THE ORISSA
DISTRIBUTION AND RETAIL SUPPLY LICENCE, 1999
(WESCO)
(NO. 4/99)
(Issued under OERC Order Dt. 31.03.99 in
Case No. 25/98)
Western Electricity Supply Company of
Orissa Limited
Registered office: Burla, Sambalpur - 768
017, Orissa
Licence for distribution & retail
supply of electricity granted by the Orissa Electricity Regulatory Commission under
Section 15 of the Orissa Electricity Reform Act, 1995 (2 of 1996) to Western Electricity
Supply Company of Orissa Limited.
TABLE OF CONTENTS
Part I: Terms of the Licence
1. Short Title
This licence may be called "The
Orissa Distribution and Retail Supply Licence, 1999 (WESCO)(No.4/99)."
2. Definitions
2.1 Words, terms and expressions to
which meanings are assigned by the Orissa Electricity Reform
Act, 1995 (2 of 1996), shall have the same meanings in this
licence.
2.2 Words, terms and expressions used in
this licence which are not defined in this licence or in the Orissa
Electricity Reform Act, 1995 (2 of 1996)shall have the meaning given
to them in the Indian Electricity Act, 1910 (9 of 1910) and the Electricity
(Supply) Act, 1948 (54 of 1948).
2.3 In this licence, unless the context
otherwise requires:
"Act" means the
Orissa Electricity Reform Act, 1995 (2 of 1996);
"Affiliate"
means, in relation to the Licensee, any Holding Company or Subsidiary of the Licensee or
any Subsidiary of a Holding Company of the Licensee;
"Area of Supply"
means the geographic area referred to in Schedule 1 of this
Licence within which the Licensee is Authorised by this Licence to carry out Distribution
and Retail Supply;
"Auditors"
means the Licensee's auditors for the time being in accordance with the requirements of
Sections 224 to 234A of the Companies Act 1956 (1 of 1956);
"Authorised" in
relation to any person, business or activity means authorised by licence granted
under Section 15 or exemption granted under Section 16 of the Act;
"Bulk Supplier"
means any person who is Authorised to carry out Bulk Supply and functions ancillary to
Bulk Supply;
"Bulk Supply"
means the supply of electricity to other licensees for distribution by them;
"Consumer"
means the end or final user of electricity supplied by the Licensee or by any other
Authorised person;
"Distribution"
means the transportation of electricity by means of a Distribution System;
"Distribution and and Supply
Business" means the Authorised business of Distribution and Retail Supply of
electricity including activities ancillary to Distribution and Retail Supply;
"Distribution and Retail Supply Licensee"
means any person who is licensed to carry out the business of Distribution
and Retail Supply in Orissa;
"Distribution Code"
refers to and includes Distribution (Planning and Operation)
Code and Orissa Electricity Regulatory Commission
Distribution (Conditions of Supply) Code, 1998 issued by the Commission;
"Distribution System"
means any system, consisting mainly of cables, service lines and overhead lines,
electrical plant and meters having design voltage of 33 kV and lower and used for the
transportation of electricity from a Transmission System or Generating Stations or other
points to the point of delivery to end-users taking any supply of electricity at voltage
of 33KV and lower, and includes any electrical plant and meters in connection with the
distribution of electricity;
"Electricity Operator"
means a licensee including Bulk Supplier; or a person who owns or operates a generating
station or Authorised person connected to the Transmission System;
"Grid Code"
refers to the Grid Code approved by the
Commission;
"Licensee"
refers to Western Electricity Supply Company of Orissa Limited in this
licence;
"Licensee's
Distribution System" means any Distribution System owned and/or operated
by the Licensee;
"Operating Standards"
refer to such standards approved by the Commission in accordance with Condition 20;
"Overall Performance
Standards" refer to such standards of overall performance as may be
determined by the Commission pursuant to Section 34 of the Act;
"Planning and Security
Standards" refer to such standards referred to in Condition 20
approved by the Commission;
"Regulations"
refer to regulations issued by the Commission under the Act;
"Retail Supplier"
means any person who is Authorised to carry out Retail Supply and functions ancillary to
Retail Supply;
"Retail Supply Business"
means any business which any Distribution and Retail Supply Licensee is Authorised to
carry out including activities ancillary to Retail Supply;
"Retail Supply"
means the provision of electricity to Consumers;
"Separate Business"
means each of the Distribution and Retail Supply Business, Transmission
Business, Bulk Supply Business and any non-core activity authorised from time to time by
the Commission each taken separately and any other business of the Licensee or any
Affiliate of the Licensee;
"Standards of Performance"
refer to such standards of performance as may be determined by the Commission;
"Supplier"
means any Electricity Operator who carries out or provides Bulk Supply or Retail
Supply;
"Supply" means
the provision of electricity by way of Bulk Supply or Retail Supply or both;
"Transmission"
means the transportation of electricity at voltage of 66 kV and above;
"Transmission and Bulk Supply
Licensee" means any person who is Authorised to act as both Bulk Supplier
and Transmission Licensee;
"Transmission Business"
means the Authorised business of transmission of electricity;
"Transmission Licensee"
means any person who is Authorised to carry out Transmission;
"Transmission System"
means the system, consisting of extra high voltage electric lines having design voltage of
66 kV and higher owned and operated by the Transmission and Bulk Supply Licensee for the
purposes of the transportation of electricity from one power station to a substation or to
another power station or between substations or to or from any external interconnection
including 33/11 kV bays/equipment up to the interconnection with any Distribution System,
any plant and apparatus and meters owned or used in connection with transmission, and such
buildings or part thereof as may be required to accommodate such plant, apparatus, other
works and operating staff thereof.
