License BSES Yamuna
License BSES Yamuna
License BSES Yamuna
Licence granted by the Delhi Electricity Regulatory Commission under Section 20 of the
Delhi Electricity Reform Act, 2000 (Act No. 2 of 2001) to the BSES YAMUNA POWER
LIMITED (hereinafter referred to as “BSES YAMUNA”), a company incorporated under
the Companies Act, 1956, and having its registered office at Shakti Kiran Building,
Karkardooma, New Delhi – 110 070, for carrying on the business of Distribution and
Retail Supply of electrical energy within the Area of Supply (as defined in this Licence)
and with the powers and upon the terms and conditions specified herein.
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PART I
TERMS OF THE LICENCE
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1. Short Title
1.1 This Licence may be called “The BSES YAMUNA Distribution and Retail Supply
of Electricity Licence (Licence No. 3 / DIST of 2004)”.
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2. Definitions
2.1 Words, terms and expressions used in this Licence that are not defined in this
Licence shall have the meaning assigned to them in the Delhi Electricity Reform
Act, 2000 (Act No. 2 of 2001) and / or the Rules made thereunder.
2.2 Words, terms and expressions used in this Licence which are not defined in this
Licence or in the Delhi Electricity Reform Act, 2000 shall have the meaning
assigned to them in The Electricity Act, 2003 (36 of 2003) and / or the Rules and
/ or Regulations made thereunder.
a. charged from the Licensed Business to any Other Business or vice versa
together with a description of the basis of that charge; or
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iii. “Area of Supply” means the geographic area referred to in Schedule I of this
Licence within which any activity Authorised by this Licence is allowed;
iv. “Auditors” means the Licensee’s auditors holding office in accordance with the
provisions of the Companies Act 1956 (1 of 1956) and Rules and Regulations
framed thereunder;
vi. “Bulk Supplier” means any Person who is Authorised to carry out Bulk Supply
of electricity;
vii. “Bulk Supply” means the supply of electricity for resale thereof by any person
licensed or authorised for trading in electricity;
viii. “Bulk Supply Business” means the Authorised business of Bulk Supply;
ix. “Bulk Supply Licensee” means a Person Authorised to engage in the Bulk
Supply Business;
xii. “Consumer” means any person who is supplied with electricity for his own use
by a licensee or the Government or by any other person engaged in the business
of supplying electricity to the public under this Act or any other law for the time
being in force and includes any person whose premises are for the time being
connected for the purpose of receiving electricity with the works of a licensee, the
Government or such other person, as the case may be;
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xiii. “DERA” means the Delhi Electricity Reform Act, 2000 (Act No. 2 of 2001);
xiv. “Delhi Power Company Limited” means the company, wholly owned (directly
or indirectly) by the Government of the National Capital Territory of Delhi,
incorporated under the Companies Act, 1956 having its registered office at Shakti
Sadan, Kotla Marg, New Delhi – 110 002, which is designated as the holding
company in terms of the Transfer Scheme;
xvi. “Distribution Business” means the Authorised business of the Licensee for
distribution of electricity in the Area of Supply or to any consumer or any class of
consumers in an area other than the Area of Supply, if so authorised by the
Commission by special or general permission;
xvii. “Distribution Code” means the code prepared by the Licensee in accordance
with Clause 18 hereof and approved by the Commission, and as may be
amended, supplemented or replaced from time to time in accordance with Clause
18 hereof;
xviii. “Distribution System” means the system of wires and associated facilities
between the delivery points on the transmission lines or the generating station
connection and the point of connection to the installation of the consumers, and
includes the Distribution Assets described in Schedule D of the Transfer
Scheme;
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xxi. “Electricity Laws” means The Electricity Act, 2003 and the Rules framed and
saved thereunder, as amended from time to time and includes any statutory re-
enactments thereof.
