The Odisha Electricity Reforms Act, 1995

(1) This Act may be called the Orissa Electricity Reform Act, 1995 (2) It extends to the whole of the State of Orissa (3) It shall come into force on such date as the State Government may by notification, appoint.

In this Act, unless the context otherwise requires,- (a) "Area of transmission" means the area within which the holder of a transmission licence is for the time being authorised by licence to transmit energy; (b) "Commission" means the Orissa Electricity Regulatory Commission constituted under sub-section (1) of Section 3; (c) "Gridco" means the Grid Corporation of Orissa Limited as referred to in Section 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 Act, 1956 with effect from the twenty-first day of April, 1995; (e) "licence" means a licence granted under Chapter VI (f) "licensee" or "licence holder" means a person licenced under Chapter VI to transmit or supply energy including Gridco; (g) "prescribed" means prescribed by the rules or regulations; (h) "Public Service Commission" means the Public Service Commission for the State of Orissa established pursuant to article 315 of the Constitution of India; (i) "regulation" means regulations made by the Commission under this Act; (j) "relative" means the relative as defined under Section 6 of the Companies Act, 1956; (k) "rules" means rules made by the State Government under this Act; (l) "selection committee" means the selection committee constituted under Section 4; (m) "State" means State of Orissa; (n) "State Government" means the Government of the State; (o) "supply licence" means a licence under clause (b) of sub-section (1) of Section 15; (p) "transmission licence" means a licence under clause (a) of sub-section (1) of Section 15; (q) "transmit" 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 extra high tension lines and electrical plant and is used for transforming and for conveying or transferring electricity from a generating station to a sub-station, from one generating station to another or from one sub-station to another or otherwise from one place to another; (r) words and expression used but not defined in this Act and defined in the Electricity (Supply) Act, 1948 shall have the meanings respectively assigned to them in that Act; (s) words and expression used but not defined either in this Act or in the Electricity (Supply) Act, 1948 and defined in the Indian Electricity Act, 1910 shall have the meanings respectively assigned to them in that Act.

(1) For the purposes of this Act, the State Government shall, within 3 months of the commencement of this Act, establish, by notification, a Commission to be known as the Orissa Electricity Regulatory Commission, which shall be a body corporate with perpetual succession and a common seal with power to acquire and hold property, movable and immovable, and shall by the said name be entitled to sue and be sued. (2) The Commission shall consist of three members to be appointed by the State Government from persons selected by the selection committee constituted for the purpose. (3) The State Government shall, as per the recommendation of the selection committee, designate one of the members as the Chairman of the Commission but, until such designation, the most senior member of the Commission shall act as Chairman, such seniority being reckoned from the date of joining of the Commission by the members. (4) When the Chairman of the Commission is unable to discharge the functions owing to absence, illness or any other cause, the senior most member of the Commission shall discharge the functions of the Chairman, until the day, on which the Chairman assumes the charge of his functions. (5) No act or proceedings of the Commission shall be invalid by reason only of the existence of any vacancy among its member, or any defect in the constitution thereof. (6) The method and manner of selection and appointment of members of the Commission and designation of one of the members as Chairman shall be such as may be prescribed by rules.

(1) The State Government shall expeditiously constitute a selection committee, as often as may be required, to select persons for appointment as members of the Commission. (2) The selection committee shall consist of three members, namely:- (a) the Chairman of the Public Service Commission, who shall be the Chairman of the selection committee; (b) the Secretary incharge of the Department of Energy, State Government, who shall be the Convenor of the selection committee; and (c) the Chairman or any member of the Central Electricity Authority designated for the purpose from time to time. (3) The selection committee shall act expeditiously and shall generally finalise the selection within a period of two months to enable the State Government to make the final selection and appointment in time for the new member to take effective charge at the expiry of the term of the retiring member. (4) The selection committee shall select two suitable persons for each vacancy in the Commission who have such qualification and experience as provided in this Act and notify to the State Government of the persons so shortlisted by the selection committee. (5) The decisions of the selection committee shall be by majority. (6) The State Government shall appoint one of the two candidates shortlisted by the selection committee as a member of the Commission.

