In exercise of the
power conferred on it by Section 16 read with section 181 of the
Electricity Act, 2003 (ACT 36 OF 2003) and all other powers enabling in
this behalf; the Haryana Electricity Regulatory Commission hereby frames the
following regulations. (1)
These
regulations may be called the Haryana Electricity Regulatory Commission (Conditions
of Transmission Licence) Regulations, 2008. (2)
These
regulations shall come into force on the date of their publication in the
official Gazette. (3)
These
regulations shall extend to the whole of State of Haryana. (4)
These
regulations shall apply to the licence issued for Transmission of Electricity
under section 14 of the Act; in accordance with HERC (Transmission &
Distribution Licensing) Regulation No. HERC/09/2004 as well as to the deemed
licensee. (5)
The
Punjab General Clauses Act 1898 (1 of 1898), shall apply qua the interpretation
of these Regulations. In these regulations, unless the context
otherwise requires, all expressions used herein shall have the meaning assigned
to them in the Electricity Act 2003 (36 of 2003). The other expressions used
herein but not specifically defined in the Act but defined under the Haryana
Electricity Reform Act, 1997 shall have the meaning assigned to them under the
said Act, provided that such definitions in the Haryana Electricity Reform Act,
1997 are not inconsistent with the provisions of the Electricity Act, 2003. The Conditions of licence applicable to the
licensee with effect from the notified date shall be as set out in Form-1
appended to these Regulations. If any difficulty arises in giving effect to
any of the provisions of these Regulations, the Commission may, by general or
special order, take suitable actions that appear to it to be necessary or
expedient for the purpose of removing the said difficulty, not being
inconsistent with the provisions of the Act. FORM I TRANSMISSION
LICENCE Licence
granted by the Haryana Electricity Regulatory Commission under Section 14 of
the Electricity
Act - 2003 (Act 36 of 2003) to
......................................................................(Name and
Address of the Licensee) for carrying on the business of Transmission of
electrical energy within the Area of Supply (as defined in Schedule -1 of the
Licence) and with the powers and upon the terms and conditions specified below: PART
I Terms
of The Licence (1)
Short Title The
licence may be called "The______________(name of the Licence) Transmission
Licence(Licence No.____________ (2)
Definitions (1)
In this licence unless the context otherwise requires:
(1) "Act" means the Electricity Act, 2003 (36 of 2003) (2)
"annual accounts" means the accounts of the
transmission licensee prepared in accordance with the provisions of the
Companies Act, 1956 (1 of 1956) and/or in such other manner as may be directed
by the Commission in terms of the provisions of the Act where applicable and/or
in accordance with standard accounting practice in any other case; (3)
"area of activity " means the area of activity
stated in the transmission licence within which the transmission licensee is
authorised to establish, operate and maintain transmission lines; (4)
"auditors" means the transmission licensee's
auditors and if the transmission licensee is a company auditors holding office
in accordance with the requirements of sections 224 to 234 A or section 619 as
applicable, of the Companies Act 1956 (1 of 1956); as amended from time to time (5)
"authorised", in relation to any person,
business or activity, means authorised by licence granted under section 14 of
the Act or deemed to be granted under the first, second, third and fifth
provisos to section 14 of the Act or exemption granted under section 13 of the
Act and the regulations of the Commission; (6)
"Commission" means the Haryana Electricity
Regulatory Commission; (7)
"force majeure" means events beyond the
reasonable control of the licensee, including, but not limited to earthquakes,
cyclones, floods, storms, adverse weather conditions, war, terrorist attacks,
civil commotion or other similar occurrences that leads to any act that would
involve a breach of relevant laws or regulations concerned with electrical
safety; (8)
(9)
"generator interconnection facilities" means
electrical lines, transformers, busbars, switch-gear, plant or apparatus
utilized to enable access to a transmission system or distribution system by
the generating set(s); (10)
"Indian Electricity grid code" means the grid
code specified by the Central Commission under clause (h) of sub-section (1) of
section 79 of the Act; (11)
"Haryana grid code" means grid code specified
by the Commission under clause (h) of sub-section (1) of section 86 of the Act; (12)
"holding company" shall have the same meaning
as in section 4 of the Companies Act,1956 (1 of 1956); (13)
"intervening transmission facilities" means the
electric lines owned or operated by a transmission licensee where such electric
lines can be utilized for transmitting electricity for and on behalf of another
licensee at his request and on payment of a tariff or charge (14)
"licence" means the licence issued under
section 14 of the Act under which the licensee is authorized to conduct the
licenced business; (15)
"licensed business" means the business of
establishment and operation of transmission lines as authorized under the
licence; (16)
"major incident" means an incident associated
with the transmission of electricity, which results in a significant
interruption of service, substantial damage to equipment, or loss of life or
significant injury to human beings, or as otherwise directed by the Commission
and shall also include any other incident which the Commission expressly
declares to be a major incident; (17)
"operational control" means possessing the
authority to make operational decisions such as commissioning and utilization
of units, service lines and equipment etc; (18)
"other business" means any business of the
transmission licensee (other than the licensed business) carried out using the
assets and associated facilities of the licensed business and as defined under
Section 41 of the Act; (19)
"performance standards" means the standards as
may be determined by the Commission in pursuant to section 57 of the Act; (20)
"State Government" means the Government of the
State of Haryana; (21)
"subsidiary" shall have the same meaning as
defined under section 4 of the Companies Act 1956 (1 of 1956); (22)
"transfer" shall include the sale, exchange,
gift, lease, licence, loan, securitization, mortgage, charge, pledge or grant
