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Draft of Electricity Bill 2000 Part - 2

Prohibition on unauthorised supply etc.

3. (1) No person shall-

(a) generate electricity from a generating station for the purpose of giving a supply to any premises or enabling a supply to be so given;

(b) transmit electricity for that purpose;

(c) supply electricity to any premises ; or

(d) undertake purchase and resale of , or brokerage or trade in the electricity,

unless he is authorised to do so by an authorisation issued by the Competent Commission in accordance with the provisions of this Act.

(2) No person shall supply electricity except through a meter.

(3) A person guilty of an offence under this section shall be liable upon summary inquiry and adjudication by the Competent Commission, to a penalty not exceeding twice the fair market value of this electricity generated or supplied, as the case may be , in violation of this section, and where the actual quantum of such electricity generated or supplied can not be reasonably determined, then the maximum electricity that can be generated or supplied, as the case may be, through the electric line or electric plant used by such person shall be deemed to be the electricity generated or supplied, as the case may be, for purpose of this sub-station.

(4) No proceedings shall be instituted in respect of a contravention under this section except by or on behalf of the Competent Government or by an Authorised Person.

Power to grant exemption

4. (1) The Competent Government may, after consultation with the Competent Commi0ssion, by order grant exemption from sub-section (1) of section 3, but subject to compliance with the provisions of this Act or the Rules and Regulations thereunder and such conditions (if any) as may be started in the order.

(2) An exemption may be granted either to a person or class of persons, as the case may be, and an exemption so granted shall be published in such manner as the Competent Government considers appropriate for bringing it to the attention of persons of that class.

(3) An exemption, unless previously revoked in accordance with any term contained in the exemption, shall continue in force for such period as may be started in or determined by or under the exemption.

Authorising supply etc.

5. (1) The Competent Commission may, upon application made to it, authorise any person (the "Authorised Person") to function as-

(a) a Generating Company;

(b) a Transmission Provider, within its Authorised Area;

(c) an Area Distributor, within its Authorised Area; or

(d) an Electricity Supplier.

Provided, however, that any Generating Company, Transmission Provider,

Distributor or Electricity Supplier functioning as such on the appointed date shall

Be an Authorised Person. Provided further that the Central Transmission Utility

As the case may be, shall be deemed to be Authorised Persons under this Act.

(2) The Competent Commission may, upon application made to it.

(a) authorise any Authorised Person to supply electricity to any person or premises stated or of a description stated in the order; or

(b) extend such order by adding to the person or premises, or descriptions of persons or premises stated in the order.

(3) Every Generating Company, Area Distributor or Electricity Supplier shall functionally unbundled its business activities, as the case may be, from one another as follows;

(a) electrical plant, electric lines, operation, services and tariffs with respect to generation of electricity;

(b) electrical plant, electrical lines, operation, services and tariffs with respect to the dedicated transmission facilities.

(c) Electrical plant, electrical lines, operational services and tariffs with respect to the distribution system; and

(d) Purchase of electricity for resale thereof, and any brokerage or trade in the supply electricity.

Procedure for Authorisation

6. (1) An application under section 5 shall be made in the specified manner shall be accompanied by such fee as may specified ; and within 15 days after the making of such an application, the applicant shall publish a copy of the application in the specified manner.

(2) The applicant shall, within 7 days of making an application , send a copy thereof to the Central Electricity Authority in such cases and along with such particulars as may be prescribed , and the Authority shall examine such -application and tender its advice thereon to the Competent Commission., within 30 days of receiving the application, in such manner and as to such matters as may be prescribed.

(3) Before issuing an authorisation under section 5, the Competent Commission shall give noticed

(a) stating that it proposes to issue the order;

(b) stating the reasons why it proposes to issue the order; and

(c) stating the time (not being less than 30 days from the date of publication of the notice) within which representations or objections with respect to the proposed order may be made.

And shall consider any representation or objections which are duly made and not withdrawn , and the technical advice, if any, tendered by the Central Electricity Authority.

(4) A notice under sub-section (3) above shall be given by publishing the notice in such manner as the Commission considers appropriate for bringing it to the attention of persons likely to be affected by the proposed order.

(5) An authorisation shall, unless previously revoked in accordance with any term contained in the authorisation , shall continue in force for such period as may be stated in or determined by or under the authorisation.

(6) The Competent Commission shall within 120 days of receiving an application under section 5-

(a) either issue an authorisation accepting the application with such modifications as the Commission may determine , and subject to such conditions as may be stipulated in accordance with the provisions of this Act; or

(b) reject the application for reasons to be recorded in writing if such application does not conform to the National Electricity Plan, provisions of this Act or the Rules and Regulations framed thereunder or the provisions of any other law for the time being in force.

Provided that if the Competent Commission does not issue any order under clause (a) or

(c) above within the period aforementioned , the authorisation shall be deemed to have been issued subject to and in accordance with the conditions specified in this Act and the Regulations thereunder.

(7) As soon as practicable after issuing an authorisation , the Competent Commission shall send a copy of the authorisation to the Competent Government, the Central Electricity Authority , and the Authorised Persons who may be affected by such authorisation.

Conditions of authorisation: general

7. (1) An authorisation may include such conditions (whether or not relating to the activities authorised by the authorisation) as appear to the Competent Commission to be requisite or expedient having regard to the duties imposed on the Commission by this Act, and may be issued upon payment of such annual fee as may be specified.

(2) Without prejudice to the generality of sub-section (1) above, conditions included in an authorisation may-

  1. require an Authorised Person to enter into agreements with other persons for the use of his electric lined and electrical plant (Whether situated and whether or not used for the propose of carrying on the activities authorised by an authorisation) for such purpose as may be stipulated in the conditions; and
(b) include provision for determining the terms on which such agreements are to be entered into.

(3) Conditions included in an authorisation by virtue of sub-section (1) above may require the Authorised Person-

(a) to comply with any direction given by the Competent commission as to such matters as are stated in the authorisation or are of a description so stated;

(b) exception so far as the Competent Commission consents to his doing or not doing them, not to do or to do such things as are stated in the authorisation or are of a description so stated;

(c) to refer for determination by the Competent Commission such questions arising under the authorisation as are stated in the authorisation or are of description so stated ; and

(d) to refer for approval by the Competent Commission such things as are required to be so referred under the authorisation; and such contracts or agreements made before the issue of the authorisation, as are stated in the authorisation or are of description so stated.

(4) Conditions included in an authorisation in pursuance of sub-section (1) above may-

(a) instead of stating or describing any contracts or agreements to which they apply, refer to contracts or agreements designated (whether before or after the imposition of the conditions, by the Competent Commission; and

(b) instead of containing any provisions, refer to provisions set out in documents so designated and direct that those provisions shall have such effect as may be stated in the conditions.