(1) The members of the Commission shall be persons of ability, integrity and standing who have adequate knowledge or experience of, or have shown capacity in, dealing with problems relating to engineering, economics, commerce, accountancy, law or administration and further that, at all times:- (a) at least one member of the Commission shall be an electrical engineer with experience of generation, transmission, distribution or supply of electricity; and (b) at least one member of the Commission shall have qualification in, and experience of, any of the disciplines of economics, commerce, accountancy, law or administration. (2) The selection and appointment of the members of the Commission shall at all times be made strictly in accordance with the qualification and experience mentioned in this section. (3) A person shall be disqualified from being appointed as a member of the Commission, if he is a member of Parliament or of any State Legislature or any local authority or holds any post in a political party, or if he has any financial or other interest, directly or indirectly, in any private company or undertaking dealing with any of the businesses referred to in clause (a) of subsection (4): (4) The persons who are considered for appointment as members of the Commission shall notify the convenor of the selection committee:- (a) of any office, employment or consultancy agreement 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 businesses:- (i) Generation, transmission, distribution or supply of electricity; (ii) Manufacture, sale or supply of any fuel for generation of electricity; (iii) Manufacture, sale, lease, hire or otherwise supply of or dealing in machinery, plant, equipment, apparatus or fittings for the generation, transmission, distribution, supply or use of electricity; and (iv) any providing services to any of the business referred to in sub-clauses (i), (ii) and (iii) above. (b) Of such other details and information as may be prescribed in the rules. (5) All details received from the persons referred to in sub-section (4) shall be placed for consideration of the selection committee at the time of selection and recommendation of the person for appointment as member of the Commission. (6) Each member of the Commission shall, before taking charge of the office as member divest, himself from the interest in all or any of the businesses mentioned in (4) as a condition of his appointment. (7) If a person to be appointed as a member of the commission holds any office under the State Government or Central Government or in any public sector corporation of Government body he shall submit his resignation or take voluntary retirement from that service and shall not seek reappointment in the service of the State Government, the Central Government, any public sector corporation or Government body at any time after he ceases to be a member of the Commission. (8) So long as the person holds the office of a member of the Commission and after he ceases to be a member of the Commission for any reason whatsoever, he shall not acquire, hold or maintain, directly or indirectly any office, employment or consultancy arrangement or business as mentioned in subsection (4) and if he acquires any such interest involuntarily or by way of succession or testamentary disposition he will divest himself from such interest within a period of two months of such interest being acquired. (9) Before appointing any person as a member of the Commission, the state Government shall satisfy itself that the person does not have any financial or other interest as referred to in sub-section (3).

(1) Every member of the Commission shall hold office for a period of five years from the date he assumes office and he shall not be eligible for reappointment at any time after the expiry of his term of appointment: Provided that the first three members of the Commission shall be appointed for varying periods of three years, four years and five years respectively so as to avoid the retirement of all the members of the Commission at the same time and ensure continuity in the functioning of the Commission: Provided further that no member of the Commission shall be appointed or shall hold office after he has attained the age of sixty-two years. (2) Subject to the provisions in the Schedule, the Chairman of the Commissions and other members of the Commission shall receive such remuneration and other allowances and shall be governed by such conditions of service as may be prescribed under the rules. (3) The Chairman of the Commission and every other member of the Commission shall, before entering upon his office, make and subscribe an oath of office and of secrecy in such form, in such manner and before such authority as may be prescribed by rules.

(1) The State Government may, after giving an opportunity of being heard, remove from office any member of the Commission, subject to the provisions of subsection (2), who- (a) has been adjudged insolvent, or (b) has been convicted of an offence involving moral turpitude, or (c) has become physically or mentally incapable of acting as such member, or (d) has without reasonable cause refused or failed to act continuously for a period of three months or more, or (e) ceases to fulfil any of the conditions of his appointment as member, or (f) has acquired such financial or other interest that can affect prejudicially his functions as a member, or (g) has conducted himself in a manner or has so abused his position as to render his continuance in office prejudicial to the public interest or to the objects and purposes of the Act. (2) Except where a member admits the charge, in writing, no member of the Commission shall be removed from his office on the ground specified in clauses (c), (d), (f) and (g) of sub-section (1), until a sitting judge of the High Court of Judicature of Orissa, as recommended by the Chief Justice of the High Court at relevant time, has carried out an investigation and submitted a report. (3) The State Government shall communicate its decision to the member concerned within a period of two months of the receipt of the report. (4) A member who has been removed shall not be eligible for reappointment as a member or in any other capacity in the Commission. (5) If the member removed under this section is the Chairman of the Commission, he shall also cease to be the Chairman of the Commission. (6) The vacancy caused by the removal of the member shall be filled in the same manner as provided for the appointment of a member or designation of the Chairman of the Commission.

(1) The Commission shall appoint a person as Secretary of the Commission to assist the Commission to discharge its functions. (2) The Commission shall, with the approval of the State Government, determine the number, nature and categories of other officers and employees required to assist the Commission in the discharge of its functions. (3) The salaries and allowances payable to members of the Commission and the administrative expenses, including salaries, allowances and pensions payable to or in respect of the Secretary, officers and other employees of the Commission, shall be charged to the consolidated fund of the State. (4) The method and manner of selection of the Secretary, officers and other employees of the Commission and the terms and conditions of their service may be prescribed by the Commission by regulations with the previous approval of the State Government. (5) The Commission shall be entitled to appoint, from time to time, consultants required to assist the Commission in the discharge of its functions on term and conditions to be decided by the Commission.

