Powers of the Board to supply Electricity

Powers of the Board to supply Electricity.-(1) The Board may, subject to provisions of this Act, supply electricity to any licensee or person requiring such supply in any area in which a scheme sanctioned under Chapter IV is in force : Provided that the Board shall not-

1. (a) supply electricity for any purpose directly to any licensee for use in any part of the area of the supply of a bulk licensee without the consent of the bulk licensee, unless the licensee to be supplied has an absolute right to veto on any right of the bulk licensee to supply electricity for such purposes in the said part of such area or unless the bulk licensee is unable or unwilling to supply electricity for such purpose in the said part of such area on reasonable terms and conditions and within a reasonable time ; or
2. (b) supply electricity for any purpose to any person, not being a licensee for use in any part of the area of supply of a licensee without the consent of the licensee, unless-
   • (i) the actual effective capacity of the licensee's generating station computed in accordance with paragraph IX of the first Schedule at the time when such supply was required was less than twice the maximum demand asked for by any such person ; or
   • (ii) the maximum demand of the licensee, being a distributing licensee and taking a supply of energy in bulk, is, at the time of the request, less than twice the maximum demand asked for by any such person ; or
   • (iii) the licensee is unable or unwilling to supply electricity for such purpose in the said part of such area on reasonable terms and conditions and within a reasonable time.

1. (2) After the Board has declared its intention to supply electricity for any purpose in any area, for which purpose and in which area it is under this section competent to supply electricity, no licensee shall, the provisions of his licence notwithstanding, at any time be entitled without the consent of the Board to supply electricity for that purpose in that area.
2. (3) For the purposes of sub-section (1) "Absolute right of Veto" means an unqualified right vested in a licensee by virtue of any law, Licence or other instrument whereby a bulk licensee is prevented from supplying electricity in any specified area without the consent of the licensee in whom the right of veto vests.
3. (4) If any question arises under sub-section (1) as to the reasonableness of the terms or conditions or time therein mentioned, it shall be determined as provided in section 72.