of any other encumbrances or otherwise permitting of any encumbrance to subsist
or parting with physical possession or any other disposition or deal; (23)
"transmission business" means the authorized
business of a transmission licensee to transmit electricity, whether for its
own account or for that of any other person, through any system owned or
operated by such licensee; (24)
"transmission licensee" means the entity, which
has been granted a transmission licence or is a deemed licensee under the
first, second, third or fifth provisos to section 14 of the Act authorized to
transmit electricity; (25)
"transmission operating standards" means the
standards related to the transmission licensee's operation of its transmission
system issued by the Commission for a transmission licensee in the state in
pursuance of Haryana Electricity Reforms Act,1997; (26)
"transmission planning and security standards"
means the standards related to the adequacy of the transmission licensee's
system planning and security of its transmission system as already issued by
the Commission for a transmission licensee in the state in pursuance of Haryana
Electricity Reforms Act,1997; (27)
"transmission system" means the system
consisting mainly of extra high voltage electric lines having design voltage of
66 KV or higher, owned or controlled by the transmission licensee, and used for
the purposes of the conveyance of electricity between the switchyards of two
generating sets or from the switchyard of a generating set to a substation, or
between substations, or to or from any external interconnection and includes
all equipments up to the interconnection with the distribution system, and
includes any plant, apparatus and meters owned or used in connection with the
transmission of electricity, but shall not include any part of a distribution
system; (28)
"use of system" means use of the transmission
system for the transportation of electricity for any person pursuant to a
contract entered into with the transmission licensee: (29)
"users" means anyone who uses the transmission
system; and (30)
the other words, terms and expressions used and not
defined in these regulations, but defined under the Act, shall have the meaning
as assigned to them in the Act. (3)
Term of the Licence The
transmission licence shall come into force on the date to be mentioned by the
Commission in the order granting the licence and subject to the terms and
conditions of the grant of licence and shall remain in force for the duration
mentioned in the licence. PART
II General
Conditions of Transmission Licence (4)
Compliance with regulations, codes, orders, guidelines
and Directions 4.1 The transmission licensee shall comply with the
requirements of laws in force and, in particular, the Act, the Indian
Electricity Grid Code and Haryana Grid Code, Transmission Operating Standards,
Transmission Planning and Safety Standards, rules, regulations, orders and
directions issued by the Commission from time to time; 4.2The transmission licensee shall duly comply with the
orders and directions issued in the discharge of their functions by the
National Load Despatch Centre, Regional Load Despatch Centre and the State Load
Despatch Centre; 4.3 The transmission licensee shall coordinate with
Regional Power Committee, Regional Load Despatch Centre/State Load Despatch
Centre and Central Transmission Utility/State Transmission Utility, licensees
and/or the generating companies, as may be required, in relation to all
activities relating to the licensed business; 4.4 The transmission licensee shall pay the licence fee
specified under HERC (Fee) Regulation No. HERC/10/2005; 4.5 The transmission licensee shall pay to the State Load
Despatch Centre such fee as may be specified by the Commission; 4.6 Where the transmission licensee fails, omits or
neglects to undertake any transmission activity for four consecutive quarters,
the transmission licence shall be subject to revocation in accordance with the
provisions of the Act; 4.7 The transmission licensee shall maintain up-to-date
records of its customers and the transactions undertaken by it with other
parties and shall provide the same to the Commission as and when required; 4.8 The transmission licensee shall establish adequate
communication facilities such as telephone, fax, computer, internet, hotline services,
wireless communication system with transmission network. The communication
facilities shall establish at head quarter as well as in other establishments. (5)
Activities of the Transmission Licensee The
STU and other transmission licensee shall comply with the provisions of Section
39 and Section 40 of the Electricity Act, 2003 respectively while discharging
their duties for transmission of electricity. (6)
Prohibited Activities 6.1 The transmission licensee shall not, without prior
approval of the Commission undertake any transaction to:- (a)
Acquire by purchase or take over or otherwise acquire the
utility of any other licensee; or (b)
Acquire or retain any ownership or beneficial interest in
the business of a distribution licensee, trading licensee into the licensed
area; or (c)
Merge its utility with the utility of any other licensee; (d)
Assign or transfer its transmission licence to any
person, by sale, lease, exchange or otherwise in any manner whatsoever; Provided,
that the transmission licensee will be entitled to utilise the transmission
licence as a means of facilitating funding or financing the licensed business
in the ordinary course of business including loans and credit facilities from
banks and financial institutions, subject to the conditions: (i)
that the transmission licensee shall inform the
Commission about such arrangements at least 15 days prior to the effective date
of the relevant agreements; (ii)
that the transmission licensee shall act in a prudent and
reasonable manner in such utilisation of the Transmission licence; and (iii)
that the transmission licensee shall retain operational
control over assets in the transmission system. 6.2 The
transmission licensee shall not, either directly or through its subsidiary,
engage in the business of trading of electricity. 6.3 The
transmission licensee shall not make use of the assets of the system for a
purpose other than transmission of electricity, except with the prior
intimation to the Commission. Provided
further that where the transmission licensee engages in any such business, such
proportion of the revenue as specified by the Commission in HERC Regulation No.
