LexThe ODlSHA ELECTRICITY REFORMS ACT, 1995
Odisha · state statute
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The Orissa Electricity Reforms Act, 1995
Act 2 of 1996
Keyword(s):
Area of Transmission, Commission, Gridco, Hydro Power Corporation, Supply
Licence, Transmission Licence, Transmit
Amendment appended: 1 of 1999
ORISSA Aq 2 OF 1996
THE ORISSA FJU~CTWCITY M?#O&vlS ACT; 19%
TABLE OF CONTENTS
PREAMBLE
SECTIONS
CHAPTER I
Preliyinary
1. Short title, extent and commencement
2, Definitions
CHAPTER I1
J
Orissa Electricity Regpletory Commission
3. Establishment and constitution of the Cornmissjon
4. Constitution of the Selection Committee
5. Conditions for appointment as member of the Commission
6. Term of offica and conditions of wrvice of members of the Fommission ,
7. Rem-oval of members
8. Appointment of the Secretary, staff and con~ultaqts ?f the Commission
CHAPTER III
Pmceedings, Powers and Functions of the Cotplssioll
9. Proceediogs of the Commission
10. Powers of the Commission
1 I. Functions of thc Commission
CHAPTER IV
- Powers of the State ~overnment
12. General powers of the State Government
CHAPTER V
J
GRIDCO
13. Constitution and functions of the GRIDCO
CHAPTER VI
Licensing 01 Transmission and Srrpply
14. ~icensi&
15. rant of licences by the Commikion
16. Exemptions from the reqdrement to have a licence
17. General duties and powers of the licensees
18. Revocation of licence
19. Amendment of Iicence
20. Provisions where licence is revoked
21. Restrictions on licensees and generating companies
22. Annual accounts of licensee
CHAPTER VII
Reorganisstion of the Electricity hdisiq
23. Transfer of B oard's properties, powers, functions and duties
24. Provisions relating to personnel
25. Variation of transfer
CHAPTER VIlI
TarXs
26. Licensee's revenues and tariffs
- 27. Finances of licensees
CHAPTER IX
Commission's Power to Pass Odera and Enforce Decisions
. 28. Interimorders
29. Final orders
30. Effect and enforcement of interim and final orders and emergency provislons
31. Fines and charges
CHAPTER X
Advisory Committee, Coomuter Consaltation
32. Commission Advisory Committee
33. Consumer end standard of performance
34. Electricity supply qd overall performance standards .
35. Information with respect to levels of performance
36. Restriction on disclosure of Information.
CHAPTER XI
Arbiirmtion ond Appeals
37. Arbitration by the Commission
38. AppeaIs from decisions of electrical inspectors
39. Appeals against the orders of the Commission
CHAPTER XII
OKence and Penalti&
40. Penalty for contravention of section 14
41. Penalties for contravenbion of other provisions
42. Offences by companies
43. Power to compound offences
44. Cognizance of offences
-45. Penalties and Roceedhgs not to prejudice othw sctions
Miscellaneous
46. Recovery of fees, fines-and oharges
47. Application of fines and char@ies
48. No part of the fines or penaltiem imposed to be passed on
49. Protection of adon taken in good faith
50. Bar oEjllrisdictIan
51. Power to remove difficulties
52. Promdings before the Commission to be judicial proceedings
53. Members wd Btaff of Cornmisston to be public servants
I 54. Power to make regulations
55. Power to make rulee . -
56. RuIos and regulations to be !aid
L.
CHAPTBR XIV
Effect on'E~isridg Central Law
57. Effect of tho Act on tho Indian electricity AG~. 1910 and tho ~l&ricitg (Supply) Act, 1948
58. Savings
+THE ORlSSA ELW'EUCITY REFORM ACT, 1995
[Received the assent of the Presidenr on the 3rd January I996 first published in an
extraordinary issrre of the Orissa Gazette, dared the 10th January 1994
AN ACT TO PBOVJDE FOR THB RESTRUCTZIRTNG OF THE ELECTRICIF INDUSTRY -FOR THE
RATIONALISATION OF TE6 GENERATION, TRANSMISSION, DISTRIBUTION AND SUPPLY
OF ELECTRICITY FOR AVBNUES FOR PARTICIPATION OF PRIVATE SECTOR
BNTRBPRBNEURS IN THB BLEcTRICI~Y INDUSTRY' AND GENERALLY FOR
TGING MRASURES CONDUGWE TO THE DEVELOPMENT AND MANAGEMENT,
OF TI33 ELECFRlClTY INDUSTRY IN THE STATE IN AN HmClBNT
ECONOMIC AND COMPBTlTWB MANNER INCLUDING TAB
CONSTlTUTION OP AN ELECTRICITY - REGULATORY
COMMISION FOR THB STATE AND FOR MATT~S
CONNECTED THBRBWITH OR INCIDBNTAL THERETO.
BE it enacted by the Legislature aP the State of Orim in the Forty-sixth Year of
-the Republic of India as follows:-
CHAPTER I
PRELIMINARY ., .. . I
Short tIUe, 1. (I) This Act may be called the Ori~a Electricity Reform Act, 1995 &nt and
8.6
oommsnce- (2) ~t extends to the whole of the State of Orissa
mt. (3) ~t shall come into force on such date as the State Government may by
notibation, appoint.
