LexThe UTTAR PRADESH ELECTRICITY REFORMS ACT, 1999
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THE UTTAR PRADESH ELECTRICITY REFORMS ACT,
19991
(U. P. ACT No. 24OF 1999)
[As passed by the Uttar Pradesh Legislature, assented to by the
President under Article 201 on June 23, 1999 and was published in
the Uttar Pradesh Gazette, extraordinary on July 7, 1999]
AN
ACT
to provide for the restricting of the electricity industry in
the State of Uttar Pradesh, the rationalization of generation,
transmission, distribution and supply of electricity in the State,
regulation by an independent electricity regulatory Commission
of the electricity industry in the State including the purchase,
distribution, supply and utilization of electricity, the quality of
service, tariff and other charges keeping in view the interest of
the consumers and utilities, creation of an environment which
will attract participation of private sector entrepreneurs in the
electricity industry in the State and generally for taking
measures conducive to the development and management of the
electricity industry in the State in an efficient, economical and
competitive manner and for matters connected therewith or
incidental thereto.
IT IS HEREBY enacted in the fiftieth Year of the Republic of India
as follows :
CHAPTER—1
PRELIMINARY
Short title,
extent and
commencement
1. (1) This Act may be called the Uttar Pradesh Electricity
Reforms Act, 1999.
(2) It extends to the whole of the State of Uttar Pradesh.
(3) It shall come into force on such date as the State Government
may, by notification, appoint in this behalf.
Definitions 2.In this Act,—
(a) “area of supply” means the area within which a licensee is
authorised to supply electricity ;
(b) “area of transmission” means the area within which a
licensee is authorised to transmit electricity ;
(c) “Board” means the Uttar Pradesh State Electricity Board
constituted under section 5 of the electricity (Supply) Act, 1948 ;
(d) “Central Act” means The Electricity Regulatory
Commissions Act, 1998 (Act 14 of 1998) ;
(e) “Chairperson” means the Chairperson of the Commission ;
(f) “Commission” means the Uttar Pradesh Electricity
Regulatory Commission referred to in section 3 ;
(g) “licence” means a licence granted under Chapter V ;
(h) “licensee” means a person who holds a license and includes
the provisional licensee referred to in clause (a) of sub-section (3) of
section 13 ;
——————————————————————————————————————————
1. For S.O.R. see at the end of this Act.
[The Uttar Pradesh Electricity Reforms Act, 1999]
230
(i) “Member” means a Member of the Commission and includes
the Chairperson ;
(j) ‘‘regulations’’ means regulations made under this Act;
(k) “relative” means relative as defined in section 6 of the
Companies Act, 1956 ;
(l) “supply licence” means a licence for supply of electricity
granted under sub-section (1) of section 15 ;
(m) “transmission” in relation to electricity means the
transportation or transmission of electricity by means of a system 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
or from one generating station to another generating station or from one
sub-station to another sub-station or otherwise from one place to
another ;
(n) “transmission licence” means a licence transmission granted
under sub-section (1) of section 15 ;
(o) “Power Corporation” means the Uttar Pradesh Power
Corporation Limited referred to in section 13 ;
(p) “utility” means a person engaged in the generation,
transmission, sale, distribution or supply of electricity ;
(q) words and expressions used but not defined in this Act, shall
have the meanings assigned to them in the Electricity (Supply) Act,
1948 ;
(r) words and expressions used but not defined in this Act or in
the Electricity (Supply) Act, 1948, shall have the meanings assigned to
them in the Indian Electricity Act, 1910.
CHAPTER—II
ESTABLISHMENT OF COMMISSION, ITS FUNCTIONS AND POWERS
Constitution
of the
Commission
3. (1) (a) There shall be a commission in the State to be known
as the Uttar Pradesh Electricity Regulatory Commission to exercise the
powers conferred on, and to performs the function assigned to, it under
this Act ;
(b) The Uttar Pradesh Electricity Regulatory Commission
established and constituted under section 17 of the Central Act shall be
the Commission under this Act and the Chairperson and Member
thereof shall be deemed to have been appointed as such under this Act.
(2) The Commission shall be a body corporate and its head
quarter shall be at Lucknow.