HERC/17/2007 shall be utilised for reducing charges for transmission and
wheeling and separate accounts shall be maintained to ensure that such business
does not in any manner encumber the transmission assets or be subsidised by the
Licensed Business. 6.4 Wherever prior approval of the Commission is
required, the transmission licensee shall submit an appropriate application
before the Commission disclosing relevant facts. The Commission may, within 30
days of the filing of the application, seek further information in support of
the application. The Commission shall ordinarily within 30 days of such further
information being submitted by the transmission licensee, and where no such
further information is required, normally within 60 days of the filing of the
application, allow the arrangement subject to such terms and conditions or
modifications as it considers appropriate or reject the same, for the reasons
to be recorded in writing. (7)
Provision of information to the Commission including
major incident reporting 7.1 The transmission licensee shall furnish to the
Commission without undue delay such information, documents and details related
to the licensed business or any other business of the transmission licensee, as
the Commission may require from time to time for its own purposes or for the
purposes of the Government of India, the State Government, the Central
Commission or the Central Electricity Authority as the case may be; 7.2 The transmission licensee shall duly maintain the
minimum information as required under the provision of Regulation No.
HERC/16/2007 i.e. HERC (Minimum Information to be maintained and the manner in
which such information is to be maintained by the licensee or the Generating
Company) Regulations, 2007; 7.3 The transmission licensee shall notify the Commission
as soon as possible the occurrence of any major incident affecting any part of
its transmission system and in any event by not later than two months from the
date of such occurrence,- (a)
submit a report to the Commission giving full details of
the facts within the knowledge of the transmission licensee regarding the
incident and its cause. (b)
in the event the report under sub-clause (a) is likely to
take more than 2 months from the date of such incident, the transmission
licensee shall within one month from such date of the incident submit a
preliminary report with such details which the transmission licensee may
reasonably furnish and state reasons interalia as to why the transmission
licensee requires more than 2 months for giving full report of such incident;
and (c)
give copies of the report to all parties concerned with
the major incident and to such other persons as the Commission may require. 7.4 The Commission at its own discretion may require the
submission of a report to be prepared by an independent person or agency to be
nominated by the Commission at the expense of the transmission licensee. 7.5 The transmission licensee shall also undertake such
studies as the Commission may direct it to undertake from time to time for the
improvement of its transmission business and any other matter concerning the
transmission business that the Commission considers necessary in public
interest to avoid recurrence of any such major incident. Alternatively, the
Commission may, suo-moto, initiate and undertake such studies through
consultants at the cost and expense of the transmission licensee which shall be
allowed as pass through in its Aggregate Revenue Requirement (ARR). 7.6 The transmission licensee shall duly inform the
Commission about any incident restricting it from meeting its obligations under
the licence granted to it including any act of omission or commission by others
and steps taken by the transmission licensee to mitigate the effect of such
incident. 7.7 The Commission may at any time require the
transmission licensee to comply with the provisions of Regulation 7.3 to 7.6 in
regard to incidents which the Commission may specifically direct and the
transmission licensee shall be required to comply with the same notwithstanding
that such incidents are not major incidents; provided that the time limits
specified in Regulation 7.3 shall commence from the date the Commission
notifies transmission licensee of such requirement. 7.8 The transmission licensee shall submit a business
plan within three months of transmission licence coming in force for such
period as the Commission may direct and shall update such plan annually. The
business plan shall contain yearwise load growth, yearwise transmission loss
reduction proposal alongwith specific action plan, metering plan for metering
interface points, investment plan, making good of previous losses, debt
restructuring plan, cost reduction plan, projected profit and loss account,
projected balance sheets, projected cash flow statements and projected
important financial transactions. 7.9 The transmission licensee shall intimate to the
Commission by the end of first quarter of each financial year the progress made
in implementing the business plan of the previous financial year with the
comparison of actual implementation vis-?-vis
the plan as approved by the Commission. (8)
Other Business The
transmission licensee may, with prior intimation to the Commission, engage in
any other business for the optimum utilization of its assets. Where the
transmission licensee engages in such other business, the provisions of
Regulation No. HERC/17/2007, known as HERC (Treatment of Income of other
Business of Transmission Licensee and Distribution Licensee) Regulations 2007
shall be applicable. (9)
Investments- 9.1 The transmission licensee shall duly comply with the
regulations, guidelines, directions and orders, the Commission may issue from
time to time in regard to the investments to be made in the transmission
business. 9.2 The transmission licensee shall make the investment
in a prudent manner being guided by the duty to build, maintain and operate an
efficient, co-ordinated and economical transmission system in the State. 9.3 The transmission licensee shall submit to the
Commission investment plan a month before submission of ARR as a part of the
business plan under regulation (7.8) giving details of investment schemes to be
undertaken during the concerned period for the approval of the Commission. The
transmission licensee shall demonstrate to the satisfaction of the Commission
that - (a)
there is a need for such investments in the transmission
system contained in the investment plan; (b)
the transmission licensee has examined the economic,
technical, system and environmental aspects of all viable alternatives to the
proposal for investing in or acquiring new transmission system assets to meet
such need. 9.4 The transmission