DeBdt bas. 2. In this Act, unless the context otherwise requires,-
(a) ICarta of transmission" meens the area within which the holder of 8 trans-
mission licence is for the time being authorised by Iicence to transmit energy;
(b) "Commission" means the Orissa Electricitg Regulatory Commission consti-
tuted under sub-section (1) of Section 3;
(e)"Gridco" means the Grid Corporation of Orissa Limited as referred
to in Seclion 13;
(d) "Hydro Power Corporation" hereinafter referred to as the O.H.P.C. means the
Orissa Hydro Power Corporation Limited incorporated under the Companies 1 Of j956 .
Act, 1956 with eliect horn the twenty-first day of April, 1995;
(e) "licend' means a licence granted under Chapter VZ -
(fl "licensee" or "licence holder'' means a person licenced under Chapter VI to
transmit or suppIy energy includim Grldco;
(g) "prescribed" means prescribed by the rules or regulations; '
(11) "Public Service Commission" means the Public Servico Commission for the
State of Qriss8 established pursuant to articIe 315 of the Constjtution
of India;
(i) "regulE!tion" means regulations made by the. C~mrnissi.~n under this Act;
(j) "relative" means the relative as dehned under Section 6 of the Companies 1956
Act, 1956;
(k) "rules" means rules made by the State Govanment under this Act;
(I) "selection committee" means the selection committee constituted
Section 4;
(m) "State'' means St ate of qri8sa;
(n) "State Government" means the Government of the State;
+par the ill, see Orissa Guzerte, Emordinary, dated the 20 th November, 1993 (NO. 1304) ,
Eslablish-
ment wJd
constitution
of the
Commigion.. .
~onslilution
of the
Sdleclion
Committee,
(0) 'rsupply licence'' means a licence under clause (b) of sub-~cction (11 or ,
Section 15;
@) ''transmission. licence" means a liccncc under clause (a) of sub-section (11 of
Section 15;
(q) ''transmir" in relation to electricity, means transportation or transmission
of electricity by means of a system operated and controlled by a licensee.
,which consists, wholly or mainly, of extra high voltage and thtra hi~h
tension lines and electrical plant and is used for transforminy: and
for conveying or transferring eleclricity from a generatin:: slzt ion '!a, e
sub-station, from one generating station lo another 01.. horn one sub-
station to another OF othemise from one place to [email protected];
(r) wordfi and expresfiion used but not definei: in this Act esd dcfinec rn jq 1918 the Electricity (Supply) Act, 1948 shall have - the meanings respecllvely
assigned to them in that Act;
{s) wcrds and expiession used' but not defined cjther in tl:is Act or in the 54 0f1~~8,
Electricity (Supply) Act, 1948 and defined in the 1ndi::n Eldtricity Act, or 1910.
, 1910 shall have the meanings 'respectively assigned to them id :h2I Act.
CHAPTER IT
ORISSA ELECTRICITY REGULATORY COMMlSSlON '
3.-(1) For tbe purposes of this Act, the State Government hall, wirhin 3
months ci the commencement of this Act, establish, by notification,
a- Commission to be known as the Orissa Eleal icity Regulatory
Commission, which s ball be a body corporate with perpetual succ&ir.n
and a common seal .with power to acquire and hold proprrty, movable
and immovzble, and shall by the said name bz tp:itled to sue and be sued.
(2) 'I-be Commission shall cdnsist of three members to be appoinled by the
State Goiernrne~t from person6 selected by the 5elcction rommitrce
constituted for the purpose. -
(3) The Slate Government shall, as per the recommendatio:~ of the selection
' committee, 'designate one of th-e niembers as the Chrirman of the
Commission but, until such designation, the mosr ~enior member of the
, Commi5sions shall act as Chairman, such seniority being ~eckoned firm
the date of joining of the Commission by tbe members.
(4. Whcn the Chairman of the Commission is unzFe ro >ischzrge rhc
functions owing to abience, illness or any othcr causz, the senior moit
member of the Commi6sion shall discharge ihe functi, n. of the
Chairman, until the day, cjn which the -Chairmar? :.ssgme: the chzrge
of his functions.
(5) No act or procedings of the Commission shzIl be invalid by reeson
only of the existence $f any vacancy among iis member, Gr any defect
in the conatiturion thereof.
(6) The method and manner of selection and appointmest cf members of
the Commission and designation of one of the lnerubers 2s Chairmzn
shall be such as may be prescribed' by rules.
4. (1) The State , aovernmen t shall expeditiou6lv car. tilule a 6elecrion committee,
as orten as may be required, to select p<rscpc for appointment as
' members of the Commission. , ,
(2) The selection committee shall consist of threc members, namely:-
,(a) the Chairman of ibe Public Service ~omqisiibc, who shAl be the
Chairman of the selection committee;
(b) the Secretary incharge of the Depzrtnent of Energy, Stale
Govzrnment, who shall be the Convea,or nf t h'e selection cornmi ttee;
and
.(c) the Chairman or any member of the Cenrrzl, ,Elect~iciry Abth~rity
designated for the purpose from time to time.
