The ODlSHA ELECTRICITY REFORMS ACT, 1995

The Orissa Electricity Reforms Act, 1995 Act 2 of 1996 Keyword(s): Area of Transmission, Commission, Gridco, Hydro Power Corporation, Supply Licence, Transmission Licence, Transmit Amendment appended: 1 of 1999 DISCLAIMER: This document is being furnished to you for your information by PRS Legislative Research (PRS). The contents of this document have been obtained from sources PRS believes to be reliable. These contents have not been independently verified, and PRS makes no representation or warranty as to the accuracy, completeness or correctness. In some cases the Principal Act and/or Amendment Act may not be available. Principal Acts may or may not include subsequent amendments. For authoritative text, please contact the relevant state department concerned or refer to the latest government publication or the gazette notification. Any person using this material should take their own professional and legal advice before acting on any information contained in this document. PRS or any persons connected with it do not accept any liability arising from the use of this document. PRS or any persons connected with it shall not be in any way responsible for any loss, damage, or distress to any person on account of any action taken or not taken on the basis of this document. ORISSAA q 2 OF 1996 THE ORISSA FJU~CTWCITYM ?#O&vlS ACT; 19% TABLE OF CONTENTS PREAMBLE SECTIONS CHAPTER I Preliyinary 1. Short title, extent and commencement 2, Definitions CHAPTER I1 J Orissa Electricity Regpletory Commission 3. Establishment and constitution of the Cornmissjon 4. Constitution of the Selection Committee 5. Conditions for appointment as member of the Commission 6. Term of offica and conditions of wrvice of members of the Fommission , 7. Rem-oval of members 8. Appointment of the Secretary, staff and con~ultaqts? f the Commission CHAPTER III Pmceedings, Powers and Functions of the Cotplssioll 9. Proceediogs of the Commission 10. Powers of the Commission 1I . Functions of thc Commission CHAPTER IV - Powers of the State ~overnment 12. General powers of the State Government CHAPTER V J GRIDCO 13. Constitution and functions of the GRIDCO CHAPTER VI Licensing 01 Transmission and Srrpply 14. ~icensi& rant 15. of licences by the Commikion 16. Exemptions from the reqdrement to have a licence 17. General duties and powers of the licensees 18. Revocation of licence 19. Amendment of Iicence 20. Provisions where licence is revoked 21. Restrictions on licensees and generating companies 22. Annual accounts of licensee CHAPTER VII Reorganisstion of the Electricity hdisiq 23. Transfer of B oard's properties, powers, functions and duties 24. Provisions relating to personnel 25. Variation of transfer CHAPTER VIlI TarXs 26. Licensee's revenues and tariffs 27. Finances of licensees - CHAPTER IX Commission's Power to Pass Odera and Enforce Decisions . 28. Interimorders 29. Final orders 30. Effect and enforcement of interim and final orders and emergency provislons 31. Fines and charges CHAPTER X Advisory Committee, Coomuter Consaltation 32. Commission Advisory Committee 33. Consumer end standard of performance 34. Electricity supply q do verall performance standards . 35. Information with respect to levels of performance 36. Restriction on disclosure of Information. CHAPTER XI Arbiirmtion ond Appeals 37. Arbitration by the Commission 38. AppeaIs from decisions of electrical inspectors 39. Appeals against the orders of the Commission CHAPTER XII OKence and Penalti& 40. Penalty for contravention of section 14 41. Penalties for contravenbion of other provisions 42. Offences by companies 43. Power to compound offences 44. Cognizance of offences -45. Penalties and Roceedhgs not to prejudice othw sctions Miscellaneous 46. Recovery of fees, fines-and oharges 47. Application of fines and char@ies 48. No part of the fines or penaltiem imposed to be passed on 49. Protection of adon taken in good faith 50. Bar oEjllrisdictIan 51. Power to remove difficulties 52. Promdings before the Commission to be judicial proceedings 53. Members wd Btaff of Cornmisston to be public servants 54. Power to make regulations I 55. Power to make rulee . - 56. RuIos and regulations to be !aid L. CHAPTBR XIV Effect on'E~isridgC entral Law 57. Effect of tho Act on tho Indian electricity AG~1.9 10 and tho ~l&ricitg (Supply) Act, 1948 58. Savings +THE ORlSSA ELW'EUCITY REFORM ACT, 1995 [Received the assent of the Presidenr on the 3rd January I996 first published in an extraordinary issrre of the Orissa Gazette, dared the 10th January 1994 AN ACT TO PBOVJDE FOR THB RESTRUCTZIRTNG OF THE ELECTRICIF INDUSTRY -FOR THE RATIONALISATION OF TE6 GENERATION, TRANSMISSION, DISTRIBUTION AND SUPPLY OF ELECTRICITY FOR AVBNUES FOR PARTICIPATION OF PRIVATE SECTOR BNTRBPRBNEURS IN THB BLEcTRICI~Y INDUSTRY' AND GENERALLY FOR TGING MRASURES CONDUGWE TO THE DEVELOPMENT AND MANAGEMENT, OF TI33 ELECFRlClTY INDUSTRY IN THE STATE IN AN HmClBNT ECONOMIC AND COMPBTlTWB MANNER INCLUDING TAB CONSTlTUTION OP AN ELECTRICITY - REGULATORY COMMISION FOR THB STATE AND FOR MATT~S CONNECTED THBRBWITH OR INCIDBNTAL THERETO. by BE it enacted the Legislature aP the State of Orim in the Forty-sixth Year of -the Republic of India as follows:- CHAPTER I PRELIMINARY ., .. . I Short tIUe, 1. (I) This Act may be called the Ori~Eal ectricity Reform Act, 1995 &nt and 8.6 oommsnce- (2) ~t extends to the whole of the State of Orissa mt. (3) ~t shall come into force on such date as the State Government may by notibation, appoint. DeBdt bas. 2. In this Act, unless the context otherwise requires,- (a) ICarta of transmission" meens the area within which the holder of 8 trans- mission licence is for the time being authorised by Iicence to transmit energy; (b) "Commission" means the Orissa Electricitg Regulatory Commission consti- tuted under sub-section (1) of Section 3; (e)"Gridco" means the Grid Corporation of Orissa Limited as referred to in Seclion 13; (d)" Hydro Power Corporation" hereinafter referred to as the O.H.P.C. means the Orissa Hydro Power Corporation Limited incorporated under the Companies 1 Of j956 . Act, 1956 with eliect horn the twenty-first day of April, 1995; (e) "licend' means a licence granted under Chapter VZ - (fl "licensee" or "licence holder'' means a person licenced under Chapter VI to transmit or suppIy energy includim Grldco; (g) "prescribed" means prescribed by the rules or regulations; ' (11) "Public Service Commission" means the Public Servico Commission for the State of Qriss8 established pursuant to articIe 315 of the Constjtution of India; (i) "regulE!tion" means regulations made by the. C~mrnissi.u~nnd er this Act; (j)" relative" means the relative as dehned under Section 6 of the Companies 1956 Act, 1956; (k) "rules" means rules made by the State Govanment under this Act; (I) "selection committee" means the selection committee constituted Section 4; (m)" State'' means St ate of qri8sa; (n) "State Government" means the Government of the State; +par the ill, see Orissa Guzerte, Emordinary, dated the 20 th November, 1993 (NO. 1304) , (0) 'rsupply licence'' means a licence under clause (b) of sub-~cction (11 or , Section 15; @) ''transmission. licence" means a liccncc under clause (a) of sub-section (11 of Section 15; (q) ''transmir" in relation to electricity, means transportation or transmission of electricity by means of a system operated and controlled by a licensee. ,which consists, wholly or mainly, of extra high voltage and thtra hi~h tension lines and electrical plant and is used for transforminy: and for conveying or transferring eleclricity from a generatin:: slzt ion e '!a, sub-station, from one generating station lo another 01.. h orn one sub- station to another OF othemise from one place to ao@tT-.er; (r) wordfi and expresfiion used but not definei: in this Act esd dcfinec rn jq 1918 the Electricity (Supply) Act, 1948 shall have - the meanings respecllvely assigned to them in that Act; {s) wcrds and expiession used' but not defined cjther in tl:is Act or in the 54 0f1~~8, Electricity (Supply) Act, 1948 and defined in the 1ndi::n Eldtricity Act, or 1910. 1910 shall have the meanings 'respectively assigned to them id :h2I Act. , CHAPTER IT ORISSA ELECTRICITY REGULATORY COMMlSSlON ' Eslablish- 3.-(1) For tbe purposes of this Act, the State Government hall, wirhin 3 ment wJd months ci the commencement of this Act, establish, by notification, constitution of the a- Commission to be known as the Orissa Eleal icity Regulatory Commigion.. . Commission, which s ball be a body corporate with perpetual succ&ir.n and a common seal .with power to acquire and hold proprrty, movable and immovzble, and shall by the said name bz tp:itled to sue and be sued. (2) 'I-be Commission shall cdnsist of three members to be appoinled by the State Goiernrne~tfr om person6 selected by the 5elcction rommitrce constituted for the purpose. - (3) The Slate Government shall, as per the recommendatio:~o f the selection ' committee, 'designate one of th-e niembers as the Chrirman of the Commission but, until such designation, the mosr ~eniorm ember of the Commi5sions shall act as Chairman, such seniority being ~eckonedf irm , the date of joining of the Commission by tbe members. (4.W hcn the Chairman of the Commission is unzFe ro >ischzrge rhc functions owing to abience, illness or any othcr causz, the senior moit member of the Commi6sion shall discharge ihe functi, n. of the Chairman, until the day, cjn which the -Chairmar? :.ssgme: the chzrge of his functions. (5) No act or procedings of the Commission shzIl be invalid by reeson only of the existence $f any vacancy among iis member, Gr any defect in the conatiturion thereof. (6) The method and manner of selection and appointmest cf members of the Commission and designation of one of the lnerubers 2s Chairmzn shall be such as may be prescribed' by rules. ~onslilution 4. (1) The State aovernmen t shall expeditiou6lv car. tilule a 6elecrion committee, , of the as orten as may be required, to select p<rscpc for appointment as Sdleclion members of the Commission. Committee, ' , , (2) The selection committee shall consist of threc members, namely:- ,(a) the Chairman of ibe Public Service ~omqisiibc, who shAl be the Chairman of the selection committee; (b) the Secretary incharge of the Depzrtnent of Energy, Stale Govzrnment, who shall be the Convea,or nf t h'e selection cornmi ttee; and .(c) the Chairman or any member of the Cenrrzl, ,Elect~iciry Abth~rity designated for the purpose from time to time. (3) The -rclection committee shall act erpedi~ioobly and >hall generally finalise rhe selection witbin a . period of two nionrhs to enable the ' , Statc Government to mak: the final sclectioa and appointment in time for- the new 'member to fake cffectivc .charge .at the expiry dF the term of thc retiriug member. (4) The selection committee .shall select two suitable perzons for each . vacancy in the Commis ion who have such qualification rind experience as provided in this Act and notify LO the State Governmenr of the persons so shortlistcd by the selection committee. - (5) Thc decisions or the selection committee shall be by majority. . (6) Tbc State Government shall app'oint Dnc of thc two candidates shortlisted by the relection committee as a mcmbCr of the Ccmmis~ion. - . . . . I I.. * Conditions 5. (1) Thc members .of Ihe Commission shall be ,persons of ability, integrity for appoint- and standing who have adequate, know1ed:e or bxpericnce of, or havc merit a.5 shown capacity *I n, ' 'deatiag ' 'with problcms reIatiog lo engineering, , . economies, commerce, accountancy, Ian '6i administration and further * Commission, that, at all times,- (a) st lcast one member of the Commis,jion 5141 be an electrial engineer 'Gtb experience df gcneratioa, irr.nsmission; distribution or supply of eleetric~ty;.a nd , . , - (b) at least one member of tbe Commis ii,on shall have qualiffcation in, , - and experience of, any OF th-c disciplines of te . c oorr icc, conmerce, accountancy, law' or adniinktration. - : (2) The selection arid appointment of the members of the Co~rnissi~snha ll at all times be made strictly in accordance .w i.r.h , the qualification and experience , mentioned in this rection. (3) A person shaII be disqualified from being appointed as a member of the Commission, if he .is a membtr . of Pdiqnent or of any State Legislature . . ' or any- lucal authority or holds any post in R political party, or if he' has any financial or othcr, interest, dirtctly or indirectly, in any privata company or undertaking dcaling with any or the bu~inecsess referred to . in clause (a) of subsecti,on (4): , (4) The persms who are considered for ap?ointment as memb~rs of the &mmission shall notify the coavcsor of the selection committee:- (a) of any office, employment or c?nsullancy agrermcnt or arrangement which he has in his own name or in any firm, association of persons or body corporate or in the names of any relative carrying on any of the following ? . . busines-cs : , (i) Generation, transmission, distribution c r supply of electricity ; (ii) Manufacture, sale or supply of zny fuel for generation of electricity; (iii) Manufacture, sale, lease, hire' or 0 therwise supply of or dealiog in m~chinery,p lant, equipment, spparatu6 or fitting6 for the generation, . ;ransmis?ion, distribution, su,pply or use of electricity; and , . (iv) my prcviding sccvices to aany of the blrsiness referred to in sub-clauses (i), (Ii) and (iii) abovc. (b) Of such other details and informati.o. n a,s may be prescribed in the rules. , , (5) A11 details feceived from the persons rcferrcd to in sub-section (41 shall b placed for consideration of the, selection committee at thc time of selection and recommendation of the perion foi. appoihtmeut as member of the Com$s~i~n.