(3) The Commission shall consist of a Chairperson and two
Member to be appointed by the State Government from amongst the
persons possessing the following qualifications :—
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232
(a) one person having Bachelor’s Degree in Engineering with
experience of not less than twenty-five years in the field of generation,
transmission or supply of electricity and having worked for at least two
years on the post of a Chief Engineer or on any other post equivalent
thereto in a State Electricity Board or any other utility ;
(b) one person having Bachelor’s Degree with experience of not
less than twenty-five years in the field of administration and having
held a post of Additional Secretary to the Government of India or a post
equivalent thereto under the Central or the State Government and
having at least five years’ experience in one or more departments of
finance, power, industry and commerce of Government ;
(c) one person having Bachelor’s Degree in any disciplines of
Economics, Commerce, Accountancy, Law or Management with
experience of not less than twenty-five years and having worked as a
Professor in an Indian Institute of Management or as a whole time
Director in a Public Financial Institution specified under section 4-A of
the Companies Act, 1956 or as a whole time Director in a Scheduled
Bank within the meaning of the Reserve Bank of India Act, 1934 or as a
Joint Secretary to the Government of India or as a District Judge or has
held any other post equivalent thereto.
(4) Every appointment under sub-section (3) shall be made on
the recommendation of the Selection Committee constituted under
section 4.
(5) Notwithstanding anything contained in sub-section (3) of
sub-section (4), the State Government may appoint any person as the
Chairperson from amongst the persons who is or has been a judge of a
High Court :
Provided that no appointment under this sub-section shall be
made except after consultation with the Chief Justice of the concerned
High Court.
(6) The Chairperson shall be the Chief Executive of the
Commission.
(7) The Chairperson and Members of the Commission shall be
appointed whole time to exclusively discharge the functions of the
Commission and they shall not hold any other post or undertake any
other work.
(8) Where the Chairperson is unable to discharge his functions
owing to absence, illness or any other cause or where any vacancy
occurs in the office of the Chairperson by reason of his death,
resignation or otherwise, the senior most Member shall discharge the
functions of the Chairperson, until the Chairperson resumes his duties,
or, as the case may be, a chairperson appointed in accordance with the
provisions of this Act assumes charge of his office.
Explanation :— The seniority of a Member shall be determined
from the date of his appointment as Member. If two Members are
appointed on the same date, the Member older in age shall be senior.
[The Uttar Pradesh Electricity Reforms Act, 1999]
234
(9) No act or proceedings of the Commission shall be invalid on
the ground merely of the existence of any vacancy or defect in the
constitution of the Commission.
Constitution
of the
Selection
Committee
4. (1) For the purpose of making appointment of the
Chairperson and Members, the State Government shall constitute a
Selection Committee which shall consist of —
(a) A person who has been a Judge of the High
Court.
(b) The Chief Secretary to the State Government
(c) The Chairman, Central Electricity Authority or
his nominee not below the rank of Member of the
Central Electricity Authority
Chairman
Member
Member
(2) The State Government shall within one month from the date
of occurrence of any vacancy by reason of death, resignation or
removal and six months before the superannuation or end of tenure of
the Chairperson or other Member, make a reference to the Selection
Committee for filling up of the Vacancy.
(3) The Selection Committee while making selection of the
Chairperson and other Members, shall have due regard to performance
record, ability, integrity, character, qualifications and experience of the
person proposed to be selected as Chairperson or other Member as the
case may be.
(4) The Selection Committee shall finalize the selection of the
Members within two months from the date on which the reference is
made to it.
(5) The Selection Committee shall recommend a panel of two
names for every vacancy referred to it.
(6) A person who is considered for selection as Chairperson or
Member of the Commission, shall notify to the Selection Committee, —
(a) of any office, employment or consultancy agreement or
arrangement which the person or his relative has in his own name or
in any firm, association of person or body corporate, owned or
otherwise controlled by any of them carrying on any of the following
businesses :
(i) generation, transmission, distribution or supply of electricity;
(ii) manufacture, sale, or supply of any fuel for generation of
electricity;
(iii) manufacture, sale, lease, hire or otherwise supply of or
dealing in machinery, plant, equipment, apparatus or fittings for the
generation, transmission, distribution, supply or use of electricity ; and
(iv) any entity providing any professional services to any of the
businesses referred to in clause (i), (ii) and (iii) above.
[The Uttar Pradesh Electricity Reforms Act, 1999]
236
(b)such other details and information as may be prescribed in
the rules or by the Selection Committee.
(7) The details received from the person referred to in sub-
section (6) shall be placed for consideration of the Selection Committee
at the time of selection and recommendation of the person for
appointment as Member.
(8) Each Member of the Commission shall before taking charge
of the office divest himself from the interest in the businesses
mentioned in sub-section (6) as a condition of his or her appointment.