2.4 References in this licence to
Paragraphs, Conditions, Parts and Schedules shall, unless the context otherwise requires,
be construed as references to conditions, paragraphs and parts of, and schedules to this
licence.
3. Terms
of Licence
3.1 The Commission, in exercise of the
powers conferred by Section 15 of the Act, hereby grants to the Licensee a licence for
Distribution and Retail Supply in the Area of Supply during the period specified in
Paragraph 3.3, subject to the conditions (the "Condition") of this
Licence.
3.2 The Conditions are subject to
modification or amendment in accordance with the provisions of this Licence or in
accordance with the provisions of the Act.
3.3 This licence shall come into force on
First of April 1999 and, unless revoked earlier, shall remain in force for 30 years from
the date of issue and may, upon agreement of the Commission and the Licensee, be renewed
for a further period up to 20 years.
Part II: General Conditions
4. Regulations
4.1 The Licensee shall comply with,
adhere to, and obey the Regulations, and any direction and/or order
issued by the Commission thereunder and/or under the Act.
5.
Restrictions
5.1 In the State of Orissa, neither
the Licensee nor any of its Affiliates shall, without the prior written consent of the
Commission:
(a) purchase or import or otherwise
acquire electricity from any person, other than a Bulk Supplier or a generator with
installed capacity of five MW or less; or
(b) provide electricity to any person,
other than pursuant to the Distribution and Retail Supply Licence; or
(c) own, hold any beneficial interest or
operate any Generating Station or other source of production of power in the Area of
Supply except in a manner which, in the opinion of the Commission, is incidental to the
Distribution and Retail Supply Business; or
(d) own, hold any beneficial interest or
operate any facilities for Distribution and Retail Supply other than pursuant to the
carrying out of the Distribution and Retail Supply Business; or
(e) own, hold any beneficial interest or
operate any Transmission System in the Area of Supply; or
(f) provide access to third parties for
the transportation of electricity through the Licensee's Distribution System; or
(g) start any non-core activity, provided
that any non-core activity started by the Licensee shall be subject to Conditions 6
and 7.
5.2 The Distribution and Retail Supply
Business shall not be held by or carried out through any other person including an
Affiliate of the Licensee, unless otherwise permitted by the Commission.
5.3 The Licensee shall not guarantee any
obligation incurred by an Affiliate of the Licensee in respect of a non-core activity. In
carrying out the Distribution and Retail Supply Business, the Licensee shall not
incur any loan or loans for the purposes of any other Separate Business of the
Licensee or an Affiliate of the Licensee.
5.4 The Licensee shall not create or
permit to subsist any encumbrance in favour of any other person over any of the Licensee's
assets for the purpose of securing any obligation of any other person or of the Licensee
in relation in either case to any non-core activity.
5.5 For the purposes of Paragraphs 5.1(g),
5.3 and 5.4, the terms "encumbrance" and "non-core activity" shall
have the following meanings:
"encumbrance" means any
mortgage, charge, right of possession, assignment by way of security, or other form
of security interest;
"non-core activity" means any
activity of the Licensee or an Affiliate of the Licensee other than that carried out as
part of the Distribution and Retail Supply Business or, in the case of an Affiliate of the
Licensee, any business of such Affiliate.
6. Subsidies Among Separate Businesses
In respect of each Separate Business,
the Licensee shall not, without prior permission of the Commission, give any subsidy to or
receive any subsidy from any other Separate Business or from any other business of the
Licensee or any Affiliate of the Licensee.
7. Separate Accounts for Separate Businesses
7.1 The first financial year of the
licence shall run from the date on which this licence comes into force in accordance with
Paragraph 3.3 to Thirty First of March 2000 and thereafter each financial year of the
licence shall run from First of April to the following Thirty First of March.
7.2 The Licensee shall, in respect of each
Separate Business (whether or not held by or carried out through a separate company):
(a) keep such accounting records as
required by the Commission to be kept in respect of each such Separate Business as
if it were carried on by a separate company, so that the revenues, costs, assets,
liabilities, reserves and provisions of, or reasonably attributable to, each Separate
Business are separately identifiable in the books of the Licensee from those of any other
Separate Business or any other business; and
(b) prepare on a consistent basis from
such accounting records:
(i) for each financial year, accounting
statements comprising a profit and loss account, a balance sheet and a statement of source
and application of funds, together with notes thereto, and showing separately in respect
of each Separate Business the amounts of any revenue, cost, asset, liability, reserve or
provision, which has been :
either charged from or to any other
business (whether or not a Separate Business) together with a description of the bases of
that charge;
or determined by apportionment or
allocation between any Separate Business and any other business (whether or not a Separate
Business) together with a description of the basis of the apportionment or allocation; and
(ii) in respect of the first six months of
the first financial year and of each subsequent financial year, an interim profit and loss
account; and
(c) provide to the Commission, in respect
of the accounting statements prepared in accordance with this Condition 7, a report of the
Auditors in respect of each financial year, stating whether in their opinion those
statements have been properly prepared in accordance with this Condition 7 and give a true
and fair view of the revenues, costs, assets, liabilities, reserves and provisions of, or
reasonably attributable to, each Separate Business to which the statements relate; and
(d) deliver to the Commission a copy of
each interim profit and loss account not later than three months after the end of the
period to which it relates, and copies of the accounting statements and the Auditor’s
report not later than six months after the end of the financial year to which they relate.