- . . , . (6) Each mcmbcr of the Com~isslonsh all, bcfore faking charge of the o5m as , member divest, himself from the rglerest in all cr -any of the businesses mentiorrod in (4) as 8 condition of his appoiptment. ' (7) If a person to be appointed as a member of the commission holds any dffice under the State Government or Central Government or in any public sector corporaiion of Government body he shah submit his resipation or take voluntary retirement from that service and shall not seek reappoi'nt mwt in .the service of the Stafe Government the Centrs 1 Government any public sector wrp?ration or Government body at BAY time after hc c.ez.se s. to be s member of the Cornmission_. , . (8) .So long as the person holds tbc office of a member of the Commission and aper he ceases to be a member of the Commission for any reason whatsoeVir, he shall not ; scquire, hold or maintain, direct1y or indirectly any ofice, employment or consultancy ?rrangement or bu~inese 6 mentioned in subsection (4) and if he acquira any such ~nterestin voluntarily r r by way of succession cr testamentary disposition he will divat himsclf fro;;^ such interest within a period of two months of such interest being acquired. (9 . Befo~.a ppointing any. person as a. member of the Commission, the state , 'Goyernment shall satisfy itself that the person doe not bavc any financial -or other J interest as referred to in sub-section (3). Term of ' 6. (1) E~eflm ember of the Commission sh.dI hold office for a period of five years J oEce and kern the datrz he usliuiej office and he sha 11. not be eligible for raappointmeni at any time - m or u S d C it N io ~ n C s o ~ i . after the expiry of his tern1 o . f . appoi,n!m ,- ent.: - members of -tk ammi. Provided that the first three members of thc Comnlission s@ll bru appoiged for asloo. varying pcn'ods of threc years, four 9ezis;and five yearj 'respkctiveIy so as 1'0 avoid the retirement of all the members cf the Ccmmi-sion at the same time and ensure . .conIinuity in the functioning of the Con?mission: - Provided further that no member of the Commicsi.on shall be appoin.t.e . d or,s hall ho{d o@ee afier he has attaincd the age ois ixty-two years. (2j Subject to-thep r&isio~si n the Schedge, the Chairman of the Commissions ' and other members of the Commission' shall receive . such rqmun~ra,tio.n aqd, olhm alIowanqes and shall be go~Srnedb y such condition, of'service as may be prescribed under the rules. (3) The Chairman of the Commission and every other member of the Comqission shall, before eotering upon his o b ,m ake and subscribe an oath of ofice and of secrecy in such form, in such manner and before such authorily as may >be pres.cribed by rules. 7. (1) The State Government may, .artqr giying an opportunity of being, hcard Ramoval of ,members, remove frdm o5ce any m:mb,er of t.h.e . 'C. om .. m ,. i ssi , b . n, ,subject, to thc proyisioasof sub:icction (21, who- I . (a), has been adjudged insolvent, or 1 (b) has been convicted of an.o ffence involving moral turpitude, or (c) has become physically or mentaljy incapable of acting as such rnemkr, or I (d) bas ' witbout rmsopable cause refwed or failed to act continuo~61~-foar period of three months or more, or (e) Eases to full3 any gf the conditions of his appointment as member, or ' (jh)a s acquired such financial or olher ictcrest that can .affect prejudicially his functions as a member,,or (g) bas conducted himself in a man per or bas so abused his pcsition as to render: his cnntinuance in ofice p,r e~udicialt o thepubI& interest or to the objeots and .purposes of the Act- . , (2) Except wher,e 8 meqber ad@^ the. charge, in ailing, no member of the Commission ihdl be removed from bis ofice on the ground specified in clauses (c), (d), , (f) and (g] of suktion (I), until a sitting judge OF the High Court of Judicature of ' : Orrssa, as'rccomrnended by the Chief Justice of the High Court. at re!evant time,, har . . - . catqied out a,n ipvegigation and submitted . a ' report. I ' -' 4 . (3) ThF State ~oveinrnents hall communicate its decision to thc member concerned ' within a~peri&'of.twmoo nths of the receipt of the report. 12 (4) A member who has been remcved shall not be eligible for reappointment as-o member or in ai~yo ther capacity in the Commission. (5) If the member removed under this seciion is the Chairman of the Comrnis6ionm he shell also cease tc be the Chairman, of the Ccmmission. (6) The vacancy caused by the removal of the member shall ba filled in the same manner a6 provided f ~tihe appoint mcnt of a member or designation of the Chairroan of the Commission. -- Apvolnt- 8. (1) The Commission shall appdint a person as Secretary of the Commission to ment or Ihea ssist the Commission to discharge Ite functione. . seCretW, c ~ o t n a s f u fa I t o m d irs 2€ ) Tha Commission shall, with the approval of the State Government, determine or the the number, natule and calegories of other oficcrs and employees required to assist the - Commission. Commusion in the discharge of its functions. 1 (3) The'salaries and allowances phyable to m mbets of the Commis.sion and the - administrative expenses, including salaries,. allowances and pcnsicns payble to or in respect of tke Secretary, officers. and other employees of the Commissiou, sbel be charged to the consolidated fund df the State. rn (4) Themethad and mannercf selectianofthe Secretary, officers and other . employes of the Commission and t be terms and conditions of -their wrvice may be prcscr~bedb y the Commission by regulations with the previous approval of the State Government. , , . .(5) The Commission shall be entitled to appbint,' from !{met o time, consultants squired .to assist the Commission in the discharge of its funcrions On term and conditions to be decided by the Commission. PROCEEDINOS, POWERS AND FUNCTIONS OF THE COMMISSION Prwdings 9. (1) Tbe h&dquarters of the Commission shall be at Bhubaueswar , but the of the Commission shall be entitled lo conduct its proceedings, consulrations and hearings inh Commission, other places in Lhe State. io (2) The commission shall have the p o wu nder sub-section (1) of section 54 frame regulations fc r the, conduct of its pr~ceedingsa nd discharge of its function. . , (3) In case of a -difference of opinion among the' members cf -the Commission, the opinion of t h ~m ajority shall prevail and the opinion of the Commission shall be expressed in terms of the views of the majority and, for , this purpose, each member of the Commissicn -shall have one vote only and the Chairman shall have no casting or second Vote. (4) The quorum for the mectine of the Commission shall be two, but in the case of a meeting of the Commisrion to review any previous decision taken by the Commission or for consideralion of any issuc which could not be decided OD account of equ'ality of Votes in favour of or against the resolu- tion propored or where' the Issue consldcred at- a -meeting in which only two members or the Commiss~on were Present, the quorum for the meeting shall be all the three : provided that, in case of emergency, the Commission may decide any matter by circulation to memhr or members. - (5) The Chairman of the ~arnin]issjonm ap instruct the Secretary to call a meeting of the Commission to be held at such Ilme and at such place as the Chair=* may direct and also any member of the Commlsslon may request a meeting of the Commis$ion at any time by. sending a notice In WrltJng tothe other members and with a copy to the Secretary. + (6) All decisions, directions and .orders of the Commission shall be i~ writing and shall be su?pcrted by reasons and!he decisions, directions and orders of the Cammi- scicn shsIl be available for ins-.ect~onb y any person and copies of the same shall also be rnlde avzilp3!e :o s~chpe rson if1 t hc -m~nneprr escribed by regulstions, Powers of 10. (1) The Commission shall, for the purposes of any inquiry or proceedings under Cornmi this Act, have the powers as are vested in Civil C~urtu nZzr the Code of Civil s lion. Procedure, 1908 while I rying a suit in rcspzct of the t'oilovin: ma! tr'rs, namely- 5 of 1908. (n) the summoning and aofo~cing the attendance of any witness. and examining him on oath; (h) the discovery and production of any document or c-ther ma!crial object producible as cvidence; (c) tthc reception of-evidence on adavits; (d) the requisirion of any public record from any office; (e) the issuing of any cornmission for examination of witnessec; and Cf) the review of its decision^, directiolls and orders. (2) lie Commis~iosh~a ll have the power to require any person- (a) to produce kl'oro, and alIuw to be uxamined and kept by an officer OF the Commission >pecified in thi; behalf, such books, accounts, ,or clther documents in the custody 01. undw the control of the pcrson so required as may be specified or dcscrjbcd in thc requisition, bcing documents relating to any matter concerning the generation, transmission, distri bulion and supply. or use cf electricity, thc functioning of any undertaking involved in the above arcas and other matters, Ihc examination of which may be required by the Commisrion for the purposc 01t his Act; and (6) lo furni6ll lo an officer so specified such information as may be required Tor !be piirposes of this Act or such olher information as may be in his possession in relation to any activity carried on by any other peisun. (3) Whcre, during any inquiry or proceedings under this Act, the Commission ha, any gr~undst o believe th~t any books or papers or documents of, or relating to ally uuit or person in relation to which such inquiry is being made or whidl the owner of such unit may be requircd to prodwe jn such inquiry, arc being. ur may be, destroyed, rnutiia ted, altercd, falsified or secreted, it may, by a writtell order, authorjse tluy officer of the Commission to exercise the same powers of entry, search and scjzurc as mag' be exercised by an Inspector under sections 240 and 240-A of the Companies Act, 1956. 1 of 1956 (4) Notwithstaading anything contained in any other law for thc iime being in force, the Commission may, by a general 01. special order, .call upon any :rert;un including rhr: generating companies or thc liccnsc~ to furnish to the commission pcriodicallg, or as and whcn required, any information conccrning the activities carricd on by such person related to generation, transmission, distribution ~rnd supply or us< of eitclricity, lhc conccction bclil:ecn such person and any other person or undcr laking including such other information relating to the orgailisation, business and cost of production to enabtc the Commission to carry out its function? under this Act. (5) In the discharge of .its functions the Commission shall be entitled to, and may, consult to the extent the Cornniicsion considers appropriate frob time to time such persous or group of persons who may be affected or likely to be affected by the dccisioos of the Commission. (6) The Cummi+ion may call For information, details. books, accounte and ober documents from any person or liccnsee and make inquiry for the - purposes of providing the same to thc Cenlral Electricity Authority, tbe Central Government end Lhe Statc Government when so required by them. (7) All persons to whom noticcs mzy be issued pursuant- to this Act shall duly, faithfully and c ffectively furnish the information, details, books, acconnts and other dmurnents, which the Commission considers relevait in, connection with its functions undcr this Act or which may be required to be oblaincd at the directions of the Cen~ralE lectricity Authority, the Central Government or the SWc Goveramtnt and shall be proceeded, with and punishable under section 41 for any failure to comply with such requirement. (8) Notwithstandmg anything contained in sections 12, 1.3. 