(5) Conditions included in an authorisation may contain provision for the conditions to cease to have effect or be modified at such times, in such manner and in such circumstances as may be stated in or determined by or under the conditions.

(6) Any provision included by virtue of sub-section (5) above in an authorisation shall have effect in addition to the provision made by this Act with respect to the modification of the conditions of an authorisation.

(7) Except as provided otherwise , an authorisation or exemption, as the case may be , granted under this Act shall be subjected to the provisions of this Act and the Rules and Regulations made thereunder.

Modification of order

8. (1) Subject to the following provisions of this section, the Competent Commission may modify the conditions of an authorisation, if the Authorised Person consents to the Modifications.

(2) Before making modifications under this section , the Competent Commission shall give notice -

(a) stating that it proposes to make the modification and setting out their effect;

(b) stating the reasons why it proposes to make the modification ; and

(c) specifying the period (not being less than 30 days from the date of publication of the notice) within which representations or objections with respect to the proposed modifications may be made,

and shall consider any representations or objections which are duly made and not drawn.

(3) A notice under sub-section (2) above shall be given-

(a) by publishing the notice in such manner as the Competent Commission considers appropriate for the purpose of bringing the notice to the attention of persons likely to be affected by the making of the modifications; and

(b) by serving a copy of the notice on the Authorised Person.

Provisions with respect to Generating Companies

Duties of generating Companies

9. The duties of a Generating Company shall include construction , operation and maintenance of generating stations, sub-stations and dedicated transmission facilities for the purposes of generation and sale of electricity in accordance with the provisions of this Act, the Rules and Regulations thereunder , and the conditions of authorisation or exemption , as the case may be.

Directions to Generating Companies

10. The Union Government may , by Rules prescribe the terms and conditions subject to which any Generating Company shall operate . Such Rules may, interalia require the Generating Company to maintain Fuel stocks at the prescribed level and to make such use as may be stipulated of any stocks held at or near that generating station for stipulated periods, at specified levels of capacity by using stipulated fuels. The Rules may also provide for the issuing of directions by the Competent Government for the purpose of maintaining efficient and competitive supply of electricity in public interest.

Provisions with respect to transmission Providers

Duties of Transmission Providers

11. It shall be the duty of a Transmission Provider-

(a) to develop and maintain an efficient, co-ordinated and economical system of electricity transmission.

(b) Facilitate competition in the distribution, supply and generation of electricity : and

(c) To provide non-discriminatory open access to its transmission system and associated facilities for use by any Authorised Person in accordance with the provisions of this Act.

Duties of Central and State Transmission Utilities

12. (1) The Central Transmission Utility or the State Transmission Utility, as the case may be , shall be responsible for the Planning , design, construction , operation and maintenance of the transmission lines owned or controlled by such Utility , for ensuring a secure and reliable grid in their Authorised Area.

(2) The Central Transmission Utility or the State transmission Utility , as the case may be, shall have the obligation to expand and improve its transmission facilities, consistent with the Grid Standards , to adequately serve the Generating Companies , Area Distributors and Electricity Suppliers requiring transmission and ancillary services in its Authorised Area, and shall comply with such directions as the Competent commission may reasonably give for this purpose.

Directions to Transmission Providers

13. (1) The Competent Government may give direction requiring any Transmission provider to give to the Competent Government, after consultation with persons stated in the directions , any information or advice which the Competent Government may reasonably require for purposes connected with the exercise of its functions under section 10.

(2) In sub-section (1) and (2) above "described" means described by or under the Component Government's direction, and a Transmission Provider shall give effect to any direction given to him under sub-section (2) above notwithstanding any other duty imposed on it by or under this Act.

(3) The Competent Government shall lay before each House of Parliament or the Legislature, as the case may be, a copy of the every direction given under section 10 or this section unless it is of the opinion that disclosure of the direction is against the interest of national security.

(4) No proceedings shall be instituted in respect of an offence under this section expect by or behalf of the Competent Government.

Certain Restrictions on Transmission Providers

14. No Transmission Providers or a shareholders thereof (other than a shareholder owing less than 1 per cent of the paid cent of the paid-up capital of such Transmission Provider) shall have any financial interest in any Generating Company , Area Distributor or Electricity Supplier, as the case may be.

Dedicated Transmission Facilities

15. Any person , including a Generating Company, Area Distributor or Electricity Supplier may, subject to an authorisation by the Competent Commission , construct, operate and maintain solely for his own use , any dedicated point -to-point transmission facilities ( the " dedicated transmission facilities:) that are consistent with grid and are required for the purpose of connecting to the transmission lines, the electric line or electrical plant owned or controlled by such person, Generating Company, Area Distributor or Electricity Supplier, as the case may be.

Other business of Transmission Providers

16. A Transmission Utility may engage in any business that maximises utilisation of its assets. Provided , however, that proportion of its revenues derived from such business shall, as specified by the Competent Commission, be utilised for reducing its wheeling charges. Provided further that the Transmission Provider shall maintain separate accounts for each such business neither subsidies in any way such business undertaking nor encumbers its transmission assets in any way to support such business.

Provisions with respect to Area Distributor

General Duties of Area Distributor

17. It shall be the duty of an Area Distributor to develop and maintain an efficient, co-ordinated and economical system of electricity supply.

Duty to supply on request Part-III

18. (1) Subject to the following provisions of this Act and any regulations made thereunder, an Area Distributor shall, upon being required to do so by the owner or occupier of any premises-

(a) give a supply of electricity to those premises and

(b) so far as may be necessary for that purpose, provide electric lines or electric plant or both.

(2) Where any person requires a supply of electricity in pursuance of sub-section (1) above, he shall give to the Area Distributor a notice stating-

(a) the premises in respect of which the supply is required;

(b) the day on which the supply is required to commence;

(c) the maximum power which may be required at any time; and

(d) the minimum period for which the supply is required to be given.

(3) Where an Area Distributor receives from any person a notice under sub-section (2) above requiring him to give a supply of electricity to any premises and-

(a) he has not previously given a supply of electricity to those premises;

(b) the giving of the supply requires the provision of electric lines or electrical plant or both ; or

(c) other circumstances exist which make it necessary or expedient for him to do so, the Area Distributor shall, as soon as practicable after receiving that notice , give to that person a notice under sub-section (4) below.