7.3 Unless permitted to do so in writing
by the Commission, the Licensee shall not change any of the bases of charge or
apportionment or allocation referred to in Paragraph 7.2(b)(i) in relation to the
accounting standards in respect of a financial year from those which applied in respect of
the previous financial year.
7.4 Where, in relation to the accounting
statements in respect of a financial year, the Licensee has changed any such bases of
charge or apportionment or allocation from those adopted for the immediately preceding
financial year, the Licensee shall, if requested in writing by the Commission, in addition
to preparing accounting statements on those bases which it has adopted, prepare such
accounting statements on the bases which applied in respect of the immediately preceding
financial year.
7.5 Accounting statements in respect of a
financial year prepared under Paragraph 7.2(b)(i) shall, unless otherwise approved or
directed by the Commission:
(a) have the same content and format (in
relation to each Separate Business) as the annual accounts of the Licensee prepared under
Sections 210 to 212 of the Companies Act, 1956 (1 of 1956) and the applicable forms of the
Indian Electricity Rules, 1956, and as directed by the Commission and conform to the best
commercial accounting practices;
(b) state the accounting policies adopted;
and
(c) with the exception of the part of such
statement (which shows separately the amounts charged, apportioned or allocated and
describes the bases of charge or apportionment or allocation respectively), be published
with the annual accounts of the Licensee, in the manner prescribed in the Regulations.
7.6 References in this Condition 7 to
costs or liabilities of, or reasonably attributable to, any Separate Business shall be
construed as excluding taxation, capital liabilities which do not relate principally to
that Separate Business and interest thereon.
7.7 The Licensee shall ensure that the
accounting statements in respect of each financial year prepared under Paragraph 7.2(b)(i)
and the report of the Auditors in respect of each financial year referred to in Paragraph
7.2(c) are made available to any person requesting them at a price not exceeding fair
printing/copying charges.
8. Prohibition of
Discrimination and Undue Preference
8.1 Discrimination
Except where directed by the State
Government under the terms of Sections 22A and 22B of the Indian Electricity Act, 1910 (9
of 1910) or Section 12(3) of the Act, neither the Licensee nor any of its Affiliates
shall make or offer to make any Retail Supply (whether under contract or otherwise), to
any one Consumer or group(s) of Consumers on terms which are materially more or less
favourable than those on which it makes or offers to make any Retail Supply to comparable
Consumers or group(s) of Consumers. For the purposes of assessing such comparability of
Consumers, due regard shall be given to the circumstances of Retail Supply to such
Consumers including quantity, load factor, power factor, level and timing of peak demand,
conditions of interruptability, location at which Retail Supply is required, date or
duration of the agreement, or any other relevant factors.
8.2 Undue Preference
Tariff differentials which do not
reflect differences in the circumstances of Retail Supply such as Consumer’s load
factor or power factor, the Consumer’s total consumption of energy during any
specific period, or the time at which supply is required shall be phased out by the
Licensee over such period as the Commission shall approve.
9. Provision of Information to the
Commission
9.1 The Licensee shall supply to the
Commission in the manner and at times specified in writing by the Commission, such
information as the Commission may direct.
9.2 Without prejudice to the generality of
Paragraph 9.1, the Commission may require the Licensee to supply accounting information
which is more extensive than or differs from that required to be prepared and supplied to
the Commission under Condition 7 or which shall be required by the Government of India or
the Government of Orissa.
9.3 The Licensee shall notify the
Commission of any major incident affecting any part of the Distribution System including
generator interconnection facilities which has occurred and shall,
(a) submit a report giving full details of
the facts of the incident and its cause. The Commission at its own discretion may require
the submission of a report to be prepared by an independent person at the expense of the
Licensee; and
(b) give copies of the report to the
Commission and to all parties involved in the major incident.
9.4 The decision of the Commission as to
what is a major incident shall be final.
9.5 Besides taking action for violation of
the Conditions, the Commission shall be entitled to require the Licensee to file a report
of any major incident in accordance with Paragraph 9.3 above in any situation where the
Commission reasonably believes a major incident has occurred but has not been reported by
the Licensee.
10. Investment
10.1 The Licensee shall not enter into
any arrangement to make a major investment without obtaining written approval of the
Commission for such investment in accordance with the terms of this Condition.
10.2 The Commission shall grant the
written approval required under Paragraph 10.1 when the Licensee demonstrates to the
Commission's satisfaction that:
(a) there is a need for the major
investment in the Distribution System which the Licensee proposes to undertake; and
(b) the Licensee has examined the
economic, technical, system and environmental aspects of all available alternatives to the
proposals for investing in or acquiring new Distribution System assets to meet such need;
and
(c) the Licensee will invite and finalise
tenders in accordance with the procedures approved by the Commission for supply of
equipment, material and/or services relating to major investment.