14, 15, 16, 18, aeil 19 of the Indian Eltctricity Act, 1910, the Commission rn; y, by order in g or 1910 hting, confer upon licensees or any other person engaecd in thc business of transmission, distrikution cr suppIy of encrgy under this Act, subject to such conditions and restrictions as the Commission may think fit to impose, any of the powers which the telegraph authority possesses under the Indian Telegraph Act, 1885 13 of 1885 wirh rzspect to placing of telegraph lines and posls for the purposes of a telegraph established or maintained by the Government or to be so Cstablished or maintained. Functrons of 11. (1) Subject to the provisions of Ibis Act, the Commission shall be - Cornmi- responsible to discharge, amcngst olhcrs, the foll~rvni g functions, namely: %ion. (a) to aid and advise, in, matters concerning generation, transmission, dist ribu- tion and suppIy of electricity in the Stale; (h) lo regulate the working of licencees and to promote' their working in an eficient, economical and equitable rnenner; (c) to issue licences in accordance witb the provisions of this Act and determine lhe conditions to be included in the liccnces; . . ( d) to promote eficiency, econolny and safety In the tansmission, distribution and use d the electricity in the State includine cnd in particular in regard to quality, continuity and reliability of servicc so as to enable all reasonable demands for electricity to be met; (e) to regulate the purchase, distribution, supply and utilization of electricity, the quality of scrvice, the tariff and charges payable keeping in view both the inter:&t oft he consumer as well as the ccmsidtration that the supply and distribution cannot be maintained rinIess the charges for the electricity 6hpplied are reasonably levied and duly collected; (j)to prcmo:c CL mpcfitiven~ssa nd progrtssively involve' the participa~ion of I he private sector, while ensuring a fair deal for the custc mers; (gl to cd~~edcatt a ~ n dfo recast on the demand fc r and use of electricity and to require the'l icensees to collect such data and mske such forecasts; (11) to require licensees to formulate perspectjve plans and ~chemes in co-ordination with others for the promotion or generiiiion, lraasrnissian, distribution and supply of electricity; and (i) to undertake all incidental or ancillary thiags. (2) Notwilhstanding the provisions of swlion 52 of the Indian Electricity Act, 1910 or the provisions of clause (ii) of sub-section. (I) of section 3 and 9af 1910 .ection 76 of the- El:ctricily (Supply) Act, 1948, the Commission shall have 54 or 194 the pcwer to act as arbitrator or to nominate arbitrator or arbitrators to adjudicate and settlc the dispute; arising between the licensees "n acccrdance with the provisions of this Act and the regulaticm to be prescribed and this shall be a condition of the grant of bcences. CHAPTER IV POWERS OF.T HE STATE GOYERNMENT General 12. (1) The State Government shall have the power to issue policy directives P g o :E w $ e m rs o ,,,. f on matters concerning electricity in the State including the overall planning and a-ordmt ion and all such policy directives shsll be consistent with the objects sought to be achieved by this Act. (2) If any dispute arises between the Commission and the State Government as. to whether a question is or is not a question af policy, it shall be referred to the Central Electricity Authority whose decidion thereon shall be final and binding and for this purpose the Centr31 Electricity Authority may appoint onr: or more of its members to act on behalf of the said authority. (3) The State ,'Government shall be entitled' to issue policy direcdves, - concerning the subsidies to be aIlowed for suppll: of electricity to any clais or classes of persqns or in respect of any area in addition to the subsidies permitted . by the Commission while reolatjng and approving the tariff structure: Provided . that the -state Government shall pay the amount to compensate any cccncerned body or unit affected by the grant of subsidies by tho State Government to the extent the subs~aesg ranted. CHAPTER V GRTDCO C~nstitu%~ nnd iunc- 13. (1) The Grid Corporatian of Orissa Limited ~ncorporatedu nder the provisions . "Om or the of ihe Companies Act, 1956 with effect from the 20th day ofA pril, I995 with tlte 1 ol 1956 %'dm. main object< of engaging io the business of procurcaent, transrnissi~oa nd bulk supply of electric enerby, shall subject to the powers of the Statc Government undcr section 12, be the principal company to undertakt planning and co-ordination. in regard to transmission and !o determine ,hc ekctrici ly requirements in I l~eS tate in co-ordina tion with the Generating Compsnics; State Government, conriguous States, the Commission the Regional Elcclricity Board and the Central Elecrriciry Authority, - - (21 Gridco shall own the extra high voltage lraasmisaion system, shall be responsible for transmission system operations and shall operate the power sysleni in an efficient manner. (3) Gridco ;hall undertake the iu~ictionljc peci6ed in this section and such other functions as may be required undcr the licencc to be granted to it by the Commission under this Act. (4) Upon the grant of Iiccace to Gridco under section 1 5, Gridco shall discharge such powers, duties and functions of the Board including those under the India . Electricity Act, 1910 ,and the Electricity (Suppy) Act, 1948 or the rules framed thereunder as the Commission may specif) in the licence and it shall undertake and 54 af 1948 duly discharge t be powers, dutierc and functions so assigned. (5) Subject to sub-section ( I) and the overall supervision and control of Grid& subsidiary or associated Grid companies may be established in the State and the Commi?;sioam ay grant ljcences under the lcrms of this Act to such Grid companies in consultation with Gndco. LICENSING OF TRANSMISSION AND SUPPLY Licami~g 14. (1) No person, other than those authori.ed to do so by licence or by virlue of exemption undcr this Act or authorised or exempted. by any other authority under the Electricity (Supply) Act, 1948, shall engage in the State in the business of- 540f 1946 (a) transmitting ; or (b) supplyin9 electricity. (2) Where any difference or dispute aripes as to whet her any person is or is not engaged or about to engage In the business of trans~~mittinogr &upplying electricity as mentioned in sub-section (1), the matter shall be referred to the Commission for decision which shall ba final. (3) The Commission sba ll have the pou er to order my unlicense person to cease operating and disconnect its app~retus. - (4) ~othithsatn ding any thing contained in the other provisions OF this Aa, until the establishment of the Commission in terms ' of sectlop 3, the State Government shzll, for a period of six months from the date this Act comes into force, have the power to grant provisronal licences under this section having a duration not exceeding twslve months to any person or person: to ensage in the Stale in the busincss of transmirsion or supply of electricity. on such terms and conditions as the State Government may determine consistent with the provisions of this Act, subject however to thc following condition:, namely:- (a) upon the establishment of the Commissicn, each of the provisional licences so granted shall be placed before the- Commission and shall be deemed to canstitute an appliation for a licence by the Commi~sion under the provisions of this Act ; and (b) each provisicnal licence granted under this section shall cease to be valid and effective on the date on whlch the decision of the Commission . on the application is communicated. Uranr of 15. (I) The Commission may on an application mode in such form and on licencasb y paymcnt of such fee as may be pescribed by regulatbns, grant a licence authorising nng person to- ssion. (a) transmit electricity in a specified area of transmission ; and/or (b) supply-eleciricity in a specified area of su~ply. (2) In recpxt of thc grant cl licence under sub-section (1), the following - - proviuons ,shall apply: (a) any person applying for a licence shall publish. a notice of his applica- tion in such manner, and with such particulars as may be prcscri bed by the Commission within 14 days after making the application ; (b) the Commission shall no! grant alicence until,- (i) all objesions recci~edw ithin &rce mo~tbfsf om the date of publication relating to the applicaticn for the licence have been considered by the Commission ; (ii) no objection has been obtained from the Cenlral Governmen1 in the case of an application for a licence to supply or transmit in an area which includes !lie whole Lr auy part of any cantonment, aercdrurne, fortress, arsenzl, dockyard or camp or of any building or place in the occupation of the Ccntral Government for defencepurpo~s; (c) where an objection is received from any local authority wncerwd, the Commissions hall, if in its opinion the objection is iMcient, record in writing and communicate to 6tIcli local authority its reasons for such opinion ; and (6) no application for a licence shaII be made by any local authority exczpt pursuant to a resolu~ionp assed al . a meeting of such authority held -after one month's previous notice of the same specifying the purpose thereof has been givcn in thc mannor in which notices cf meetings of such local authority are usually given. . (3) A licence may prescribc the extent to which, and the terms and conditions under which the tr;!nsmiss ion or supply of energy is to be made and contain such other conditions as f he Commission may consider appropriate for achieving the purposes of the Act. (4) Without prejudice to the generaiity of eibsection (3), conditions included in a licence may req--re the iiccnsee to,- (a) enter into agrecmects on specified terms with other persons for the use of any electric liues, clcctrjcal plant and associated equipment operated by the liccnsee; (b) conlpIy with any dircctim ~ivenb y the Commission ; (c) refer all dispute:. arising under ibe licence for determination by the Commission ; (4 furnish inforrnatioo, documents and detials which the Commission may require for its own purpose or for the purposes of thc Ccntral Government or the State Governmcnt or Lhe Central Electricity Authority ; ' (e) comply with the requirements of the Indian Electricity Act, 1910 and the 9 af 1910 Electricity (Supply) Aot, 1948 and rules framed thereunder in so far as they 54 of rw are applicable ; (f)u ndertake such functions end obligations of' the Board under ibe Indim ' 1910 Electricity Act, 1910 and Electricity (Supply) Act, 1948; s4of 1948 (g) obtain (be approval of the Commission of such things that are rauired under (hc licenc.: condiiions or for deviation from the same ; (h) notify the Commission of any schcme thet it is 'proposing lo undertake including the scheme1 in terms of the provisions 'of thc Electricity (Supply) Act, 1948 ; 54 of 1948 (i) purchase power in an economical manner and under a transparent power purcbase procurement process ; (j) supply in bulk to olher licensees or to customers ; and (k) establish q tariff or to calculate its charges from time to time in accordsooo . svi th the requirements przscri bed by the Commission. (5) The provisions contaiaed in 1he Schedule to thc Indian Electricity Act, 1910 90f 1910 .shall bc deemed to be iccorporated wjth, and to form part of, every licence granted under this Chapter, save in so far as thcy arc expressly varicd cl r cxceptcd by the licence and shall, subject to any such additions, vai~at ions or cxceptians which tbc CommissiofrI s empowered to make havins rcgard to the purposes of the Act, apply to the undertskrng authorised by thc licence in rclation to its activitjcs in the Stata : Provided that where a supply licence is granted by the Commission for the supply - of coergy to. 0 t hl icensees for distribution by them, then in so far. a6 such licence relates to such supply, the provisions of clauses lV, V, VI, VIZ, VIn and =I of the said Schedule shall not bc dccmed to be incorporated within fhe supply licence. (6) The conditions included in a licence may contain provision for thc con ---:= d + lt~onsto cease to have effect or be modified at such .times, in such manner and in such arcurnstances as may be specified therein. (7)A ny pravisio'ns included by virtue -of sub-section (6) in a licence shall have effect io addition to the provision made under sub-section (5) of aeclion 18 and section 19. (8) The grant of a licence under this section to a person shall not in any way hinder or restrict the grant of a licence to another ,person within the same area of suuply or , transmission for a Iik~p urpose and accordingly, the licensee 6haIl not .cIaim any exclusivity. , (9) Any licence granted by the Cornrnjssion under this Act may provide that the - licensee shall have the powers and authorities to take appropriate actions for revenue - reali sation, prosecution for thcft, meter tampering, diversion of elcctricitj and all such similar matters aaecting the distribution and supply of elechicity to the consumer. , (10) The ~omrnissionm ay athorise licensees and other persons to exercise such power aud authority as the licensees and other persons could be given under the provisions of the Indian Elcclricily Act, 1910 and the Electricily (Supply) Act, 1948. g of 1910 . , 54 of 1944 16. (1) The Commission may make regulalion to grant exemption from the Exemption ram [he requirement to have a licencc, but subject to compliance with such conditions, if any, requirement as may be specified in the regulations : to have a I icence. Provided that the Commission shall not, under any ruch regulation, grant any exemption except with the concent,- (i) in any case where electricity is to be supplied in any area for which a local authority is constituted of that local authority; (ii) in any casc where electricity is to bc supplied in any area forming part .of any cantonment, acrodcome, fortress, arsenal, dockyard or camp or I any building or place in thc occupation of the Central Government for ' - derence purposes of the Central Government; (iii) in any area falling within the area of supply of a licencc, ofZhat licensee: - Provided-furthert hat, except in a case falling under sub-clause (ii) no such consent shall be necessary if the Commission is satisfied that such consent has been unreasonabIy withheld, (2) An exemption may be granted to a particular person or to a particular category if persons and for a definite period and every such exemption shall be published in such manner as the Commission considers appropriate