licensee shall intimate, by the end of the first quarter of each financial year
- (a)
the progress made in implementing the annual investment
plan of the previous financial year with the comparison of actual
implementation vis-?-vis the plan as approved by the Commission for the
concerned period. Licensee shall furnish physical progress and financial
progress vis-?-vis proposed plan on a quarterly basis. 9.5 That the licensee, without prior approval of the
Commission, shall not change the scheme wise investments approved by it. 9.6 For the purposes of this regulation, the term
"major investment" means any planned investment in or acquisition of
transmission facilities, the cost of which, when aggregated with all other
investments or acquisitions (if any) forming part of the same overall
transaction, equals or exceeds an amount contained in the special conditions
applicable to the transmission licensee or otherwise decided by the Commission
from time to time by general or special order. 9.7 The transmission licensee shall be entitled to make
investment in the transmission business otherwise than those covered under
sub-regulations (3) and (4) but for the purposes of considering such investment
while determining the tariff, the transmission licensee shall satisfy the
Commission that the investment was required for the transmission business and
such investment was made in an efficient, co-ordinated, eco-friendly and
economical manner. 9.8 The transmission licensee shall submit to the
Commission along with the "Expected Revenue Calculations" filed under
section 62 of the Act, the highlights of the annual investment plan consisting
of those schemes approved by the Commission, schemes submitted before the
Commission for approval and all schemes not requiring approval of the
Commission planned for the ensuing financial year and shall make investment in
the said financial year in accordance with the said investment plan. 9.9 The transmission licensee shall submit to the
Commission the relevant load flow studies and details of investment requirement
to achieve the planned reduction in technical loss. (10)
Accounts and Audit 10.1 The financial year of the licensee shall run from
the 1st of April to the following 31st of March. 10.2 The transmission licensee shall: (a)
Maintain separate information and Accounting Statement
for the licensed business and any Other Business; (b)
Maintain the Accounting Statement in such form and
containing such particulars as may be specified by the Commission and till such
time as these are specified by the Commission, the accounts shall be maintained
in accordance with the Companies Act, 1956 (1 of 1956) as amended from time to
time, where such Act is applicable; (c)
Keep the accounts of the licensed business separate from
any other business carried on by the transmission licensee, whether licensed or
otherwise; (d)
Prepare on a consistent basis, from such records,
Accounting Statements for each financial year comprising a profit and loss
account, a balance sheet and a statement of source and application of funds
together with notes thereto and showing separately the amounts of any revenue,
cost, asset, liability, reserve, or provision which has been either: (i)
Charged from or to any Other Business together with a
description of the basis of that charge; or (ii)
Determined by apportionment or allocation between the
various business activities together with a description of the basis of the
apportionment or allocation; (e)
Provide in respect of the Accounting Statements prepared
in accordance with foregoing clauses, a report by the Auditors in respect of
each year, stating whether in their opinion the statements have been properly
prepared and give a true and fair view of the revenue, costs, assets, and
liabilities, reserves reasonably attributable to the business to which the
statements relate, and (f)
Submit to the Commission copies of the accounting
statements and Auditor's report not later than six months after the end of the
financial year to which they relate. Any delay beyond six months may be
explained in writing alongwith exemption from the registrar of company affairs
if applicable. 10.3 Any person authorized by the Commission shall be
entitled to inspect and verify the accounts of the transmission licensee and
the transmission licensee shall render all necessary assistance to such person. 10.4 The transmission licensee shall not change the basis
of charge or apportionment or allocation of revenues or expenses in relation to
the preparation of the Accounting Statements in respect of a financial year
from those applied in respect of the previous financial year, without prior
approval from the Commission. Provided
that if during the financial year a transmission licensee changes the basis of
charge or apportionment or allocation in its Accounting Statements from those adopted
for the immediately preceding financial year, the Commission may direct the
transmission licensee to prepare such Accounting Statements on the previous
basis in addition to preparing Accounting Statements on the basis which it has
adopted. 10.5 If the transmission licensee is carrying on any
other business for the optimum utilisation of its assets, it shall follow the
provision of Regulation No. HERC/17/2007 i.e. Haryana Electricity Regulatory
Commission (Treatment of Income of other business of transmission licensee and
distribution licensees) Regulations, 2007. 10.6 The transmission licensee shall
ensure that the Accounting Statements in respect of each financial year and the
Auditor's report in respect of each financial year mentioned hereinabove are
publicised in such manner as the Commission may direct, and are made available
to any person requiring them, at a price not exceeding the reasonable cost of
duplicating them, or such price as the Commission may prescribe. (11)
Dispute resolution - The
Commission shall adjudicate disputes between the transmission licensee and any
other licensee or between the transmission licensee and generating companies
and refer any dispute for arbitration in pursuance of clause (f) of sub-section
(1) of section 86, read with section 158, of the Act and as per the HERC
(Conduct of Business) Regulations 2004 ( Regulations No. HERC/06/2004) (12)
Payment of licence fees. - 12.1 Within such period as the Commission may specify,
the transmission licensee shall pay to the Commission the license fees, initial
and also periodic, as specified under the Haryana Electricity Regulatory
Commission (Fee) Regulation No. HERC/10/2005. 12.2 Where the transmission licensee fails to pay to the
Commission any of the fees due under sub-regulation (1) above by the due date- (a)
without prejudice to other obligations, the transmission