(1) The headquarters of the Commission shall be at Bhubaneswar but the Commission shall be entitled to conduct its proceedings, consultations and hearings in other places in the State. (2) The commission shall have the power under sub-section (1) of section 54 to frame regulations for the conduct of its proceedings and discharge of its function. (3) In case of a difference of opinion among the members of the Commission, the opinion of the majority 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 Commission shall have one vote only and the Chairman shall have no casting or second vote. (4) The quorum for the meeting of the Commission shall be two, but in the case of a meeting of the Commission to review any previous decision taken by the Commission or for consideration of any issue which could not be decided on account of equality of votes in favour of or against the resolution proposed or where the issue considered at a meeting in which only two members of the Commission 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 member or members. (5) The Chairman of the Commission may instruct the Secretary to call a meeting of the Commission to be held at such time and at such place as the Chairman may direct and also any member of the Commission may request a meeting of the Commission at any time by sending a notice in writing to the other members and with a copy to the Secretary. (6) All decisions, directions and orders of the Commission shall be in writing and shall be supported by reasons and the decisions, directions and orders of the Commission shall be available for inspection by any person and copies of the same shall also be made available to such person in the manner prescribed by regulations.

(1) The Commission shall, for the purposes of any inquiry or proceedings under this Act, have the powers as are vested in Civil Court under the Code of Civil Procedure, 1908 while trying a suit in respect of the following matters, namely:- (a) the summoning and enforcing the attendance of any witness and examining him on oath; (b) the discovery and production of any document or other material object producible as evidence; (c) the reception of evidence on affidavits; (d) the requisition of any public record from any office; (e) the issuing of any commission for examination of witnesses; and (f) the review of its decisions, directions and orders. (2) The Commission shall have the power to require any person- (a) to produce before, and allow to be examined and kept by an officer of the Commission specified in this behalf, such books, accounts, or other documents in the custody or under the control of the person so required as may be specified or described in the requisition, being documents relating to any matter concerning the generation, transmission, distribution and supply or use of electricity, the functioning of any undertaking involved in the above areas and other matters, the examination of which may be required by the Commission for the purpose of this Act; and (b) to furnish to an officer so specified such information as may be required for the purposes of this Act or such other information as may be in his possession in relation to any activity carried on by any other person. (3) Where, during any inquiry or proceedings under this Act, the Commission has any grounds to believe that any books or papers or documents of, or relating to any unit or person in relation to which such inquiry is being made or which the owner of such unit may be required to produce in such inquiry, are being, or may be, destroyed, mutilated, altered, falsified or secreted, it may, by a written order, authorise any officer of the Commission to exercise the same powers of entry, search and seizure as may be exercised by an Inspector under sections 240 and 240-A of the Companies Act, 1956. (4) Notwithstanding anything contained in any other law for the time being in force, the Commission may, by a general or special order, call upon any person including the generating companies or the licensee to furnish to the commission periodically, or as and when required, any information concerning the activities carried on by such person related to generation, transmission, distribution and supply or use of electricity, the connection between such person and any other person or undertaking including such other information relating to the organisation, business and cost of production to enable the Commission to carry out its functions under this Act. (5) In the discharge of its functions the Commission shall be entitled to, and may, consult to the extent the Commission considers appropriate from time to time such persons or group of persons who may be affected or likely to be affected by the decisions of the Commission. (6) The Commission may call for information, details, books, accounts and other documents from any person or licensee and make inquiry for the purposes of providing the same to the Central Electricity Authority, the Central Government and the State Government when so required by them. (7) All persons to whom notices may be issued pursuant to this Act shall duly, faithfully and effectively furnish the information, details, books, accounts and other documents, which the Commission considers relevant in connection with its functions under this Act or which may be required to be obtained at the directions of the Central Electricity Authority, the Central Government or the State Government and shall be proceeded, with and punishable under section 41 for any failure to comply with such requirement.

11. (1) Subject to the provisions of Ibis Act, the Commission shall be responsible to discharge, amcngst olhcrs, the foll~rvi ng functions, namely: - (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~ss and progrtssively involve' the participa~ion of I he private sector, while ensuring a fair deal for the custc mers; (gl to cd~~ect data ~ n d forecast on the demand f c r and use of electricity and to require the' licensees 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.

12. (1) The State Government shall have the power to issue policy directives on matters concerning electricity in the State including the overall planning and a - o r d m tion 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~aes granted.

13. (1) The Grid Corporatian of Orissa Limited ~ncorporated under the provisions . of ihe Companies Act, 1956 with effect from the 20th day of April, I995 with tlte 1 o l 1956 %'dm. main object< of engaging io the business of procurcaent, transrnissi~o and 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~e State 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~ictionlj cpeci6ed 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?;sioa may grant ljcences under the lcrms of this Act to such Grid companies in consultation with Gndco.

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 i s not engaged or about to engage In the business of trans~~mitting or &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) ~ o t h i t h s t anding 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.