(4) A notice under this sub-section shall-

(a) state the extent to which the proposals contained in the other person's notice under sub-section (2) above are acceptable to the Area Distributor and stipulate any counter proposals made by the Area Distributor;

(b) state whether the prices to be charged by the supplier will be determined by a tariff under sub-section (1) of section 20, or a special agreement under sub-section (1) of section 24, and stipulate the tariff or the proposed terms of the agreement;

(c) state any payment which that person will be required to make under sub-section (1) of section 21, or under Regulations made under sub-section (2) of that section;

(d) state any security which that person will be required to give under section 22;

(e) state any other terms which that person will be required to accept under section 23; and

(f) state the effect of section 123.

(5) Any person who requires a supply of electricity may by notice require the Area Distributor, upon payment of the distributor wheeling rate, to wheel the electricity supplied to him by a Generating Company or an Electricity Supplier in accordance with the Regulations to be specified by the State Commission , and upon commencement of such supply , the duties of the Area Distributor shall be those of a common carrier with non-discriminatory open access to its distribution system.

Provided, however, that the aforesaid open access shall be introduced in such phrases and subject to such condition as the system losses and other operational constraints permit , and in specifying the extent of open access in successive phases, the State Commission shall have due regard to all relevant factors.

(6) In this section and sections 19 to 24 and section 123-

(a) any reference to giving a supply of electricity includes a reference to continuing to give such a supply;

(b) any reference to requiring a supply of electricity includes reference to requiring such a supply to continue to be given; and

(c) any reference to the provision of an electric line or an item of electrical plant is a reference to the provision of such a line or item either by the installation of a new one or by the modification of an existing one.

Exceptions from duty to supply

19. (1) Nothing in sub-section (1) of section 18 shall be taken as requiring an Area Distributor to give a supply of electricity to any premises if-

(a) such a supply is being given to the premises by an Electricity Supplier; and

(b) the supply is given (wholly or partly) through the Area Distributor's electric lines and electrical plant.

(2) Nothing in sub-section (1) of section 18 shall be taken as requiring an Area Distributor to give a supply of electricity to any premises if and to the extent that-

(a) he is prevented from doing so by circumstances not within his control;

(b) circumstances exist by reason of which his doing so would or might involve his being in breach of Regulations under section 31, and he has taken all such steps as it was reasonable to take both to prevent the circumstances from occurring and to prevent them from having that effect; or

(c) it is not reasonable in all the circumstances for him to be required to do so.

(3) Clause (C) of sub-section (2) above shall not apply in relation to a supply of electricity which is given to any premises unless the Area Distributor gives to the occupier, or to the owner if the premises are not occupied, not less than seven days notice of his intention to discontinue the supply in pursuance of that clause.

Power to recover charges

(20) (1) Subject to the provisions of this section, the prices to be charged by an Area Distributor for the supply of electricity by him in pursuance of sub-section (1) section 18 above shall be in accordance with such tariffs (which, subject to any condition included in his order, may relate to the supply of electricity in different areas, cases and circumstances or to a person or class of persons) as may be fixed from time to time.

(2) A tariff fixed by an Area Distributor under sub-section (1) above-

(a) shall be so framed to show method which and the principles on which the charges are to be made as well as the prices which are to be charged; and

(b) shall be published in such manner as in the opinion of the Area Distributor will secure adequate publicity for it.

(3) A tariff fixed by an Area Distributor under sub-section (1) above may include-

(a) a standing charge in addition to the charge for the actual electricity supplied;

(b) a charge in respect of the availability of a supply of electricity ; and

(c) a rent or other charge in respect of any electricity meter or electrical plant provided by the Area Distributor;

and such a charge as is mentioned in clause (b) above any vary according to the extent to which the supply is taken up.

(4) Subject to the provisions of section 39, in fixing tariffs under sub-section (1) above , an Area Distributor shall not show undue preference to any person or class of persons, and shall not exercise any undue discrimination against any person or class of persons.

(5) The tariff fixed by the Area distributor shall conformed to the provisions of this Act and the Regulations specified in this behalf by the state in its authorisation or exemption.

Power to recover expenditure

21. (1) Where any electric line or electrical plant is provided by an Area Distributor in pursuance of sub-section (1) of section 18, the supplier may require any expenses incurred by him in this behalf to be defrayed by the person requiring the supply of electricity to such extent as is reasonable in all the circumstances.

(2) The State Commission may make provision by Regulation for Authorizing as Area Distributor to require a person requiring a supply of electricity in pursuance of sub-section (1) of section 18 to pay to the Area Distributor, in respect of any expenses reasonably incurred in providing any electric line or electrical plant used for the purpose of giving that supply, such amount as may be reasonable in all the circumstances if-

(a) the supply is required within the specified period after the provision of the line or plant; and

(b) a person for the purpose of supplying whom the line or plant was provided ("the initial contributor") has made a payment to the supplier in respect of those expenses.

(3) Regulation under sub-section (2) above may require an Area Distributor who, in pursuance of his section or the Regulation hereunder, has recovered any amount in respect of expenses reasonably incurred in providing any electric line or electrical plant-

(a) to exercise his right under the right under the Regulations in respect of those expenses; and

(b) to apply any payments received by him in the exercise of those rights in making such payments under the Regulations.

(4) Any reference in this section to any expenses reasonably incurred in providing an electric line or electrical plant includes a reference to the capitalised value of any expences likely to be occurred in maintaining it, in so far as they will not be recoverable by the supplier as part of the charges made by him for the supply.

Power to require security

22. (1) Subject to the following provisions of this section , an Area Distributor may require any person who requires a supply of electricity in pursuance of sub-section (1) of section 18 to give him reasonable security , as may be specified for the payment to him reasonable security , as may be specified for the payment to him of all money which may become due to him-

(a) in respect of the supply; or

(b) where any electric line or electrical plant is to be provided in pursuance of that sub-section , in respect of the provision of the line or plant; and if that person fails to give such security , the supplier may if he thinks fit refuse to give the supply , or to provide the line or plant, for long as the failure continue.

(2) Where any person has not given such security as is mentioned in sub-section (1) above, or the security given by any person has become invalid or insufficient.

(a) the Area Distributor may by notice require that person, within fifteen days after the services of the notice , to give him reasonable security for the payment of all money which may become due to respect of the supply ; and

(b) if that person fails to give such security , the supplier may if he thinks fit discontinue the supply for so long as the failure continues;

and any notice under paragraph (a) above shall state the effect of section 123.

(3) where any money is deposit with an Area Distributor by way of security in pursuance of this section , the Area Distributor shall pay interest , at such rate as may from time to time be fixed by the Area Distributor with the approval of the State Commission on every sum of Rupees one hundred so deposited for every three months during which it remains in the hands of the supplier.

(4) An Area Distributor shall not be entitled to require security in pursuance of sub-section (1) (a) above if-

(a) the person requiring the supply is prepared to take the supply through a pre-payment meter; and

(b) it is reasonably practicable in all the circumstances ( including in particular the risk of loss or damage ) for the supplier to provide such a meter.