licensee shall be liable to pay interest on the outstanding amount as specified
there under; (b)
in the event of continued default by the transmission
licensee, the Commission may revoke the transmission licence pursuant to
Section 19 of the Act. 12.3 The transmission licensee shall be entitled to take
into account any fee paid by it under this regulation as an expense in the
determination of aggregate revenues to be charged to the tariffs, but shall not
take into account any interest paid pursuant to this regulation. (13)
Transfer/Disposal of assets - 13.1 The transmission licensee shall segregate the
utilized assets and unutilised, unproductive and un-remunerative assets and
reduce asset inventory of unproductive and un-remunerative assets. 13.2 The transmission licensee shall maintain "Fixed
Assets Register" and undertake an investigation of amount reflected in the
capital works in progress account from time to time to ensure that the completed
works are transferred to the "Fixed Assets Register" as soon as may
be, after they are completed. 13.3 The Commission may either require the transmission
licensee to carry out physical verification of assets itself or through an
independent agency to be nominated by the Commission, at the cost of the
transmission licensee which shall be allowed as pass through in the Aggregate
Revenue Requirement (ARR). 13.4 The transmission licensee shall not dispose of or
relinquish operational control over any assets, other than land and building,
otherwise than in accordance with the paragraphs of Condition 13, if the cost
of the assets being disposed of or whose operational control is being
relinquished in a single transaction or a series of related transactions,
exceeds Rs. One crore or such other amount as may be specified by the
Commission from time to time. 13.5 (a) The Licensee shall give to the Commission
not less than three weeks prior written notice of its intention to dispose of
scrap of conductor, cables, metal, dirty transformer oil, unserviceable &
surveyed off tools & plants, vehicles & batteries. In case, there is
any change in quantities of scrap items disposed of at the time of auction, the
revised quantities and values may be intimated to the Commission within 15 days
from the date of auction. However, no new items shall be added in the auction
without prior intimation to the Commission; In
the case of individual equipment like power or distribution transformers which
are disposed of through NIT, the notice period shall be considered as one
month; To
dispose of or relinquish operational control over any other asset the notice
period shall be considered as two months. Notice shall not be deemed to have
been given until such time as the Licensee has provided to the Commission all
such further information as the Commission may require. (b)
In order to safeguard against any non-reporting of disposal of material by the
licensees, they shall be required to supply the detail of material disposed of
during a financial year by 30th April of the following FY. 13.6 The transmission licensee may transfer or relinquish
operational control over any asset as is detailed in any notice given under sub
regulation (5) where- (a)
the Commission confirms in writing that it consents to
such transfer or relinquishment of operational control subject to such
conditions as the Commission may impose; or (b)
the Commission does not inform the transmission licensee
in writing of any objection to such transfer or relinquishment of operational
control within the period referred to in sub-regulation (5) and the transfer is
effected by transparent and competitive bidding procedures. 13.7 The transmission licensee may also transfer or
relinquish operational control over any asset where- (a)
the Commission has issued directions for the purposes of
this regulation containing a general consent (whether or not subject to
conditions) to- (1)
the transactions of a specified description, and/or (2)
the transfer or relinquishment of operational control over
assets of a specified description, and/or (3)
the transfer or relinquishment of operational control is
in accordance with any conditions to which the consent is subject, to or (b)
the transfer or relinquishment of operational control in
question is mandated under any other law; or (c)
the asset in question was acquired and used by the
transmission licensee exclusively or primarily in connection with any other
business and does not constitute a legal or beneficial interest in land, or
otherwise form part of the transmission system or is not otherwise an asset
required for the licensed business. 13.8 The transmission licensee shall be entitled to
utilise the assets as a means of facilitating financing its investment
requirement or including collateral for debt financing, securitisation of
receivables subject to the conditions: (a)
that the transmission licensee will inform the Commission
about such arrangements at least 15 days prior to the effective date of the
relevant agreements; (b)
the transmission licensee acts in a prudent and
reasonable manner in such utilisation of assets; and (c)
the transmission licensee retains the operational control
over assets in the transmission system. 13.9 Notwithstanding anything contained in this
regulation in case of any emergency condition, the transmission licensee may
transfer the assets subject to the condition that the transmission licensee
shall immediately after such a transaction seek ex-post-facto approval of the
Commission giving the detailed facts about the situation and the details of the
transaction. It shall be the obligation of the transmission licensee to
establish to the satisfaction of the Commission of the presence of emergency
condition necessitating the transfer of the assets. 13.10 The transaction shall be undertaken on an
'arms-length basis' and at a value that is fair and reasonable in the
circumstances, which for the purpose of this Regulation, shall mean with
respect to any specific transaction, substantially on term that would be
obtained between the Transmission licensee and a third party unrelated to and
unconnected with the Transmission licensee. (14)
Investigation of certain matters by the Commission and
Penalty for Contravention of Conditions of License. 14.1 The Commission may, on being satisfied that a transmission
licensee has failed to comply with any of the conditions of the transmission
licence or has failed to comply with any of the provisions of the Act or rules
or regulations made there under, at any time, by order in writing, direct any
person (referred to as "Investigating Authority") specified in the
order to investigate the affairs of any transmission licensee and to report to
the Commission on any investigation made by such Investigating Authority. 14.2 The Investigating Authority shall conduct the