10.3 For the purposes of Paragraphs 10.1
and 10.2 the term "major investment" means any planned investment in or
acquisition of distribution facilities, the cost of which, when aggregated with all other
investments or acquisitions (if any) forming part of the same overall transaction, equals
or exceeds Rs. 5 crores.
11. Disposal of Assets
11.1 The Licensee shall not dispose of
or relinquish operational control over any asset with replacement cost in excess of Rs.30
lakhs otherwise than in accordance with the following paragraphs of this Condition 11.
11.2 Save as provided in Paragraph 11.3,
the Licensee shall give to the Commission not less than two months’ prior written
notice of its intention to dispose of or relinquish operational control over any asset.
Notice shall not be deemed to have been given until such time as the Licensee has provided
to the Commission all such further information as the Commission may require.
11.3 Notwithstanding Paragraph 11.1, the
Licensee may dispose of or relinquish operational control over any asset as is specified
in any notice given under Paragraph 11.2 if:
(a) the Commission confirms in writing
that it consents to such disposal or relinquishment, subject to such reasonable conditions
as the Commission may impose; or
(b) the Commission does not inform the
Licensee in writing of any objection to such disposal or relinquishment of control within
the notice period referred to in Paragraph 11.2.
11.4 Notwithstanding Paragraphs 11.1 and
11.2, the Licensee may dispose of or relinquish operational control over any asset:
(a) where:
(i) the Commission has issued directions
for the purposes of this Condition 11 containing a general consent (whether or not subject
to conditions) to:
(aa) transactions of a specified
description; and/or
(bb) the disposal of or relinquishment of
operational control over assets of a specified description; and
(ii) the relevant transaction or asset(s)
are of a description to which such directions apply and the relevant disposal of or
relinquishment is in accordance with any conditions to which the consent is subject; or
(b) under any contract or agreement,
executed before the commencement of this licence; or
(c) where the disposal or relinquishment
of operational control in question is required by or under any enactment or subordinate
legislation or in connection with the fulfilment of any other obligation of the Licensee,
the assumption of which was consented to by the Commission.
11.5 For purposes of this Condition, the
term "disposal" means any sale including sale of shares and stock, gift, lease,
licence, the grant of any right of possession (or ownership whether immediate or in the
future), transfer of ownership, grant of any encumbrance (as defined in Paragraph 5.5) or
the permitting of any encumbrance to subsist or any other disposition to a third party,
the cost of which, when aggregated with all other assets (if any) forming part of the same
overall transaction equals or exceeds Rs.30 lakhs, and "dispose" shall be
construed accordingly. The cumulative sale of shares and stock to a single party shall be
considered to form part of the same overall transaction.
12. Payment of Fees
12.1 Within 30 days after grant of
this licence or such other period as may be agreed in writing by the Commission, the
Licensee shall pay to the Government of Orissa an initial licence fee of Rs.50
lakhs.
12.2 For each subsequent year that
this licence remains in force, the Licensee shall by 10th April of every year, be liable
to pay to the Government of Orissa an annual licence fee of Rs.50 lakhs. The Commission
shall review and may change the level of such fee every three years.
12.3 Where the Licensee fails to pay
to the Government of Orissa any of the fees due under Condition 12 by the dates specified:
(a) the Licensee shall be liable to
pay to the Government of Orissa interest on the outstanding amount at a simple interest
rate of 2% per month, the interest being payable for the period beginning on the day after
which the amount became due, and ending on the day on which the Government of Orissa
receives payment; and
(b) the Licensee shall be subject to the
proceedings for the recovery of such fees specified in the Act; and
(c) the Commission may revoke this licence
pursuant to Section 18 of the Act and Condition 13 of this licence.
12.4 The Licensee shall be entitled to
take into account any fee paid by it under this Condition in the determination of
aggregate revenues in accordance with Condition 21 but shall not take into account any
interest payable pursuant to Paragraph 12.3(a).
13.
Revocation of Licence
13.1 Subject to provisions of Section 18(4) of the
Act, the Commission may revoke this licence:
(a) on the application of the Licensee or
with the consent of the Licensee; provided in each case that the requirements of Section
18(3) of the Act have been satisfied; or
(b) if any amount payable under Condition
12 is unpaid after it has become due and remains unpaid for a period of 30 days or such
longer period as the Commission may specify; or
(c) if the Licensee has breached any of
the Conditions and does not comply with an order of the Commission to rectify such breach;
or
(d) if the Licensee fails to show to the
satisfaction of the Commission within 60 days of a request from the Commission that the
Licensee is in a position fully and efficiently to discharge the duties and obligations
imposed on the Licensee by this licence; or
(e) if, in the opinion of the Commission,
the Licensee’s financial position is such that the Licensee is unable fully and
efficiently to discharge the duties and obligations imposed on the Licensee by this
licence; or
(f) if, in the opinion of the Commission,
the Licensee has committed a wilful or unreasonable default in doing anything required of
it under the Act, the Indian Electricity Act, 1910 (9 of 1910) or the Indian Electricity
(Supply) Act 1948 (54 of 1948) or any rules made thereunder.