for bringing it to the attention of that person 02 perms of that category and of the public in general. (3) The exemption granted may be revoked by the Commission at any time for ,: reasons to bc recorded in writing. such (4) An exemption. unless prqviously revoked, shall continue in force for period as be specified in or determined by or under the exemption. General 17. (1) It shall be the duty of the holder of a supply licence or a transmission dr:f: lu(iSand licence,in fispect oEa particular area of supply or transmission, as the case may be, "30 develop and maintain an efficient, coordinated and economical syncm of ekct ricit 'supply or tmsmission in the area of supply area of iransmi~siona, s the case maybe. (2) Each licence and Generating Company in discharge of its duties shall comply with the provisions of the regulations framed from time to time governing the Terms, and conditions for the operation and mzintenancc of the power system and electr~c bupply lines. (3) Subject to sub-section (4) sections 12, 13, 14, 15, 16, 17, I8 and 19 of the Indian Blectricity Act, 1910 shall have efltct in relation to a person nuthorised by a licence to transmit or suppIy electricity, as if it were a licensee under the said Act. ,f1 910. (4) Where any. of the sections mentioned in sub-section (3) is applied to a li~nce holder by its licence, it shall have effect subject to -such restrictions, exceptions and conditions as may be included in the licence. ~evoaiion 18. (1) The Commission may enquire into the conduct or fitnclioning of any - licensee carrying out the obligations under this Act, rules and regulations framed thereunder and the terms and conditions of its licence in the following cjrcumstances,- (a) upon rrceiving a complaint from any consumer or coniumer association or any trzde association ; or (b) upon a reference made to it by thc Srate ~o&ornent, the Central Govemment or Central Electricity Authority ; or (c) upon receiving a complaint from any company or person involved in the - generation, pansmission, distribution or supply of electricity ; or (d) upon its own knowledge or idormation derived fern any source. (2) Upon making such inquiry the Commission may, if in its opinion lhe public interest so *quires, revoke a licence in any of the following cases, namely:- (a) where the Iicensee, in the opinion of the Commissioo, has committed a wilful or' 'unreasonable default in, doing anything required 01 him by or . under this Act, or rhe Indian Electr1cidt Act, 1910 or ihe Electricity (supply) or lHO Act, 194% the rules or regulat~onsm a e ther~under; 54 or 194% (6) qhere the licensee commits a breach of any of the terms and conditions of his licence, the breach of which L mpressIy declared by such licence to render it liable to revocation; (c) where the licensee faib within the period specified in- h is licence or longer period which the Commission mav allow by order, (i) to show, to the satisfaction of the Commission, that he is in a position to fully and efficiently discbmge the duties and obligatjoas imposed on him 6y his licence; and (ii) to make the deposit or furnish the security requircd by his licence; and (d) where in the opinion of the Commissioo tbe financial position of the licensee is such,that he is unable to fulIy and efficiently discharge the duties and,obIiga tions imposed on him by his licence. (3) Notwithstanding the provisions of sub-sect ions (1) a nd (2) the C~rnrnissi~n may, where in its opinion the public interest So *quires, on the application or with the consent of the licensee, and if the licensee is not a local authority, after consulting the local authority concerned, ~fa ny, revoke a transmission or supply licencc as to the whob or aay part of the area of trt?nsmission or supply upon such term6 and conditions as it thinks fit. . . (4) No licence shzll be revokcd under sub-section (2) or (3) unless the Commission has given to thc licensee not less than three months notice in writing, staiiog tha grounds on which it is proposed to revoke the licence and has co , nsidered any cause shown by the licensee within the period of that notice, agaiofit the proposed revocation. (5) n e 'C ommission may, instead of revoking a licence,. permit it to remain in. force subject to such further terms and .conditions as it thinks fit to impose a d any further tcms or conditions so- ~mposed shall be binding, upon, and be , obkrved by, the licensee, and be of like fore and effect a6 if they were contained, in the licence. Amandmmt 19. (I) The Commission ma, whcre in ils opinion the public interest so permit1 of liccwc or requires, on the applicalion of the liccasee, and if the licensee is not a loci1 authority, on the application of the local aurhority concerned or othenvise on its own, make such aherslions and amendments to the terms and conditions cf a Iicence as - it thinks fit taking into account the object nnd purposes of this Act: Providcd that no sscb altcralions ~r amendments, olher than an ::Iteralion or amendment pursuant to a licence condition referred to in sub-szct ion (6) of sectit,n IS or sub-section (5) of section 18 shall be made except with the consent of the licensee. .(2) Wl~erct he licensee bas made an application under sub-section (I) proposing any alterat ions or amendmcnts to its licence, the foHot~ingp i~~isicnshsa ll zpply,, (a) the licensee shall 'pblish a nctice of thc applicati;n in the manner and with the particulars as may be prercribed by regulaiions; (6) the Commission shall not make any alterations or amendmeals until all objections.feceived by it with rofcrtnce to thc application within three . months from the date of the first publication of thc notice have been - considered; and (c) in the case of an application proposing alterations or amendments in an area of transmission or supply comprising the whole or any part of the cantonment, aerodrome, fortress, arsenal, dockyard or camp or of any building or place in the occupaticn of the Central Gover~mentfo r defence purposes! the Commission shall not make any alterations or amendments . except w~thth e conscnt of the Central Government. (3) Before making any alterations or amendments in a licence otherwise than on (he application of the licensee, rhe Commission shall publisb the poposed alterations or amendments and consider all objeclions received by it with reference to thc proposed alterations or amendments within three months from the date of the first publication ofthe notice: Provisions 20. (1) ~okithstandiogth e provision6 of sections 6 and 7 oi the Indian Electricity w is h r e e m v l o 'm k c e e d . Act, 1910, where the Commissicn revokes a licence, under sect ion 18 the following 9 1910. pro~isionss hall apply,- (a) the Commission shall 6erke a notice of revocation upon the licencee end shall fix E date on which the revocation shall tske effect; (b) the Commission shall invite applications for acquiring the undcrtaking of the licensee whose licence has been revoked and determine the terms and conditions of- the sale of the undertaking; (c) 'the Commission may by notice in writing require the licensee to sell, and - thereupon the licencee shall sell the undertaking to the person whose application has been acccpled by the Commission hereinafter referred to , in this Section as the "purchaser";

(6) on and with, effect from the date of revocation, or, where the undertaking of the licenree je sold to a Purchaser earlier in pursuance of any of the - provisions of this Act, on arid with effect from the date, a11 the rights, duties, obligations and liabilities of the licensee under this Act shall absoluldy cease and determine except for any liabilities that have accrued prior to that date; and (e) the C~mmissionm ay makc such interim arrangement in regard to the undertaking of the licensee for maintaining the electricity transmission snd supply as may be cons~dered appropriate including the appointment of administrators and spccial directors for the undertaking. (2) Wherc an undertaking is sold under sub-section (I), the purchaser shaU pay to licensee the purchase price of the undertaking determined in accordance with the application submitted by the purchascr. (3) Where the Commission issues any notice under sub-seetion (1) requiring the licensee to sell thc undertaking, it map by such notice require the licensee to deliver, and thereupon the licensee shall deliver op a date spccified in the notice, the undertaki-ng to the designated purchaser pendla the payment of the purchase price of the undertaking: . . Provided that in any sucb case, the purchaser shall pay to the licensee interest at's uch rate not less than the Reservc Bank lending ratc ruling at the time of delivery of the undertaki* as the Commission may decide, on the purchase price OF th8. u~dertakingf or the period from the date of delivcry of the undertaking to the date of paymcnt of the purchaso price. (4) Whore before the date fixed in the notice issued under clause (a) of sub-section (1) as the date on which the revocation or the licence shall take cflect, no notice has ' been issued to the licensce requiring him to sell the undertaking or where for any rearon no sale of the undertaking has been effected under that sub-section, tho State Government may acquire the undertaking on the date of revocailon of the licence and shall perform all the obligations of the licensee until such time as tbe State Government is able to sell the undertaking to a new licensee, and thefeaiter, shall pay . to the licensee the anount determined in accordance w~th - s ub-secti-ons( 1) and (2) of of 1910 section 7-A of the Indian Eleclricily Act, 1910. , (5) The licensee shad duly implement the orders of rhe Commission, notwith- standing that the licensee may be aggrieved by the orders of the Commission. Restridom 21.(1)Nolicenseeor Generating Companyshalt,at anytime,withoutthe on llansees consent in writing of the Commissjon, aquire by purchase or otherwise the randr nmSlice~nc,e o r thc undertaking of, or assoc~ateh imself with, so far as the business of geoerating,trsnsmiiting, dislributiqn or supply of cne~gyi s concerned, any other licensee or person generating, transmittins, suppIying or intend-ing to. generate, transmit or supply electrjcity: Provided that before 'applying for such consent, the licensee shall give nc t less than one month notice of the application,- (0) to thc Commission; and . (b) if the licensee holds a supply licence, lo .every locaI authority both in thc licensee's area or supply and also in tho area, if any; in which such other person supplies, or it tends to supply energy. (2) The Iicenseo shalI not, at any time, assign - bis liccnce or transref his under- taking, or any part thcrcof, by sale, mortgage, lease exchange or otherwise without the previous consent in H riting of the Commission. . (3) Any person to whom tbe provisions of section 44 of the Electricity (Supply) 54 1948 Act, 194%a pplies shall be required to obtain consent from the Commissim instead or from tbc Board as provided under that scction. (4) A holder of a supply or transmission liccnce may, unless expressly 2rohibited by the terms of its licence, enter into arrangements for the purchase of electricity Trom- (a) the holder of a SUPPIS. licence which permit6 the holder of such licence to supply energy to other licensees for d~stribution.b y them; and (b) any person or Generating Campany with the consent of the Commission. (5) Any agreement relaling to any transaction df the nature described in sub- sections (l),( 2). (3) or (4) unless made with, or subject to such consent as aforesaid,. shall be void. Auuel 22. (1) Every licansm shall, unless expressly exempted by its liccncc. prepare and ~ ~ render ~ ta the C ~ ammissi O an, an ors before t he date in each year specified in its liccnee, an annual statement of accounts of it-s mdertaking and of each separate business unit specified in ~ths wce made up to sucb date, in such form and containing such particulars, as may be set out in its licence. It shall be a term of its licence that such statemcnts shalt be publishedin the manner prcscribed in the regblation~. CHAPTER VII REORGAN~SATIONO F THE ELECTRICITY INDUSTRY Tmsfer of . 