Closing down of generating stations other than controlled stations

THE THIRD SCHEDULE CLOSING DOWN OF GENERATING STATIONS OTHER THAN CONTROLLED STATIONS I. Where the Board proposes under section 31 permanently to close down a generating station other than a controlled station, it shall give the licensee owning the station not less than six months' notice in writing expiring at the end of any year of account that from the first day of the next succeeding year of account (hereinafter in this Schedule referred to as the date of closing down) the station shall be permanently closed down. II. From the date of closing down, the Board shall be under obligation to supply to the licensee, except where prevented by causes beyond its control, and the licensee shall be under obligation to take from the Board, the whole of the electricity required by the licensee for the purposes of his undertaking except such quantity of electricity as the licensee may for the time being be entitled under paragraph III to purchase from a source other than the Board or as he may be generating in another station, not being a controlled station. III. Unless otherwise agreed between the Board and the licensee, the licensee shall not, where he has received notice under paragraph I, purchase after the date of closing down any quantity of electricity from a source other than the Board : Provided that where on the date of the receipt of such notice the licensee is bound under any contract to purchase any quantity of electricity from some other source, he may, for a period not exceeding two years after the date of closing down or for such further period, if any, as the Board may allow, continue to purchase electricity under the said contract from such other source. IV. (1) The point at which electricity to be supplied by the Board shall be delivered to the licensee shall be at the licensee's generating station and the pressure of supply shall be such as may be agreed between the Board and the licensee. (2) The Board shall bear the whole of the cost of the service apparatus required for making the supply available to the licensee. V. The licensee shall have option to be exercised by a date not later than three months prior to the date of closing down, either- (a) (i) to sell the station at any time after the date of closing down, and (ii) to purchase the whole of the electricity supplied to him by the Board at the Grid Tariff, or (b) (i) to require the Board to purchase the station or the entire undertaking at the date of closing down at a price determined under the Fourth Schedule, and (ii) to purchase the whole of the electricity supplied to him by the Board on the terms hereinafter set out in this Schedule. VI. Where a licensee exercises his option under paragraph V in terms of clause (b) thereof, the Board shall comply with the requirement to purchase under sub-clause (i) of that clause and the following provisions of this Schedule shall apply- VII. As soon as practicable after the licensee has exercised his option as aforesaid, there shall be ascertained and agreed between him and the Board the following quantities in respect of each year of account subsequent to the date of closing down, namely :- (a) The maximum capacity of the station, that is to say, the maximum capacity (expressed in kilowatts available for supply to feeders) of such plant and works appertaining to generation of electricity at the date of closing down as would have been available for reliable and regular commercial operation on the first day of the year of account, had the station not been closed down under this Schedule and had no replacement of any major item of such plant or works been carried out subsequent to the date of closing down. (b) The number and size of units of plant and works forming part of the aforesaid plant and works, which would have represented reasonable standby in the station. (c) The standby capacity of the station, that is to say, the number of kilowatts (expressed in kilowatts available for supply to feeders) by which the maximum capacity of the station would be reduced if the standby plant and works referred to in clause (b) were to be left out of account. (d) The agreed effective capacity of the station, that is to say, the number of kilowatts by which the maximum capacity exceeds the standby capacity. VIII. As soon as practicable after the date of closing down there shall be ascertained in agreement between the Board and the licensee in respect of each of the three consecutive years of account immediately preceding the date of closing down (hereinafter in this Schedule referred to as the basic years)- (a) the sums expended by the licensee and wholly attributable to the generation of electricity under the following heads, namely :- (i) fuel ; (ii) oil, water, and stores consumed ; (iii) salaries and wages and any contribution by the licensee for pensions, provident fund, superannuation and insurance of officers and servants ; (iv) repairs and maintenance and renewals not chargeable to capital account ; (v) management, rents and taxes (including super-tax payable by the licensee as a company, but excluding other taxes on profits) insurance of plant and general establishment charges ; (vi) any other expense on revenue account ; (b) the actual effective capacity of the station on the first day of each such year agreed in accordance with the principles set out in paragraph IX of the First Schedule. IX. As soon as practicable after the beginning of each year of account there shall be ascertained in respect of that year such annual charges by way of interest and depreciation attributable to the assets purchased by the Board under this Schedule as would have resulted from the application of clauses (e) and (f) of paragraph I of the Eighth Schedule, had those assets remained in the ownership of the licensee. X. The licensee shall be entitled to purchase from the Board in each year of account at a price determined under paragraph XI- (a) a number of kilowatts not exceeding the agreed effective capacity ascertained in respect of that year under paragraph VII, and (b) a number of kilowatt-hours not exceeding the number of kilowatt-hours which bears the same proportion to the total number of kilowatt-hours required by the licensee in that year for the purposes of his undertaking as the agreed effective capacity ascertained in respect of that year bears to the total maximum demand of the licensee in that year for the said purposes. XI. The price payable by the licensee in respect of each year of account for the quantity of electricity specified in paragraph X shall be- (a) in respect of kilowatts, a fixed charge equal to the sum of- (i) an amount calculated from the expression "A X B C" (ii) an amount calculated from the expression "D X B C" (iii) the annual charges by way of interest and depreciation ascertained in respect of the year of account under paragraph IX, where- A = one-third of the total costs during the basic years under heads (ii), (iii), (iv) and (vi) set out in clause (a) of paragraph VIII ; B = the agreed effective capacity for the year of account ; C = one-third of the sum of the actual effective capacities ascertained under clause (b) of paragraph VIII for each of the basic years ; D = one-third of the total costs during the basic years under head (v) set out in clause (b) of paragraph VIII ; (b) in respect of kilowatt-hours, a running charge per kilowatt-hour ascertained- (i) by multiplying the total number of tons of fuel consumed in the station in the basic years by the estimate agreed between the Board and the licensee of the cost per ton which would have been incurred in delivering and handling the same quantity of fuel of equivalent calorific value to the furnaces in the station during the year of account, had the station remained in the ownership of the licensee, and (ii) by dividing the total cost so found by the total number of units sent out from the station in the basic years. XII. The price payable by the licensee for all electricity supplied to him by the Board in excess of the quantity specified in paragraph X shall be the Grid Tariff. XIII. The licensee shall have the right at any time on giving the Board prior notice in writing expiring at the end of a year of account of purchase at the Grid Tariff the whole of the electricity supplied to him by the Board : Provided that the Board in those circumstances may make it a condition that the licensee shall, until the date on which the agreed effective capacity of the station becomes nil, pay to the Board in each year of account in addition to the Grid Tariff a sum equal to such proportion as the Board may fix of the annual charges by way of interest and depreciation ascertained in respect of the year under paragraph IX : Provided further that after the expiration of the said notice, the licensee shall not be entitled any time to purchase electricity from the Board at the price ascertained under paragraph XI.