13.2 Where assets of the Licensee used in
the Distribution and Retail Supply Business are transferred to another entity pursuant to
a sale, purchase or lease of assets, this licence may be amended by the Commission
accordingly with regard to the area of supply.
14.
Dispute Resolution
The Commission shall be entitled to
act as arbitrator to adjudicate and settle disputes in pursuance of Section 37(1) of the
Act.
15.
Indian Electricity Act, 1910 (9 of 1910) and Indian Electricity (Supply) Act, 1948 (54 of
1948)
15.1 Except as otherwise provided herein,
none of the clauses of the schedule to the Indian Electricity Act, 1910 (9 of 1910) shall
be incorporated into this licence.
15.2 The Licensee shall, before commencing
to lay down or place a service line in any street in which a distributing main has not
already been laid down or placed, serve upon the local authority (if any) and upon the
owner or occupier of all premises abutting so much of the street as lies between the
points of origin and termination of the service line to be laid down or placed, 21 days'
notice stating that the Licensee intends to lay down or place a service line and
confirming that, if, within such 21 days period, the local authority or any one or more of
such owners or occupiers shall require, in accordance with Condition 17, that a supply
shall be given for any public lamps or to their premises (as the case may be), the
necessary distributing main will be laid down or placed by the Licensee at the same time
as the service line.
15.3 Where, after distributing mains have
been laid down under the provisions of Paragraph 15.2 and the supply of energy through
those mains or any of them has commenced, a requisition is made by the Government of
Orissa or by a local authority requiring the Licensee to supply, for a period of not less
than two years, energy for any public lamps within the Area of Supply, the Licensee
shall supply at a tariff approved by the Commission and implemented in accordance with the
Act, and, save in so far as it is prevented from doing so by cyclones, floods, storms or
other occurrences beyond its control, continue to supply energy for such lamps in such
quantities as the Government of Orissa or the relevant local authority, as the case may
be, may require. The Government of Orissa or the relevant local authority, as the case may
be, may require the Licensee:
(a) to provide the mains and other
equipment for public lamps; and
(b) to use for that purpose supports, if
any, previously erected or set up by it for supply of energy.
15.4 The Licensee may charge any cost
reasonably incurred in carrying out works pursuant to Paragraphs 15.2 and 15.3 to the
Government of Orissa or to the relevant local authority, in accordance with a procedure
approved by the Commission and in accordance with the requirements of the Act and any
rules or Regulations made pursuant to the Act.
15.5 (a) The method of charging the
Consumer for supply by the Licensee may be as provided in the Orissa Electricity
Regulatory Commission Distribution (Condition of Supply) Code, 1998.
(b) If the Consumer is provided with a
meter in pursuance of the provisions of Section 26 Sub-Section (1) of the Indian
Electricity Act, 1910, and the Licensee changes the method of charging for the energy
supplied by him, the Licensee shall bear the expense of providing new meter or such other
apparatus as may be necessary by reason of the new method of charging.
15.6 The Licensee shall establish at his
own cost and keep in proper condition sufficient number of testing stations for testing of
meters for supply, voltage, frequency and protection devices situated at suitable
places and shall supply and keep in proper condition such instruments approved by the
Electrical Inspector for testing.
15.7 The Licensee shall afford to an
Electrical Inspector or a person authorised by an Electrical Inspector (hereinafter
referred to in this Condition 15 as the "Inspector") with facilities for
inspection and testing the Licensee's works and for the reading, testing and inspection of
any instruments. A person appointed by the Licensee may be present at the testing of its
works or the reading, testing or inspection of any instruments, but shall not interfere
with the reading, testing or inspection.
15.8 Prior to the testing of any works of
the Licensee by an Inspector, reasonable notice of such testing shall be given to the
Licensee. The testing shall be carried out at such times as shall (in the opinion of the
Inspector) least interfere with the supply of energy by the Licensee and in such manner as
the Inspector may think fit. Except pursuant to an order made for that purpose by the
Government of Orissa, the Inspector shall not be entitled to have access to, or interfere
with, the works of the Licensee at any points other than those at which the Licensee
itself has access. The Licensee shall not be responsible for any interruption or
irregularity in the supply of energy which may be occasioned by, or required by the
Inspector for the purpose of, any testing pursuant to this Paragraph. No testing shall
take place in respect of any works or part thereof more than once in any period of three
months, unless it is pursuant to an order made by the Government of Orissa.
15.9 The Commission may authorise the
Licensee to exercise any power or authority which could be given to the Licensee under the
Indian Electricity Act, 1910 (9 of 1910) and/or the Electricity (Supply) Act, 1948 (54 of
1948).
15.10 Pursuant to Section 10(8) of the
Act, the Licensee shall have all the powers for the placing of appliances and apparatus
for Distribution and Supply which the telegraph authority possesses with respect to
placing of telegraph lines and posts under the Indian Telegraph Act, 1885 (13 of 1885).
Part III : Technical Conditions and
Consumer Service Obligations
16. Compliance with the Grid Code
16.1 The Licensee shall comply with
the provisions of the Grid Code in so far as they are applicable to it.
16.2 The Commission may, on reasonable
grounds and after consultation with any affected Electricity Operator, issue directions
relieving the Licensee of its obligation under Paragraph 16.1 in respect of such parts of
the Grid Code and to such extent as may be specified in those directions.