(9) 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 or is gainfully employed or
engaged in service by any other person, Government authorities,
public or private sector or otherwise, he shall submit his resignation or
take voluntary retirement from that service before joining the
Commission.
(10) So long as a 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 any
financial interest in any of the businesses mentioned in sub-section (6)
and if he acquires any such interest involuntarily or by way of
succession or testamentary disposition he will divest himself of the
interest within a period of three months of such interest being
acquired.
Explanation :—For the purpose of this section a Member shall
not be taken as holding financial interest in any business if the
Member is a shareholder holding less than two per cent of the issued
share capital in any public company.
(11) Before recommending any person the Selection Committee
shall satisfy itself that such person does not have any financial or
other interest as referred to in sub-section (6) which is likely to affect
prejudicially his functions as a Member.
(12) All decisions of the Selection Committee shall be by a
majority.
(13) The procedure of selection and appointment of the
Chairperson and the other Members shall be such as may be
prescribed.
Term of
office and
conditions of
service of
Members
5. (1) The Chairperson or other Member shall hold office for a
term of five years from the date on which he enters upon his office or
till he attains the age of sixty-five years whichever is earlier and shall
not be eligible for reappointment :
Provided that a Member other than the Chairperson shall he
eligible for appointment as Chairperson for the remaining period of his
term as Member.
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238
(2) A Member may at any time by giving in writing to the
Governor notice of not less than three months relinquish his office or
may be removed from his office in accordance with the provisions of
section 7.
(3) The Chairperson shall, before entering upon his office, make
and subscribed an oath of office and secrecy before the Governor and
every other member before the Chairperson in such form as may be
prescribed.
(4) The salary and allowances payable to, and other terms and
conditions of service of the Members shall be such as may be
prescribed.
(5) The salary allowances and other conditions of service of the
Members shall not be varied to their disadvantage.
(6) Any member ceasing to hold office as such shall —
(a) be ineligible for further employment under the State
Government for a period of two years from the date he ceases to hold
such office ;
(b) not accept any commercial employment for a period of two
years from the date he ceases to hold such office ; and
(c) not represent any person before the Commission in any
manner.
Explanation :—for the purposes of this sub-section —
(i) “employment under the State Government” includes
employment under any local or other authority within the territory of
India under the control of the State Government or under any
corporation or society owned or controlled by the State Government.
(ii) “commercial employment” means employment in any
capacity under, or agency of, a person engaged in commercial,
industrial or financial business in the electricity industry and includes
also a director of a company or partner of a firm and it also includes
setting up practice either independently or as partner of a firm or as an
advisor or a consultant.
Disqualification
for being a
Member
6. A person shall be disqualified for appointment as a Member,
if he, —
(a) has been adjudged an insolvent ; or
(b) has become physically or mentally incapable of acting : or
(c) has been convicted and sentenced to imprisonment for any
offence involving moral turpitude : or
(d) has acquired such financial or other interest as is likely to
affect his function as a Member : or
(e) has so abused his position as to render his continuance in
office prejudicial to the public interest ; or
[The Uttar Pradesh Electricity Reforms Act, 1999]
240
(f) is a Member of Parliament, the State Legislature or any local
authority or is a candidate for election thereto ; or
(g) is a member of a political party or holds a post therein.
Removal of
Member 7. (1) Subject to the provisions of sub-section (2), any Member
shall only be removed from his office by the State Government on the
ground of proved misbehavior after the Chief justice of the High Court
or a sitting judge of the High Court nominated in this behalf by the
Chief Justice, on reference being made to him by the State
Government, has, no inquiry, held by him in accordance with the
procedure specified in this behalf by the Chief justice or such judge,
reported that the Member ought on any such ground to be removed.
(2) Notwithstanding anything contained in sub-section (1), the
State Government may, by order, remove a member from his office if
he has incurred any of the disqualification mentioned in section 6.
(3) Notwithstanding anything contained in sub-section (2), no
member shall be removed from his office on the ground specified in
clause (b), clause (d) or clause (e) of section 6 unless the Chief Justice
of the High Court or a sitting judge of the High Court nominated in this
behalf by the State Government has on an inquiry, held by him in
accordance with the procedure specified in this behalf by the Chief
Justice or such judge, reported that the member ought on such
ground or grounds to be removed.
(4) The State Government shall act in accordance with the
report referred to in sub-section (1) or sub-section (3), as the case may
be and the final decision of the State Government shall be
communicated to the Member concerned within a period of 60 days of
receipt of such report.