(3) The -rclection committee shall act erpedi~ioobly and >hall generally
finalise rhe selection witbin a . period of two nionrhs to ' , enable the
Statc Government to mak: the final sclectioa and appointment in time
for- the new 'member to fake cffectivc .charge .at the expiry dF the term of
thc retiriug member.
(4) The selection committee .shall select two . suitable perzons for each
vacancy in the Commis ion who have such qualification rind experience
as provided in this Act and notify LO the State Governmenr of the persons
so shortlistcd by the selection committee. -
(5) Thc decisions or the selection committee shall be by majority. .
(6) Tbc State Government shall app'oint Dnc of thc two candidates shortlisted
by the relection committee as a mcmbCr of the Ccmmis~ion. -
....I I..
5. (1) Thc members .of Ihe Commission shall be ,persons of ability, integrity *
Conditions
for appoint- and standing who * have adequate, know1ed:e or bxpericnce of, or havc ,
merit a.5 shown capacity In, ' 'deatiag ' 'with problcms reIatiog lo engineering,
. economies, commerce, accountancy, Ian '6i administration and further
Commission, that, at all times,- *
(a) st lcast one member of the Commis,jion 5141 be an electrial
engineer 'Gtb experience df gcneratioa, irr.nsmission; distribution
or supply of eleetric~ty;. and
, . , -
, - (b) at least one member of tbe Commis ii,on shall have qualiffcation in,
and experience of, any OF th-c disciplines of tecoorr icc, conmerce,
accountancy, law' or adniinktration. - . :
(2) The selection arid appointment of the members of the Co~rnissi~n shall
at all times be made strictly in accordance . wirh .. , the qualification and experience
,
mentioned in this rection.
(3) A person shaII be disqualified from being appointed as a member of the
Commission, if he .is a membtr . of Pdiqnent or of any State Legislature . .
' or any- lucal authority or holds any post in R political party, or if he'
has any financial or othcr, interest, dirtctly or indirectly, in any privata
company or undertaking dcaling with any or the bu~inecsess referred to
in clause (a) of subsecti,on (4): . ,
(4) The persms who are considered for ap?ointment as memb~rs of the
&mmission shall notify the coavcsor of the selection committee:-
(a) of any office, employment or c?nsullancy agrermcnt or arrangement which
he has in his own name or in any firm, association of persons or body
corporate or in the names of any relative carrying on any of the following ?
, .. busines-cs :
(i) Generation, transmission, distribution c r supply of electricity ;
(ii) Manufacture, sale or supply of zny fuel for generation of electricity;
(iii) Manufacture, sale, lease, hire' or 0 therwise supply of or dealiog in
m~chinery, plant, equipment, spparatu6 or fitting6 for the generation,
;ransmis?ion, distribution, su,pply or use of electricity; and .
, .
(iv) my prcviding sccvices to aany of the blrsiness referred
to in sub-clauses (i), (Ii) and (iii) abovc.
(b) Of such other details and information .. as , may be prescribed in the rules.
, ,
(5) A11 details feceived from the persons rcferrcd to in sub-section (41 shall b
placed for consideration of the, selection committee at thc time of selection and
recommendation of the perion foi. appoihtmeut .. as member of the Com$s~i~n.- , .
(6) Each mcmbcr of the Com~isslon shall, bcfore faking charge of the o5m as ,
member divest, himself from the rglerest in all cr -any of the businesses mentiorrod in
(4) as 8 condition of his appoiptment.
'
(7) If a person to be appointed as a member of the commission holds any dffice
under the State Government or Central Government or in any public sector corporaiion
of Government body he shah submit his resipation or take voluntary retirement from
that service and shall not seek reappoi'n tmwt in .the service of the Stafe Government
the Centrs 1 Government any public sector wrp?ration or Government body at BAY time
after hc cezses .. . to be s member of the Cornmission_. ,
. (8) .So long as the person holds tbc office of a member of the Commission and aper
he ceases to be a member of the Commission for any reason whatsoeVir, he shall not
; scquire, hold or maintain, direct1 y or indirectly any ofice, employment or consultancy
?rrangement or bu~ines e6 mentioned in subsection (4) and if he acquira any such
~nterest involuntarily r r by way of succession cr testamentary disposition he will divat
himsclf fro;;^ such interest within a period of two months of such interest being
acquired.
, . (9 Befo~. appointing any. person as a. member of the Commission, the state
J 'Goyernment shall satisfy itself that the person doe not bavc any financial -or other
interest as referred to in sub-section (3).
Term of
'
6. (1) E~efl member of the Commission sh.dI hold office for a period of five years
J oEce and kern the datrz he usliuiej office and he sha 11. not be eligible for raappointmeni at any time
- muditions .after the expiry of his tern1 of appoi,n!ment: ,- . -
or SCN~C~ o i . .
members of
-tk ammi. Provided that the first three members of thc Comnlission s@ll bru appoiged for
asloo. varying pcn'ods of threc years, four 9ezis;and five yearj 'respkctiveIy so as 1'0 avoid the
retirement of all the members cf the Ccmmi-sion at the same time and ensure
.conIinuity in the functioning of the Con?mission: . -
Provided further that no member of the Commicsi.on shall be appointed .. . or, shall ho{d
o@ee afier he has attaincd the age oi sixty-two years.