15. (I) The Commission may on an application mode in such form and on paymcnt of such fee as may be pescribed by regulatbns, grant a licence authorising nng person to- (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 c l licence under sub-section (1), the following proviuns ,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~ed within &rce mo~tbs from 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 L r 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 Commission shall, if in its opinion the objection is i M c i e n t , 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~ion passed 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 generaiit y 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 ~ i v e n by 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) undertake 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, v a ~ iations or cxceptians which tbc Commissiofr Is empowered to make havins rcgard to the purposes of the Act, apply to the undertskrng authorised by thc licence in rclation t o its activitjcs in the Stata : Provided that where a supply licence is granted by the Commission for the supply of coergy to. 0 t h licensees 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 condlt~ons to cease to have effect or be modified at such .times, in such manner and in such arcurnstances as may be specified therein. (7) Any 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 I i k ~ purpose 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 ~omrnission may 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 requirement to have a licncc, but subject to compliance with such conditions, if any, as may be specified in the regulations : 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 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-further that, 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 i f 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. (4) An exemption. unless prqviously revoked, shall continue in force for such period as be specified in or determined by or under the exemption.

17. (1) It shall be the duty of the holder of a supply licence or a transmission 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~sion, as 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 ,f 1910. licence to transmit or suppIy electricity, as if it were a licensee under the said Act. (4) Where any. of the sections mentioned in sub-section (3) is applied to a l i ~ n c e holder by its licence, it shall have effect subject to -such restrictions, exceptions and conditions a s may be included in the licence.

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 Electr1cit Act, 1910 or ihe Electricity (supply) or lHO d Act, 194% the rules or regulat~ons ma 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 his 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, ~f any, 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 o n which it is proposed to revoke the licence and has considered any cause shown by the licensee within the period of that notice, agaiofit the proposed revocation. (5) n e ' Commission 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 t c m s 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.

19. (I) The Commission ma, whcre in ils opinion the public interest so permit1 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~erc the licensee bas made an application under sub-section (I) proposing any alterat ions or amendmcnts to its licence, the foHot~ing p i ~ ~ i s i c n s shall 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~ment for defence purposes! the Commission shall not make any alterations or amendments . except w ~ t h the 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:

20. (1) ~okithstandiog the provision6 of sections 6 and 7 oi the Indian Electricity Act, 1910, where the Commissicn revokes a licence, under sect ion 18 the following 9 1910. provisions shall 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~mmission may 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 the 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' such 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~dertaking for 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 - sub-sect-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.

21.(1)Nolicenseeor Generating Companyshalt,at anytime,withoutthe consent in writing of the Commissjon, aquire by purchase or otherwise the licence or thc undertaking of, or assoc~ate himself with, so far as the business of geoerating,trsnsmiiting, dislributiqn or supply of cne~gy is 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% applies 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 .by 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.

22. (1) Every licansm shall, unless expressly exempted by its liccnce. prepare and render ta the Cammissian, an or before the 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 ~ t s h w c e 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~.

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 p*Omffes, , to give effect the objecls and purpOSes of this Act, is -published, (hereinafter referred to as tho &e,ctive date), m y property, interest in Property, right3 and liabilities which immediately before acid dutlea the effective data - belong to the Board, shall Vest in the State Government, on such terms as m a be agreed between the Stale Government and the Bo~rd.

(1) The State Government may by a transfer scheme provide for the transfer of the personnel to Gridco and OHPC, an thc vesting of rte pro~erlies, rights 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 or any other law as is applicable, and except for the provisions madc in this Act, the transfer of the employment of the personnel referred to in sub-section (1) shall not entitlc such ernployee6 to any 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. (4) For 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 the Board and otl~cr persons 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.

(1) The State Government may provide that the transfers in lerms of sectiohs 23 aad 24 shall be provisional for a pcriod of twelvc months form the effective date 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 that if such other licensee is a person or an undertaking not wholly owned by tl~c State Government, the Commission shall give effcct to the transrer only for fair velue to be paid by the transferee to the State Government.

(1) The holder of each licence granted under tbis Act shall observe the methodologies and procedures specified by the Commission from time to tima in calculaline the expected revenue from charges 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 the Commission considers appr~priate and, for doing so, the- Coinmission 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 thereto; (b) the factors whicb would encourage efficiency, economic use of the recourwS, good performance, optimum investments, performance af liccnse 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 the Electricil~ (Supp!pl~) Acl, 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 i n such manncr as may b- p-rescribed in the regulations, full details of it.; calculat~on for the en suing financial year-of the ~ ~ p e ~ t e d aggregate 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 of 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 (b) 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, or 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. (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 tariff or amendment to a,tariff to tile Commissi~n, together 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 ~njthing contained 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 commencement of this Act and the Commission shall securc that licensees comply 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. Explanation:- In this section, (a) "the expccted rcvenlre from charpes" means the total revenue wbich a licensce i s expected to rccover from charge: for thc {eve1 of forecost supp!y used in the Bet2rrnination under sub-section (4) in m y financial year in respect of goods or scrvices supplied to customers pursuant to a licensed activity; and (b) "tariff'! mcans a schedule of slandard prices or charges for specified services which are applicable to all such specified services provided to the type or types of customers specified in the tariff.

