LexThe Telangana Electricity Reform Act, 1998.
Telangana · state statute
Open in Lexace · Ask the AI about this actTHE TELANGANA ELECTRICITY REFORM ACT, 1998.
(ACT NO. 30 OF 1998)
ARRANGEMENT OF SECTIONS
Sections
PART - I
PRELIMINARY
1. Short title, extent and commencement.
2. Definitions.
PART - II
TELANGANA ELECTRICITY REGULATORY
COMMISSION
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.
PART - III
PROCEEDINGS, POWERS AND FUNCTIONS OF THE
COMMISSION
9. Proceedings, powers and functions of the
Commission.
10. Powers of the Commission.
11. Functions of the Commission.
2 [Act No. 30 of 1998]
PART - IV
POWERS OF THE STATE GOVERNMENT
12. General powers of the State Government.
PART - V
TSTRANSCO
13. Constitution and functions of the TSTRANSCO.
PART - VI
LICENSING OF TRANSMISSION AND SUPPLY
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.
PART - VII
REORGANISATION OF THE ELECTRICITY INDUSTRY
23. Reorganisation of State Electricity Board.
24. Provisions relating to personnel.
25. Payment of compensation or damages on transfer.
PART - VIII
TARIFFS
26. Licensee’s revenues and tariff.
27. Finances of licensees.
[Act No. 30 of 1998] 3
PART - IX
COMMISSION’S POWER TO PASS ORDERS AND
ENFORCE DECISIONS
28. Interim orders for securing compliance.
29. Final orders for securing compliance.
30. Effect and enforcement of interim and final Orders and
emergency provisions.
31. Fines and charges.
31-A. General control of the Commission.
PART - X
ADVISORY COMMITTEE, CONSUMER
CONSULTATION
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.
PART - XI
ARBITRATION AND APPEALS
37. Arbitration by the Commission.
38. Appeals from decisions of Electrical Inspectors.
39. Appeals against the orders of the Commission.
PART - XII
OFFENCES AND PENALTIES
40. Penalty for contravention of section 14.
41. Penalties for contravention of other provisions.
42. Offences by companies.
4 [Act No. 30 of 1998]
43. Power to compound offences.
44. Cognizance of offences.
45. Penalties and proceedings not to prejudice other
actions.
PART - XIII
MISCELLANEOUS
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.
PART - XIV
EFFECT ON EXISTING CENTRAL LEGISLATION
56. Effect of the Act on the Indian Electricity Act, 1910 and
the Electricity (Supply) Act, 1948.
57. Savings.
Schedule.
THE TELANGANA ELECTRICITY REFORM ACT, 1998.1
ACT No.30 OF 1998.
PART - I
PRELIMINARY
1. (1) This Act may be called the 2Telangana Electricity
Reform Act, 1998.
(2) It extends to the whole of the State of 2Telangana.
(3) It shall come into force on such date as the State
Government may, by notification, appoint.
2. In this Act, unless the context otherwise requires,-
(a) “area of transmission” means the area within which
the holder of a transmission licence is for the time being
authorised by licence to transmit energy in accordance with
the conditions prescribed;
(b) *“TSTRANSCO” means the Transmission
Corporation of Telangana Limited incorporated as a
transmission company under the 3Companies Act, 1956 and
as referred to in section 13 of this Act;
1. The Andhra Pradesh Electricity Reform Act, 1998 received the assent
of the President on the 29 th October, 1998. The said Act in force in the
combined State, as on 02.06.2014, has been adapted to the State of
Telangana, under section 101 of the Andhra Pradesh Reorganisation
Act, 2014 (Central Act 6 of 2014) vide. the Telangana Adaptation of Laws
Order, 2016, issued in G.O.Ms.No.45, Law (F) Department, dated
01.06.2016.
2. Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.
* APTRANSCO is now renamed as TSTRANSCO in the Telangana State.
3. See also Companies Act, 2013 (Central Act 18 of 2013).
Short title, extent
and
commencement.
Definitions.
Central Act 1 of 1956.
2 [Act No.30 of 1998]
(c) “Commission” means the 4Telangana Electricity
Regulatory Commission constituted under sub-section (1) of
section 3;
(d) “licence” means a licence granted under section 15
of this Act;
(e) “licensee” or “licence holder ” means a person
licensed under section 14 of the Act to transmit or su pply
energy including *TSTRANSCO;
(f) “member or members ” means the members of the
Commission and shall include the Chairman of the
Commission;
(g) “notification” means a notification published in the
4Telangana Gazette and the word “notified” shall be
construed accordingly;
(h) “prescribed” means prescribed by the rules or
regulations made under this Act;
(i) “regulations” means regulations made b y the
Commission under this Act;
(j) “rules” means rules made by the State Government
under this Act;
(k) “selection committee” means the selection
committee constituted under section 4 of this Act;
(l) “State” means the State of 4Telangana;
(m) “State Government” means the Government of the
State;
4. Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.