(2j Subject to-the pr&isio~s in the Schedge, the Chairman ' of the Commissions
and other members of the Commission' shall receive . such rqmun~ra,tio.n aqd, olhm
alIowanqes and shall be go~Srned by such condition, of'service as may be prescribed
under the rules.
(3) The Chairman of the Commission and every other member of the Comqission
shall, before eotering upon his ob, make and subscribe an oath of ofice and of secrecy
in such form, in such manner and before such authorily as may >be pres.cribed
by rules.
Ramoval of 7. (1) The State Government may, .artqr giying an opportunity of being, hcard
,members, remove frdm o5ce any m:mb,er of I the. .. 'Commissibn, . ..,. ,. ,subject, to thc proyisioasof sub:icction (21, who-
. (a), has been adjudged insolvent, or
1
(b) has been convicted of an. offence involving moral turpitude, or
(c) has become physically or mentaljy incapable of acting as such rnemkr, or
I (d) bas ' witbout rmsopable cause refwed or failed to act continuo~61~-for a
period of three months or more, or
(e) Eases to full3 any gf the conditions of his appointment as member, or '
(j) has acquired such financial or olher ictcrest that can .affect prejudicially his
functions as a member,,or
(g) bas conducted himself in a man per or bas so abused his pcsition as to render:
his cnntinuance in ofice pre~udicial to thepubI& interest or to the objeots
and .purposes of the Act- , . ,
(2) Except wher,e 8 meqber ad@^ the. charge, in ailing, no member of the
, Commission ihdl be removed from bis ofice on the ground specified in clauses (c), (d),
(f) and (g] of suktion (I), until a ' sitting judge OF the High Court of Judicature of
: Orrssa, as'rccomrnended by the Chief Justice of the High Court. at re!evant time,, har
- catqied out a,n ipvegigation and submitted a' report.
I ' .
. . -' . 4.
(3) ThF State ~oveinrnent shall communicate its decision to thc member concerned '
within a~peri&'of.two months of the receipt of the report.
12
(4) A member who has been remcved shall not be eligible for reappointment as-o
member or in ai~y other capacity in the Commission.
(5) If the member removed under this seciion is the Chairman of the Comrnis6ionm
he shell also cease tc be the Chairman, of the Ccmmission.
(6) The vacancy caused by the removal of the member shall ba filled in the same
manner a6 provided f~i the appoint mcnt of a member or designation of the Chairroan
of the Commission.
-- Apvolnt- 8. (1) The Commission shall appdint a person as Secretary of the Commission to
ment or Ihe assist the Commission to discharge Ite functione. . seCretW,
~taff aod
consuItmirs €2) Tha Commission shall, with the approval of the State Government, determine
or the the number, natule and calegories of other oficcrs and employees required to assist the
- Commission. Commusion in the discharge of its functions.
1
(3) The'salaries and allowances phyable to m mbets of the Commis.sion and the
- administrative expenses, including salaries,. allowances and pcnsicns payble to or in
respect of tke Secretary, officers. and other employees of the Commissiou, sbel be
charged to the consolidated fund df the State. rn
(4) Themethad and mannercf selectianofthe Secretary, officers and other
. employes of the Commission and t be terms and conditions of -their wrvice may be
prcscr~bed by the Commission by regulations with the previous approval of the State
Government. ,
, .
.(5) The Commission shall be entitled to appbint,' from !{me to time, consultants
squired .to assist the Commission in the discharge of its funcrions On term and
conditions to be decided by the Commission.
PROCEEDINOS, POWERS AND FUNCTIONS OF THE COMMISSION
Prwdings 9. (1) Tbe h&dquarters of the Commission shall be at Bhubaueswar , but the
of the Commission shall be entitled lo conduct its proceedings, consulrations and hearings inh
Commission, other places in Lhe State.
(2) The commission shall have the pow under sub-section (1) of section 54 io
frame regulations fc r the, conduct of its pr~ceedings and discharge of its function.
. , (3) In case of a -difference of opinion among the' members cf -the
Commission, the opinion of th~ majority shall prevail and the opinion of the
Commission shall be expressed in terms of the views of the majority , and, for
this purpose, each member of the Commissicn -shall have one vote only and
the Chairman shall have no casting or second Vote.