Officers of
the
Commission
and other
staff
8.(1) The Commission may appoint a Secretary to exercise and
perform under the control of the Chairperson, such powers and duties
as may be specified by regulations.
(2) The Commission may, in consultation with the State
Government, determine the number, nature and categories of other
officers and employees required to assist the Commission in the
discharge of its functions and appoint them.
(3) The salaries and allowances payable to and other conditions
of service of the Secretary, officers and other employees shall be such
as may be determined by regulations, in consultation with the State
Government.
(4) The Commission may appoint Consultants required to assist
the Commission in discharge of its functions on such term and
conditions as may be determined by regulations.
Proceedings
of the
Commission
9. (1) The Commission shall ordinarily meet once in every
fortnight at such time and place within the State as the Chairperson
may think fit ;
[The Uttar Pradesh Electricity Reforms Act, 1999]
242
Provided that a meeting shall be convinced earlier if a request is
so made by a Member.
(2) All matters which come up before the Commission shall be
decided by a majority of the Member present and voting and all
decisions directions and orders or the Commission shall be in
writingsupported by reasons and shall be available for inspection by
any person and copies of the same shall also be made available in such
manner as the Commission may determine.
(3) Two Members shall form the quorum for a meeting of the
Commission, but in case of a difference of opinion among them on any
issue, the matter shall be placed at the next meeting :
Provided that where there is a vacancy in the Commission or
only two Members are present at the meeting, the Member presiding
over the meeting shall have a casting vote.
(4) The Commission shall regulate its own procedure.
(5) All orders and decisions of the Commission shall be
authenticated by the Secretary or any other officer of the Commission
duly authorized by the Secretary in this behalf.
Functions of
the
Commission
10. The Commission shall have the following functions
namely,—
(a) to determine the tariff for electricity, wholesale, bulk, grid or
retail, as the case may be :
(b) to determine the tariff payable for the use of the
transmission facilities ;
(c) to regulate power purchase and procurement process of the
transmission utilities and distribution utilities including the price at
which the power shall be procured from the generating companies,
generating stations or from other sources for transmission, sale,
distribution or supply in the State.
(d) to promote competition, efficiency and economy in the
activities of the electricity industry to achieve the objects and purposes
of this Act ;
(e) to regulate investment approval for transmission,
distribution or supply of electricity to the entities operating within the
State ;
(f) to aid and advise the State Government in matters
concerning electricity generation, transmission, distribution and
supply in the State ;
(g) to issue license for transmission, distribution or supply of
electricity and determined the conditions of the license ;
(h) to regulate the working of licensees and other persons
authorized or permitted to engage in the electricity industry in the
State and to make their working efficient, economical and equitable ;
[The Uttar Pradesh Electricity Reforms Act, 1999]
244
(i) to require licences to formulate plans and schemes for the
promotion of generation, transmission, distribution, supply or utilization
of electricity and quality of service and to device proper power purchase
and procurement process ;
(j) to set standards for the electricity industry in the State
including standards relating to quality, continuity and reliability of
service ;
(k) to promote competitiveness and make avenues for
participation of private sector in the electricity industry in the State, and
also to ensure a fair deal to the consumers ;
(l) to lay down and enforce safety standards ;
(m) to aid and advice the State Government in formulating power
policy for the State ;
(n) to collect and record information relating to generation,
transmission, distribution or utilization of electricity ;
(o) to collect and publish data and forecasts on the demand for,
and use of electricity in the State and to require the licensees to collect
and publish such data ;
(p) to regulate the assets, properties and interest in properties
relating to the electricity industry in the State in such manner as to
safeguard the public interest ;
(q) to adjudicate upon the disputes and differences between a
licensee and utility or to refer the same for arbitration ;
(r) to co-ordinate with environmental regulatory agencies for
evolving policies and procedures for appropriate environmental
regulation of Electricity Sector in the State ; and
(s) to aid and advise the State Government on any other matter
referred by the State Government.
Powers of the
Commission 11. (1) The Commission shall, while performing its adjudicatory
functions under this Act, have all the powers of a Civil Court trying a
suit in respect of the following matters, namely. —
(a) summoning and enforcing the attendance of any person and
examining him on oath ;
(b) requiring the discovery and production of any document ;
(c) receiving evidence on affidavits ;
(d) requisitioning any public record or copy thereof from any
court of office ;
(e) issuing commissions for the examination of witnesses and
documents ; and
(f) any other matter which may be prescribed.