Additional terms of supply

23. (1) An Area Distributor may require any person who requires a supply of electricity in pursuance of sub-section (1) of section 18 to accept in respect of the supply-

(a) any restrictions which must be imposed for the purpose of enabling the Area Distributor to comply with Regulations under section 31; and

(b) any terms restricting any liability of the Area Distributor for economic loss resulting from negligence which it is reasonable in all the circumstances for that person to be required to accept.

(2) where any person neglects to pay any charge for electricity or any sum other than a charge for electricity due from him to an Authorized Person may, after giving not less than 7 clear days notice in writing , to such person and without prejudice to his rights to recover such charge or other sum by suit, cut off the supply of electricity and for that purpose cut or disconnect any electric supply line or other works being the property of such Authorized Person, through which electricity may be supplied , and may discontinue the supply until such charge or other sum, together with any expenses incurred by him in cutting off and reconnecting the supply, are paid, and no longer.

Provided that the supply of electricity shall be cut off , if such person, deposits an amount equal to the sum claimed from him, under protest or as security pending disposal of any dispute between him and the Authorized person, under this Act.

Special agreement with respect to supply

24. (1) Not withstanding anything in sections 56 to 61, a person who requires a supply of electricity in pursuance of sub-section (1) of section 18-

(a) may enter into a special agreement with an Area Distributor or Electricity Supplier for the supply on such terms as may be stated in the agreement ; and

(b) shall enter into such an agreement in any case where

(i) The maximum power to be made available at any time exceeds one megawatt or such higher capacity as the State Government may notify; or

(ii) It is otherwise reasonable in all the circumstances for such an agreement to be entered into.

(2) So long as any such agreement as is mentioned in sub-section (1) above is effective , the right and liabilities of the parties to the agreement shall be those arising under the agreement and not those provided for by sections 18 to 23.

The Electricity supply Code

25. (1) For enabling an Area Distributor to discharge his functions efficiency , economically and competitively, thee Authority shall by Regulations specify an Electricity Supply Code to provide , inter alia, for recovery of electricity charges ; disconnection of supply for non-payment thereof ; restoration of supply; damage to electric plant or electric lines ; tampering ; distress or damage to electric plant or electric line or meter. Entry of supplier or any person acting on his behalf for disconnecting supply and removing the meter; entry for replacing , altering or maintaining electrical lines or electrical plant and matters associated with, consequential or incidental thereto.

(2) Any person who contravenes the provisions of the Electricity Supply Code shall be liable, on summary inquiry and adjudication by the Competent Commission to a penalty not exceeding twice the fair market value of the electricity received or supplied , as the case may be, in contravention of the Electricity Supply Code and where the actual quantum of such electricity received can not be reasonably determined , then the maximum electricity that could be deemed to be the electricity received for the purposes of this sub-section.

Other business of Area Distributor

26. An Area Distributor may engage in any business that maximises utilisation of its assets. Provided, however, that a proportion of its revenues derived from such business shall, as specified by the Competent Commission, be utilised for reducing its wheeling charges. Provided further that the Area Distributor shall maintain separate accounts for each such business undertaking nor encumbers its distribution assets in any way to support such business.

Duties of Electricity Suppliers

27. The duties of Electricity Supplier may include purchase of electricity for resale thereof, and brokerage or trade in the supply of electricity in accordance with the provisions of this Act, the Rules and Regulations thereunder , and the conditions of authorization or exemption, as the case may be.

Certain Restrictions on Electricity Suppliers

28. No Electricity Supplier shall purchase the electricity that is required to be sold by a Generating Company to any Authorized Person under the provisions of any law, rule , regulation, direction or agreement , for the time being in force, unless such Authorized Person consents in writing that such electricity may be so purchased by the Electricity Supplier subject to such conditions and in such circumstances as may be stipulated in the consent; and a copy of such consent shall be furnished to the Competent Commission and the Generating Company forthwith.

Enforcement of Preceding Provisions

Orders for securing compliance

29. (1) Subject to sub-sections (2) and (5) and section 30, where the Competent Commission is satisfied that an Authorized Person is contravening , or is likely to contravene, any condition stated in an authorization or exemption (the "relevant condition") or any provision of this Act, it shall by a final order give such directions as it requisite for the purpose of securing compliance with that condition or provision.

(2) Subject to sub-section (5) below, where it appears to the Competent Commission-

(a) that an Authorized Person is contravening , or is likely to contravene, any relevant condition or any provision of this Act; and

(b) that its is requisite that a provisional orders be made, it shall (instead of talking steps towards the making of a final orders) by a provisional orders give such directions as appear to it requisite for the purpose of securing compliance with such condition or provisions.

(3) In determining for the purpose of sub-section (2) (b) above whether it is requisite that a provisional order be made the Component Commission shall have regard, in particular-

(a) to the extent to which any person is likely to sustain loss or damage in consequence of anything which, in

contravention of the relevant condition or requirement , is likely to be done , or omitted to be done , before a final order may be made; and

(b) to the fact that the effect of the provisions of this section and section is to exclude the availability of any remedy (apart from under those provisions or for negligence ) in respect of any contravention of a relevant condition or any provision of this Act.

(4) Subject to sub-section (5) and section 30, the Competent Commission shall confirm a provisional order, with or without modifications, if-

(a) it is satisfied that the Authorized Person to whom the order relates is contravening, or is likely to contravene, any relevant condition or any provision of this Act; and

(b) the directions given by the order(with any modifications) are requisite for the purpose of securing compliance with such condition or provision.

(5) The Competent Commission shall not make a final order or make or confirm a provisional order relation to an order if its is satisfied-

(a) that the duties imposed on it this Act preclude the making or , as the case may be, the confirmation of the order;

(b) that the Authorization Person has agreed to take and is taking all such steps as it appears to the Competent commission for the time being to be appropriate for the Authorization Person to take for the purpose of securing or facilitating compliance with the condition or provision in question;

(c) that the contravention were, or the apprehended contravention are, of a trivial nature.

(6) Where the Competent Commission is satisfied as mentioned in sub-section (5) above, it shall-

(a) serve notice on the Authorization Person that is to satisfied ; and

(b) publish the notice in such manner as it considers appropriate for the purpose of brining the matters to which the notice relates to the attention of persons likely to be affected by them.

(7) A final or provisional order-

(a) shall require the Authorized person to whom it relates (according to the circumstances of the case) to do, or not to do , such things as are specified in the order or are of a description so specified;

(b) shall take effect at such time, being the earliest practicable time, as is determined by or under the order; and

(c) may be revoked at any time by the Competent Commission.