(4) The quorum for the mectine of the Commission shall be two, but
in the case of a meeting of the Commisrion to review any previous decision
taken by the Commission or for consideralion of any issuc which could not
be decided OD account of equ'ality of Votes in favour of or against the resolu-
tion propored or where' the Issue consldcred at- a -meeting in which only two
members or the Commiss~on were Present, the quorum for the meeting shall
be all the three :
provided that, in case of emergency, the Commission may decide any matter by
circulation to memhr or members. -
(5) The Chairman of the ~arnin]issjon map instruct the Secretary to call a meeting of
the Commission to be held at such Ilme and at such place as the Chair=* may direct
and also any member of the Commlsslon may request a meeting of the Commis$ion at
any time by. sending a notice In WrltJng tothe other members and with a copy to the
Secretary. +
(6) All decisions, directions and .orders of the Commission shall be i~ writing and
shall be su?pcrted by reasons and!he decisions, directions and orders of the Cammi-
scicn shsIl be available for ins-.ect~on by any person and copies of the same shall also
be rnlde avzilp3!e :o s~ch person if1 t hc -m~nner prescribed by regulstions,
Powers of 10. (1) The Commission shall, for the purposes of any inquiry or proceedings under
Cornmi this Act, have the powers as are vested in Civil C~urt unZzr the Code of Civil s lion. Procedure, 1908 while I rying a suit in rcspzct of the t'oilovin: ma! tr'rs, namely- 5 of 1908.
(n) the summoning and aofo~cing the attendance of any witness. and
examining him on oath;
(h) the discovery and production of any document or c-ther ma!crial
object producible as cvidence;
(c) tthc reception of-evidence on adavits;
(d) the requisirion of any public record from any office;
(e) the issuing of any cornmission for examination of witnessec; and
Cf) the review of its decision^, directiolls and orders.
(2) lie Commis~io~ shall have the power to require any person-
(a) to produce kl'oro, and alIuw to be uxamined and kept by an officer
OF the Commission >pecified in thi; behalf, such books, accounts, ,or clther
documents in the custody 01. undw the control of the pcrson so required
as may be specified or dcscrjbcd in thc requisition, bcing documents
relating to any matter concerning the generation, transmission, distri bulion
and supply. or use cf electricity, thc functioning of any undertaking
involved in the above arcas and other matters, Ihc examination of which
may be required by the Commisrion for the purposc 01 this Act; and
(6) lo furni6ll lo an officer so specified such information as may be required
Tor !be piirposes of this Act or such olher information as may be in
his possession in relation to any activity carried on by any other
peisun.
(3) Whcre, during any inquiry or proceedings under this Act, the Commission
ha, any gr~unds to believe th~t any books or papers or documents of, or
relating to ally uuit or person in relation to which such inquiry is being made
or whidl the owner of such unit may be requircd to prodwe jn such inquiry,
arc being. ur may be, destroyed, rnutiia ted, altercd, falsified or secreted, it may,
by a writtell order, authorjse tluy officer of the Commission to exercise the
same powers of entry, search and scjzurc as mag' be exercised by an Inspector
under sections 240 and 240-A of the Companies Act, 1956. 1 of 1956
(4) Notwithstaading anything contained in any other law for thc iime being
in force, the Commission may, by a general 01. special order, .call upon any
:rert;un including rhr: generating companies or thc liccnsc~ to furnish to the
commission pcriodicallg, or as and whcn required, any information conccrning the
activities carricd on by such person related to generation, transmission, distribution
~rnd supply or us< of eitclricity, lhc conccction bclil:ecn such person and any
other person or undcr laking including such other information relating to the
orgailisation, business and cost of production to enabtc the Commission to carry
out its function? under this Act.
(5) In the discharge of .its functions the Commission shall be entitled to,
and may, consult to the extent the Cornniicsion considers appropriate frob
time to time such persous or group of persons who may be affected or likely
to be affected by the dccisioos of the Commission.
(6) The Cummi+ion may call For information, details. books, accounte and
ober documents from any person or liccnsee and make - inquiry for the
purposes of providing the same to thc Cenlral Electricity Authority, tbe Central
Government end Lhe Statc Government when so required by them.
(7) All persons to whom noticcs mzy be issued pursuant- to this Act shall
duly, faithfully and c ffectively furnish the information, details, books, acconnts
and other dmurnents, which the Commission considers relevait in, connection
with its functions undcr this Act or which may be required to be oblaincd at
the directions of the Cen~ral Electricity Authority, the Central Government or
the SWc Goveramtnt and shall be proceeded, with and punishable under
section 41 for any failure to comply with such requirement.
(8) Notwithstandmg anything contained in sections 12, 1.3. 14, 15, 16, 18,
aeil 19 of the Indian Eltctricity Act, 1910, the Commission rn; y, by order in g or 1910
hting, confer upon licensees or any other person engaecd in thc business of
transmission, distrikution cr suppIy of encrgy under this Act, subject to such conditions
and restrictions as the Commission may think fit to impose, any of the powers
which the telegraph authority possesses under the Indian Telegraph Act, 1885 13 of 1885
wirh rzspect to placing of telegraph lines and posls for the purposes of a telegraph
established or maintained by the Government or to be so Cstablished or maintained.
Functrons of 11. (1) Subject to the provisions of Ibis Act, the Commission shall be
Cornmi- responsible to discharge, amcngst olhcrs, the foll~rvi ng functions, namely: - %ion.
(a) to aid and advise, in, matters concerning generation, transmission, dist ribu-
tion and suppIy of electricity in the Stale;
(h) lo regulate the working of licencees and to promote' their working in an
eficient, economical and equitable rnenner;
(c) to issue licences in accordance witb the provisions of this Act and
determine lhe conditions to be included in the liccnces; .