xxii. “Electric Lines” means any line or cable which is used for carrying electricity for
any purpose and includes :
a. any support for any such line or cable, that is to say, any structure,
tower, pole or other thing in, on, by or from which any such line or
cable is, or may be, supported, carried or suspended; and
a. an electric line; or
xxiv. “Expected Revenue Calculation” means the ensuing year’s calculation of costs
and revenue, as described under the Clause 24.2 of this Licence, by the
Licensee;
xxvi. “Generating Set” means any plant or apparatus for the production of electricity
and shall, where appropriate, include a generating station comprising of one or
more than one generating unit;
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xxvii. “Generating Station” or “station” means any station for generating electricity,
including any building and plant with step-up transformer, switch yard, switch-
gear, cables or other appurtenant equipment, if any used for that purpose and
the site thereof, a site intended to be used for a generating station, and any
building used for housing the operating staff of a generating station, and where
electricity is generated by water-power, includes penstocks, head and tail works,
main and regulating reservoirs, dams and other hydraulic works, but does not in
any case include any sub-station;
xxviii. “Grid Code” means the state grid code specified by the Commission under
clause (h) of sub-section (1) of Section 86 of The Electricity Act, 2003;
xxix. “Holding Company” for the purposes of this Licence, a company shall be
deemed to be a holding company of another if and only if that other is a
subsidiary as defined herein;
xxx. “Interim Grid Code” means the existing practices and procedures followed by
Transco for operating the Transmission System as of the date of the
Transmission and Bulk Supply Licence;
xxxi. “License” means this licence under which the Licensee is Authorised to conduct
the Licensed Business;
xxxii. “Licensee” means BSES Yamuna Power Limited in its capacity as operator of
the Licensed Business;
xxxiii. “Licensed Business” means the business of Distribution and Retail Supply of
electricity as Authorised under this Licence;
xxxiv. “Major Incident” means an incident associated with the Distribution and Retail
Supply of electricity in the Licensee’s Area of Supply which results in a significant
interruption of service, substantial damage to equipment, or loss of life or
significant injury to human beings, with the technical characteristics of “significant
interruption”, “substantial damage”, “significant injury” specified in the Grid Code,
Distribution Code or Standards of Performance to be approved by the
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xxxv. “Management Control” means and includes the act of managing and controlling
the affairs and / or business by direction or regulation or administration or control
or superintendence or being in a position, directly or indirectly, to exercise
restraint, legally or operationally, in any manner over another;
xxxvi. “M/S BSES YAMUNA POWER LIMITED” or “the Company” means BSES
Yamuna Power Limited, a company incorporated under the Companies Act,
1956, and having its registered office at Shakti Kiran Building, Karkardooma,
New Delhi – 110 070;
xxxviii. “Other Business” means business of the Licensee other than the Licensed
Business;
xl. “Person” shall include any individual, firm, company or association or body of
individuals whether incorporated or not;
xli. “Policy Directions” shall mean the Policy Directions issued by the State
Government under relevant provisions of DERA and Electricity Laws;
xlii. “Regulations” means the regulations issued by the Commission, from time to
time, under the provisions of the DERA and / or the Electricity Act, 2003;
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xliv. “Retail Supplier” means any Person who is Authorised to carry out Retail
Supply;
xlv. “Retail Supply Business” means Authorised business of the Licensee in Retail
Supply of electricity in the Area of Supply;
xlviii. "Subsidiary" For the purposes of this Licence, a company shall be deemed to
be a subsidiary of another if that other holds more than half in nominal value of
the paid up equity share capital of the first mentioned company or if that other
exercises management control over the first mentioned company;
xlix. “Supplier” means any Person who holds a licence to supply electricity under
Section 20 of the DERA or is granted an exemption under Section 21 of the
DERA or licensed or exempted under the Electricity Laws;
li. “Transco” means the Delhi Transco Limited, the company wholly owned by
Government of National Capital Territory of Delhi, incorporated under the
Companies Act, 1956 having its registered office at Shakti Sadan, Kotla Marg,
New Delhi – 110 002, which has succeeded to the functions of bulk supply and
transmission of electricity
lii. “Trading” means purchase of electricity for resale thereof and the expression
"trade" shall be construed accordingly;
liii. “Transfer” shall include the sale, exchange, gift, lease, licence, loan,
securitisation, mortgage, charge, pledge or grant of any other encumbrance or
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liv. “Transfer Scheme” shall mean the Delhi Electricity Reform (Transfer Scheme)
Rules, 2001, as amended by the Delhi Electricity Reform Transfer Scheme
(Amendment) Rules, 2002 and any subsequent amendments thereof;
lviii. “Transmission Lines” means all high pressure cables and overhead lines (not
being an essential part of the distribution system of a licensee) transmitting
electricity from a generating station to another generating station or a sub-station,
together with any step-up and step-down transformers, switch-gear and other
works necessary to and used for the control of such cables or overhead lines,
and such buildings or part thereof as may be required to accommodate such
transformers, switch-gear and other works.
lix. “Transmission System” means the system consisting mainly of extra high
voltage electric lines having design voltage of 220 kV and higher, owned or
controlled by the Transmission Licensee, and used for the purposes of the
conveyance of electricity between the switchyards of two Generating Sets or
from the Switchyard of a Generating Set to a substation, or between substations,
or to or from any external interconnection and includes all bays / equipment up to
the interconnection with the Distribution System, and any plant, apparatus and
meters owned or used in connection with the transmission of electricity and all
assets, properties, interests in assets associated with the above including but not
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lx. “Utility” means the electric lines or electrical plant, and includes all lands,
buildings, works and materials attached thereto belonging to any person acting
as a generation company or licensee under the provisions of the DERA;
lxi. “Wholesale Price Index” shall mean the wholesale price index published by
Ministry of Industry, Government of India and being in force at the relevant time.