23. (1) On and with effect from the date on which a transfer scheme, , ,%ad's as may be prepared by' the State Gove'rhont to give effect the objecls and p*Omffes, , purpOSes of. this Act, is -published, (hereinafter referred to as tho &e,ctive date), my property, interest in Property, right3 and liabilities which immediately before acid dutlea t te h r e m e s f f a e s c t m ive a d b a e ta a - g b r e e l e o d n g b e t t o w t e h e e n B th oa e r S d t , a s l h e a G ll o V v e e s r t n i m n e t n h t e a n S d t a t t h e e G B o o v ~ e r rn d m . ent, on such (2) Any property, interest in property, rights and liabiliiics vested in the State Government under ~ub-section(1 ) shall be revested by th:: Statc Government in the ~ridcoan d OHPC in accordance with t llc tr;lnsftr sclir.mc 6 ~ ,p u l.lisllcd a tongwith such oiher properly, intcr~rti n propert s, righrs and Iizbililies of lht State G ovem- mtnt as ma y bc specified in :u ch schenl~, on sucl~ lcrrns and conditions as may be agreed between the State Govcrnment and the Grjdco or OHPC, as the case gay be. (3) Such of thc rights and porvers exercisable by the Board under the Elwtricity (Supply) Act, 1948 as the State Government may, by notification, speciry shall be 54 01 1948 exercisable by the Gridco or OHPC, a,s t hp~se may be, for the purpose of dischap ging the functions and dutics with wh~cbI t 16 charged. (4) Not-withstandinga nything in this seclion, where- (=) the transfer scheme involves transfcr of any property or rights to any person or undertaking not wholly owned by the State Government, the deme shall give effect to the transfer only for fair value to be paid by the transfcrec to the State Govcrnrnent; and (b) a transaction of any description is cffected in pursuance of a transfer scheme, it shall be bind~ng on al! pcrsclns including third parties, oven if, - such person3 or third parties have not consented to it. (5) The State Government may, aftcr consulting the Gridco (tbc "transferor licensee") or OHPC, as the case may bc, require them to draw up n iransrer sch%mc only on leasc to vest in a further liccosee (tbe "rr~nsferecl icensee'') or any generating wmpany, any property, interest in property, rights and liabilitia which have hen vested in tlie transferor licensee or OHPC., as the case may be, undcr thi.7 section. (6) A transfer schemc may- (a) define the property, interest in properly, rights; and liabili~ies to be alloc?,ted,- (i) by specifying or describing the property, rights and liabilities in question; (ii) by referring to a11 the property, interest in propcrty, rights 2nd ]iabjli- ties comprised in a specified part of the transferor's undertaking; or (jii-) partly in one way and partly in the other. (b) provide [ha! any rights or liabilities specified or described in the scheme shall be enforceable by or against -thet ransferor or lhc transreree; (c) impose on the licensee an obligation to enter into such written weements with, or cxecute such other instruments in favour of, any subsequent Iicensee as may be specified in the scheme; and (6)m ake such supplcmental, incidental and consequenlial provisions as the ~ransrerorli ccnsee considers approprrate including provision speciFying ' the order in which any transfer or transaction is to be,rerardcd as taking effect. (7) All debts and obligations incurred, ail contracts entered into and all matters and things done by with or for tbe Board, or the Gridco or OHPC, before a transfer scheme becomcs effective shall, to the extent specifield in the relevnut tranuler scheme, be deemed to have been incurred, entered into or done by with or for the State Government or the transferee, arid all suits or othzr legal proceedings instituted by or against the Board or transferor, as the case may bc, may br continued or insritxted by or aginst the State Government or the concerned tr~nferee,a s the case may be. (8) In tbe event that a licensee is required to vest any part of its undertaking in another licensee P~rsuant to sub-section (5), the Commission shall ammd the transferee Iicensce's !rcense in accordance with section 19 or rev& its licence in auxrdance with section 18. . (9) The Bkard shall ccae fo be cherged with, and shall not perform, the functions . and duties specified in sub-:ect~oa( 2) with regard to transfers made on,n od after the effective date. (10) The excrcise by a licenscc of any of the Board's rights and powers may be made an such condition6 as shall be spccified in Ihe transfer scheme including a condition that rhc y shall be exercised by the licensce a nly with thc approval of the Commission. Pmvislons 24. (1) The State Government may by a transfer scheme provide for the transfer =latiog lo of the personnel to Gridco and OHPC, an thc vesting of rte pro~erlies,r ights wesonnel. and liabilities in the Gridco cr OHPC under section 23. (2) Upon such transrer under tlle transfer scheme the pcrsonnel shall hold office or service undcr Gridco or OHPC, as the case may be, on terms and conditions that may be determincd in accordance with the trensfm scheme: Provided that such ter ms and conditjons on the transfcr 6haIl not in any wsy be less favourablc than thosc which would have been applicable to them if there had been no such vesting. - (3) Notwithstanding anything contained in the Industrial Disputes Act, 1947 14 01 134T or any other law as is applicable, and except for the provisions madc in this Act, the transfer of the employment of the personnel rcferred - to in sub-section (1) shall not entitlc such ernployee6,toa ny cqmpensation or damagei under this Act: or any other - Central or State law or under the gcnercl law, savc as prcvided in the transfer scheme. Fclr the purpcses of this Section as well as the transfer scheme the term "personnel" shall mean all Persons who on the effective date are the employees of the Board or the employees of the State Government on deputation or assignment to [he Board and otl~crp ersons assigned- for thc elccclricity generation, transmission, distribution and supply related work n s may be notified -by the State Government as forming part of the personnel under tbis seclion notwithstanding that they have been empIoyed by other departments and organisations. 25. (1) The State Government may provide that the transfers in lerms of sectiohs 23 Varlition of, aad 24 shall be provisional for a pcriod of twelvc months form the effective date t,a,,~e,~ and reserve thc right to allcr, vary, modiry, add or otherwise change the terms in such manner as the State Government may consider appropriate. (2) At any time beforc the end of the pcriod of twelve months commencing on the ' effective date, the Gridco or OHPC, - to whom properly, interest on property, right&, liabilities and personnel have been transferred, may rvi th thc consenc of the State Government, draw up 8 transfer scheme to vest some or all of the property, rjats, liabilities and personnel in another licensee, or general ing companies subject to the consent of such other licensee or generating company to such vcsting and- any such transfer s~hernc shall take effect a6 rf 11 were a transfer schema under sections 23 and 24: Provided [hat if such other licensee is a person or an undertaking not wholly owned by tl~cS tate Government, the Commission shall give effcct to the transrer only for fair velue to be paid by the transferee to the State Government. , CHAPTER YlII TARIFFS 26. (1) The holder of each licence granted under tbis Act shall observe tbt Li censw's revenues and aethodo!ogies and procedures specified by the Commission from time to tima in t arms. calculaline the expected revenue from chaps lbhich it is permitted to recrivcr pursuant to the term5 of its license and in determ1nin.g tariffs to collect those revenues. (2) The Commission shall, save as provided in sub-section (3), be entitled to prescribe the termr and conditions for the dctcrmination of the licensees reven" a and tgriffs by regulations duly published in the Gazette and in such other mader +he Commission considers appr~priate and, for doing so, the-C oinmission shall be bound by the following parameters, namely:- (a) the financial principles and their applications provided in sections 57 and 574 of the Electricity (Supply) Act, 1948 and in:the Sixth Schedule 54 of 1948 thereto; (b) the factors whicb would encourage efficiency, economic use of the recourwS 4 or 1948 good performance, optimum investments, perform;. nce af liccnsc condition; and other matters which the Commission consider6 a pro: riatc for the purposes of this Act; and . (c) tbc interest of the consumcrs. (3) Where Ihe Commission departs from factors specified in the Sixth Schedule to 64 OF 1948 the Electricil~ (Supp!pl~)A cl, 1948 while defermining the Iiccnsees' revcnues and . tariffs, it shall record Ihc reasons thewfor in writing. (4) Evcry licensec shaJI provide to the Commission at such time and in such manncr as may b- p-rescribed in the regulations, full details of it.; calculat~onf or the en suing financial year-of the ~ ~ p e ~ tagegdre g~te revenue from cllarges ,which it bcIieve to have becn permitted to recover in accordance rvilh the terms of its licence and thcrearter it shall rurnish such further information as lhe Commission may . reasonably require to asscs.; tlie licensee's calculation. ivithin ninety days ~f the date on whicb thc licensae has furnished all the information that the Commission requires, the Commission shall notify the licensee either- (a) that it accepts t hc licensee's calculation-; or (6) that it does not consider the licensce's calculation rcl bc in accordany with the methodology or procedure?n its liccnce and such nolice io the l~censee sbalI,- - (i) specify fully the rcasons why [tic Commission considers that the licensce's calculation- does not coniply with the methodology or procedures specified in its license or is in any way incorrect; and (ii) propose - modification,o r an alternative calculation of the expected revenue from charges, which the Iicensee shall accept. , . (5) Each holder of supply licence shall publish in thc daily newspaper having circulation in the area ef supply and make available to the public on request the tariff or tariffs for the supply of electricity within its licensed area of supply and such tariff or tariffs shall take eRcct only arlw seven days from the date of such publi'cation. Any tariff irnplementcd under this section,- (n) shall not show undue prcfcrcnce to any consumcr of cleotricity, but may differentiate according to the consumer's load factor or power [actor, the consumer's total consumption of energy during nny specified period, or the time at which supply is required; (b) shill bc just and reasonable sad bc such as to prc,mote economic efficiency in thc supply alld consumption of cleclricity; and (c) shall sntisfy all other relevant prc.visions of (his Act and the conditions of liccncc. I (6) No tariff w Part of any tariff impIemented under sub-section (5) may be amendcd more than once in any financial year. except in rcspect of any changes expressly perrnilted under the terms of any fuel surcharge fornlula ws may be -prescdbed by rcpulaliow. At least threc months* bcfore the proposed date for implementation of any taria or an amendment to a lmff the licensce shall provide details or the proposed 'I tariff or amendment to a,tariff to tile Commissi~nt,o gether wit11 such further information a6 the Commission may require to determine whether the tariff or amended tariff rvould satisry the provisions of sub-seclion (5). If tho Commission considers fh3t the propilsed tariff or amended tariff of a licensee docs not satisfy any of the provisions of sub-section (5), it shall, within ninety days of the rcceipt of all the jnformtion which it required, and after consultation with the Commission Advisory Committea constituted under section 32 and tbe licensee, notify thc licensee that the propo& tar~ff or amcnded tariff is unacceptable to the Commission and it shall provide to the licensee an alternative tariff or amcnded tariff which shall bc implemented by the licensee. The licensee shaU not amcnd any tariff unless the amendment has been approved by the Commission. (7) Notwithstanding ~njthingco ntained in sections 57-A and 57-B of the Electri- city (Supply) Act, 1948, no Rating Commir tee shall be constituted after the date of 54 commencement of this Act and the Commission shall securc that licensees comply lgs wiih the provisions of their licences regarding thelr clierges for the sale or el~trj~ity, both wholesale and retaiI, and. for ihe connection to and use of their assets or systems in accordance with the provisions of this Act. ... , . . Explunaiion-Tn this sect ion (a) "the expccted rcvenlre from charpes" means the total revenue wbich a licensce is expected to rccover from charge: for thc {eve1 of forecost supp!y used in the Bet2rrnination under sub-section (4) in m y f inancial year in respect of goods or scrvices supplied to customers pursuant to a licensed : activily; and (h) "tariff'! mcans a schedule of slandard prices or charges for specified services I - which are applicable to all such specified services provided to the type or types of customers specified in the tariff. of 27. (1) The Stat~G overruent may from time to time, make subventions to any licensee for thc purpose of sub-section (3) of ~ection1 2 for such amounts ai may be recommended by tkc Commission and on such terms and conditions as the State Government ma!: determine. (2) The Slate Governmcnt may, from time to time, advance loans to any licensee or generating company which for the time being is wholly or substan tially owned by the Stn tc Govei.omcnt, on such terms anc' conditions, not inconsistent with 54 1w the provisions of this Act or the Electricity (Supply) Act', 1948, 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 inlerest, or both. cf any loane proposed to 'be raised by any licensee or generating.company which is Cor thr: timc being rvholly or substantially owned by the Sfaie Government. or the discharge of any otl~crf inancial obligation of any sucli liccnsze or generating company : Prov,ided that the State Governmcnt shall, so long as such guarantee is in force1 lay before the State Legislai ure during the b~rdget-sessionin evory year a statement of the guarantee; if any given during the current financial year cf thc State and an up-to-date account of thc total sums, if any, whicll have been paid our of State revenues in each case by reason of any such guarantees orpaid intostaterevenues towards repayment of any money so p~ido ut. - (4) The State Government shall be