investigation in accordance with the provisions under Section 128 of the
Electricity Act, 2003. 14.3 On receipt of investigation report from the
Investigating Authority, the Commission may, in accordance with the provisions
of the Electricity Act, 2003 and after giving such opportunity to the
transmission licensee to make a representation in connection with the report as
in the opinion of the Commission deems proper, by order in writing- (a)
require the transmission licensee to take such actions in
respect of any matter arising out of the report as the Commission may think
fit; or (b)
cancel the transmission license. 14.4 The Commission may also take any other action in
accordance with the Section 142 and 146 of the Act. PART
III TECHNICAL
CONDITIONS (15)
Standards and Procedures (Transmission Planning, Security
Standards and Transmission Operating Standards):- 15.1 The transmission licensee shall plan and operate the
transmission system, so as to ensure that transmission system built, operated
and maintained to provide an efficient, economical and coordinated system of
transmission, in accordance with the Haryana Grid Code and the overall
standards of performance. 15.2 The transmission licensee shall follow the
transmission operating standards and transmission planning and security
standards for its transmission system as already issued by the Commission for a
transmission licensee in the state in pursuance of Haryana Electricity Reforms
Act, 1997; 15.3 The transmission licensee shall not be in breach of
its obligations, except for failure to meet the transmission planning and
security standards or the transmission operating standards due to force
majeure, provided that, the transmission licensee has used its reasonable
efforts, to comply with the transmission planning and security standards or the
transmission operating standards, as the case may be. 15.4 The transmission licensee may, in consultation with
suppliers, the generating companies, the Central Transmission Utility, the
State Transmission Utility, the Regional Power Committee and such other persons
as the Commission may direct, send a proposal to review the standards and their
implementation on each occasion when a review of the grid code is undertaken.
Following any such proposal, the transmission licensee shall send to the
Commission.- (a)
a report on the outcome of such proposal; (b)
any revision which the transmission licensee proposes to
make to such documents (having regard to the outcome of such review); and (c)
any written representations or objections (including
those not accepted by the transmission licensee) from suppliers, the generating
companies, the Central Transmission Utility, the State Transmission Utility,
the Regional Power Committee and such other persons as the Commission may
direct arising during the consultation process: 15.5 The Commission may, having regard to any written
representations and objections received and following such further consultation
as the Commission may consider appropriate, to revise the standards in such
manner as may be stated in the directions. 15.6 The transmission licensee shall, within 3 months of
the end of each financial year, submit to the Commission a report indicating
the performance of the transmission system during the previous financial year.
The transmission licensee shall, if required by the Commission, publish the
report in a manner to be determined by the Commission. The copies of this
report shall also be furnished by the transmission licensee to all persons
applying for the same at the normal cost of photocopying. 15.7 The transmission licensee shall provide to the
Commission such information as the Commission may require under or for the
purpose of monitoring the duties and responsibilities of the transmission
licensee. (16)
Grid code - 16.1 The transmission licensee shall ensure due
compliance with the Indian Electricity Grid Code and the Haryana Grid Code in
operation. 16.2 The Commission shall specify state Grid Code under
sub-section (1) (a) of section 86 of the Act. 16.3 The transmission licensee shall, in consultation
with other transmission licensees, generating companies, the Central
Transmission Utility, the State Transmission Utility, the Regional Power
Committee and such other persons as the Commission may direct, review the grid
code and its implementation from time to time in so far as the operation of the
transmission system is concerned. Such review should be carried at least once
in three years. Following any such review, the transmission licensee shall send
to the Commission and the State Transmission Utility: (a)
a report on the outcome of such review; and (b)
any proposed revisions to the grid code from time to time
as the transmission licensee reasonably thinks fit; and (c)
all written representations or objections received by the
transmission licensee during the consultation process. (17)
Connection and use of system.- 17.1 The transmission licensee shall provide
non-discriminatory open access to use of his transmission system, by users
subject to the availability of the adequate transmission capacity in accordance
with open access regulations notified by the Commission and further subject to
the users' agreeing to pay all applicable charges including the transmission
charges and surcharges, wherever applicable. 17.2 On application made for grant of a connection by any
person intending to use the transmission system the transmission licensee shall
offer to enter into an agreement with such person for connection to the
transmission system or for modification of such an existing connection and such
offer shall make provision for (a)
carrying out of works necessary to make the required
connection, including the installation of meters as per CEA regulations on
Installation and Operation of Meters notified on 17th March, 2006; (b)
carrying out of necessary works to reinforce the
transmission licensee's transmission system; (c)
the connection charges to be paid as directed by the
Commission ; and (d)
the completion date and such other terms as are relevant
to the circumstances. 17.3 The transmission licensee shall offer terms for agreements
in accordance with sub-regulation 17.1and 17.2 and State Grid Code within sixty
days to the intended users of the system. The transmission licensee shall not
be obliged to enter into any agreement if- (a)
the adequate transmission capacity is not available in
the transmission system, provided that the existence or absence of such
available capacity shall be subject to determination by the State Transmission
Utility and in case of any dispute pertaining to the same on such determination
the same shall be subject to the decision of the Commission; (b)