[Act No.30 of 1998] 3
(n) “supply licence” means a licence under sub-section
(1) (b) of section 15;
(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 licens ee 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;
(q) words and expressions used but not defined in this
Act and defined in the Electricity (Supply) Act, 1948 have the
meanings respectively assigned to them in that Act;
(r) words and expression s used but not defined either
in this Act or in the Electricity (Supply) Act, 1948 and defined
in the Indian Electricity Act, 1910 have the meanings
respectively assigned to them in that Act.
PART - II
5TELANGANA 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 a Commission to be known as the
5Telangana Electricity Regulatory Commission, which shall
be a body corporate with perpetual succession and a
common seal with power to acquire and hold property,
5. Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.
Establishment
and constitution
of the
Commission.
Central Act 54 of 1948.
Act No.54 of 1948.
Act No.IX of 1910.
4 [Act No.30 of 1998]
movable and immovable, and shall, by the said name, be
entitled to sue and be sued.
(2) The Commission shall consist of a Chairman and
two 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. The State Government shall specifi cally
designate one of the three members as the Chairman. The
inter-se-seniority of the other two members shall be
indicated in the orders of appointment.
(3) When the Chairman of the Commission is unable to
discharge the functions owing to absence, illn ess 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 office.
4. (1) The State Government shall expeditiously constitute
a selection committee, as often as may be required to select
persons for appointment as members of the Commission,
which shall consist of the following, namely:-
(i) a retired Chief Justice of any High Court or a
retired judge of the Supreme Court.
-- Chairman
(ii) Chief Secretary to the Government of 6Telangana
-- Member
(iii) the Chairman of the Central Electricity Authority
-- Member
6. Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.
Constitution of the
selection
committee to
select members.
[Act No.30 of 1998] 5
(2) The Secretary in-charge of the Energy Department,
Government of 7Telangana shall be the Convenor fo r the
above Selection Committee.
(3) The selection committee shall call for nominations
from general public and from professional bodies,
consumer organisa tions by giving wide publi city, so as to
act expeditiousl y and shall generally finalise the selection
within a period of three months to enable the State
Government to make the final selection and appointment in
time for the new member to take charge at the expiry of the
term of the retiring member:
Provided that the selection of the members shall not be
restricted to the nominations received.
(4) The selection committee shall submit the panel of
two suitable persons for each vacancy in the Commission
who have such qualification and experience as provided in
the Act, to the State Gov ernment in alphabetical order from
among whom the State Government shall appoint one of the
two 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 of the Commission shall be as
prescribed by the State Government.
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,
7. Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.
Conditions for
appointment as
member of the
Commission.
6 [Act No.30 of 1998]
commerce, finance, accountancy, law or administration and
that at all times the selection and appointment shall be
made in accordance with the qualifications and experience
specified below:-
(i) one member shall be a graduate electrical
engineer with adequate experience in generation or
transmission or distribution of electricity;
(ii) two members shall have graduate qualification
with specialisation and adequate experience in any of the
disciplines like law, economics, commerce, finance,
accountancy or administration:
Provided that at any point of time the Commission shall
not consist of more than one member from the same
discipline:
Provided further that persons below the age of fifty five
years shall not be eligible for appointment as Chairman or
member, as the case may be.
(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 or if he has any financial
or other interest, directly or indirectly, in any private
company or undertaking dealing with any of the business
referred to in clause (a) of sub -section (3) subject to the
conditions specified in sub-section (5).
(3) The persons who are considered for appointment
as members of the Commission shall intimate the convenor
of the selection committee,-
(a) of any office, employment or consultanc y
agreement or arrangement which he has in his own name or
[Act No.30 of 1998] 7
in any firm, association of persons or body corporate, or in
the names of any relat ive, carrying on any of the following
businesses, namely:-
(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 8Companies Act, 1956.
(4) The details received from the persons shall be
placed for consideration of the selection committee at the
time of s election 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
8. See now the relevant provisions of the Companies Act, 2013 (Central
Act 18 of 2013).
Central Act I of 1956.
8 [Act No.30 of 1998]
allowed by the State Government on the recommendation of
the sel ection 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 sha ll not seek
reappointment in the service of the State Government or any
Government corporation or body dealing with the power
sector in Telangana at any time within a period of two years
after he ceases to be a member of the Commission.
(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 within or outside
the State 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 i s 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 of 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:
Term of office,
conditions of
service, etc., of
members.
[Act No.30 of 1998] 9
Provided that a member shall be eligible for
appointment as Chairman subject to his combined tenure in
the Commission as Member and Chairman shall not exceed
five years:
Provided further that the first three mem bers 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 also 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 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 State Government may remove from office any
member of the Commission in accordance with sub -section
(2), who,-
(a) has been adjudged as un-discharged insolvent; or
(b) has been convicted of an offence involving moral
turpitude; or
Removal of
members.