(1) The St a t ~ Goverruent may from time to time, make subventions to any licensee for thc purpose of sub-section (3) of ~ection 12 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 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~cr financial obligation of any sucli liccnsze or generating company : Provided that the State Governmcnt shall, so long as such guarantee is in force1 lay before the State Legislai ure during the b~rdget-session in 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 ~ i d out. (4) The State Government shall be entilled to inspect and verify the accounts of every liceniec and generating company.

(1) Wiicre t bc Commission is satisfied that a licensee is contravening; or is likely to coqtmvenc n ny relevant conditions or requils~~cnt of its licence, it shall by f i n ~ l order 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- (a) [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; (b) thc extent to rvhicb any Person is likely to sustain loss or danlage in consequence of anything which is likely to* be done or omittcd to be done in contravention of the relevant condition or requirement, before a finaI order t a n be made; and (c) the extent to which there is any other available rcmcdy in respect of the alje~ed contravention of a relevant condition or, requirement. (3) If the C~mrni~sion proposes 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 c proposed 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 d e c t 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~knsiders appropriate - 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.

(1) If the ~mmission!proposcs to 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 h a l order; (b) setting out the information referied to i n 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~wjag publication cf the noticc referrcd to in sub-section (I), except-(a) with the consent to thc modification of the licea~ee to 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 proposed 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 pro 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 s u b section (7) of scction 28. (8) The Commission may revoke a final order at any time, but before revoking a final ordcr the Comn~ission shall give noticc-(n) stating that it propom 10 revoke the order and setting out its cgect; and (b) sp~ifying thc 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 receipt tl~ercof. (9) 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).

(1) Withoul prejudice to section 46 of this Act, all oi4dcrs and directions, i n w rim Or final, passed by the Commission shall be enforceable in law as if it ~vcre a decree passed by a Civil Court. (2) The Commission shall be entitled to take such assistance from the p?Ii* and othr authorities in the Sterc required to dectively enforce the orders and d~reclrons given by it. (3) The Commission shall b= ent illed io g ~ v e directions for vesting. of thc managz- ment and ~antrol of any of the u?dertakiag or tile liccnsce 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: Provided that no direction undcr this sub-s:ction shall be issued without giving the licenscc 3 reasonable op-:ortunity of being heard

(1) The Commission shall b:: entitled to impose such fines a d charges as may be or~scribed by the Commis~i~n in 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~~i~n shall be entitled to impose may extend up to rupees onc lakh for an act of non-compliance or I violation and a futt!lcr amount not exceeding rupees dx thousand for every day during whlch tbe w n-compliance or violation continues. (2) The Commis~ion shall, whilcmaking an interim or final order under this Chapter, be entitled to direc~ compensation to be paid by the person gujIty of violation or non-compliance as provided in i ub-section (I) to ithe person or persons a k t ed by such violation or non-compliance. (3) The fines, charges and compensation wbich may be iinposed by the Commiss~on under 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. Explanation-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.

(1) The Commission shall, 'in consultution wilh the State Govcrnmont, constit utc s. committee to be known as the Commission Advisory. Commitrec, wbich ' I shall consist of such number of persons, not bcing less than fifteen or morc than twenty- one? as the Comlnissjpn may appoint af t ~ r consultation with ,such representatives or bodm reprarcsentative of tlle follow~ng interests as the Commission thinks 64 that is to sxy, holders '01 supply licences in tlrc .State, I~clers of transmission licences in the 'r State, generating companies operating in the State, commerce, i odnst ry, transport, agriculture, labour em~loycd in the electricily supply industry and consumes of electricity: Provided ll~al thcre 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 Cummi3sion Ad~isbry Committee. (3) The Cummi>sion Advisory Cornnlittcc shall mect a1 last once in cvory threc months. (4) Tllc ru~~ctions of the Commission Advisory C~mmil~ee shall he-(a) t o advise the omm mission on major questio~is of policy; and (b) to advisc the Commission on fin?' matters relaling to thc quality, continuity and extent of servicc ~lrcvided by licensees and compliance by licensees with the conditions and requirements of then licenm.

(1) The Commission may, after consultation with the holders of supply licences, other person6 or bodies appearjng to the Commission to be representative of persons and categories of persons ljkeIy tn be nflected and the Commission Advisory 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 ~rivileges of the consumers under any other law including the Consumer Protection Act, 1986.