it is likely to result in breach of its duties under the
Act; or (c)
it is likely to result in breach of any rules or
regulations relating to safety or standards applicable to the transmission
business including, the prevailing rules; (d)
being in breach of any of the grid code; (e)
the person making the application does not undertake to
comply with the grid code in force to the extent that it is applicable to that
person; (f)
the person making the application does not agree to pay
the applicable charges, surcharge, adjustment for losses of electricity in the
transmission systems determined by the Commission. 17.4 If, after a period, which appears to the Commission
to be reasonable for the said purpose, the transmission licensee has failed to
enter into an agreement with any intending user of the transmission system, the
Commission may at the request of such intending user settle such terms in
dispute between the transmission licensee and that person and, the transmission
licensee shall forthwith enter into and implement such agreement in accordance
with its terms as settled by the Commission. 17.5 The transmission licensee shall prepare and submit
to the Commission on an annual basis, a statement showing, forecast of circuit
capacity, power flows and loading on the transmission system under standard
planning criteria in each of the next succeeding 10 years together with,- (a)
such further information as shall be reasonably necessary
to enable any person seeking the use of the system to identify and evaluate the
opportunities available when connecting to and making use of such system; and (b)
a statement prepared by the transmission licensee
indicating its views as to those parts of its transmission system most suited
to new connections and transport of further quantities of electricity. 17.6 At the request of a person or a supplier who wishes
to use the transmission system, the transmission licensee shall prepare an
update to the above statement, incorporating most recent data but specifically
including any facility for which any other person or a supplier has requested
use of and connection to the transmission system. 17.7 The transmission licensee may charge for any
statement given or sent to persons seeking use of system, reflecting the
transmission licensee's reasonable costs of providing such a statement. 17.8 The transmission licensee is entitled to undertake
all activities necessary, related or incidental to the conduct of the
transmission business, which would include laying and operating appropriate
communication network to implement information technology based solutions like
remote metering etc. for the licensed transmission business. (18)
Co-operation with STU, SLDC and other Licensees- 18.1 The transmission licensee shall provide to SLDC, STU
and/or to other Licensees such information that may reasonably be required to
perform its functions and exercise its powers under the Act. 18.2 The transmission licensee shall comply with the
directions of SLDC and STU issued under the Act. 18.3 The transmission licensee shall co-operate with the
generating companies, other Licensees and with the SLDC for the efficient and
co-ordinated operation of the power system. PART
IV Tariff
and Expected Revenue Requirement Calculation (19)
Tariff and Expected Revenue Requirement Calculation- 19.1. The transmission licensee shall, within such time
as may be specified by the Commission, - (a)
build a credible and accurate database of costs and
expenditure so that the stakeholders can focus on these costs and expenses to
have rational basis for the determination of tariffs with some regulatory
certainty; and (b)
with a view to improve the quality of service, increase
revenue and reduce transmission losses, the transmission licensee shall carry
out compulsory energy audit; plan and manage its transmission system and
rationalize the existing manpower, for improvement in efficiency through
scientific engineering resource management, improving and updating the
organizational strategies, systems and skills. (20)
Tariff (a)
The transmission licensee shall establish a tariff
acceptable to the Commission for the Transmission Business and calculate its
charges only in accordance with this license and the other
requirements/guidelines as prescribed by the Commission. (b)
The transmission licensee shall follow the methodology,
procedures and other directions included in the Terms and Conditions of
determining Transmission Tariff Regulations as notified by the Commission and
in other orders of the Commission as may be issued from time to time, while
filing the Statement of Expected Revenue requirement from Charges and for
proposing or amending any or all of its tariffs. 19.3. Expected Revenue Requirement Calculation (a)
Each year not later than 30th November the Licensee shall
prepare and submit to the Commission a report of its expected aggregate
revenues and cost of service (including financing costs and its proposed return
on equity) for its Transmission Business for the succeeding financial year in
the manner and form prescribed by the Commission from time to time. (b)
If the report referred to in Regulation 19.3(a) indicates
a significant difference between its expected aggregate revenues and its
expected cost of service, either surplus or deficit the Licensee shall submit
with its report an explanation of the measures it proposes to take, including
any proposed tariff amendments, to eliminate the difference or disposal of
surplus. (c)
If the transmission licensee fails to submit the ARR
within the period specified above or any extension thereof granted by the
Commission, the Commission may impose fine up to an extent of 0.5% of the
aggregate Revenue Requirement which would be disallowed from the ensuing year
aggregate revenue requirement. (d)
The transmission licensee shall pay to the distribution licensee
concerned, as provided in sections 39 and 40 read with sub-section (2) of
section 42, of the Act, the amount of surcharge if any permitted to be
recovered by the transmission licensee in the case of transmission of
electricity to the consumer as directed by the Commission. (21)
Amendments of Tariffs and Charges 20.1 The transmission licensee shall apply to the
Commission to amend its tariffs in accordance with the Act if the Commission so
requires, in order to remove any undue discrimination identified by the
Commission or to cause the Licensee's expected revenue to correspond to the
amount that it is permitted to recover under this licensee. 20.2 The amount that the transmission licensee is
permitted to recover from its tariffs in any financial year is the amount that
the Commission determines in accordance with Section 62 of the Act. 20.3 The transmission licensee may apply to the