10 [Act No.30 of 1998]
(c) has b ecome physically or mentally incapable of
acting as such member; or
(d) has without reasonable cause refused or failed to
discharge his functions for a period of at least three months;
or
(e) ceases to fulfil l any of the conditions or 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 Andhra Pradesh, as recommended by the
Chief Justice of the High Court at the re levant time, has
carried out an enquiry and has forwarded a report to the
State Government.
(3) 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.
[Act No.30 of 1998] 11
(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 C ommission shall appoint a person a s
Secretary of the Commission to assist the Commission to
discharge its functions.
(2) The Commission shall, in consultation with the
State G overnment 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 allowance 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 th e
Commission by regulations with prior approval of State
Government.
(5) The Commission shall be entitled to appoint from
time to time consultant s 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.
12 [Act No.30 of 1998]
PART – III
PROCEEDINGS, POWERS AND FUNCTIONS OF THE
COMMISSION
9. (1) The headquarters of the Commission shall be at
Hyderabad in the State, but the Commission shall be
entitled to conduct its proceedings, consultations and
hearings at any place in the State.
(2) The Commission shall alone have the exclusive
power to make 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) All decisions of the Commission shall be on the
basis of majority of the Members present and voting.
(4) The quorum for the meeting of the Commission
shall be two and each member shall have one vote and in
case of equality of votes on any issue or resolution, the
Chairman or as the case m ay be the next senior member of
the Commission discharging th e functions of the Chairman
under sub -section (3) of section 3 presiding over the
meeting shall, in addition, have a casting vote:
Provided that for a meeting of the Commission to
review any previous decision taken by the Commission, the
quorum shall be that all members shall be present.
(5) The Chairman of the Commission may instruct the
Secretary to call for 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 under intimation of such
notice to the Secretary. The notice of all meetings shall be
Proceedings,
powers and
functions of the
Commission.
[Act No.30 of 1998] 13
given to the member 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
reason. The decision, direction 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.
(8) No act or proceeding of the Commission shall be
deemed invalid by reason only of some defect in the
constitution of the Commission or by reason of the
existence of a vacancy or vacancies among its members.
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, 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;
(d) the requisition of any public record from any court
or office;
(e) the issue of commission for examination of
witnesses;
Powers of the
Commission.
Central Act 5 of 1908.
14 [Act No.30 of 1998]
(f) the appearance of parties and consequences of
non-appearance;
(g) the grant of adjournments at the hearing.
(2) 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 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 require d 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.
(3) 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.
(4) The Commission shall have the powers to review its
decisions, directions and orders.
(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
[Act No.30 of 1998] 15
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 ex ercise 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 9Companies Act, 1956.
(6) Notwithstanding anything co ntained 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 concer ning the activities carried on by such
person related to generation, transmission, distribution and
supply or use of electricity, the conn ection between such
person and any other person or u ndertaking including such
other information relating to the organisation, business, cost
of production and other requirements as may be prescribed
to enable the Commission to carry out its functions under
this Act.
(7) In the discharge of its function the Commission
shall be entitled to and shall consult to the extent the
Commission considers appropriate from time to time such
persons or group of persons who may be affected or are
likely to be affected by the decisions of the Commission.
(8) To exercise the powers conferred under this section
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
9. See now the relevant provisions of the Companies Act, 2013 (Central
Act 18 of 2013).
Central Act 1 of 1956.
16 [Act No.30 of 1998]
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 instance
of the Central Electricity Authority, the Central Government
or the State Government as the case may be and shall be
proceeded with and punishable fo r 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 and sections 18 and 19 of the In dian 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 re spect to placing of
telegraph lines and posts.
11. (1) Subject to the provisions of this Act, the
Commission shall be responsible to discharge amongst
others the following functions, namely:-
(a) to aid and advise, in matters concerning electricity
generation, transmission, distribution and supply in the
State;
Functions of the
Commission.
Act No.IX of 1910.
Act XIII of 1885.
[Act No.30 of 1998] 17
(b) to regulate the working of the licensees and to
promote their working in an efficient, economical and
equitable manner including laying down standards of
performance for the licensees in reg ard to services to
consumers;
(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 relia bility of service and
enable to meet all such reasonable demands for electricity;
(e) to regulate the purchase, distribution, supply and
utilisation 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 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 co -ordination with others for the promotion
of generation, transmission, distribution and supply of
electricity;
18 [Act No.30 of 1998]
(i) to regulate the assets, properties and interest in
properties concerning or related to the electricity industry in
the State;
(j) to lay down a uniform system of accounts among
the licensees;
(k) to regulate working of licensees and promote their
working in an efficient economical and equitable manner;
and
(l) 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 objectives and purposes.