(1) The ~ o m m i ~ s i o n mny. after consultation with: licensees, the Commission , Advis.ory Committee and with parsons or bodies appearing to it to be representative of persons likely to be dected, from time to time-(a) determine such standards of overall performance in connection 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.

(1) Thc Commission shall, from timc 'to time. collect information with respect to-(a) 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.

(1) Save as othcmjsc proyided in ihis Act, no' confidential information with respect to any particjar busmess wh~ch-(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.

(1) Notwithstanding anything contained in the Arbitration Act, 1940, any dispute arising between licensees or in respect of matters provided under section 33 shall be referred to the Commission. The Commission may proceed to act as arbitrator or nominate arbitrators to adjudicate and settle such dispute. The practice or procedure to be followed in connection with any such adjudication and settlement shall be such as may be prescribed by regulations. (2) Where the award is made by the arbitrator appointed by the Commission it shall be filed before the Commission and the Commission shall be entitled to pass appropriate orders on the award including orders to: (a) confirm and enforce the award; (c) remit the award for reconsideration by the arbitrator. (3) The order passed by the Commission under sub-section (2) shall be a decision or order of the Commission and shall lie appealable as provided in this Act. (4) An award made or an order passed by the Commission under sub-section (2) shall be enforceable as if it were a decree of the Civil Court.

Notwithstanding anything contained in the Indian Electricity Act, 1910 or the Electricity (Supply) Act, 1948, or any rules made thereunder, no appeal shall lie from the decision of an Electrical inspector, other than an Inspector of the Central Government or the Central Electricity Authority, to the Commission.

Any person aggrieved by decision or order of the Commission passed under this Act may file an appeal to the High Court on any question of law arising out of such order within sixty days from the date of communication to him of the decision or order of the Commission.

Whoever, in contravention of the provisions of this Act or the regulations framed under this Act or of the provisions of the Indian Electricity Act, 1910 or the Electricity (Supply) Act, 1948 or the rules framed under the said Acts, engage in the business of transmission or supply or use of energy shall be punishable with imprisonment which may extend to six months, or with penalty by way of fine which may extend to Rs. 1,00,000, or both, and a further penalty which may extend to Rs. 6,000 for each day after the first during which the offence continue.

If any licensee or other person refuses or fails without reasonable excuse to comply with, or give effect to, any direction, order or requirement made under any of the provisions of this Act, he shall be punishable with imprisonment which may extend to three months or with penalty by way of fine which may extend to Rs. 1,00,000, or both, and a further penalty which may extend to Rs. 4,000 for each day after the first during which the offence continues.

(1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to the company for the conduct of the business of the company, as well 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 person liable to any punishment 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-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed 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 officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation-For the purposes of this section, (a) "company" means a body corporate and includes a firm or other association of individuals; and (b) "director" in relation to a firm, means a partner in the firm.

The Commission may, for reasons to be recorded in writing, either before or after the institution of proceedings, compound any offence relating to contravention of any order made by it.

(1) No Court shall take cognizance of any offence punishable under this Act except upon a complaint in writing made by an officer of the Commission generally or specially authorised in this behalf by the Commission, and no Court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the First Class shall try any such offence. (2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, a Magistrate may, if he sees reason so to do, dispense with the personal attendance of the officer of the Commission filing the complaint.

The proceedings and actions under this Act against a person contravening the provisions of this Act or orders passed by the Commission shall be in addition to and without prejudice to actions that may be initiated under other Acts including under the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948.

The Commission shall be entitled to recover all sums due to it under this Act whether by way of licence fees, fines or charges, in accordance with the provisions of the Orissa Public Demands Recovery Act, 1962 as if any such sum were a public demand as defined in that Act and hand over the amount due to the person or authority concerned.

The Commission or Court imposing the fine and charges under this Act may direct that the whole or any part thereof shall be applied in or towards payment of the costs of the proceedings.

The licensee, generating companies and others on whom the fines, charges or penalties are imposed under this Act shall not, directly or indirectly, pass the same to the consumers in the form of tariff or charges payable.

No suit or legal proceedings shall lie against the Commission or the Chairman or other members of the Commission or the staff or representatives of the Commission in respect of anything which is in good faith done or intended to be done under this Act or any rules or regulations or order made thereunder.

No order or proposal made under this Act or rules or regulations made under this Act shall be appealable except as provided in this Act and no Civil Court including under the Arbitration Act, 1940 shall have jurisdiction in respect of any matter which the Commission or the appellate authority under this Act is empowered by, or under, this Act to determine.

(1) If any difficulty arises in giving effect to the provisions of this Act or the rules, regulations, scheme or orders made thereunder, the State Government may by order published in the Gazette, make such provision not inconsistent with the provisions of this Act as appears to it to be necessary or expedient for removing the difficulty. (2) Every order made under this section shall, as soon as possible after it is made, be laid before the State Legislature.