(d) to promote eficiency, econolny and safety In the tansmission, distribution
. and use d the electricity in the State includine cnd in particular
in regard to quality, continuity and reliability of servicc so as to enable
all reasonable demands for electricity to be met;
(e) to regulate the purchase, distribution, supply and utilization of electricity,
the quality of scrvice, the tariff and charges payable keeping in view both
the inter:& t oft he consumer as well as the ccmsidtration that the supply
and distribution cannot be maintained rinIess the charges for the electricity
6hpplied are reasonably levied and duly collected;
(j) to prcmo:c CL mpcfitiven~ss and progrtssively involve' the participa~ion of
I he private sector, while ensuring a fair deal for the custc mers;
(gl to cd~~ect data ~nd forecast on the demand fc r and use of electricity and
to require the' licensees to collect such data and mske such forecasts;
(11) to require licensees to formulate perspectjve plans and ~chemes in
co-ordination with others for the promotion or generiiiion, lraasrnissian,
distribution and supply of electricity; and
(i) to undertake all incidental or ancillary thiags.
(2) Notwilhstanding the provisions of swlion 52 of the Indian Electricity
Act, 1910 or the provisions of clause (ii) of sub-section. (I) of section 3 and 9af 1910
.ection 76 of the- El:ctricily (Supply) Act, 1948, the Commission shall have 54 or 194
the pcwer to act as arbitrator or to nominate arbitrator or arbitrators to
adjudicate and settlc the dispute; arising between the licensees "n acccrdance
with the provisions of this Act and the regulaticm to be prescribed and this
shall be a condition of the grant of bcences.
CHAPTER IV
POWERS OF. THE STATE GOYERNMENT
General 12. (1) The State Government shall have the power to issue policy directives
Powers of on matters concerning electricity in the State including the overall planning and
g:E$m,,,. a-ordm tion and all such policy directives shsll be consistent with the objects
sought to be achieved by this Act.
(2) If any dispute arises between the Commission and the State Government
as. to whether a question is or is not a question af policy, it shall be referred to
the Central Electricity Authority whose decidion thereon shall be final and
binding and for this purpose the Centr31 Electricity Authority may appoint onr:
or more of its members to act on behalf of the said authority.
- (3) The State ,'Government shall be entitled' to issue policy direcdves,
concerning the subsidies to be aIlowed for suppll: of electricity to any clais or
classes of persqns or in respect of any area in addition to the subsidies permitted .
by the Commission while reolatjng and approving the tariff structure:
Provided . that the -state Government shall pay the amount to compensate
any cccncerned body or unit affected by the grant of subsidies by tho State
Government to the extent the subs~aes granted.
CHAPTER V
C~nstitu%~ GRTDCO
nnd iunc- 13. (1) The Grid Corporatian of Orissa Limited ~ncorporated under the provisions .
"Om or the of ihe Companies Act, 1956 with effect from the 20th day of April, I995 with tlte 1 ol 1956
%'dm. main object< of engaging io the business of procurcaent, transrnissi~o and bulk supply
of electric enerby, shall subject to the powers of the Statc Government undcr section
12, be the principal company to undertakt planning and co-ordination. in regard to
transmission and !o determine ,hc ekctrici ly requirements in I l~e State in co-ordina tion
with the Generating Compsnics; State Government, conriguous States, the Commission
the Regional Elcclricity Board and the Central Elecrriciry Authority,
- - (21 Gridco shall own the extra high voltage lraasmisaion system, shall be
responsible for transmission system operations and shall operate the power sysleni
in an efficient manner.
(3) Gridco ;hall undertake the iu~ictionlj cpeci6ed in this section and such other
functions as may be required undcr the licencc to be granted to it by the Commission
under this Act.
(4) Upon the grant of Iiccace to Gridco under section 1 5, Gridco shall discharge
such powers, duties and functions of the Board including those under the India .
Electricity Act, 1910 ,and the Electricity (Suppy) Act, 1948 or the rules framed
thereunder as the Commission may specif) in the licence and it shall undertake and 54 af 1948
duly discharge t be powers, dutierc and functions so assigned.
(5) Subject to sub-section ( I) and the overall supervision and control of Grid&
subsidiary or associated Grid companies may be established in the State and the
Commi?;sioa may grant ljcences under the lcrms of this Act to such Grid companies
in consultation with Gndco.
LICENSING OF TRANSMISSION AND SUPPLY
Licami~g 14. (1) No person, other than those authori.ed to do so by licence or by virlue
of exemption undcr this Act or authorised or exempted. by any other authority under
the Electricity (Supply) Act, 1948, shall engage in the State in the business of- 540f 1946
(a) transmitting ; or
(b) supplyin9 electricity.
(2) Where any difference or dispute aripes as to whet her any person is or is not
engaged or about to engage In the business of trans~~mitting or &upplying electricity as
mentioned in sub-section (1), the matter shall be referred to the Commission for
decision which shall ba final.