17. Compliance with Distribution Code
17.1 The Licensee shall comply with
the provisions of the Distribution Code.
17.2 (a) The Licensee shall periodically
review (including upon the request of the Commission) the Distribution (Planning and
Operation) Code and its implementation, where appropriate, in consultation with other
Distribution and Retail Supply Licensees. Following any such review, the Licensee shall
send to the Commission:
(i) a report on the outcome of such
review;
(ii) any proposed revisions to the
Distribution (Planning and Operation) Code as the Licensee (having regard to the outcome
of such review) reasonably thinks fit for the achievement of the objectives of the
Distribution (Planning and Operation) Code; and
(iii) copies of all written
representations or objections from Electricity Operators, Consumers and other participants
in the electricity industry in the State of Orissa (including any proposals for revisions
to the Distribution (Planning and Operation) Code not accepted by the Licensee in the
course of the review) arising during the consultation process.
(b) All revisions to the Distribution
(Planning and Operation) Code shall require the written approval of the Commission.
(c) The Licensee shall make available a
copy of the Distribution (Planning and Operation) Code in force at the relevant time to
any person requesting it within the Area of Supply, at a reasonable price.
(d) The Commission may issue directions
relieving the Licensee of its obligations under the Distribution (Planning and Operation)
Code in respect of such parts of the Licensee's Distribution System and to such extent as
may be specified in those directions.
17.3 Obligation to Connect Consumers :
Subject to the other provisions of
this licence, the Licensee shall, on the application of the owner or occupier of any
premises within the Area of Supply, provide connection for such owner or occupier to the
Licensee's Distribution System for the purposes of providing Supply to such premises as is
prescribed in the Regulations i.e., Orissa Electricity Regulatory Commission Distribution
(Conditions of Supply) Code, 1998.
Provided that nothing in this paragraph
shall require the Licensee to provide a connection to the Licensee's Distribution System
in circumstances where:
(i) it is prevented from doing so by
circumstances not within its control; or
(ii) to do so would involve a breach of
applicable laws or Regulations relating to electrical safety; or
(iii) it is not economically, financially,
or technically feasible for the connection to be given.
18.
Consumer Service
18.1 Code of Practice on Payment of
Bills :
(a) The Licensee shall, within six
months after this licence has become effective or such longer period as the Commission may
allow, prepare and submit to the Commission for its approval a code of practice (referred
to in this Condition as the "Code of Practice") concerning the payment of
electricity bills by Consumers including appropriate guidance for the assistance of such
Consumers who may have difficulty in paying such bills and in procedures for disconnecting
Consumers for non-payment. In granting such approval, the Commission may make such
modifications to the Code of Practice as it considers necessary in the public interest.
(b) The Licensee shall, whenever
requested in writing to do so by the Commission, review the Code of Practice and the
manner of implementation of the same with a view to determining whether any modification
should be made to it or to the manner of its implementation.
(c) The Licensee shall submit any
proposal for modification to the Code of Practice for approval of the Commission.
(d) The Licensee shall:
(i) draw the attention of Consumers to
the existence of the Code of Practice and each substantive revision of it and the
procedure for inspection and/or for obtaining a copy of the Code of Practice in its latest
form;
(ii) make a copy of the Code of Practice,
as revised from time to time, available for inspection by members of the public during
normal working hours; and
(iii) provide a copy of the Code of
Practice, as revised from time to time, to each new Consumer free of charge and to any
other person who requests it, on reasonable charge.
18.2 Complaint Handling Procedure:
(a) The Licensee shall within six months
after this licence has become effective or such longer period as the Commission may allow
establish a procedure for handling complaints (referred to in this Condition as the
"Complaint Handling Procedure") from Consumers about the manner in which the
Licensee conducts the Distribution and Retail Supply Business. The Commission may
make such modifications to the Complaint Handling Procedure as it considers necessary in
the public interest.
(b) The Licensee shall, whenever requested
in writing to do so by the Commission, review the Complaint Handling Procedure and the
manner in which it has been implemented, with a view to determining whether any
modification should be made to it or to the manner of its implementation.
(c) The Complaint Handling Procedure shall
specify the periods within which it is intended that different descriptions of complaint
should be processed and resolved.
(d) The Licensee shall submit the
Complaint Handling Procedure and any modification to it which the Licensee wishes to make
to the Commission for approval.
(e) The Licensee shall:
(i) make a copy of the Complaint Handling
Procedure, as revised from time to time, available for inspection by members of the public
during normal working hours; and
(ii) provide a copy of the
Complaint Handling Procedure, as revised from time to time, to each new Consumer free of
charge and to any other person who requests it, on reasonable charge.
18.3 Consumer Rights Statement :
(a) The Licensee shall, within six months
after this licence has become effective, or such longer period as the Commission may
allow, prepare and submit to the Commission for approval a Consumer rights statement
(referred to in this Condition as the "Consumer Rights Statement") explaining to
Consumers their rights as customers of the Licensee in its capacity as operator of the
Distribution and Retail Supply Business. In granting such approval, the Commission
may make such modifications to the Consumer Rights Statement as it considers necessary in
the public interest.
(b) The Licensee shall, whenever requested
in writing to do so by the Commission, review the Consumer Rights Statement and the manner
in which it has been implemented, with a view to determining whether any modification
should be made to it or to the manner of its implementation.