entilled to inspect and verify the accounts of every liceniec and generating company. CHAPTER ZX COMMTSSION'S POWER TO PASS ORDERS AND ENFORCE DECISIONS Interim 28. (1) Wiicre t bc Commission is satisfied that a licensee is contravening; or is orders. likely to coqtmvenc n ny relevant conditions or requils~~cnotf its licence, it shall by ,fin~olr dcr under section 29 and, if it thinks it, a~propriate in accordance with sub* section (2) by intcrim order under this seetlon, issue such dierct ions as it deems proper for securing compliance. - (2) In determining whcther it is appropriate that an interim ordcr be madc, the Comrnissi~n .;hall have regaid m particular to- (0) [he extent to which the COD travenlion or likely contravention by rhe licensee mill affect the achievement of the objects and purposes of this Act; , (h) thc extent to rvhicb any Person is likely to sustain loss or danlage in consequence of anything which is likely to*b e done or omittcd to be done in contravention of the relevant condition or requirement, before a finaI order tan bc made; and (c) the extent to which there is any other available rcmcdy in respect of the alje~edc ontravention of a relevant condition or, requirement. (3) If the C~mrni~siopnr oposes to make an interim order, Lit shall givo notice to the licensee- . (a) stating that it propmes to make the order; - - (b) setting out (i) the relevant conditions or requirement with which ~ h cpr oposed order is intended to secure compliance; (ii) the acts or omissions which, in its opinion, constitute contravention 01 that condition or requirement; . (iii) the other fact6 which ,in.itsopioion, justifyth~makin~oCtheproposed order; and (iv), the eKects of the proposed order; (c) specioing the period not being less than five .days from the date :of notice within which Lhe licensee may make representations or. objections to the proposed order. (4) Subject to sub-scctjon (5). having considered any representations or objections from the licensee pursuant to clause (c) of sub-section (3), the Commission may make an interim order at any time after expiry of the period refarred to in cIause (c) of the said sub-section, if- (a) the Commission bas reason to beIicvc that thc licensee to whom the order relates has contravened or is contravening or is likely ' to contravene any relevant condition or requirement; and . (b) the provisions made by the order are requisite for the purpose cf securing compliance with that condition or requirement. (5) The Commission may not make an interim order if it is satisliedithat the licensee has agreed to take and is taking all such steps as the Commission considers that the licensee should take to sccure compliance wilh the cor.dition or requirement in question. (6) An interim order- (a) shall require the Iicensee to whom it relatos to do,- or to abstain from doing. such things as are specified in the order; (6) shall hke effect from such time as is specified jn the order; and (c) may be revoked, modified ,or rescinded at any timc by the Commission, but in any event shall cease to havc dect at the end of such period as is stated in the order, unless the Commusion is at that time following the procedure set out in section 29 to declare the interim order to-be a final order. (7) A6 soon: as practicabIe,l' after- making' an:,: intcrjm order, the Commission shall- (a) serve a copy of the order on the licensec lo: whcm The order rclates; (b) publish the order in such manner as i~knsidersa ppropriate for the purpDBe - of bringing it to the attention of parsons likely to be affected by it; and -(c) commence proceedings to declare the interim orders to;-be a final older in accordance with section 29. final ordm~. 29. (1) If the ~mmission!proposcst o make a final order'or to declare an interim orderlto be a: final order, the Commission shall give not ice-- ., (a) stating that it' proposes tqimakelthe, finalzoider or to declare the interim , , ' order to be a hal order; , - (b) setting out the information referied to in clause (b) af subsection (3) of section 28 in respect of the proposed final order ; and (c) specifying the pericd, not being less than sixty days from the dete of publi- cation of the notice, within which representations or objecFions to thc pro- posed order may be made. (2) The Commission shall consider any reprcsenpt ions o'r objections that are duly madc and not withdrawn and shall publish details .of such representation6 or objections specifying a period, not being Icss than thirly days from the date of Publication of tho notice, within which iurlber representations or objections may bc made. (3) A notice under sub-seclic>n( I) or (2) shall-be given-. (a) by publishing the notlce in such manner as the Commission considers appra- priate for the purpose of bringing the matters to which the notice relate6 to tht attention of persons likely to be affected by them ; and , (b) by serving a copy of the nolicc, and a copy of thc proposed final order on the 1icemeC to whom the order rclates. (4) The Cornmjfision shaII not modiry the proposed final brdar as a rcsult of any representations or objections received foll~wjagp ublication cf the noticc referrcd to in sub-section (I), except- (a) with the consent to thc modification of the licea~eet o whom the ~?roposcd find order relates ; or - (b) afrer conlplying with rhc requirement5 of sub-section (5). (5) The Co-mmission 'shall, for the purpose of sub-scctic a (4),- (a) serve on thc licensee tr, whom the propped final ordcr relates such notice as appears to the Cornmr ssion to be requtsite, of its proposal to modify tbc proposcd final order, iogctber with details ~f such modi6cations ; (b) specify in that notice the period not being less than thirty days from the date of the service of the nurice, within which representations or objections to the pr opo6cd modification^ can be made ; and (c) consider any representations or 0bjcction6 which ;re duly made and not with- drawn within ten days of the receipt thereof. (6) The provisions of clauscs (a) and (b) of sub-secticn (6) ofscction !2 shall apply to final orders. (7) As soon ;IS practicable .arm making a final ardcr, the Cornmission 6hall with respect to the find order, follow tho proccdurc set out in clauses (a) and (b)'I .C sub section (7) of scction 28. . (8) The Commission may revoke a final order at any time, but before revoking a final ordcr the Comn~issions hall give noticc- (n) stating that it propom 10 revoke the order and setting out its cgect; and (b) sp~ifyingth c ptriod not being less than tbirty days from the date of publi- cation of the notice within which representations or objections to the pro- - posed revocation may be made, arid shall consider any representations or objectit>ns which are duly made and not withdrawn within ten days of the reccipt tl~ercof. 19) If, after giving a notice under sub-seplion (8) above, the Commission decides not to- revoke the final ordw to which the notice relates, it shall give notica of its deci- sion to the concerned persons. (10) fl;c i?raccdure providcd in CI? uses (a) and (h) of sub-section (7) i,f sectir n 28 shall bc followed for givi np a nolice under sub-section (8) or (9). 30. (I) Withoul prejudice to section 46 of this Act, all oi4dcrsa nd directions, inw BKoct aad cnlorcemont rim Or final, passed by the Commission shall be enforceable in law as if it ~vcre a of inhim decree passed by a Civil Court. and -1 o+ and (2) The Commission shall be entitled to take such assistance from the p?Ii* and emerBenw othcr authorities in the Sterc required to dectively enforce the orders and d~reclrons pmvirloar, given by it. (3) The Commission shall b= ent illed io g~vedi rzctions for vesting. of thc managz- ment and ~antrool f any of the u?dertakiag or tile liccnscc with thc assets, interests . and rights of the underlaking WJ th any othcr person or aullloriiy pending any enquiry and passing of inkrim or 6na1 orders in the matter, if the Commission considers. faking into account the object and purposes of this Act and the need to maintain continued supply of tlectricil~in an cficient and safe manucr to the consumer, - it is necessary to pass such directions: Prividcd that no direction undcr this sub-s:ction shall be issued without giving the licenscc 3 reasonable op-:ortunity of being heard Flna and 31. (1) The Commission shall b:: ,entitled to impose such fines a d charges as may be or~scribed by the Commis~i~ni n regulations for non-cumpliancc or viu1atib;n on tlle part of the gznerating companies, J llcensecs or Other persons, of the provisions or requirements of this Act or rulcs and regulations framed thereunder and directions or orders of the Comrnissio,n made from time to time. Tho fines which the Commi~~is~hanll be entitled to impose may extend up to rupees onc lakh for an act of non-compliance or vio!ation and a futt!lcr amount not exceeding rupees dx thousand for every day during I whlch tbe w n-compliance or violation continues. [2) The Commis~ions hall, whilcmaking an interim or final order under this Chapter, be entitled to direc~c ompensation to be paid by the person gujIty of violation or non-compliance as provided in iu b-section (I) to ithe person or persons a k te d by such violation or non-compliance. . (3) The fines, charges and compensation wbich may be iinposed by the Commiss~onu nder this section sball be in addition to and not in derogation of. any other IiabiIi ty, which the .person guilty of violation or non-compliance, may havc incurred. Expfarrotion-In Lhis Chapter, the expression "relevant condition or requirementsl in relation to a licensee, means any condition OF thc licence or any duty or other requirement imposcd on it by this Act or rules or regulations made thereunder or the Indian EIectricity Act, 1910 or the Eleclriciry (Supply) ACI, 1918. 9 of 1910 54 of 1948 CHAPTER X ADVISORY COMMITTEE, CONSUMER COhTSULTAmON ~ommlrrlon 32. (1) The Commission shall, 'in consultution wilh the State Govcrnmont, constit utc s.c ommittee to be known as the Commission Advisory. Commitrec, wbich 'I "mmlttH' shall consist of such number of persons, not bcing less than fifteen or morc than twenty- one? as the Comlnissjpn may appoint af t ~ rco nsuIlatjon with ,such representatives or bodm reprarcsentativc of tlle follow~ng interests as the Commis6ion thinks 64 that is to sxy, holders '01s upply licences in tlrc .State, I~clerso f transmission licences in the State, generating companies operating in the State, commerce, i odnst ry, transport, 'r agriculture, labour em~loycd in the electricily supply industry and consumes of electricity: , Prav ided ll~atlh cre shall be at least one mcmbcr rcprcsent ing cach such inlerest on tho Commission Advisory Committec. (2) The Chairman and meml)ers of thc Commission shall be exotcio Chairman and members of the Commi3sion Ad~isbryC ommittee. (3) The Cummi>sion Advisory Cornnlittcc shall mect a1 last once in cvory threc months. (4) Tllc ru~~ctionosf the Commission Advisory C~mmil~eshea ll he- (a) to advise the omm mission on major questio~iso f policy; and (b) to advisc the Commission on fin?'m atters relaling to thc quality, continuity and extent of servicc ~lrcvidedb y licensees and compliance by licensees with the conditions and requirements of then licenm. :C?aAmda mcr 33. (1) The Commission may, after consultation with the holders of supply licences, other person6 or bodies appearjng to the Commission to be representative d ~ o~f perso,ns an d categories of persons ljkeIy tn be nflected and the Commission Advisory mmm. Committw frame regulations prescribing- (a) the circumstanccs in which licensees are to inform customers of their dghts; (b) such standards of performance in relation to any duty +sing 'out of the righu referred to in clause (a), as the Commission consrders appropriate; and (c) the circumstances ia which licensees are to be exempted from any requifemenw of the regulations ard may make different provision for differkit Iicensees. (2) No thing in this Act shall affcct the rights and ~rivilegeso f the consumers under any other Iaw including the Consumer Protection Act, 1986. 68 d 1986 , Elsctric?~ 34: (1) The ~ommi~siomnny . after consultation with: licensees, the Commission W 1 y Advis.ory Committee and with parsons or bodies appearing to it to be representative overall ,,M,o of persons likely to be dected, from time to time- standards. (a) determine such standards of overall performance in conne I ction with the , , provision of electricity supply selvices and in connection wilh the promotion of - the efficient. use of electricity by consumers as in its ophioq is economic and ought to be achieved by such licensees; and (b) arrange for the publication, in such form and in sucb manner as it considers appropriate, of the standards so determined. . (2) DjKcrcnt standards may be determined under this section for diEerent , licensees. lnfarmaon 35. (1) Thc Commission shall, from timc 'to time. collect information with rmPt respect to- lo IGVCI9 of p.siormance. (0) the fines or pcnaltics lcvied on licensees under this Act; . , (b) the levels of overall perrormance achieved by Iicensecs in connection with the transuission and provision of electricity supply services; and (c) .the levels of performance achieved by liccosees in connection with the promotion of the efficient ase of electricity by consumers. ' (2) On or before such date in each year as may bc specified in a directioll given by the Commission, each Iicensee shall rurnish to the Commission the informalion with respect to each standard determined under secrion 34,- (a) the number of cases in which a penalty was levied and the aggregate amount of value of those penalties; and (b) such information with respect to the level of perfolmance achieved -by the licensee as may be so specified. (3) The Commission shall, at least oncc in cvery year, arrange for the publiealian, in such form and jo such manner as it considers appropriate of such of the information cdlected by, or furnished to, it under this section as may appear to thc Commission to be so required. . 