(2) The Commission shall have the power to require any
person:—
[The Uttar Pradesh Electricity Reforms Act, 1999]
246
(a) to produce before, and allow 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
enquired as may be specified or described in the requisition, being
documents relating to any matter concerning the generating,
transmission, distribution or supply or use of electricity, the functioning
of any undertaking involved in the above areas and other matters, the
examining of which may be required by the Commission for the
purpose of this Act ; and
(b) to furnish to any officer so specified such information in his
possession, power or control as may be required by the Commission for
the purposes of discharge of its functions under this Act.
(3) Where, during any inquiry or proceedings under this Act, the
Commission has any ground to believe that any books or documents of,
or relating to, any unit or person to which such inquiry is being made or
proceedings relates, or which the owner of such unit may be required to
produce in such inquiry or proceedings are being or may be destroyed,
mutilated, altered, falsified or secreted,the commission may, by a
written order, authorise any officer of the Commission to exercise
powers of entry, search and seizure as may be exercised by an Inspector
under sections 240 and 240-A of the Companies Act, 1956.
(4) Notwithstanding anything contained in any other law for the
time being in force, the Commission may, by general or special order,
call upon any person, including a generating company or a licensee, to
furnish periodically any information concerning the activities carried on
by such person relating to generation, transmission, distribution or
supply or use of electricity, or with regard to the connection between
such person and any other person or undertaking including information
relating to the organization, business and cost of production of
electricity to enable the Commission to carry out its functions under
this Act.
(5) In the discharge of its functions, the Commission may consult
person or group of persons affected or likely to be affected by the
decisions of the Commission.
(6) The Commission may, at any time, call for and examine any
information, details, books, accounts or other documents from any
person including a generating company or a licensee and shall make it
available to the Central Electricity Authority, the Central Government or
the State Government if so required by them under any law for the time
being in force.
(7) Every person to whom a notice may be issued under this Act
shall furnish such information, details, books, accounts and other
documents, as may be specified in such notice by the Commission.
(8) Notwithstanding anything contained in sections 12 to 16
and sections 18 and 19 of the Indian Electricity Act, 1910, the
[The Uttar Pradesh Electricity Reforms Act, 1999]
248
Commission may, by order in writing, for the placing of the electric
supply lines, appliances and apparatus for transmission,
distribution or supply of electricity or for the purposes of telephonic
or telegraphic communications necessary for proper co-ordination
of works, confer upon any licensee or any other person engaged in
the business of transmission, distribution or supply of electricity,
under this Act subject to such conditions and restrictions, as the
Commission may think fit, any of the powers which the telegraph
authority possesses under the India Telegraph Act, 1885 with
respect to placing of telegraph lines and posts for the purposes of a
telegraph established or maintained by the Central Government or
to be so established or maintained.
CHAPTER—III
POWERS OF THE STATE GOVERNMENT
Powers of the State
Government 12. (1) The State Government may, from time to time, issue
directions not inconsistent with this Act, on a policy matter in
regard to electricity and if any dispute arises between the
Commission and the State Government as to whether a question is
or is not a policy matter, it shall be referred to the Central
Electricity Regulatory Commission whose decision thereon shall be
final and binding.
(2) (a) The State Government shall be entitled to issue policy
directions with respect to the subsidies to be granted for supply of
electricity to any class or classes or persons or in respect of any
area in addition to the subsidies adjusted by the Commission while
regulating and approving the tariff structure :
Provided that the State Government shall contribute the
amount to compensate licensee or person affected by the grant of
the subsidies to the extent of the subsidies granted.
(b) The amount of the subsidy to be paid under clause (a)
and the method and manner of payment and the time within which
such amount is to be paid by the State Government shall be
determined by the Commission and the Commission will calculate
such amount in accordance with the procedure provided in the
regulations.
CHAPTER—IV
THE UTTAR PRADESH POWER CORPORATION LIMITED
Formation and
functions of the
Uttar Pradesh
Power
CorporationLimited
13. (1) For the purposes of procurement, transmission and
supply of electricity, a Company by the name of the Uttar Pradesh
Power Corporation Limited shall be formed and registered under
the Companies Act, 1956 as soon as may be after the
commencement of this Act by the State Government.
(2) The Power Corporation shall undertake planning and co-
ordination in regard to transmission and shall determine the
[The Uttar Pradesh Electricity Reforms Act, 1999]
250
Commission, the Regional Electricity board, the Central Electricity
Regulatory Commission and the Central Electricity Authority.