(c) The Licensee shall submit any proposal
for modification to the Consumer Rights Statement for approval of the Commission.
(d) The Licensee shall:
(i) make a copy of the Consumer Rights
Statement, as revised from time to time, available for inspection by members of the public
during normal working hours;
(ii) provide a copy of the Consumer
Rights Statement, as revised from time to time, to each new Consumer free of charge and to
any other person who requests it on reasonable charge; and
(iii) distribute or make available copies
of the Consumer Rights Statement in such other manner as the Commission may specify.
18.4 The Licensee shall comply with the
existing Code of Practice on Payment of Bills, Complaint Handling Procedure and Consumer
Rights Statement as approved by the Commission and these shall continue until such time
the Licensee’s such documents are approved by the Commission.
19.
Power Supply Security
19.1 Obligations to Supply:
The Licensee shall take all reasonable
steps including procurement of adequate quantity of power to ensure that all
Consumers receive safe, economical and reliable Supply except where:
(a) the Licensee discontinues supply to
certain Consumers under Section 24 of Indian Electricity Act 1910 (9 of 1910), or in
accordance with the code of practice drawn up pursuant to Condition 18; or
(b) the Licensee is obliged to conduct the
Distribution and Retail Supply Business as may be directed by the Government of
Orissa under Section 22-B of the Indian Electricity Act, 1910 (9 of 1910).
19.2 The Licensee shall, by 31st December
of every year;
forecast the demand for power within the
Area of Supply for the next five financial years including the year wise
breakup; and
provide to the Transmission and Bulk
Supply Licensee, and to the Commission details of the demand forecasts for the Area of
Supply and the data, methodology, and assumptions on which these forecasts are
based.
20.
Distribution System Planning and Security Standards, Operating Standards, Overall
Performance Standards and Standards of Performance
20.1 The Licensee shall plan and operate
its Distribution System so as to ensure that, taking into account Transmission System
losses and subject to the availability of adequate generating and transmission capacity,
the system is capable of providing Consumers with a safe, reliable, and efficient Supply.
In particular, the Licensee shall :
(a) plan and develop its Distribution
System in accordance with the planning and security standards promulgated and approved by
the Commission, and in accordance with the Distribution (Planning and Operation)
Code;
and
(b) operate its Distribution System in
accordance with the Operating Standards promulgated and approved by the Commission, and in
accordance with the Distribution (Planning and Operation) Code.
20.2 The Licensee
shall, within six months after this licence is granted, prepare and submit to the
Commission for approval the Licensee's proposals for Planning and Security Standards and
Operating Standards in accordance with Paragraph 20.1 above. The proposals shall include a
statement setting out criteria by which the Licensee's compliance with the standards may
be measured. Such criteria shall include the maximum number and type of supply
interruptions and deviations from specified power supply quality standards.
20.3 The Planning and Security Standards
shall include a statement by the Licensee as to how it proposes to implement the Planning
and Security Standards so as to:
(a) ensure a satisfactory degree of
standardisation of plant, apparatus, and equipment; and
(b) develop and observe a policy on spare
parts.
20.4 The Licensee
shall, within three months of the end of each financial year, submit to the Commission a
report indicating the performance of the Licensee's Distribution System during the
previous financial year against the criteria referred to in Paragraph 20.2. The Licensee
shall, if required in writing by the Commission, publish a summary of such report in a
manner approved by the Commission.
20.5 The Licensee shall conduct the
Distribution and Retail Supply Business in the manner which it reasonably considers
to be best calculated to achieve the Overall Performance Standards and Standards of
Performance in connection with the promotion of the efficient use of electricity by
Consumers.
20.6 Standards of Performance may be
framed by the Commission in accordance with Section 33 of the Act, or may be proposed by
the Licensee for the Commission's approval. The Licensee's compliance with the Standards
of Performance may be measured, in part, by the Licensee's adherence to the Code of
Practice on Payment of Bills, Complaint Handling Procedure, and Consumer Rights Statement
established in accordance with Condition 18.
20.7 The Licensee shall supply information
to the Commission, on an annual basis or more frequently if requested in writing by the
Commission, as to the means by which it proposes to achieve the Overall Performance
Standards and the Standards of Performance.
Part IV: Tariffs
21. Basis
of Charges
21.1 The Licensee shall by the time
prescribed in the Regulation, prepare and lodge with the Commission submissions setting
out in full detail.
(a) a statement of the Licensee’s
revenue requirement for the ensuing financial year, prepared in accordance with the
financial principles provided in Sections 57 and 57 A of the Electricity (Supply) Act,
1948 (54 of 1948) and in the sixth schedule thereto, with departures therefrom as may be
authorised by the Commission.
(b) a statement of the Licensee’s
expected revenue for the ensuing financial year, at the prevailing tariff rates.
21.2 Subject to the provisions of the Act
and the Regulation Commission shall notify the Licensee either
(i) that it accepts the Licensee’s
calculation on (a) and (b) above; or
(ii) that it does not consider the
Licensee’s calculation to be in accordance with the prescribed methodology or
procedure and will propose an alternative calculation which the Licensee shall accept.