All proceedings before the Commission shall be deemed to be judicial proceedings within the meaning of sections 193, 219 and 228 of the Indian Penal Code and the Commission shall be deemed to be a Civil Court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973.

The Chairman, other members and officers and other employee of the Commission appointed for carrying out the objects and purposes of this Act shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code.

(1) The Commission shall have power to frame regulations for the efficient performance of its functions under this Act by notification in the Gazette. (2) In particular, but without prejudice to the generality of the provisions of sub-section (1), such regulations may provide for all or any of the following matters, namely :- (a) the administration of the affairs of the Commission, the exercise of its administrative, quasi-judicial and judicial powers including arbitration and procedure, 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 thereat; (b) the duties of the Secretary, officers and employees of the Commission; (c) determination of the functions to be assigned to licensees and others involved in the generation, purchase, transmission, distribution and supply of electricity, the manner in which such functions shall be discharged and the procedures and codes to be adopted and enforced in regard to the operation and maintenance of Power system and electric supply lines. (d) the procedure for licensing of transmission and supply, the conditions for the grant of licences, the particulars, details and documents to be made available by the persons applying for licences, the standards and general conditions subject to which the licences shall be granted, the exemptions from grant of licences, the revocation and amendment of licences and the effect thereof and all matters related thereto; (e) the duties, powers, rights and obligations of licensees; (f) the particulars to be furnished, the collection of informations, details, particulars, documents, accounts, books from or of the persons involved in the generation, transmission, distribution, supply and use of electricity, the form and manner in which the same are to be furnished and enforcing and compelling the production of the same; (g) method and manner of determination of licensee's revenues, tariff fixation, the matters to be considered in such determination and fixation; (h) the constitution of the commission Advisory Committee ; (i) the determination of the standard of performance of the persons involved in the generation, transmission, distribution and supply of electricity in the State; (j) the amount of fines and penalties to be imposed for violation of provisions of this Act including the method and manner of imposition of fines and penalties and collection of the same; (k) to prescribe the form and manner in which the accounts of the Commission shall be maintained; and (l) any other matter which is required to be, or may be, prescribed by regulations.

(1) The State Government may, by notification, make rules to carry out its functions under the provisions of the Act. (2) In particular, but without prejudice to the generality of the power mentioned in sub-section (1), such rules may provide for all or any of the following matters, namely : (a) the procedure to be adopted by the selection committee for discharge of its functions under the Act; (b) the preparation of the transfer scheme, the transfer of assets to generating and others in the State; (c) the financing, funding and giving guarantees to persons involved in the generation, transmission, distribution and supply of electricity, in the State; and (d) any other matter which is required to be, or may be, prescribed by rules.

Every rule and regulation made under this Act shall, as soon as may be after it is made, be laid before the State Legislature for a total period of fourteen days which may be comprised in one or more sessions and if during the said period the State Legislature makes modifications, if any, therein the rule or regulation shall thereafter have effect, only in such modified form so, however, that such modification shall be without prejudice to the validity of anything previously done under that rule or regulation.