Procedural requirements

30. (1) Before it makes a final order or confirmation provisional order under section 29, the Competent Commission shall give notice -

(a) stating that it proposes to make or confirm the order and setting out its effect;

(b) setting out-

(i) the relevant condition or provision of this Act for the purpose of securing compliance with which the order is to be made or confirmed;

(ii) the acts or omissions which, in his opinion, constitute or would constitute contravention of such condition or provision; and

(iii) the other facts which, in his opinion, justify the making or confirmation of the order; and

(c) specifying the period ( not being less than 30 days from the date of publication of the notice ) within which representations or objections with respect to the proposed order or proposed confirmation may be made, and shall consider any representation or objections which are duly made and not withdrawn.

(2) A notice under sub-section (1) above shall be given-

(a) by publishing the notice in such manner as the Competent Commission considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them; and.

(b) By serving a copy of the notice ,and a copy of the proposed order or of the proposed to be confirmed , on the Authorized Person to whom the order relates.

(3) The competent Commission shall not make a final order with modifications, or confirmation a provisional order with modification, except-

(a) with the consent to the modification of the Authorized Person to whom the order relates; or

(b) after complying with the requirement of sub-section (4) below.

(4) The requirement mentioned in sub-section (3) above are that the Competent Commission shall-

(a) serve on the Authorized Person to whom the orders relates such notice as appears to him requisite of his proposal to make or confirm the orders with modifications;

(b) in that notice specify the period (not being less than 30 days from the date of the service of the notice within which representations or objections with respect to the respond modifications may be made; and

(c) consider any representations or objections which are duly made and not withdrawn.

(5) As soon as practicable after making a final order or making or confirming a provisional order, the Competent Commission shall

(a) serve a copy of the order on the Authorized Person to whom the order relates; and

(b) publish the order in such manner as it consider appropriate for the purpose of brining it to the attention of persons likely to be affected by it.

(6) Before revoking a final order or a provisional order which has been confirmed, the Competent Commission shall give notice-

(a) stating that it proposes to revoke the order and setting out its effect; and

(b) specifying the period (not less than 30 days from the date of publication of the notice) within which representations or objection with respect to the proposed revocation may be made and shall considers any representations or objections which are duly made and not withdrawn.

(7) If, after giving a notice under sub-section (6) above, the Competent Commission decides not to revoke the order to which the notice relates, it shall give notice of its decision.

(8) A notice under sub-section (6) or (7) above, shall be given-

(a) by publishing the notice in such manner as the Competent Commission considers appropriate for the purpose of brining the matters to which the notice relates to the attention of persons likely to be affected by them; and

(b) by serving a copy of the notice on the Authorized Person to whom the order relates.

Provisions with Respect to Supply Generally

Regulation relating to safety

31. (1) The Central Electricity Authority may make such Regulations as it thinks fit for the purpose of-

(a) protecting the public from dangers arising from the generation, transmission or supply of electricity, from the use of electricity supplied or from the installation , maintenance or use of any electric line electrical plant; and

(b) without prejudice to the generality of clause (a) above , eliminating or reducing the risks of personal injury, or damage to property or interference with its use , arising as mentioned in that paragraph.

(2) Without prejudice to the generality of sub-section (1) above, Regulations under this section may-

(a) prohibit the supply or transmission of electricity except by means of a system approved by the Competent Commission and /or the Electrical Inspector;

(b) make provision requiring notice in the specified form to be given to the Competent Commission and/ or the Electrical Inspector; and such cases as may be specified in the Regulations , of accidents and of failures of supplies or Transmission of electricity;

(c) make provision as to the keeping , by persons authorized by an Authorization or exemption to supply or transmit electricity of maps, plans and sections and as to their production (on payment, if so required, of a reasonable fee) for inspection or copying;

(d) make provision for relieving persons authorized by an authorization to supply electricity from electricity from any obligation to supply in such cases as may be specified;

(e) make provision requiring compliance with notice given by the Competent Commission or an Electrical Inspector specifying action to be taken in relation to any electric line or electrical plant, or any electrical appliances under the control of a consumer, for the purpose of -

(i) preventing or ending a breach of Regulation under this section; or

(ii) eliminating or reducing a risk of personal injury or damage to property or interference with its use;

(f) provide for particular requirement of the Regulations to be deemed to be compiled with in the case of any electric line or electrical plant complying with specified standards of requirement ; and

(g) provide for the granting of exemptions from any requirement of the Regulations for such periods as may be determined by or under the Regulations.

(3) Regulations under this section may provide that any person-

(a) who contravenes any specified provision of the Regulations ; or

(b) who does so in specified circumstances , shall be liable on summary inquiry and adjudication by the Competent Commission to a penalty not exceeding five hundred thousand rupees and shall be liable to a daily penalty not exceeding fifty thousand rupees per day for each day that the offence continue after an order imposing three

(c) penalty has been passed; but nothing in this sub-section shall affect any liability of any such person to pay compensation in respect of any damage or injury which may have been caused by the contravention.

Use etc. of meters

32. (1) No person shall ,except through a meter to be installed and operated in accordance with Regulation to be specified in this behalf by the Authority, receive or consume electricity that has been generated by any generating station and transmission therefrom to any premises.

(2) For promoting accountability and audit in the transmission and supply of electricity , the Authority may specify the installation of meters at such stages of transmission and supply as it may deem necessary.

(3) Any person who contravenes any provision of the Regulations made under this section shall, upon summary inquiry and adjudication by the Competent Commission, be liable to a penalty not exceeding fifty thousand rupees and shall be liable to daily penalty not exceeding five thousand rupees per day for each day that the contravention continues after an order imposing the penalty has been passed.

(4) If a person makes default in complying with the provisions contained in the Regulations specified in this section, the Competent Commission may make such order as it thanks fit for requiring the default to

be made good; and any such order may provide that all the costs or expenses of and incidental to the application shall be borne by the person in default or by any officers of a company or other association who are responsible for this default.

Cess on electricity from fossil fuel sources

33. (1) Every Authorized Person engaged in the generation of electricity from fossils fuel sources including coal , lignite, natural gas , crude liquid petroleum or petroleum products , shall pay to the Union Government a levy of 2 paise on each kilowatt hour of electricity generated by him. The Union Government may prescribe the time , manner and other matters relating to the payment and collection of the cess.

(2) The proceeds of the levy shall be utilised by the Government for Promoting and augmenting the generation of electricity from non-fossil furl Rules shall, inter aila, provide for a fair equitable allocation of resources with due regard to the States and Union Territories where the electricity referred to in sub-section (1) above is consumed.