(3) The Power Corporation shall,—
(a) be provisional licensee for transmission and supply of
electricity with in the state until the grant of licence by the
commission;
(b) be responsible for transmission system operations ;
(c) be the legal successor of the Board in relation to all power
purchase and transmission agreement entered into by the Board with
generating and transmission companies including those owned or
controlled by the Central Government ; and
(d) undertake such other functions as may be required under
the license.
(4) Upon the grant of licence to it under section 15, the Power
Corporation shall have such powers and discharge such duties and
perform such functions of the Board under the Indian Electricity Act,
1910 and the Electricity (Supply) Act, 1948 or the rules made
thereunder as may be specified by the commission in the licence.
(5) the Commission may, in consultation with the Power
corporation grant licence also to a company subsidiary to the Power
Corporation.
CHAPTER—V
LICENSING OF TRANSMISSION AND SUPPLY
Licensing 14. (1) No person shall engage in the business of transmission
or supply of electricity unless he,—
(a) holds a licence ; or
(b) is exempted under section 16 from the requirement of a
licence ; or
(c) is so authorized under the Indian Electricity Act, 1910 or the
Electricity (Supply) Act, 1948 ;
(2) Where a dispute arises as to whether any person is no is not
engaged in the business of transmission or supply of electricity under
sub-section (1), the matter shall be referred to the Commission and the
decision of the Commission thereon shall be final.
(3) The Commission shall have the powers to order a person,
who is not a licencee, to cease operating and disconnect its apparatus.
Grant of
licence by
the
Commission
15. (1) The Commission may on an application made in such
form and on payment of such fee, as may be provided by regulations,
grant a licence authorizing any person for transmission or supply of
electricity, or both, in an area of transmission or supply, or both, as
[The Uttar Pradesh Electricity Reforms Act, 1999]
252
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(a) any person applying for a licence shall publish a notice of
his application in such manner, and with such particulars as may be
provided in the regulations within fourteen days after making the
application ;
(b) the Commission shall not grant a licence until, —
(i) the objections, if any, received within three months from the
date of last publication of the notice referred to in clause (a) have been
considered by the Commission ;
(ii) in the case of an application for licence to transmit or supply
of electricity in an area which includes the whole or any part of any
cantonment, aerodrome, fortress, arsenal, or camp or of any building
or place in the occupation of the Central Government for defense
purposes, it has been ascertained that there is no objection to the
grant of licence on the part of the Central Government ;
(c) where an objection is received from any local authority, the
Commission shall, if in its opinion the objection is insufficient, record
reasons for such opinion and communicate it to such local authority ;
(d) no application for a licence shall be made by a local
authority except in pursuance of a resolution passed in a meeting of
such authority held after a notice, specifying the purpose of the
meeting, has been given in the manner in which the notice for the
meetings of such local authority are usually given.
(3) The provisions of clause (a), sub-clause (i) of clause (b) and
clause (c) of sub-section (2) shall not apply to the power corporation.
(4) A licence may prescribe the extent to which, and the terms
and conditions under which the transmission or supply of electricity is
to be made and contain such other conditions as the Commission may
consider appropriate for achieving the objects of this Act.
(5) Without prejudice to the generally of sub-section (4), the
conditions of the licence may require the licensee to :—
(a) enter into an agreement on specified terms with any other
person for the use of any electric lines, electrical plant and associated
equipment operated by the licensee ;
(b) comply with any direction given by the Commission ;
(c) refer all disputes arising under the licence for determination
by the Commission or by an arbitrator nominated by it ;
(d) furnish information, documents and details which the
Commission may require ;
(e) comply with the requirements of the Indian Electricity Act,
1910 and the Electricity (Supply) Act, 1948 and the rules made
[The Uttar Pradesh Electricity Reforms Act, 1999]
254
¼p½ Hkkjrh; fo|qr vf/kfu;e] 1910 vkSj fo|qr ¼iznk;½ vf/kfu;e] 1948 ds v/khu cksMZ ds ,sls d`R;ksa vkSj ck/;rkvksa dk] tSlk vk;ksx fofufnZ’V djs] ftEek ys (
(g) notify to the Commission any scheme which is proposed to
be undertaken including the schemes under the Electricity (Supply)
Act, 1948 ;
(h) purchase power in an economical manner in accordance
with the guidelines, if any, issued by the Commission ;
(i) supply electricity to any consumer or to any other licensee ;
(j) establish a tariff or to calculate its charges from time to time
in accordance with the directions of the Commission ; and
(k) pay the fees and charges as may be required by the
Commission.
