key Performance Indicators (KPIs)
The State Electricity Distribution Management Statement as provided
in section 3 of this Act shall include but not limi ted to, the Key Performance
Indicators in the following areas:-
I. Planning:
(a) power Procurement with accurate Demand Estimati on to
mitigate Energy and Peak Shortages on long-term, me dium-
term and short-term basis-undertake forecasting of demand
and estimation of Aggregate Technical and Commercia l
losses within one year, procurement of power as per forecast
from second year onwards and 100% electricity suppl y to
consumers in next three to five years;
(b) payment of dues of electricity by Government D epartments
and Institutions.- the current dues have to be paid within due
date of raising of bills;
(c) distribution loss reduction trajectory.- Aggreg ate Technical
and Commercial losses to be reduced @3% per year fo r
losses above 30% and @ 1.5% per year for losses below 30%;
(d) provisioning of subsidy.- it should be provided upfront by the
Government by way of budgetary provision;
THE HIMACHAL PRADESH ELECTRICITY DISTRIBUTION MANAGEMENT 13
RESPONSIBILITY ACT, 2014
(e) energy accounting and energy auditing of all 33 kV feeders,
11 kV feeders anddistribution transformers.- to be achieved
within one and two years;
(f) 100% Metering and Consumer Indexing.- to be ach ieved
within three years;
(g) setting up Special Courts for settling theft ca ses.- to be set up
within one year, if not already set up.
II. Financial Restructuring:
(a) improvement in collection efficiency.- to be in creased @
1.5% per year if it is between 95 to 99%, @ 3% per year if it
is between 90 to 95% and @ 5% per year if it is bet ween 80
to 90%;
(b) recovery of past receivables.- past receivable s to be reduced
@ 20% per year till the normative level allowed by the
Commission in the working capital computation;
(c) liquidation of payables and other liabilities. - 20% reduction
every year till normative levels are achieved;
(d) Capital Expenditure alongwith its funding plan. - to get timely
approved every year as per the norms specified by t he
Commission;
(e) quantum and rate of short term power purchase. - not more
than 10 to 15% every year;
(f) discharge of Contingent liabilities.- 20% every year; and
(g) discharge of terminal benefit liabilities of th e employees.-
within one year for the past employees and for curr ently
retiring - on the date of retirement;
III Accounting Measures :
(a) timely preparation and audit of Annual Account s (Annual
Accounts to be prepared within due date of 30 th September
and realigned with the current accounting standards); and
(b) provision for bad and doubtful debts/write offs;
IV Corporate Governance:
(a) number of Functional Directors.- as per Guideli nes for
Corporate Governance for Central Public Sector
Undertakings; and
(b) number of Independent Directors.- as per Guide lines for
Corporate Governance for Central Public Sector
Undertakings;
14 THE HIMACHAL PRADESH ELECTRICITY DISTRIBUTION MANAGEMENT
RESPONSIBILITY ACT, 2014
V Regulatory Measures,-
(a) gap between Average Revenue Realization and Av erage
Cost of Supply.- to be eliminated in a period of three to five
years; and
(b) liquidation of Regulatory Assets.- to be liqui dated in a
period of three to five years.
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