2.4 References in this Licence to Clauses, Parts, and Schedules shall, unless the
context otherwise requires, be construed as references to Clauses, Parts of and
Schedules to this Licence.
2.5 The Part and Chapter Headings in this Licence have been included solely for
ease of reference and shall not be considered in the interpretation or
constructions of this Licence.
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3.2 The terms and conditions as specified in this Licence are subject to such
modifications or amendments as may be made by the Commission in
accordance with the provisions of the DERA or Electricity Laws or the Rules and
Regulations framed there under and / or this Licence.
3.3 This Licence shall come into force with effect from the 12th day of March, 2004
and, unless revoked earlier by the Commission in accordance with the provisions
of Clause 13 of this Licence and the provisions of the Electricity Laws, shall
remain in force for 25 years from that date.
3.4 The Commission may, at the instance of the Licensee, renew this Licence for
such further period or periods and on such terms and conditions, as the
Commission may consider appropriate :
Provided that the Licensee shall apply, in writing, for renewal of the License one
year prior to expiry of the License. The Commission may, at its discretion,
condone any delay in such application.
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PART II
GENERAL CONDITIONS
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4. Directions
4.1 The Licensee shall comply with the Regulations, Orders and Directions issued by
the Commission from time to time and shall also act, at all times, in accordance
with the terms and conditions of this Licence, except where the Licensee obtains
the prior written approval of the Commission for any deviation therefrom.
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5.2 The Licensee shall not, without the general or special approval of the
Commission:
e. enter into any agreement or arrangement with any other person to get any
part of the Licensed Business undertaken, except the appointment of
Franchisees;
Further provided that the Licensee shall continue to have the overall
responsibility for the due performance, by such other person and a breach
of any of the terms and conditions of this Licence by such other person
shall be deemed to be a breach by the Licensee.
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5.3 Any Franchisee appointed by the Licensee to undertake any part of the
Licensees Business shall operate in compliance of the terms and conditions of
this License, the Electricity Laws and any Orders or Directions issued by the
appropriate authority :
Further, any agreement between the Licensee and the Franchisee shall be
subject to such Regulations, Orders, Directions or Guidelines as may be
specified or issued by the Commission from time to time and such Regulations,
Orders, Directions or Guidelines shall be binding on both the parties :
Also, the Licensee shall be responsible for all acts, of omission and / or
commission, of the Franchisee.
5.4 The Licensee shall purchase the energy required by the Licensee for Distribution
and Retail Supply in an economical manner and under a transparent power
purchase or procurement process and in accordance with the Regulations
framed, guidelines, directions and orders issued by the Commission from time to
time.
5.5 The Licensee may, subject to the provisions of Section 51 of the Electricity Act,
2003 and the directions issued by the Commission in this regard, engage in any
Other Business with prior intimation to the Commission :
Provided that the Licensee shall engage in such Other Business only so long as
such activity is likely to result in the optimum employment of the assets and
infrastructure comprising the Distribution System and further subject to the
following conditions :
(a) the Licensed Business and the conduct thereof by the Licensee is not
prejudiced and / or adversely affected in any manner;
(b) the Licensee shall prepare and keep, in respect of the Other Business
activities, separate accounting records as would be required to be kept in
respect of such activities, as if they were carried on by a separate
company, so that the revenues, costs, assets, liabilities, reserves and
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(c) the Licensee shall comply with such guidelines, terms and conditions that
the Commission may specify in regard to (i) the Licensee engaging in
Other Business activities; and (ii) payment of fair compensation to the
Licensed Business for the assets of the Licensed Business utilised for
such Other Business activities;
(d) the Licensee shall not Transfer any assets utilised in the Distribution
System for the purposes of Other Business activities without the prior
written approval of the Commission; and
(e) the Licensee shall not use, nor allow to be used, the Land & Building in
the Distribution System for the purpose of the Other Business activities
without the prior written approval of the Commission.
