Rating committees

The Jammu and Kashmir Electricity (Supply) Act, 1971

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Statutory text

(1) Where the provisions of the Sixth Schedule and the Seventh Schedule are under section 52 deemed to be incorporated in the licence of any licensee, the following provisions shall have effect in relation to the said licensee, namely :—
- (a) the Board—
  - (i) may, if satisfied that the licensee has failed to comply with any of the provisions of the Sixth Schedule ; and
  - (ii) shall, when so requested by the licensee in writing, constitute a rating committee to examine the licensee's charges for the supply of electricity and to make recommendations in that behalf to the Government : Provided that where it is proposed to constitute a rating committee under this section on account of the failure of the licensee to comply with any provisions of the Sixth Schedule, such committee shall not be constituted unless the licensee has been given a notice in writing of thirty clear days which period if the circumstances so warrant may be extended from time to time to show cause against the action proposed to be taken : Provided further that no such rating committee shall be constituted if the alleged failure of the licensee to comply with any provisions of the Sixth Schedule raises any dispute or difference as to the interpretation of the said provisions or any matter arising therefrom and such difference or dispute has been referred by the licensee to the arbitration under paragraph XVI of that Schedule before the notice referred to in the preceding proviso was given or is so referred within the period of the said notice : Provided also that no rating committee shall be constituted in respect of a licensee within three years from the date on which such a committee has reported in respect of that licensee, unless the Government declares that in its opinion circumstances have arisen rendering the orders passed on the recommendations of the previous rating committee unfair to the licensee or any of his consumers ;
- (b) a rating committee under clause (a) shall—
  - (i) where such committee is to be constituted under sub-clause (i) of that clause, be constituted not later than three months after the expiry of the notice referred to in the first proviso to that clause ;
  - (ii) where such committee is to be constituted at the request of the licensee, be constituted within three months of the date of such request ;
- (c) a rating committee shall, after giving the licensee a reasonable opportunity of being heard and after taking into consideration the efficiency of operation and management and the potentialities of his undertaking, report to the Government within three months from the date of its constitution making recommendations, with reasons therefor, regarding the charges for electricity which the licensee may make to any class or classes of consumers so, however, that the recommendations are not likely to prevent the licensee from earning clear profit sufficient when taken with the sums available in the Tariffs and Dividends Control Reserve to afford him a reasonable return as defined in the Sixth Schedule during his next succeeding three years of account : Provided that the Government may, if it so deems necessary, extend the said period of three months by a further period not exceeding three months within which the report of the rating committee may be submitted to it ;
- (d) within one month after the receipt of the report under clause (c), the Government shall cause the report to be published in the Government Gazette and may at the same time make an order in accordance therewith fixing the licensee's charges for the supply of electricity with effect from such date, not earlier than two months or later than three months, after the date of publication of the report as may be specified in the order and the licensee shall forthwith give effect to such order ;
- (e) the charges for the supply of electricity fixed under clause (d) shall be in operation for such period not exceeding three years as the Government may specify in the order : Provided that nothing in this clause shall be deemed to prevent a licensee from reducing at any time any charges so fixed.
(2) The rating committee shall consist of three members as follows :—
- (i) one member shall be nominated by the Government who shall be a person who is a judicial officer not below the rank of a District Judge ;
- (ii) one member shall be a member of the Board having experience of accounting and financial matters ; and
- (iii) one member shall be a representative co-opted jointly by the two members referred to in clauses (i) and (ii) from an association of licensees of which the licensee concerned is or is eligible to be a member and if there is no such association, from such Chamber of Commerce or similar body as the Government may direct.
(3) The judicial member of rating committee shall be its Chairman.
(4) A rating committee may act notwithstanding that one of its members is absent.
(5) The expenditure incurred in connection with a rating committee as certified by it shall be payable—
- (a) where the rating committee was constituted at the request of a licensee, or where the rating committee has held that the licensee has failed to comply with any of the provisions of the Sixth Schedule, by the licensee from that part of the clear profit to which the licensee is entitled under that Schedule ;
- (b) in any other case, by the Board.
(6) Where a licensee makes default in paying any amount which he is liable to pay under sub-section (5), such amount may, on a certificate being issued by the Board, be recovered as arrears of land revenue.

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