(6) The provisions contained in the Schedule to the Indian
Electricity Act, 1910, shall be deemed to be incorporated in, and shall
form part of, every licence granted under this Chapter save in so far as
they are expressly varied or excepted by the licence and shall subject
to any such additions variations or exceptions which the Commission
is empowered to make having regard to the purposes of this Act, apply
to the undertaking authorized by the licence in relation to its activities
in Uttar Pradesh :
Provided that where a licencee is granted licence for the supply
of electricity to other licences for distribution by them, then in so far as
such licence relates to such supply, the provisions of clauses IV , V, VI,
VII, VIII and XII of the said Schedule shall not be deemed to be
incorporated in the licence.
(7) The Conditions included in a licence may contain provision
for any of the conditions to cease to have effect or be modified at such
times, in such manner and in such circumstances as may be specified
therein.
(8) Any provision included under sub-section (7) in a licence
shall have effect in addition to the provisions made under sub-section
(5) of section 18 and sub-section (1) of section 19.
(9) The grant of a licence under this section to any person shall
not be a bar against grant of a licence to any other person for the same
area.
(10) The licence may provide that the licencee shall have the
power and authority to take appropriate action for revenue realization,
prosecution for theft of electricity, meter tampering, diversion of
electricity and any other matter affecting the distribution and supply of
electricity.
(11) The Commission may authorize licensees and other
persons to exercise such powers and authority as the licensees and
other persons could be given under the provisions of the Indian
[The Uttar Pradesh Electricity Reforms Act, 1999]
256
fn;s tk ldrs gS A 16–¼1½ vk;ksx] ykblsal dh vis{kkvksa ls ,sls fucU/ku vkSj “krksZ ds v/khu tSlh fofu;eksa esa fofufnZ’V dh tk;] NwV iznku dj ldsxk % ykblsal ls NwV
Provided that the commission shall into grant any exemption
under this sub-section except with the consent :—
(i) in case where electricity is to be supplied in an area forming
part of any cantonment, aerodrome, fortress, arsenal, or camp or any
building or place in the occupation of the Central Government for
defense purposes of the Central Government ;
(ii) in case, where electricity is to be supplied in an area falling
within the area of supply of a licensee, of that licensee:
Provided further that except in a case under Clause IV of the
first proviso, no such consent shall be necessary if the commission is
satisfied that such consent has been unreasonably withheld.
(2) An exemption may be granted to a person or to a class of
persons for a definite period and every such exemption shall be
published for general information in at least two newspapers having
wide circulation in the area concerned.
(3) The Commission may, at any time for reasons to be recorded
in writing revoke the exemption granted under this section.
Duties and
powers of the
licencee
17. (1) It shall be the duty of the licencee of transmission or
supply i respect of an area of transmission or supply as the case may be
to develop and maintain an efficient, co-ordinated and economical
system of electricity transmission or supply.
(2) Every licencee and generating company shall comply with the
provisions of the regulations made from time to time governing the
terms and conditions for the operation and maintenance of the power
system and electric supply lines.
(3) Section 12 to 19 of the Indian Electricity Act, 1910 shall have
effect in relation to a licencee as if he were a licensee under the said Act
:
Provided that the Commission may impose such restrictions,
exceptions and conditions as it may deem fit.
(4) A licensee may unless expressly prohibited by the licence,
enter into arrangements for the purchase of electricity from, —
(a) the holder of a supply licence which permits the holder of
such licence to supply electricity to other licensees for distribution by
them ; or
(b) any other person or generating company with the consent of
the Commission.
Revocation
of licence 18. (1) The Commission may inquire into the functioning of a
licencee in respect of his obligations under this Act, in the following
circumstances, namely :—
(a) upon receiving a complaint from any consumer or consumer
association or any trade association ; or
(b) upon a reference made to it by the State Government the
Central Government, the Central Electricity Regulator Commission or
[The Uttar Pradesh Electricity Reforms Act, 1999]
258
fo|qr izkf/kdj.k }kjk mls fufnZ’V fd, tkus ij ( ;k ¼x½ fo|qr ds mRiknu] ikjs’k.k] forj.k ;k iznk; esa yxs fdlh O;fDr ls f'kdk;r izkIr gksus ij ( ;k
(d) upon its own knowledge or information that the licensee is
committing or has committed any default in carrying out such
obligations.