5.6 The Licensee shall seek written approval of the Commission before making any
loans to, or issuing any guarantee for any obligation of, any Person. However,
loans to employees pursuant to their terms of service and trade advances,
including Guarantees, in the ordinary course of the distribution and retail supply
business are excluded from the requirement to seek such approval.
5.7 The Licensee may engage any of its Subsidiaries or Holding Company or a
Subsidiary of such Holding Company to provide any goods or services to the
Licensee, in connection with the Licensed Business, subject to the condition that
the transaction will be on an arms-length basis and at a value that is fair,
competitive and reasonable in the circumstances, or such other conditions as
may be imposed by the Commission from time to time :
Provided that all such transactions will be consistent with any Regulations or
Guidelines, as may be framed or issued by the Commission relating to the
provision of goods and services with respect to the Licensed Business.
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5.8 The Licensee shall not transfer or assign – by sale, lease exchange or otherwise
– this Licence, or any part thereof, to any other Person without the prior written
approval of the Commission.
5.9 To obtain the approval of the Commission as aforesaid, the Licensee shall file a
suitable application with the Commission disclosing relevant facts in that behalf
and the Commission shall dispose such application expeditiously.
5.10 The primary responsibility of the Licensee under and in terms of this License is
towards the Distribution and Retail Supply of Electricity in the Area of Supply.
Thus, subject to the provisions of Section 52 of the Electricity Act, 2003, any
activity in the trading of electricity carried on by the Licensee shall be subject to
its Distribution and Retail Supply obligations under this License.
5.11 The Commission may, at any time, enquire into the Trading activity of the
Licensee and if it deems it fit require the Licensee to satisfy it that its Trading
activity is not detrimental to or in derogation of its Distribution and Retail Supply
business.
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6. Provision Of Subsidies
6.1 In the event the State Government makes any order providing for any subsidy for
any class or classes of Consumers in terms of Section 12(3) of the DERA, the
Licensee shall, subject to the relevant provisions of the Electricity Laws, provide
such subsidy pursuant to the necessary guidelines or orders issued by the
Commission in this regard.
6.2 Subject to Clause 6.1 of this License, the Licensee shall not without prior
permission of the Commission give any subsidy or subvention to any Person or
for the purposes of any of its Other Business(es) either by reducing the tariff
notified or otherwise by giving any other concession, remission or reduction of
any nature.
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7. Accounts
7.1 The financial year of the Licensee shall run from the first of April to the following
thirty-first of March.
The Licensee shall, in respect of the Licensed Business and any Other Business:
ii. in respect of the first six months of each financial year, an interim
unaudited profit and loss account, cash flow statement, funds flow
statement and provisional balance sheet;
iv. a copy of each interim unaudited profit and loss account not later
than three months after the end of the period to which it relates,
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7.3 Accounting Statements under Clause 7.2 shall be prepared in accordance with
generally accepted Indian accounting standards and / or as may be prescribed
by the Commission.
7.5 The Commission may, from such time it considers appropriate, require the
Licensee to comply with the provisions of Clause 7.1 to 7.4 above treating the
Distribution Business and the Retail Supply Business of the Licensee as
separate and distinct businesses.
7.6 Notwithstanding anything contained in this Clause 7, whenever deemed fit, the
Commission may require the submission of a report prepared by an independent
Auditor at the expense of the Licensee to be included as an expense in the
determination of aggregate revenues made in accordance with Clause 24.
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Provided that the Licensee shall be deemed not to be in breach of its obligations
under this Licence if any undue preference results from compliance with any
directions of the State Government under the Electricity Laws and Section 12(3)
of the DERA or in the implementation of any order passed by the Commission
including the orders determining the tariffs for different class or classes of
persons or any other law for the time being in force.
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9.2 The Commission may, at anytime during the subsistence of this Licence,
authorise any Person(s) to inspect, verify and audit the performance, records and
accounts of the Licensee and the Licensee shall be obliged to extend all co-
operation, assistance and facilities, as may be required, to such authorised
Person(s) .
9.3 The Licensee shall notify the Commission of any Major Incident affecting any part
of the Distribution System that has occurred and shall at the earliest possible and
in any event, by no later than 15 days or such period as may be extended by the
Commission from the date of such Major Incident :
a. submit a report to the Commission giving full details of the facts within the
knowledge of the Licensee regarding the incident and its cause.
b. In the event the report under sub-Clause (a) is likely to take more than 15
days from the date of the Major Incident, the Licensee shall within 15 days
from such date of the incident submit a preliminary report with such details
which the Licensee can reasonably furnish and state reasons to the
satisfaction of the Commission as to why the Licensee requires more than 15
days for giving a full report of such incident.
c. Give copies of the report to all parties concerned with the Major Incident
and to such other Persons as the Commission may direct.