Consent required for overhead lines

34. (1) Subject to sub-section (2) below , an electric line shall not be installed or kept installed above ground except in accordance with a consent granted by the Competent Commission.

(2) Sub-section (1) above shall not apply-

(a) in relation to an electric line which has a nominal voltage not exceeding 20 kilovolt and is used or intended to be used for supplying a single consumer;

(b) in relation to so much of an electric line as is or will be within premises in the occupation or control of the person responsible for its installation ; or

(c) in such other cases as may be prescribed.

(3) A consent under this section-

(a) may include such conditions (including conditions as to the ownership and operation of the line) as appear to the Competent Government to be appropriate;

(b) may be varied or revoked by the Competent Government at any time after end of such period as may be stipulated in the consent; and

(c) subject to clause (b) above, shall continue in force for such period as may be stipulated in or determined by or under the consent.

(4) Any person who without reasonable excuse contravenes the provisions of this section shall, on summary inquiry and adjudication by the Competent Commission, be liable to a penalty not exceeding five hundred thousand rupees and shall be liable to a daily penalty not exceeding fifty thousand rupees per day for each day that the contravention continues after an order imposing the penalty has been passed.

(5) No proceedings shall be instituted in respect of an offences under this section except by or on behalf of the Competent Government.

Consumer Protection: Standards of Performance

Electricity supply: performance in individual cases

35. (1) The State Commission may after consultation with Area Distributors and with persons or bodies appearing to the State Commission to be representative of persons likely to be affected , make Regulations specifying such standards of performance in connection with the provision by such Area Distributor of electricity supply services to consumers as, its opinion, ought to be achieved in individual cases.

(2) Regulations under this section may-

(a) specify circumstances in which Area Distributor are to inform persons of their rights under this section;

(b) prescribe such standards of performance in relation to any duty arising under clause (a) above as, in the Commission's opinion, ought to be achieved in all cases; and

(c) specify circumstances in which Area Distributor are to be exempted from any requirement of the regulations or this section, and make different provision for different Area Distributor.

(3) If an Area Distributor fails to meet a specified standard, he shall make to any person who is affected by the failure and is of a specified description such compensation as may be determined by or under Regulations.

(4) The making of compensation under this section in respect of any failure by an Area Distributor to meet a specified standard shall not prejudice any other remedy which may be available in respect of the act or omission which constituted that failure.

Electricity supply: overall performance

36. (1) The State Commission may after consultation with Area Distributor and with persons or bodies appearing to him to be representative of persons likely to be affected from time to time-

(a) determine such standards of overall performance in connection with the provision of electricity supply services as, in its opinion, ought to be achieved by such Area Distributor; and

(b) arrange for the publication in such form and in such manner as it consider appropriate, of the standards so determined.

(2) different standards may be determined under this section for different Area Distributors.

Information with respect to levels of performance

37. (1) The State Commission shall from time to time collect information with respect to-

(a) the compensation made by Area Distributor under section 35;

(b) the levels of overall performance achieved by such suppliers in connection with the provision of electricity supply services; and

(c) the levels of performance achieved by such Area Distributor in connection with the promotion of the efficient use of electricity by consumers.

(2) On or before such date in each year as may be stipulated in a direction given by the Commission, each Area Distributor shall furnish to the Commission the following information namely-

(a) as respect each standard prescribed by Regulation under section 35, the number of cases in which compensation was made and the aggregate amount or value of that compensation ;and

(b) as respect each standard prescribed by Regulations under section35, such information with respect to the level of performance achieved by the Area Distributor as may be specified.

(3) An Area Distributor who without reasonable excuses fails to do anything required of him by sub-section (2) above shall, upon summary inquiry and adjudication by the Commission, be liable to a penalty not exceeding fifty thousand rupees and shall be liable to a daily penalty not exceeding five thousand rupees per day for each day that the contravention continues after an order imposing the penalty has been passed.

(4) The Commission shall at least once in every year arrange for the publication, in such form and in such manner as it considers appropriate , of such of information collected by or furnished to it under this section as it may appear to it expedient to give to customers or potential customers of Area Distributors.

(5) In arranging for the publication of any such information, the Commission shall have regard to the need for excluding, so far as that is practicable-

(a) any mater which relates to the affair of an individual, where publication of that matter would or might, in the opinion of the Commission, seriously and prejudicially affect the interest of that individual; and

(b) any matter which relates specifically to the affairs of a particular body of persons, whether corporate or incorporate, where publication of that matter would or might, in the opinion of the Commission, seriously and prejudicially affect the interest of that body.

Market Domination and Anti-Competitive Behaviour

38. (1) No Authorized Person shall engage in any anti-competitive behaviour, market manipulation, or other unfair trade practices detrimental to the encouragement and protection of competitive markets.

(2) In the discharge of its duties and functions, and in dealing with matters relating to Authorized Persons, the Competent Commission shall have due regard for the need to check and restrict any actions, omissions, practices or procedures that-

(a) have an adverse effect on the interest of consumers, whether those interest are economic or interest in respect of healthy, safety or other matters.

(b) Have the effect of restricting, distorting , or preventing competition in connection with the generation , transmission and supply of electricity; and

(c) Have the effect of monopoly situations being used for affecting the interest of consumers adversely.

(3) If an Authorized Person contravenes any Rule, Regulation, condition of authorization or direction of the Competent Commission in furtherance of sub-section (2) above, the Commission may, by injunction enforce the provisions thereof and require the divestment of any excess profit and impose penalties pursuant to the provisions of this Act.

Tariff

Tariff Regulations

39. (1) The Competent Commission shall specify the terms and conditions for the determination of tariff, and in doing so, shall be guided by the following, namely-

(a) the guidelines and methodology specified by the Central Commission for determination of the tariff of Generating Companies and Transmission Providers;

(b) commercial principles for the generation, transmission, distribution, trading and supply of electricity;

(c) the factors which would encourage competition, efficiency, economical use of the resources, good industry practice, optimum investments, and other matters which the Commission considers appropriate for the purposes of this Act;

(d) protection of consumers' interest and at the same time, recovery of the cost of electricity in a reasonable manner;

(e) that the tariff progressively reflects the cost of supply of electricity at an adequate and improving level of efficiency and does not exceed the cap specified by the Competent Commission for the recoverable rate of system losses determined after taking into account all relevant considerations, including the efficiency or inefficiency of Authorised Persons, load density, sales mix, cost of service, delivery voltage and other technical factors;

(f) that cross-subsidisation among different classes of consumers is reduced progressively and that no consumer or class of consumers is required to pay a tariff that is greater than the marginal cost of supplying electricity, provided that the Competent Government may by notification direct the Competent Commission that the tariff payable by any consumer or class of consumers shall not exceed 50 per cent of the average cost of supplying power within its territorial jurisdiction or such lower proportion as may be stipulated in the notification;

Explanation: For the purposes of this Clause-

"marginal cost of supplying electricity" means the cost of procuring and supplying electricity from a generating station which has a comparatively high tariff (such station to be designated by the Competent Commission for the purposes of this Clause);

(g) that rural areas receive an equitable supply of electricity;

(h) that economically weaker persons receive an equitable supply of electricity; and

(i) the National Electricity Plan.