(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 precedent of the grant of licences.
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 plann ing and co -ordination.
All policy direction shall be issued by the State Government
consistent with the objects sought to be achieved by this Act
General powers of
the State
Government.
Central Act IX of 1910.
Central Act 54 of 1948.
[Act No.30 of 1998] 19
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 Gov ernment 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 by the State Govern ment to a retired judge of
the Supreme Court in consul tation with the Chief Justice of
the Supreme Court whose decision thereon shall be final
and binding.
(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 or in
respect of any area in addition to the subsidies permitted 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 subsides granted. The
Commission shall determine the amounts and the terms and
conditions and time frame on which su ch 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.
20 [Act No.30 of 1998]
PART - V
*TSTRANSCO
13. (1) Not later than sixty days of the Act coming into
force the State Government shall constitute *TSTRANSCO to
be incorporated and organised under the provis ions of the
Companies Act, 1956 as the Transmission Corporation of
10Telangana Limited, with the principal of 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 *TSTRANSCO established by the State
Government in terms of sub-section (1) shall be the principal
company to undertake all planning and co -ordination in
regard to transmission; undertakin g the works connected
with transmission, determining the electricity requirements
in the State in co-ordination with the Generating companies,
State Government, the Commission, the Regional Electricity
Boards, and the Central Electricity Authority; the ope ration
of the power system.
(3) *TSTRANSCO 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) *TSTRANSCO shall undertake the fu nctions
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 *TSTRANSCO
under clause (a) of sub -section (1) of section 15 of this Act,
10. Substituted by G.O.Ms.No.45, Law (F) Department, dated
01.06.2016.
Constitution and
functions of the
*TSTRANSCO.
Central Act 1 of 1956.
[Act No.30 of 1998] 21
the *TSTRANSCO shall discharge such powers and perform
such duties and functions of the 11Telangana 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
*TSTRANSCO to undertake and duly discharge the powers,
duties and functions so assigned.
(6) Subject to the provisions of sub-sections (1) and (2)
and to the overall supervision and control of the
*TSTRANSCO 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 consu ltation
with the *TSTRANSCO.
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 engaged or is not engaged or about
to engage in the business of transmitting or supplying
electricity as specified in sub -section (1), the matter shall be
11. Substituted by G.O.Ms.No.45, Law (F) Department, dated
01.06.2016.
Licensing.
22 [Act No.30 of 1998]
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 any other
provisions of this Act and until the establishment of the
Commission in terms of section 3, the State Government
shall have the power to grant provisional licences under this
section having a duration not exceeding twelve months to
any person or persons to engage in the state in the
business of transmission or supply, of electricity on such
terms and conditions as the State Government may
determine consistent with the provisions of this Act, subject
to the following conditions namely:-
(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 licen ce granted under this
section shall cease to be valid from the date notified by the
Commission.
(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, as may be
prescribed, grant a licence authorising any person to,-
Grant of licences
by the
Commission.
[Act No.30 of 1998] 23
(a) transmit electricity in a specified area of
transmission; or
(b) supply electricity in a specified area of supply
including bulk supply to licensees or any person.
(2) In respect of the grant of any such licence the
following procedure shall be followed namely:-
(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 ap plication for a licence to
supply or transmit in an area which includes the whole or
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 Co mmission shall ascertai n whether there is
any objection to the grant of the licence on the part of the
Central Government;
(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
24 [Act No.30 of 1998]
(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 aft er 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 shall prescribe the duration, extent to
which and the terms and c onditions 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), the 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 or plants and associated equipment operated b y 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;
[Act No.30 of 1998] 25
(f) comply with the requirements of the India
Electricity Act, 1910 and the Electricity (Supply) A ct, 1948 or
rules framed thereunder in so far as they are applicable;
(g) undertake such functions and obligations of the
12Telangana State Electricity Board under the provisions of
the Indian Electricity Act, 1910 and the Electricity (Suppl y)
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) no tify the Commission of any schem e that he is
proposing to undertake including the schemes in terms of
the provisions of the Electricity (Supply) Act, 1948;
(j) purchase power in an economical manner and
under a transparent power purchase process; and
(k) supply in bulk to other licensees or to customers.
(5) Without prejudice to the generality of sub -section
(3), the 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 r equirements 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 ar e expressly
varied or excepted by the supply licence and shall, subject
to any such additions, variations or exceptions which the
12. Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.
26 [Act No.30 of 1998]
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 cl auses 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 tim es, 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) Unless 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 lic ence to another
person within the same are a of supply for a like purpose
and accordingly the licensee shall not claim any exclusivity.
(10) The licence granted by the Commission in term of
this Act may provide that the licensee shall have the powers
and authority to tExcerpt shown. Open the full act in Lexace.