(2) The Commission may revoke a licence on one ro more of the
following grounds, namely,—
(a) that the licensee has committed a willful default to do
anything required to be done by or under this Act, the Indian Electricity
Act, 1910 or the Electricity (Supply) Act, 1948 ;
(b) that the licenseehas committed breach of any of the terms
and conditions of the licence , the breach of which is expressly declared
by the licence to render it liable to revocation ;
(c) that the licensee has failed within the period specified in the
licence or any longer period allowed by the Commission to show that he
is in a position to fully and efficiently discharge the duties and
obligations imposed on him by the licence or to pay the fees or charges
or to make the deposit or furnish the security required by the licence ;
(d) where in the opinion of the Commission the financial position
of the licensee is such that he is unable to fully and efficiently discharge
the duties and obligations imposed on him by the licence.
(3) Notwithstanding anything contained in sub-section (1) and
(2), the Commission may, on the application or with the consent of the
licensee, revoke the licence in respect of the whole or any part of the
area of transmission or supply, upon such terms and conditions as it
thinks fit.
(4) A licence shall be revoked under this section only after giving
to the licensee a notice of not less than three months, stating the
grounds on which the revocation is proposed and after affording him an
opportunity of being heard.
(5) Where the Commission might under sub-section (2) revoke a
licence, it may instead of revoking the licence permit it to remain in
force subject to such further terms and conditions as it thinks fit to
impose and any further terms or conditions so imposed shall be binding
upon and be observed by the licensee and shall be deemed ot be
incorporated in the licence.
Amendment
of the licence 19. (1) The Commission may, either no its own or on an
applicant licensee make such alterations and amendments in the terms
and conditions or as it thinks fit :
Provided that no such alterations or amendments shall be made
except consent of the licensee unless such consent has in the opinion of
the Commission have been unreasonably withheld.
[The Uttar Pradesh Electricity Reforms Act, 1999]
260
¼2½ tgka ykblsal/kkjh us mi/kkjk ¼1½ ds v/khu dksbZ vkosnu fd;k gks] ogka fuEufyf[kr micU/k ykxw gksaxs] vFkkZr~ %&& ¼d½ ykblsal/kkjh] vkosnu&i= dh ,d uksfVl] ,slh jhfr ls vkSj ,sls fooj.kksa ds lkFk] tSlk fofu;eksa }kjk fofgr fd;k tk;] izdkf'kr djsxk (
(b) the Commission shall not make any alteration or amendment,
all the objections received within three months from the date of the
publication of the notice have been considered ; and
(c) in the case of an application proposing amendments in an
area transmission or supply comprising the whole or any part of any
canton acrodrome, fortress, arsenal, or camp or of any building or place
in occupation of the Central Government for defense purpose, the
Commission shall not make any alteration or amendment except with
the consent of Central Government.
(3) Before making any alteration or amendment in a licence
otherwise than the application of the licence the Commission shall
publish the proposed alteration or amendments and consider all the
objections received within three months from the date of the last
publication of the notice.
Procedure to
be followed
after
revocation of
the licence
20. (1) Notwithstanding anything contained in the provisions of
sections 6 and 7 of the Indian Electricity Act, 1910, where the
Commission decides to revoke a licence under section 18, the following
provisions shall apply, namely :—
(a) the decision of the Commission shall be communicated to the
licensee and the licence shall stand revoked on such communication of
the decision ;
(b) the Commission shall, simultaneously with the
communication of its decision under clause (a), make such interim
arrangement in regard to the undertaking of the licensee for the
purposes of maintaining and continuing transmission and supply of
electricity as it may consider appropriate including the appointment of
an administrator or administrators for such undertaking and such
administrator or administrators shall be deemed to be interim licensees;
(c) the Commission shall by advertising in atleast two widely
circulated newspapers invite applications from such persons as are
intending to purchase the undertaking of the licesnee whose licence has
been revoked and are also willing to obtain a licence under seciton 15 ;
(d) the Commission shall consider the applications received
under clause (c) for the purposes of granting a licence under section 15
and shall also determine the terms and conditions for the disposal of the
said undertaking and may by notice in writing require the licensee
whose licence has been revoked to sell his undertaking to the person
whose application has been accepted by the Commission hereinafter
referred to in this section as the purchaser for the purchase price put
forward in the application ; and
[The Uttar Pradesh Electricity Reforms Act, 1999]
262
gks] ogka ,sls foØ; ds fnukad dks vkSj ls] bl vf/kfu;e ds v/khu ykblsal/kkjh ds lHkh
such sale, all rights duties obligations and liabilities of the licensee
under this Act shall cease except for any liabilities that have accrued to
that date.
(2) Where an undertaking is sold under clause (d) of sub-section
(1) the purchaser shall pay its purchase price to the licensee, within
such period not exceeding Excerpt shown. Open the full act in Lexace.