21.3 If the Licensee
desires, or if the Commission directs, to propose new tariff or amend the current tariff,
the Licensee shall prepare and lodge with the Commission, its application for such tariff,
setting out in full the following,
(a) a new or amended tariff proposed by
the Licensee indicating the date of implementation (such date shall be not less than 3
months after the date of the submission of all informations, data, calculations etc.
required under Paragraph 21.4 of this licence) drawing attention to the proposed
changes;
(b) the aggregate revenue which the
Licensee expects to be able to recover from the proposed new or amended tariff,
such aggregate revenue figure to relate to the first full financial year after the
proposed specified date, where the specified date coincides with the beginning of the
financial year and, where the specified date does not coincide with the beginning of the
financial year, the aggregate revenue figure to be calculated at the prevailing tariff up
to the date of revision and thereafter at the revised tariff up to the end of the relevant
financial year;
provided that no tariff or part of tariff
shall be amended more than once in any financial year except in respect of any changes
expressly permitted under the terms of any fuel surcharge formula as prescribed by
Regulations.
21.4 The Commission may require
comparative data for the current and/or any preceding year, for the purposes of
comparison, along with such other data, calculation etc. as the Commission considers
necessary, and the Licensee shall furnish such data, calculations, comparisons as directed
by the Commission.
21.5 Any submission to the Commission
pursuant to Paragraph 21.3 shall include a schedule(s) of prices and
charges for Distribution and Retail Supply which:
(a) shall be in accordance with the
provisions of Section 26 of the Act; and
(b) shall enable the Licensee to recover
the total revenue referred to in the submission by the Licensee pursuant to Paragraph
21.1(a). The schedule(s) of prices and charges may, subject to the provisions of Condition
8, differentiate by type and size of customers and any other relevant factors.
21.6 Subject to the provisions of the Act
and the Regulations, the Commission shall notify the Licensee:
(a) that it accepts the proposed tariff in
the Licensee’s tariff application; or
(b) that it does not accept all or any
part of the tariff proposed in the Licensee’s tariff application and propose
modification to the whole or any part of the new or amended tariff which shall be binding
on the Licensee.
21.7 Following approval by the Commission
of any new or amended tariff, the Licensee shall publish details of the same in
accordance with the requirements of Section 26(5) of the Act. The previously notified
tariff shall remain in effect till the new or amended tariff takes effect.
21.8 The Licensee shall ensure that all
amounts due to other Electricity Operators in respect of the electricity generated or
supplied or other goods or services provided by them shall be paid promptly.
21.9 Pursuant to Section 15(9) of the Act,
the Licensee shall be entitled to exercise any power or authority to take appropriate
actions for:
(a) revenue realisations;
(b) prosecution for theft;
(c) deterring tampering with meters; and
(d) preventing diversion of electricity;
and all such similar matters affecting
Distribution and Retail Supply.
22. Subsidies to Certain Consumers
22.1 The Commission may, allow the
Licensee to set tariffs which do not satisfy Paragraph 21.5(b), if the departure is in
accordance with the policy of the State Government under Section 12 of the Act subject to
the State Government explicitly undertaking to make such compensation to the Licensee for
loss of revenue by the Licensee for such departure. Such compensation shall not be less
than the difference in the relevant financial year between:
(a) the revenue which the Licensee is
entitled to recover under the terms of Paragraph 21.5; and
(b) the revenue received from the tariff
consistent with the tariff proposal under the Paragraph 22.1.
as estimated by the Licensee and approved
by the Commission.
22.2 Within one month of the end of each
financial year, the Licensee shall calculate the difference for such financial year
between the revenue calculated pursuant to Paragraph 22.1(a) and the revenue calculated
pursuant to Paragraph 22.1(b), and submit such calculation to the Commission for approval.
Where, for any financial year:
(a) the actual difference exceeds the
estimated difference, the Licensee shall request the Government of Orissa to pay an amount
equivalent to the difference between the actual difference and the estimated difference,
which shall be due and payable to the Licensee within one month of the Government of
Orissa being notified of such request; or
(b) the estimated difference exceeds the
actual difference, the Licensee shall, within one month, pay an amount equivalent to the
difference between the estimated difference and the actual difference to the Government of
Orissa or offset such amount against any other sums due from the Government of Orissa for
subsequent financial years under the terms of Paragraph 22.1.
22.3 The Licensee shall, in each case,
notify the Commission of the amount paid by the Government of Orissa to the Licensee or,
as the case may be, paid by the Licensee to the Government of Orissa or offset by the
Licensee against other sums due from the Government of Orissa.
Part V: Competition Conditions
23. Introduction of Competition in
Bulk Supply
23.1 The Commission may, after
consultation with the Licensee, introduce competition in Bulk Supply and issue necessary
orders modifying or amending the Conditions of this licence.
Part VI : Penalties
24. Contravention of Licence Conditions
24.1 In case of contravention of
licence Conditions the Licensee shall be liable for penal action under the relevant
provisions of the Act.
SCHEDULE 1
Area of Supply
The Area of Supply shown in the map shall
comprise the entirety of the region known as the Western Zone, comprising electricity
distribution circles of Burla, Rourkela and Bolangir existing as on date, excluding any
cantonment, aerodrome, fortress, arsenal, dockyard or camp or any building or place in
occupation of the Central Government for defence purposes. |