36. (1) Save as othcmjsc proyided in ihis Act, no' confidential information with ~drktloa an disclosum respect to any particjar busmess wh~ch- of informa- tlon. (a) has bcen obtained by thc Commission !under or by virtue of any of the provisions of this Act; md .(b) rclatcs to the affairs of any individual or to any particular business, shall be discIosed by thc Commission, without the consent of that individual or the person for the time bcing cawing on that business. (i) T$+: &&c~$oi cobraided in sob-section (1) shall:n ot apply to any di'sclorurc df G , fora&itjn wHih is mad&- , . - . I ' - ,Cg.*ng for lhe purpose o~?g~i~b+g out by tbd state Goq.e~meht of an;s, of its funct~oos'undera statti*;';. & (b) forthepnrpore offaci~itatin~tCbe hYrall ~ o v e ~ & hta &y *ui - of its duties or funcllons under this Act or any Ccntral law; , (C) f ~&t= PiIPos.e o! &1. c,i c ; j @, ; .n , g r- , tAh, e ~~-,icudf&k-~ene&risl8l k carq . out his dudes: and functicns undcr Ibis 4Ct ;' ! i (a') for the cf enatilfhg or a&ii&ng any cornpe'?ehcr .ersoi maiq OUL its functions unde~th e law rela tinf t~~insotvency; (e) in, C&cctioa with t h ~inv csfigation 6f m y c*ifial offence or fo.r the . purpos'ti o'f any himini1 prdteedings; or [f)f ar the puri~siso r any c&il pprocekdings ~adMder or by vime of this Act c r any other Start: or Central law to whicb the information is hectly relevant, . ... . . (3):Tbc rkstrictibng uoplrrinedj'dshb-sec1i6n (~)'s&ilnl'o t, t..o inrorjhation , relating to rariff. 7-1 &&&, XL ARBITWON AND APPEALS ArbitreUbn 37. (1) NOt kithrtanding aaythivg cqaioed iq the A~bi&&sfion.A ct, J 940. any 10 or IPQ . by the didpute arising between licensees or in res~ep-o, f,; m a t t pfqyfde,d- ~dders ection 33 Commission. shall be refcrqdsa thc.Co+ission, The ~ommissicn,m ay pioded'td act as arbritrator or nominate arbitrators td &u'dicate.and settle s~h,dispote.. Thep ractiq or procedure t?.. ~C.fplloiy.n~ . connection with any such adfidicaf ion and settlement shall be such .. as,m a$, be prescribed' by rcguIatidns'. . . . - , , - (2) Where the award is made by ihc firbibator iipoi6tkd by th'6P,c,o. m '-d ssion it shall be filed before the Commission and the Commission shall be cntiflcd to pis$ -8ppro~ri~tc~or~ersOnthe~awatdmcludi~,orderrrto,- , (a) co& and enfdfce the.award; , (c) remit the awa~dfo r re~onsider~tirbny the arbitrator. (3),~he,orde,rp aced by the Com@i.ssion under. sub-section (2) shall be a decision on order of tb'e Commission ,and. sh'all lie 'apgeelablc a9 provided in this Acf.' -7::s (4) An award made or an order passed by the Commission Gder sub-section (2) shall be enForceabIe as if it werd a dec~e t of the Civil Court; Apptals from 38. Notwithst?gdj?e anything cqntajned, in the Indim Elec~riciA~c~t, 1910 or 9 ,r lglo decisions or the Electricity (Supply) 'Act; 1948. or sny .rule? ma die. thereuqder, rd appeal. shall lie 54 of 1948 1 electrical from the decision uf an EIectrical inspectcr, other thananIn~pectorofthtCe~~~al iU*lors. Government orthr:CzntralElect~icityAu&ority,t o theCommission. . , . - 2&yth, 39. Any p krson aggrieved &y d< &isi* .> n .. or drder of the Commirsion psssed under thi~A ct may file an appeal to the.High Court on any questign pf isa arising out of ~rdmv frhe such order within ~ixtyd ays from tbe date of commllnicaticn to him of the decision CoyssIon.,or order of ,the Commission. for F40. n'hocror, in contravention, of the pmvisicnr of this Act or the regulations mntmvenlian 'f ramed under this, Act or of the pr~nsionso f the Indian Electricity Act, 19 10 or the 9 of 1910 ofmtbn 14. Electricity. (S~lppl~)'Act1,9' 48 or the'rulesframed.under the s~i dAc ts,, engage inthe 54 of 194s. businas of transmission or-s upply. or, use. :of- energy; shall*b e punishable with impri- sonment which may extend-'to's ix montlis, or with p-cnsltgb y.way..gf.fjne which may ' extend to rupees one lakb, or both, and a further penalty which may extend to rupees six thousand fae ach day after the first during which the offence continue.. Psennaltzies g"n 41. If any licensee or othet. person refuses or faiIs withcut reasonable excuse to comply with, or give eEect to. any direction, order or requirement made under any of prodslom. the provisions of this Act, h- shall be punishable with imprisonment which may eKtend to three months or with pennlty by way of fine which may extend to rupees one lakh, or both, and a further penalty which may extend to rupees four thousand for each day after the first during which the offence continuefi. Offences by 42. (1) Where an offence under this Act has been committed by a company, every persvn wko, ~t the time the offence was ccrmmitted, was in charge of, and wae respon- sible to the company for the conduct of the business of the company, as wcll as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly : Provided that nothing contained in this sub-section shall render any such pcrson liable to any plwishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-s~tion( 11, where an offence . under this Act bas been committed by a company aud it is proved that the offence bas been commit tcd with the consent or connivance of, or is attributable to, any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other oBcer shall elso be deemed to be guilty of that offencea nd shall be liable to be proceeded against and punished accordingly. . - . Explanation-For the purposes of this section, ,- I (a) "company" means a body corporate and .includes a firm or other association of individuals; and @) '~dirw~orin" releaticin to a firm, means a partner in the firm. Power to 43. The Commissi~nm sy, for rrasons to be recorded in writing, either before or compound after the institution 'of proceedings, compound any O ~ ~ E ~ r C el E at ing to contravention ofmas- ofanyordermadebyit. 43. -11) No Court shall take cogniwnce of any offence punishable under this Act Cogoizance OF offen=. except upon a compIaint in writing made by an oficer of the Commission generally or spccjally nuthorised in this bchalf by the Commission, and no Court inferior to that of a Metropolitan Magistrate or a Judicial MagiSEkte of the Firrt Class shall try any such oflence. .(2) NotwithstmdiPg anything contained in the Code of Criminal Procedure, , 1973, a Magistrate may, if he sees reason so to do, dispense with the personal 2of1974 attendance of the officer of the Commigsion filing the complaint. - I pcnaliics and 45. The proceedings and actions under this Act against a Per6on'cont13vening I proceedings the provisions of this Act or orden Passed by lhe Commis~ions hall be in addition to not to and without prejudice to actions that may be initiated under other Acts including under 9 of 1910 ~ ~ ~ d ~ ~th,e I,nsdi,an Electdcity Act, 1910 and the Electricity (Supply) Act, 1948. 54 OF 1948, xm h WAITER MISCELLANEOUS 46. The Co~rnissions hall be entitled to recpver all sums due toit under this M,,y of fees, finm Act whether by way of licence fees, fines or charges, In accprdance with the provisions and charges. of the Qrissa- Public Demands Recovery Act, I962 as ~fanysu ch sum were a public orhaAa demand as defined in that Act and hand over the amount due to thc person or authority 1 of ,962 concerned. * .: + - --%=a- Application 47. he Commission or Court im~osingth e fine and charges under this Act may of fine and direct that tlie whole or any part thereof shall be applied in or towards payment of the charga* costs of the proceedings. No part of 48. The licensee, generating companies and others on whom the ants, ~hargeso r the 6 no~r penalties are imposed under this Act shau not, directly or indirectly, pass the same Penarhes to the consumers in &e form of tariff or.charges payable. mp osed to be p a do n. prote&n of 49. No suit or legal proc~dingssh all lie against thc Commission or the Chairman adon faken or-other membprs of tlle Commission or tbe staff or r~prcsentativeso f the Commission in g* faith in respect or anythirig which is in good faith done or intended to be done under this Act or any rul2-or r~gulationso r order made thcreundcr. - ? - A,& t*, ' -* FA Bar d 50. No order or proposal mad2 under this Act or rul: s or regulation . s - D . a - m - cd jurindictlon. under this Act Qall b= appeaIable exczpt as provided in this Act and no Civil Court including under the Arbilration Act, 1940 shall have jurisdiction in respcct of any I0 of 1940 matter which the Commission or the appellate authority under this Act is emowered by, or under, this Act to determine. Pow to 51. (1) IF any difficulty arises in giving effect lo the provisions of this Act or the remwt rules, regdationa, scheme or order9 made thereunder, the State Government may by dirscultlw* order published in the Gazette, make such provision not inconsistent with the provi- sions of this Act as appears to it to be necessary or expedient for removing the difficulty. . (2) Every order made under this section shd, as swn as possible after it is made, be laid before the State Legislature. J Prcadnm 52. AH proceedings before the Commission shall be deemed to be judicial procec- lxforo din& within the mcaning of sections 193, 219 and 228 of the Tndiaa Penal Code and Commission tohjudicld !he COmmission shall be deemed to be a Civil Court for the purpose? of scction 195 45 of 1860 promedhgs. and Chapter XXVI of the Code OP Criminal Procedure, 1973. 2 of 1974 Membs 53. The Chairman, other members and officers and other employee of the and ataff of Com&ssion appointed for carrying out the objects and purposes of this Act shall -On be deemed to be public sewants within the meaning of section 21 of the Indian4sorlsm to Pep1 Code. W*Pts. ~ow~rto 54. (1) The Commission shall have power to frame reg~lationiforth e e5cient malm rtgula- ptrfomancc of its functions under this Act by nctification in the Gazerte. dm& (2) In partimlar, but without ~rejubiiet o the generality of the provisions of sub-section (11, such regulations may provide for 011 or any of the following matters, namely :- (a) the administration of the affairs of the Commission, the exercise of its adminislrative, quasi-judi~i:iaaln d judicial powers including arbitration and prooedcre, the summoning and holding of meeting of the Commission, the times and places at which such meetings shall be held and the conduct of the business !hereat; (bj' the duties of the Secretary, cjficcrs and employees of the Commission; ' (i)d ate~mination of the hnctions to b artsigned to li&nsees. and others jnvo1ved in the generation, purchase, transmission, distribut~ona nd supply . of electricity, the manner in which such functions shall be discharged and the pr~cedurcs and cades to be adopted and enforced in rcgard to the operation and maintenanca of Power system and eIeclric supply.lins. (S) tho procedure for licensing of transmission and supply, ihecoodiljonsfor the grant of Iicences, the Particulars, details and documents to be made available by the pcrsons applying for licences, the standards and general conditions subject to which the Il#*cts shall be panted, the exemp~i~ns ' from grant of licences, the revocation 'and amendment OF licences and the eKect thereof and all matters related thereto; (e) the duties, powers, rights and obligations of lie~see~; . U) the ~articularst o be furnished, the collection of informations, details, particulars, docurnent~i*~ c C O U b ~ o ~ ok ~ s , f rom or of the persons involved in the generation, transmission, dlstribution, supply and use of elecfricity, the form and manner in which the same are to be furnished znd enforcia and compeling theproduction of the same; (g) method and manner of determination of licensee's revenues, tariff kltion, the matter0 to be considered in such determination and fiation; (11) the -constitution of the commission Advisory Committee ; (0 tho determination of ?he staqdard of arfosmeqcp. if ' the inyDIv.e$. 'i'n' the genelation, transmission, distrjbuti~na ng $upply q( el3rlcity in the; State; (j)a ea mount of fines and panallies to be imposcd for violation of provisions ' df this Act includag the method and; manner. of imposition o$ fines 8nd penal tics: and coilection of the, same; . - (k)t o . - p . r , ~ . scribeth e fbrm and manair ii ivtti , k h the zccouuts of Ihe Coq - rniss . ip - e . 6hallbcmaintained;add .-'- (I) any other matter which is .required to be, or may bs, piescribdl by regulations. Power to 55.. 4) .The. State Goveromeot may, by npiificalion, make rulk to carq out its mah iu .. n . =t ( i 2 o ) . ij I s n u . d I e r . ilie,p ro b v u i * s t i o w a i s t . h , C , ' o o u ft t h e p A r . i k j ,. t ; . . d ice' to th&g kbeia~ityo f the pow& &#;tIt:.d ip sub,sectiqn (I), such rules may provide for all or any of the following matters, - ridbklk , . (a] the procedure to be adopted by the selection,~ ommi'ltefea r dii~haorf~ its functians under the Act; ( , b ) ' t I h . . o ., Rr=p , ar - a din i4+j.r s4S.rel ~+i?*ei, the. ' t . r rn p r " f :r of assets to. ge'ie . r ..a tjng a.r. i , d ' others in the State; . . (c) the fiOBmi~pf,u iding aid giviiig: guirintea to PSF;Oi~.,i Ev . a 1 ~ . vedR, tb= generation, transmissioo, distribution and supply of electricity, in the Std.. te; and ... (d), any dhiq matierr ahiqh is re,pi~.idlo, b=, a! maybe ~rereribt,d 6 y rul,rs. ' , - ,'. aula and 56. Every rule and regulation made under this .Act shall, as soon 8s may be roB ulatlons aft~ritis , made, be lajd before the Stale Legislature for a total period of fourteen tobaleid* d~iy6w- hichVh.'njbaey , com~sisedino~e~moorre s~si~nsandif~duringthe~qi~period the State Legisidre makes modificdtioiis, if any. thereinltbe rule or regulation sgall. thp,?vef, have effect, only in such modified form so, however, that such modification * sb8)I be wi$our, prej~i~dice-tthoe valrc$ty of anyth.i ng.