(3) The Commission sba ll have the pou er to order my unlicense person to cease
operating and disconnect its app~retus. -
(4) ~othithst anding any thing contained in the other ' provisions OF this
Aa, until the establishment of the Commission in terms of sectlop 3, the
State Government shzll, for a period of six months from the date this Act comes into
force, have the power to grant provisronal licences under this section having a duration
not exceeding twslve months to any person or person: to ensage in the Stale in the
busincss of transmirsion or supply of electricity. on such terms and conditions as the
State Government may determine consistent with the provisions of this Act, subject
however to thc following condition:, namely:-
(a) upon the establishment of the Commissicn, each of the provisional
licences so granted shall be placed before the- Commission and shall be
deemed to canstitute an appliation for a licence by the Commi~sion
under the provisions of this Act ; and
(b) each provisicnal licence granted under this section shall cease to be
valid and effective on the date on whlch the decision of the Commission
. on the application is communicated.
Uranr of 15. (I) The Commission may on an application mode in such form and on
licencas by paymcnt of such fee as may be pescribed by regulatbns, grant a licence authorising
nng person to- ssion.
(a) transmit electricity in a specified area of transmission ; and/or
(b) supply-eleciricity in a specified area of su~ply.
- (2) In recpxt of thc grant cl licence under sub-section (1), the following
proviuons ,shall apply: -
(a) any person applying for a licence shall publish. a notice of his applica-
tion in such manner, and with such particulars as may be prcscri bed by
the Commission within 14 days after making the application ;
(b) the Commission shall no! grant alicence until,-
(i) all objesions recci~ed within &rce mo~tbs ffom the date of publication
relating to the applicaticn for the licence have been considered by the
Commission ;
(ii) no objection has been obtained from the Cenlral Governmen1 in the case
of an application for a licence to supply or transmit in an area which
includes !lie whole Lr auy part of any cantonment, aercdrurne, fortress,
arsenzl, dockyard or camp or of any building or place in the occupation
of the Ccntral Government for defencepurpo~s;
(c) where an objection is received from any local authority wncerwd, the
Commission shall, if in its opinion the objection is iMcient, record in
writing and communicate to 6tIcli local authority its reasons for such
opinion ; and
(6) no application for a licence shaII be made by any local authority exczpt
pursuant to a resolu~ion passed al . a meeting of such authority held -after
one month's previous notice of the same specifying the purpose thereof has
been givcn in thc mannor in which notices cf meetings of such local authority
are usually given. .
(3) A licence may prescribc the extent to which, and the terms and conditions under
which the tr;!nsmiss ion or supply of energy is to be made and contain such other
conditions as f he Commission may consider appropriate for achieving the purposes of
the Act.
(4) Without prejudice to the generaiit y of eibsection (3), conditions included in
a licence may req--re the iiccnsee to,-
(a) enter into agrecmects on specified terms with other persons for the use of
any electric liues, clcctrjcal plant and associated equipment operated by
the liccnsee;
(b) conlpIy with any dircctim ~iven by the Commission ;
(c) refer all dispute:. arising under ibe licence for determination by the
Commission ;
(4 furnish inforrnatioo, documents and detials which the Commission may
require for its own purpose or for the purposes of thc Ccntral Government
' or the State Governmcnt or Lhe Central Electricity Authority ;
(e) comply with the requirements of the Indian Electricity Act, 1910 and the 9 af 1910
Electricity (Supply) Aot, 1948 and rules framed thereunder in so far as they 54 of rw
are applicable ;
(f) undertake such functions end obligations of' the ' Board under ibe Indim 1910
Electricity Act, 1910 and Electricity (Supply) Act, 1948; s4of 1948
(g) obtain (be approval of the Commission of such things that are rauired under
(hc licenc.: condiiions or for deviation from the same ;
(h) notify the Commission of any schcme thet it is 'proposing lo undertake
including the scheme1 in terms of the provisions 'of thc Electricity (Supply)
Act, 1948 ; 54 of 1948
(i) purchase power in an economical manner and under a transparent power
purcbase procurement process ;
(j) supply in bulk to olher licensees or to customers ; and
(k) establish q tariff or to calculate its charges from time to time in accordsooo .
svi th the requirements przscri bed by the Commission.
(5) The provisions contaiaed in 1he Schedule to thc Indian Electricity Act, 1910 90f 1910
.shall bc deemed to be iccorporated wjth, and to form part of, every licence granted under
this Chapter, save in so far as thcy arc expressly varicd cl r cxceptcd by the licence and
shall, subject to any such additions, va~ iations or cxceptians which tbc Commissiofr Is
empowered to make havins rcgard to the purposes of the Act, apply to the undertskrng
authorised by thc licence in rclation to its activitjcs in the Stata :
Provided that where a supply licence is granted by the Commission for the supply
of coergy to. 0th licensees for distribution by them, then in so far. a6 such licence - relates to such supply, the provisions of clauses lV, V, VI, VIZ, VIn and =I of the
said Schedule shall not bc dccmed to be incorporated within fhe supply licence.
---:=+
(6) The conditions included in a licence may contain provision for thc condlt~ons to
cease to have effect or be modified at such .times, in such manner and in such
arcurnstances as may be specified therein.