Determination of Tariff

40. (1) The tariff for supply, transmission, distribution or wheeling of electricity, grid, wholesale, bulk or retail, as the case may be, shall, subject to the provisions of this Act, be determined by the Competent Commission.

(2) Without prejudice to the generality of sub-section (1) above, the Competent Commission may, from time to time, determine the tariff at which the electricity purchased by an Electricity Supplier may be resold to any consumer, and shall publish the tariff so determined in such manner as in its opinion will secure adequate publicity for such tariff.

Provided that the Commission may determine different tariffs for different classes of cases which may be defined by reference to areas, time of supply, the nature and purpose of supply, or any other relevant circumstances.

(3) The Commission shall not, while determining the tariff under this Act, show undue preference to any consumer of electricity but may differentiate according to the consumer's load factor, power factor, total consumption of electricity during any specified period or the time at which the supply is required or the geographical position to any area, the nature of supply and the purpose for which the supply is required.

(4) The Commission shall endeavour to determine tariff in such a manner that, as far as possible, similarly placed consumers in different areas of a State pay similar tariff.

(5) No tariff or part of any tariff may ordinarily be amended more frequently than once to any financial year, except in respect of any changes expressly permitted under the terms of any fuel surcharge formula as may be specified.

(6) Any person authorised to transmit, distribute, supply or wheel electricity wholesale, bulk or retail, shall observe the methodologies and procedures specified by the Commission from time to time in calculating the expected revenue from the tariff and charges which he is permitted to recover.

(7) If any Authorised Person sells or resells electricity, as the case may be, at a price exceeding the tariff determined under this section, the amount of the excess shall be recoverable by the person to whom the electricity was sold or resold, without prejudice to any other liability incurred by the Authorised Person for contravention of the provisions of this Act, the Rules or Regulations thereunder, or the conditions of authorisation or exemption, as the case may be.

Procedure for Tariff Order

41. (1) An application for determination of tariff under section 40 shall be made by an Authorised Person in the specified manner and shall be accompanied by such fee as may be specified; and within 15 days of the making of such application, the applicant shall publish a copy of the application in the specified manner.

(2) Before issuing a tariff order under this section, the commission shall give notice-

(a) stating that it proposes to issue the order;

(b) stating the reasons why it proposes to issue the order; and

(c) stating the time (not being less than 30 days from the date of publication of the notice) within which representations or objections with respect to the proposed order may be made,

and shall consider any representation or objections which are duly made and not withdrawn.

(3) A notice under sub-section (2) above shall be given by publishing the notice in such manner as the Commission considers appropriate for bringing it to the attention of persons likely to be affected by the proposed order.

(4) A tariff order shall, unless previously revoked in accordance with any term contained in the tariff order, shall continue in force for such period as may be stated in or determined by or under the tariff order.

(5) The Commission shall, within 120 days of receiving an application under this section -

(a) either issue a tariff order accepting the application with such modifications as the Commission may determined, and subject to such conditions as may be stipulated in accordance with the provisions of this Act; or

(b) reject the application for reasons to be recorded in writing if such application does not conform to the provisions of this Act or the Rules and Regulations framed thereunder or the provisions of any other law for the time being in force.

Provided that if the Commission does not issue any order under clause (a) or (b) above within the period aforementioned, the tariff application shall be deemed to have been approved subject to and in accordance with the conditions specified in this Act and the Rules and Regulations thereunder.

(6) As soon as practicable after issuing a tariff order, the Commission shall send a copy of the tariff order to the Competent Government, the Central Electricity Authority, and the Authorised Persons who may be affected by such tariff order.

(7) Notwithstanding anything to the contrary contained in this Act, the tariff for any inter-state supply, transmission or wheeling of electricity involving the territories of two States may, upon application made to it by the parties intending to undertake such supply, transmission or wheeling, be determined by the State Commission having jurisdiction in respect of the Authorised Person who intends to receive and make payment for the aforesaid electricity.

Determination of Tariff by Market Forces

42. Notwithstanding anything to the contrary in this Act, where the Competent Government is satisfied that the prevailing market conditions and competition are sufficient to determine the tariff of any or all of the classes of Authorised Persons, it may be notification direct that the Competent Commission shall not determine the tariff of any or all the classes of Authorised Persons in the circumstances and subject to such conditions as may be stipulated in the notification.

Provision of Subsidy by State Government

43. Where the State Government directs the State Commission to provide for any subsidy in the tariff payable by any consumer or class of consumers, the State Government shall bear the subsidy in such manner as the State Commission may determine, and the payment thereof shall be deemed to be, and payable as a debt of the State Government.

Provided that no such direction of the State Government shall be operative and binding if it is made without a financial appropriation by the State Legislature and any payment arising thereof is in arrears of more than thirty days.

Tariff for Certain Licensees etc.

44. Notwithstanding anything to the contrary contained in this Act, the Competent Commission shall, in relation to any electrical plant or electrical line which has been licensed, installed or contacted under the provisions o the repealed laws, determine the tariff as if the provisions of the repealed laws with respect to determination of tariff were in force.

Financial Assistance by State Government

45. (1) The State Government may, from time to time, make subventions to any Authorised Person for such amounts as may be recommended by the Commission and on such terms and conditions as the State Government may determine.

(2) The State Government may, from time to time, advance loans to any Authorised Person, which for the time being is wholly or partly owned by the State Government, on such terms and conditions as the State Government may determine.

(3) The State Government may guarantee, in such manner as it thinks fit, the repayment of the principal or the payment of interest (or both) of any loan proposed to be raised by any Authorised Person, which is for the time being wholly or partly owned by the State Government, for the discharge of any financial obligation of such Authorised Person.

Bulk Electricity Spot Market

46. The Union Government may, at any time after the first anniversary of the appointed date, by Rules establish the bulk electricity spot market to facilitate efficient, competitive and orderly supply of electricity in furtherance of the objects of this Act. Such Rules may, inter alia, provide for the principles and procedures for:

(a) merit despatch instructions;

(b) market-clearing price for each time period;

(c) regulation, management and administration of the market, including criteria for membership;

(d) fee payable by members of such market;

(e) provisions relating emergencies; and

(f) such other mattes as may be relevant or incidental to the efficient functioning of such market.