previously dohe under, that rule ' or iegilation. C W R M V sPw.m ON EXISTING CENT* LAW E B ~of. 5 i (1) ~xccpais provided in seiti6n 58, the provisions qf this Act, .notwithstanding Act on the that the same are inconsistent with or contrary to tbe9 ' revisions of the Indian EIectricity IenladItarnic itr Act, 19.10; or the Eltcqicily (Supply) Act, 1948 sL 1 prevail in tbc maanet and to the - 1910 an_de xtent provided in .sub-section (3): tba B1:ctrlcity (2) Subject to ~ub~fectio(nI) ,i n resp~ott ,a fl np!tters,in the hdi+ ~l&hA~cit,t ~ I 1 S 9 u 4 u 8 p . l s y) + - A ct, n 19 ed 10 o a r n d d e t a h l e in g E w le i c t t h r , i ci u t p y p ( n S u t p h p e l , y c o ) n A st c iJ t, u !l ! o 9 n 4 8, o w f i j r h h e w ~ h Q ic m h m th i e s s B io q n a , r t d h e h f a u s ij n b c c t e io n t & c o of n c t e h r e - Bosrd shall be, discl~argeob y the Commissiop,a nd .Gridc~p rorided I!?w~ver& at,- (a) the Btare,Govcnmznt, s&IL be. enti~lc41o issue all poljcy directives and undertake ove~alpl lanping and, cp-or#qatiqn as specified, in section 12 . , and. to,this extent, the powers and,f unctions of,t he' Board, a6 set out in the Indinn Ele,cclricity Act, 19!0 and, the Elecfrj,cjly( ,Suqly ) .Act, 1948 or rules made thereunder shall vest in-theS tat,e Government and the State Government shall co70rdinate and deal with the, Central Government and the Central Electricity Authority ; (b) in rcspccl of such matrcrs which the Commission- directs in terms of a general or special prd~r, or in reguIatiohs or in a licence or lioances, as the case may be, every generating company, or other body corporate as may'be designated by the Commission shell discharge the functions ofth e'Board under the Indian Eiectricjty Act, 1910 and the Electricity (Supply) Act, 1948 to the extent directdd .by the Commi- ssion or spwifie,d in licgces. (3) S ybject to sub-sections (I) And (2); upon the , establishnent of the Commission, the provbons otthe .lnd~anE Iectrjc!ty Act, 1810 gnd the Electricity (Supply) Act, 1948 shall f n their application to the State, be subjkr to the following modifications and raservations. INDIW ELECIRIClT)! ACT, 1910 (a ~ lreire rences to the State Eleclricity Board in tho Indian Electricity Act, 1910 shall be read as refcmnce to the Commission or Gridco or other licens~so r whorevor it relates to general polic J matters, to tL State Government . . . (ii) - I 5 n 1 r o c f s p t e h c e t o I f n m di a a t n t er E s lw pr t o r v ie i i d t e y d A in c t s , e ct 1 i 9 o 1 n 0 s , 3 t o t o t h 1 e I , e 2 x 8 t , e 3 n 6 t ( h 2 a ) s , 4 m 9- a A d , e s 5 p 0 e c a i n fi d c ' . provisions, thc provisions of lbc Indian Electricily Act, 1910 shali not upply. (iii) The provisions of all other stctions of the Tndian Electricity Act. 1910 shall ;. . - apply exccpt that:- , ' - , I . (a) t t h h e e m ex e p a r n e i s n s g io n n s s d " e li f c in en ed ce u " n , de " r l i i c b e i n s s A ee c " t a a n n d d t " ho Ii l c i e ce n n ~ c e e h s o s l h d a e l r l " b e s h c a o I n I s t b ru av e a d as having been issued uuder this Act ; 'I (6) rbc rcferencc to the Se3ions of tho Indian Electricity Act, 1910 and tho , : Electricily (Supply) Act, I948 in the provisions of the Indian Electricity Act, 1910 shall be taken as rerercnces to tho corrcsponding provisions . J of this Act to the extant modified by this Act; . (c) the rcferencc to arbitration in these provisions, except where it is bf the Central Eleclricity Xuthoriiy, shall be taken as refercocc to the I . , .- r . ., proccediugs undcr scction 37 of this Act and the arbitration proce Jure .,. . prescribed undcr the Indian Elec(ricity Act, 19 10 shall not apply. P- (ill) 'Thc Scl~edulesto the Indian Electriciiy Act, 19 10 shall be applicabIe only with reference to the prcvisisns in this Act in which the applications of the . ,I . '. .' Schedule is specified and not othcrwisc. , . LL~TRICITY( SUPPLY ACT, 1.948 'I * . All reference: to the Statc Electricits Board in thc Elcctricitv (Supply) Act, (11) - . 1948 shall bc re.ad as rcrcrcnccs to the Conl~inss i'on or-~ridcoo r other 1..1 ', , ,.- licensees OFw here it rclatcs to general policy matters, thc State Government. ; . .. ... , ', ,,( . vi , ) ' 1 111 rzspect of msttcrs provided in sections 5 to 18, 19, 20,23 to 26,27, 37 , , 40 to 43, 44;45 to 54, 56 to 69, 72 and 75 to 83 oP tl~c Electricj ty (5 upply) , - ,. . , I . . dct , 1948, rq the extent this Act has niadc specific,provisions, thc provisions -.!. -., .. . ' ,. of the Electricity (Suppl* Act, 1948 slinll not apply. . .' , . I (vfi) The privisio~~OF - all other sectioiis of the Electricily {Supply) Act, 194% ., -, ,. . . shall apply except that- . . . " , : I - , , I ,. . . ' . . (n) th ti c le c m xp c r a z n s i s n io g n s a " s lic d e e n f c in e c " d , "l u ic n c d !~ e s r ee t " h i a s n d A c " t lic a e n n d c e th h c o l l d i c c r e " n c s c h s a l s l h a h lt a b v e e - construed as having been iss,ued under lllis Acl; . , .' , (6) th E e le r c e t f r o ic re it n y c c (S to u , p t p h I e y s ) e ' c A ti c o t n , s o I9 f 4 t 8 h e i I n n di t a h n e E p l r c o c v t t r s j j c o i n ty s A o c f t , t 1 h 9 c 1 E 0 Ic a c n t d r ic th it o y . (Supply) Act, 1948 5hall be taken as rcfcrence to the corrcsponding provisions of this Act to thc extout modified by this Act; (c) the reference to arbitration in thcse provisions except whcrc it is by t hc Central Electricity Authority shall be l?kell as reference to the proceedings under section 37 of thrs Acl and [he nrbitra- tion procedure prsscribcd under ~IICE lectricity (Supply) Act, 1948 shall .... . not apply. . - .(viii) The provisions of sections 72 a'nd 73 of rhc Electricity (Supply) Act, 1948 shall by restricted to _ecnerating companies and rcfcrci~ce to the State . . . , . Electricity Board in these scctio~ssh all stand delelcd . ' ' (ix) The Schedules tc the ~lectriciyt (Supply) Act, 1945 6halI b:: applicable only , , .!. : , . . , with referen= to the prbvisions in this Act wherein thc applications of thc scl~cdulesa re spccified and not otherwise. 5S.(1)Notrvithatanding anything contained in this Act, thc powers, rights and fuuc- Tavingc. : '''tions of-t he Regional Electricity Aubority,the Central Electricily, Aulhor ily, ihc Central ~overnrnenta nd authorities, other than, the Stale Electricity Bonrd and the Statc Government uoder the Indian Electricity Act, 1910 or the Eelctricitg (Supply) Acl, 1948 or rules' framed thereunder shall remain anaRected and shall wntinuc to be in forco. . .I . , , , - #.,,,;I(.2:' ) . , . N , othing contained in this Act shalI apply to the Power Grid Corporation o i -: ',!:,, I;kited o: other bodies or licensee8 in relation to the interdtste transmission of electricity. .34 1 << . SCHEDULE, -. . . .,..-.. ,-.- ':TH-E. ~ RISSAB LECTRI CI TY REGULA - T 7- O RY COM , M . I \. S S . I I O' . ~ --; ; . ' , . PARTI - . The'commission's Pinance,~Accourits and Aadit . L Armoal Fin;aricial Statement ' - (1) Tn ~.ecernbero f each year, the Commission shall submit to ihe Slatc Govern- ment a statement of i ts estimated expenditure far the ensuing Financial year. (2) Tl~cS tate-Government sllbll as soon as possible after the receipt of the said stztcment cause it to be laid on the table of the Stale Legislature. (3) The Commission mag ::t any time during the year in respect of which a statenlent under sub-paragraph (I) has been submitted, submit a supplementary ttaternent to the Slate Govcrnmcnt who :half cauce 'it to bc laid on,rhe table of the ' Slate Lcgislaturc. Il. Accounts and Audit . (I) The Cummission sbaII cause proper accouqts and related records lo be kept, incurding a proper syhtcm of internzl chcck and shall prcparc an annual statement of accounr- in such form as may bc prescribed by rcgulaiions in consultation with the Comptroller and Auditor-General oZIudia or persons disgnated by him. (2)Tbe accounts of the Commission hall bc audiled by ille 'ComptroUer aad Auditor-Gcncral of India or by such, peron i!s be may authorise on his behalf and , any expenditure incurred by him in connection with such audit shall be Payabi~ by the St& Government. (3) Tbe Cornptr~llera nd Auditor-Gencral of India or any pcrson authorised by him in connec~ionw ith the audit of thc accounts OF thc Commission shall: have the right to demand the production OF books, zccounls, connected vfluchers and other documents and papers of thc Commission. (4) The accounts of the Commission as ccrlifrcd by the comptroller and Auditor- -General oT India or any other pcrsclri ;lu!Loriscd by him an his bchaIf, tagether with the audit report thereon shall be fonvarded to rhe State Government within six months Ofthe dose bf the year to which tbc accounls and abdit report relato, and the . , Commission shalt cause the said accounls of the Commis:ion to be published and make available the copies ibere?P on sale at a rcasoaablc price. The audit report shall - contain full details of any discrepanciz-. or irregularities in the accounts of the - Commission. At the samc time, thc Commission shall publish an annual statement of its acti vitics rn relation ro the function.. citl~icd ut:t by it under this Act during the year to which the said accounts relaic and make availeMe tbe copjes thereof . . on sale at a reasonabIe price. (5) The State Government 5hall cal se the acc0I111Iso f the Commission, together , with !be ad11 repor[ ihercof fo~warded to it under sub-paragraph (4), to be laid annually before the Siate Legislature. PART 11 Gcncrnl m. Remuneration, ctc. (1) The rcn~unerationo f Lbc Chairman and members of the Commission shall at no time be infcrior.to the remuneratiou p;:id to the Chairman and members of Orissa Public Service Commission r rspect ivcly. t2) The Statc Government may musc to b.: paid, as nn cxpme of the Commi6sioa, to or in respect c.f any person holding the nllicc of C11;:imtan clr a member of the Commission such pcrrsion, auawancc qr. Eraiuily or .vch contribulinns or paymentP towards provisions of ssch a pcnsion, all~w~lnocrc grniuily. IV. OfFtcial Sea! The Commission shall have an official seal Tor the authentication of docunloats required for the purposes of its functions. , V. Performance of Funct ions Any thing authstised or repuir ed to bc donc by the Commission by or under lhii Act or any oiher enactment may be donc by a?y mcmber of the staff of the Commission who is authortsed generally or specially in that bchalf by the Commission. 4 ORISSA ACT 1 OF I999 *THE 0-A EZECTRICITY REFORM (AMJZNDMENT) ACT, 1998 [Reoeived the assent of the Governor on the 9kh January 1999, k t p ubli- shed in an extraordinary issue of the Orissd Gazette, dated the 1l th January 1999) BE it enacted by. the Zegislature of the Slate of Orissa in the Forty-ninth Year oft he Republic of India as Tol1ows:- Sholf,it10 1. (I) This Act may be called the Orjssa EIectricity Reform (Amendment) Act, 1998. - Cammen- Wt. (2) It :aha11 be deemed to have come into force on the 30th day of October, 1998. Amendment 2. In the Orissa Electricity Reform Act, 19'95 (hereinafter referred to as Orism AC~$ or sdion u.t he Priacipal Act), for subsection (5) of section 23, ~e foIlow,hg subsection shaU of 1996. be Substituted, namely:- "(5) The State Government may, after consulting the Gridco or QHPCI as the case may be, draw up a transfer scheme to tranefer and vcst, In a subsidiary company of Gridco or OHPC or a licensee or a generating company any undertaking or part thereof comprising property, interest in property, rights and liabilities and personnel including the proceedings in relation to such - property, interest and personnel of the Glidco or OHPC, as the case may be, on such terms and conditions as may be specified in the transfer scheme and every euch'.transfer scheme shall come into force on the date of its pnbli- cation in the Gazette and have effect as if it were a transfer scheme under subsection (1) and section 24." 3. (1) The Orissa Electricity Reform (Amendment) Ordinance, 1998 is orim m. Rtpaal and hereby repealed. OM- No. 3 savings. of 1998. (2) Notwithstanding such repeal, anyt,bing done or any action taken under the principal Act, as amended bY the said Ordinance, shall be deemed to have been done or taken under the principal Act as amended by this Act. *For the Bill, sec Orissa Gazette, Extraordinary. dated the (No.)