Commission to amend its tariffs in accordance with provision of the Act and
regulations made there under and directions of the Commission. PART
V OTHER
CONDITIONS (22)
Application of the general conditions to the State
Transmission Utility- The
provisions of these regulations shall apply to the State Transmission Utility
save as the provisions relating to revocation of the transmission licence as
per HERC (Transmission and Distribution Licensing) Regulation No. HERC/09/2004,
functions of State Load Despatch Centre under section 32 of the Act and
activities of the State Transmission Utility under clauses (b) and (c) of
sub-section (2) of section 39 of the Act. (23)
Provisions applicable to Licensees 22.1 Upon the expiry of one year from the date of commencement
of the Act 'the effective date', the provisions of the Act and the rules and
regulations thereunder shall be applicable to a licensee under the first
proviso to Section 14 of the Act. Provided
that the conditions of licence specified in PART- II of these Regulations shall
be deemed to be the general conditions of licence for such licensee as on the
effective date. Provided
however that the period of licence of such licensee shall be such period as may
be stipulated in the licence, clearance or approval granted to such licensee
under the repealed laws or such Act specified in the Schedule to the Act and
where no period has been so stipulated, the period of licence of such licensee
shall be a period of twenty five (25) years from the date of commencement of
the Act: Provided
also that the conditions or stipulations contained in the licence, clearance or
approval granted to such licensee under the repealed laws or such Act specified
in the Schedule to the Act which are not specified in PART-II of these
Regulations and are not inconsistent with the provisions of the Act and the
rules and regulations made thereunder shall be deemed to be the specific
conditions of licence as at the effective date. 22.2 Every licensee under the first proviso to Section 14
of the Act shall, within one month from the date of notification of these
Regulations, submit his licence for alteration or modification by the
Commission in order to bring such licence into conformity with the provisions
of the Act and the rules and regulations thereunder: Provided
that so long as the licence of a licensee referred to in the first proviso to
section 14 of the Act is sub judice before the Commission or any court of
law/tribunal or arbitrator or any other authority as at the effective date,
wherein the licensee is a party, such licensee shall maintain status quo in
terms of any order or direction given to such licensee by the Commission or any
court of law/tribunal or arbitrator or any other authority until any final
order or direction is passed by the Commission or any court of law/tribunal or
arbitrator or any other authority: Provided
further that any such alteration or modification to the licence shall be made
in accordance with the provisions of the Act and rules and regulations made thereunder
and any final order or direction passed by the Commission or any court of
law/tribunal or arbitrator or any other authority referred to in the first
proviso above: Provided
also that no such alterations or modifications shall be made except with the
consent of the licensee unless such consent has, in the opinion of the
Commission, been unreasonably withheld. 22.3 Where the State Government has published a transfer
scheme in accordance with Part XIII of the Act, the Government Company or
company vested with any property, interest in property, rights and liabilities
by virtue of such transfer scheme shall not be required to comply with the
procedure contained in these Regulations for grant of licence. (24)
Powers of the Licensee Failure
to exercise any power granted to the transmission licensee under the provisions
of the Act, the Regulations and/or conditions of licensee in a situation where
it is warranted shall be construed as a breach of the conditions of licence. (25)
Introduction of Competition 24.1. The Commission may grant licence to any person (s)
to transmit electricity in the same area as that of licensee or any other area
in the State of Haryana. The licensee shall not claim any exclusivity. 24.2. The Licensee shall not enter into any agreement or
abuse its dominant position or enter into a collaboration that is likely to
cause or causes an adverse effect on competition in the electricity industry.
The Commission shall have power to decide whether any agreement or act of the
licensee is likely to cause or causes an adverse effect on competition in the
electric industry in the State. The decision of the Commission shall be final
in this regard. (26)
Miscellaneous- 25.1. All issues arising in relation to interpretation of
these regulations and as to the terms and conditions thereof shall be a matter
for the determination of the Commission and the decision of the Commission on
such issues shall be final, however subject to the right of appeal under
section 111 of the Act. 25.2. The Commission may, at the time of grant of
transmission licence, waive or modify the application of any of the provisions
of these regulations either in the order granting the licence or by specific
conditions made applicable to a specific transmission licence. (27)
Savings 26.1. Nothing in these Regulations shall be deemed to
limit or otherwise affect the power of the Commission to make such orders as
may be necessary to meet the ends of justice or to prevent abuse of process of
the Commission. 26.2. Nothing in these Regulations shall bar the
Commission from adopting a procedure at variance with any of the provisions of
these Regulations, if the Commission, in view of the special circumstances of a
matter or class of matters and for reasons to be recorded in writing, deems it
necessary or expedient in order to deal with such a matter or class of matters. 26.3. Nothing in these Regulations shall, expressly or
impliedly, bar the Commission from dealing with any matter or exercising any
power under the Act, and the Commission may deal with such matters, and
exercise such powers and functions in such manner as it deems fit. (Description of the area of Supply for the
Licence under
consideration)......................................................................................
However, for cantonment, aerodrome, fortress, arsenal, dockyard or camp or any
building or place in occupation of the Central Government for defence purpose,
the license will be effective only upon production of a no objection
certificate from the Central Government.HARYANA ELECTRICITY REGULATORY COMMISSION
(CONDITIONS OF TRANSMISSION LICENCE) REGULATIONS, 2008
PREAMBLE