Other matter relating to supply

47. (1) Subject to sub-section (2) below, it shall be the duty of the Competent Commission to investigate any matter which appears to it to be an enforcement matter and which-

(a) is the subject of a representation (other than one appearing to the Commission to be frivolous) made to the Commission by or on behalf of a person appearing to the Commission to have an interest in that matter; or

(b) is referred to it by an Electrical Inspector or a Consumer Protection Officer, as the case may be, under sub-section (3) below.

(2) The Commission may, if it thinks fit, require an Electrical Inspector o a Consumer Protection Officer, as the case may be, to investigate and report to it on any matter failing within sub-section (1) above which relates to any Area Distributor.

(3) It shall be the duty of every Electrical Inspector and Consumer Protection Officer, as the case may be, to refer to the Commission any matter which -

(a) appears to him to be an enforcement matter; and

(b) is the subject of a representation (other than one appearing to the committee to be frivolous) made to him by or on behalf of a person appearing to him to have an interest in the matter.

(4) In this section and section 124 below "enforcement matter" means any matter in respect of which any functions of the Competent Commission are or may be exercisable.

Power and procedure to revoke authorisation

48. (1) If the Competent Commission after making an enquiry is satisfied that public interest so requires, revoke an authorisation in any of the following cases, namely,-

(a) where the Authorisd Person, in the opinion of the Competent Commission, makes willful and prolonged default in doing anything required of him by or under this Act or the Rules or Regulations thereunder, or contravenes any of the conditions of his autorisation;

(b) where the Authorised Person contravenes any of the terms or conditions of his authorisation the breach of which is expressly declared by such authorisation to render it liable to revocation;

(c) where the Authorised Person fails, within the period fixed in this behalf by his authorisation, or any longer period which the Competent Commission may have granted therefor-

(i) to show, to the satisfaction of the Competent Commission that he is in a position to discharge the duties and obligations imposed on him by his authorisation; or

(ii) to make the deposit or furnish the security, fees or other charges required by his authorisation;

(d) where in the opinion of the Commission the financial position of the Authorised Person is such that he is unable to discharge the duties and obligations imposed on him by his authorisation.

(3) Where in its opinion the public interest so requires, the Commission may on application, or with the consent of the Authorised Person, revoke his authorisation as to the whole or any part of his Authorised Area upon such terms and conditions as it thinks fit.

(4) No authorisation shall be revoked under this section unless the Competent Commission has given to the Authorised Person not less than three months' notice, in writing, stating the grounds on which it is proposed to revoke the authorisation, and has considered any cause shown by the Authorised Person within the period of that notice, against the proposed revocation.

(5) The Competent Commission may, instead of revoking an authorisation under sub-section (2), permit it to remain in force subject to such further terms and conditions as it thinks fit to impose, and such terms or conditions shall be of like force and effect as if they were contained in the authorisation.

(6) In making any order under this section, the Commission shall, as far as may be, follow the procedure laid down in sections 65 and 66.

Provisions on revocation of an authorisation

49. (1) Where the Competent Commission revokes an authorisation, the following provisions shall apply -

(a) the Competent Commission shall serve a notice of revocation upon the Authorised Person and shall fix a date on which the revocation shall take effect;

(b) the Commission shall invite applications for acquiring the Utility of the Authorised Person whose authorisation has been revoked and determine which of such applications is to be accepted, primarily on the basis of the highest and best price offered for the Utility;

(c) the Commission may be notice in writing require the Authorised Person to sell, and thereupon the Authorised Person shall sell the Utility to the person whose application has been accepted by the Commission (hereinafter referred to in this section as the "purchaser);

(d) on and with effect from the date of revocation, or on and with effect from the date, if earlier, on which the Utility of the Authorised Person is sold to a purchaser, all the rights, duties, obligations and liabilities of the Authorised Person shall absolutely cease and determine except for any liabilities that have accrued prior to that date; and

(e) the Commission may make such interim arrangements in regard to the operation of the Utility as may be considered appropriate, including the appointment of administrators.

(2) Where a utility is sold under sub-section (1), the purchaser shall to the Authorised Person the purchase price of the Utility in the manner as agreed.

(3) Where the Commission issues any notice under sub-section (1) requiring the Authorised Person to sell the utility, it may by such notice require the Authorised Person to deliver, and thereupon the Authorised Person shall deliver on a date specified in the notice, the Utility to the designated purchaser on payment of the purchase price thereof.

(4) Where for any reason the sale of the Utility has not been effected under this section, the Competent Government may acquire the Utility upon revocation of the authorisation and shall perform all the obligations of the Authorised Person until such time as the Utility is sold.

(5) If the Authorised Person has been required to sell the Utility, and its sale has not been completed by the date fixed in the notice issued under clause (a) of sub-section (1), the Competent Commission may, if it deems fit, permit the intending purchaser to work the Utility pending the completion of the sale.

Vesting of the Utility in the purchaser

50. Where a Utility is sold under Section 49, then upon completion of the sale -

(a) the Utility shall vest in the purchaser, free from any debt, mortgage or similar obligation of the Authorised Person or attaching to the Utility:

(b) the rights, powers, authorities, duties and obligations of the Authorised Person under the authorisation shall stand transferred to the purchaser and such purchaser shall be deemed to be the Authorised Person.

Provisions where no purchase takes place 51. If the Utility is not sold in the manner provided under section 49, the Authorised Person may dispose of the Utility in such manner as he may think fit.

Provided that, if the Authorised Person does not dispose the Utility within a period of six months from the date of revocation under section 49, the Competent Commission may cause the works of the Authorised Person in, under, over, along, or across any street or public land to be removed and every such street or public land to be reinstated, and recover the cost of such removal and reinstatement from the Authorised Person.

Authorised Person not to do certain things

52. (1) No Authorised Person shall, without the previous consent in writing of the Competent Commission acquire, by purchase or otherwise, the authorisation or the utility of any other Authorised Person, or associate himself, so far as the business of generation, transmission, distribution or sale of electricity are concerned, with any other Authorised Person; and before applying for such consent, the Authorised Person shall give not less than one month's notice in case the Authorised Person is an Area Distributor, to every local authority in its area of distribution and to every other Authorised Person who distributes, or intends to distribute, electricity in such area.

(2) No Authorised Person, being a Transmission Utility or Area Distributor, shall at any time assign his authorisation or transfer his utility, or any part thereof, by sale, mortgage, lease, exchange or otherwise without the previous consent in writing of the Competent Commission.

(3) Any agreement relating to any transaction of the nature described in sub-section (1) or sub-section (2), unless made with, or subject to, such consent as aforesaid, shall be void.

 


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