(7) Any pravisio'ns included by virtue -of sub-section (6) in a licence shall have
effect io addition to the provision made under sub-section (5) of aeclion 18 and
section 19.
(8) 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 suuply or
transmission for a Iik~ purpose and accordingly, the licensee 6haIl not .cIaim any
, exclusivity.
(9) Any licence granted by the Cornrnjssion under this Act may provide that the -
licensee shall have the powers and authorities to take appropriate actions for revenue -
reali sation, prosecution for thcft, meter tampering, diversion of elcctricitj and all such
similar matters aaecting the distribution and supply of elechicity to the consumer. ,
(10) The ~omrnission may athorise licensees and other persons to exercise such
power aud authority as the licensees and other persons could be given under the
provisions of the Indian Elcclricily Act, 1910 and the Electricily (Supply) Act, 1948. g of 1910
. ,
54 of 1944
Exemption 16. (1) The Commission may make regulalion to grant exemption from the
ram [he requirement to have a licencc, but subject to compliance with such conditions, if any,
requirement as may be specified in the regulations :
to have a
I icence. Provided that the Commission shall not, under any ruch regulation, grant any
exemption except with the concent,-
(i) in any case where electricity is to be supplied in any area for which a local
authority is constituted of that local authority;
(ii) in any casc where electricity is to bc supplied in any area forming part
I .of any cantonment, acrodcome, fortress, arsenal, dockyard or camp or
any building or place in thc occupation of the Central Government for -
'
derence purposes of the Central Government;
(iii) in any area falling within the area of supply of a licencc, ofZhat licensee:
- Provided-further 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 unreasonabIy
withheld,
(2) An exemption may be granted to a particular person or to a particular category
if persons and for a definite period and every such exemption shall be published in such
manner as the Commission considers appropriate for bringing it to the attention of that
person 02 perms 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 bc recorded in writing.
(4) An exemption. unless prqviously revoked, shall continue in force for such period
as be specified in or determined by or under the exemption.
General 17. (1) It shall be the duty of the holder of a supply licence or a transmission
du(iSand licence,in fispect oEa particular area of supply or transmission, as the case may be,
r::lf "30 develop and maintain an efficient, coordinated and economical syncm of ekct ricit
'supply or tmsmission in the area of supply area of iransmi~sion, as the case maybe.
(2) Each licence 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 mzintenancc of the power system and electr~c
bupply lines.
(3) Subject to sub-section (4) sections 12, 13, 14, 15, 16, 17, I8 and 19 of the
Indian Blectricity Act, 1910 shall have efltct in relation to a person nuthorised by a ,f 1910.
licence to transmit or suppIy electricity, as if it were a licensee under the said Act.
(4) Where any. of the sections mentioned in sub-section (3) is applied to a li~nce
holder by its licence, it shall have effect subject to -such restrictions, exceptions and
conditions as may be included in the licence.
~evoaiion 18. (1) The Commission may enquire into the conduct or fitnclioning of any
- licensee carrying out the obligations under this Act, rules and regulations framed
thereunder and the terms and conditions of its licence in the following cjrcumstances,-
(a) upon rrceiving a complaint from any consumer or coniumer association or
any trzde association ; or
(b) upon a reference made to it by thc Srate ~o&ornent, the Central
Govemment or Central Electricity Authority ; or
(c) upon receiving a complaint from any - company or person involved in the
generation, pansmission, distribution or supply of electricity ; or
(d) upon its own knowledge or idormation derived fern any source.
(2) Upon making such inquiry the Commission may, if in its opinion lhe public
interest so *quires, revoke a licence in any of the following cases, namely:-
(a) where the Iicensee, in the opinion of the Commissioo, has committed a
wilful or' 'unreasonable default in, doing anything required 01 him by or .
under this Act, or rhe Indian Electr1cit Act, 1910 or ihe Electricity (supply) or lHO d Act, 194% the rules or regulat~ons ma e ther~under; 54 or 194%
(6) qhere the licensee commits a breach of any of the terms and conditions
of his licence, the breach of which L mpressIy declared by such licence to
render it liable to revocation;
(c) where the licensee faib within the period specified in his licence or
longer period which the Commission mav allow by order, -
(i) to show, to the satisfaction of the Commission, that he is in a position
to fully and efficiently discbmge the duties and obligatjoas imposed on
him 6y his licence; and
(ii) to make the deposit or furnish the security requircd by his licence; and
(d) where in the opinion of the Commissioo tbe financial position of the
licensee is such,that he is unable to fulIy and efficiently discharge the duties
and,obIiga tions imposed on him by his licence.
(3) Notwithstanding the provisions of sub-sect ions (1) a nd (2) the C~rnrnissi~n
may, where in its opinion the public interest So *quires, 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, ~f any, revoke a transmission or supply licencc as to the
whob or aay part of the area of trt?nsmission or supply upon such term6 and
conditions as it thinks fit. . .
(4) No licence shzll be revokcd under sub-section (2) or (3) unless the Commission
haExcerpt shown. Open the full act in Lexace.