(1) Except as provided in section 58, the provisions of this Act, notwithstanding that the same are inconsistent with or contrary to the provisions of the Indian Electricity Act, 1910; or the Electricity (Supply) Act, 1948 shall prevail in the manner and to the extent provided in sub-section (3): (2) Subject to sub-section (1), in respect of all matters in the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948, with which the Board has been concerned or dealing with, upon the constitution of the Commission, the functions of the Board shall be discharged by the Commission, and Gridco provided however that: (a) the State Government shall be entitled to issue all policy directives and undertake overall planning and co-ordination as specified in section 12 and to this extent, the powers and functions of the Board, as set out in the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948 or rules made thereunder shall vest in the State Government and the State Government shall coordinate and deal with the Central Government and the Central Electricity Authority; (b) in respect of such matters which the Commission directs in terms of a general or special order, or in regulations or in a licence or licences, as the case may be, every generating company, or other body corporate as may be designated by the Commission shall discharge the functions of the Board under the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948 to the extent directed by the Commission or specified in licences. (3) Subject to sub-sections (1) and (2); upon the establishment of the Commission, the provisions of the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948 shall in their application to the State, be subject to the following modifications and reservations. INDIAN ELECTRICITY ACT, 1910: (i) All references to the State Electricity Board in the Indian Electricity Act, 1910 shall be read as reference to the Commission or Gridco or other licensees or wherever it relates to general policy matters, to the State Government. (ii) In respect of matters provided in sections 3 to 11, 28, 36 (2), 49-A, 50 and 51 of the Indian Electricity Act, 1910, to the extent this Act has made specific provisions, the provisions of the Indian Electricity Act, 1910 shall not apply. (iii) The provisions of all other sections of the Indian Electricity Act, 1910 shall apply except that:- (a) the expressions "licence", "licensee" and "licence holder" shall have the meaning as defined under this Act and the licences shall be construed as having been issued under this Act; (b) the reference to the Sections of the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948 in the provisions of the Indian Electricity Act, 1910 shall be taken as references to the corresponding provisions of this Act to the extent modified by this Act; (c) the reference to arbitration in these provisions, except where it is by the Central Electricity Authority, shall be taken as reference to the proceedings under section 37 of this Act and the arbitration procedure prescribed under the Indian Electricity Act, 1910 shall not apply. (iv) The Schedules to the Indian Electricity Act, 1910 shall be applicable only with reference to the provisions in this Act in which the applications of the Schedule is specified and not otherwise. ELECTRICITY (SUPPLY) ACT, 1948: (v) All references to the State Electricity Board in the Electricity (Supply) Act, 1948 shall be read as references to the Commission or Gridco or other licensees or where it relates to general policy matters, the State Government. (vi) In respect of matters 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 of the Electricity (Supply) Act, 1948, to the extent this Act has made specific provisions, the provisions of the Electricity (Supply) Act, 1948 shall not apply. (vii) The provisions of all other sections of the Electricity (Supply) Act, 1948 shall apply except that- (a) the expressions "licence", "licensee" and "licence holder" shall have the meaning as defined under this Act and the licences shall be construed as having been issued under this Act; (b) the reference to the sections of the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948 in the provisions of the Electricity (Supply) Act, 1948 shall be taken as reference to the corresponding provisions of this Act to the extent modified by this Act; (c) the reference to arbitration in these provisions except where it is by the Central Electricity Authority shall be taken as reference to the proceedings under section 37 of this Act and the arbitration procedure prescribed under the Electricity (Supply) Act, 1948 shall not apply. (viii) The provisions of sections 72 and 73 of the Electricity (Supply) Act, 1948 shall be restricted to generating companies and reference to the State Electricity Board in these sections shall stand deleted. (ix) The Schedules to the Electricity (Supply) Act, 1948 shall be applicable only with reference to the provisions in this Act wherein the applications of the schedules are specified and not otherwise.

(1) Notwithstanding anything contained in this Act, the powers, rights and functions of the Regional Electricity Authority, the Central Electricity Authority, the Central Government and authorities, other than the State Electricity Board and the State Government under the Indian Electricity Act, 1910 or the Electricity (Supply) Act, 1948 or rules framed thereunder shall remain unaffected and shall continue to be in force. (2) Nothing contained in this Act shall apply to the Power Grid Corporation of India Limited or other bodies or licensees in relation to the interstate transmission of electricity.

(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 c r 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 t o 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.

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.

Any property, interest in property, rights and liabiliiics vested in the State Government under sub-section (1) shall be revested by the Statc Government in the Gridco and OHPC in accordance with the transfer scheme published alongwith such oiher properly, intcrrt in property, righrs and Iizbililies of lht State Govemment as may bc specified in such scheme, on suclh lcrrns and conditions as may be agreed between the State Govcrnment and the Grjdco or OHPC, as the case g a y be.

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 exercisable by the Gridco or OHPC, as the case may be, for the purpose of discharging the functions and dutics with which it is charged.

Not-withstanding anything in this seclion, where- (a) the transfer scheme involves transfcr of any property or rights to any person or undertaking not wholly owned by the State Government, the scheme shall give effect to the transfer only for fair value to be paid by the transreree to the State Govcrnrnent; and (b) a transaction of any description is cffected in pursuance of a transfer scheme, it shall be binding on al! pcrsclns including third parties, oven if, such person3 or third parties have not consented to it.

The State Government may, aftcr consulting the Gridco (the "transferor licensee") or OHPC, as the case may bc, require them to draw up a iransfer scheme only on leasc to vest in a further liccosee (the "transferee licensee") or any generating wmpany, any property, interest in property, rights and liabilitia which have h e n vested in tlie transferor licensee or OHPC., as the case may be, undcr thi.7 section.

A transfer schemc may- (a) define the property, interest in properly, rights and liabilities to be allocated,- (i) by specifying or describing the property, rights and liabilities in question; (ii) by referring to all the property, interest in propcrty, rights and liabjli- ties comprised in a specified part of the transferor's undertaking; or (iii) partly in one way and partly in the other. (b) provide that any rights or liabilities specified or described in the scheme shall be enforceable by or against the transferor or lhe transferee; (c) impose on the licensee an obligation to enter into such written agreements with, or execute such other instruments in favour of, any subsequent licensee as may be specified in the scheme; and (d) make such supplcmental, incidental and consequenlial provisions as the ransreror liccnsee considers approprrate including provision specifying the order in which any transfer or transaction is to be regarded as taking effect.

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 be continued or insritxted by or aginst the State Government or the concerned transferee, as the case may be.

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.

The Bkard shall ccae fo be cherged with, and shall not perform, the functions and duties specified in sub-section (2) with regard to transfers made on, nod after the effective date.