9.4 The decision of the Commission as to what is a Major Incident shall be final.
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9.5 The Commission at its own discretion may require the submission of a report on
any incident or incidents to be prepared by an independent Person at the
expense of the Licensee to be included as an expense in the determination of
aggregate revenues made in accordance with Clause 24.
9.6 The Commission may at any time require the Licensee to comply with the
provisions of Clauses 9.3 to 9.5 as to matters / incidents which the Commission
may specifically direct and the Licensee shall comply with the same
notwithstanding that such incidents are not Major Incidents; provided that the
time limits specified in Clause 9.3 shall commence from the date that the
Commission notifies Licensee of such requirement.
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10.2 The Licensee shall notify the Commission of any schemes pertaining to the
Distribution System that the Licensee from time to time proposes to implement
together with relevant details, including the estimated cost of such schemes, with
requisite break-up, source of funding and proposed investment plans. The
Licensee shall specifically detail, as part of the Investment Scheme, an
Implementation Plan and the time required to implement the Scheme. The
Licensee shall furnish to the Commission such further details and clarifications as
to the schemes proposed, as the Commission may require from time to time.
b. If the scheme involves major investment, after taking specific prior written
approval of the Commission as provided in Clause 10.4;
c. The Licensee shall implement the Scheme in an efficient manner within the
specified time.
10.4 The Licensee shall make an application to the Commission for obtaining prior
approval of the Commission for schemes involving major investments as per the
procedure which the Commission may specify from time to time and demonstrate
to the satisfaction of the Commission that :
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a. there is a need for the major investment in the Distribution System which
the Licensee proposes to undertake;
c. the Licensee has explored all possible avenues and is sourcing funds in
the most efficient and economical manner.
10.5 The Licensee shall invite and finalise tenders for procurement of equipment,
material and / or services relating to such major investment, in accordance with a
transparent, competitive, fair and reasonable procedure as may be specified by
the Commission from time to time.
10.6 For the purposes of Clause 10, the term "major investment" means any planned
investment in or acquisition of Distribution facilities, the cost of which, when
aggregated with all other investments or acquisitions (if any) forming part of the
same overall transaction, equals or exceeds Rs.2,00,00,000.00 (Rupees two
crore only) or such other amount as may be notified by the Commission from
time to time.
10.7 The Licensee shall submit to the Commission, along with the “Expected Revenue
Calculation” filed in terms of Clause 24, an Annual Investment Plan – consisting
of those schemes that have been approved by the Commission; schemes
submitted before the Commission for approval; and all schemes not requiring
approval of the Commission planned for the ensuing financial year – and shall
make investment in the said financial year in accordance with the said
investment plan :
Provided that the aggregate cost of all schemes not requiring an approval from
the Commission shall not exceed Rs.20,00,00,000.00 (Rupees twenty crore only)
in any financial year or such other amount as may be notified by the Commission
from time to time :
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Provided further that the Licensee shall not under any circumstance transfer,
relinquish, assign any right / interest / possession of any land and building of any
value without the prior written approval of the Commission.
11.2 The Licensee shall file an application to seek the permission of the Commission
in terms of Clause 11.1 disclosing all relevant facts. The Commission may, within
30 days of the receipt of the application, seek further information in support of the
transaction and may, generally within 30 days of such further information being
submitted by the Licensee, and where no such further information is sought by
the Commission as above, within 60 days of the filing of the application, allow the
Transfer arrangement subject to such terms and conditions or modifications as is
considered appropriate or reject the same, for reasons recorded in writing in the
order to be issued by the Commission.
11.3 The Licensee may also transfer or assign any asset where the asset in question
was acquired and used by the Licensee exclusively or primarily in connection
with any Other Business that it has been Authorised to carry on pursuant to
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Clause 5.5 and does not constitute a legal or beneficial interest in land, or
otherwise form part of the Distribution System or is not otherwise an asset
required for the Licensed Business.
11.4 Notwithstanding what is stated above, the Licensee will be entitled to utilise the
assets as a means of facilitating funding or financing the Licensed Business in
the ordinary course of business, subject to the conditions :
a. that the Licensee shall inform the Commission about such arrangements
at least 15 days prior to the effective date of the relevant agreements;
c. the Licensee has explored all possible avenues and is sourcing funds in
the most efficient and economical manner; and
d. the Licensee retains the Operational Control over assets in the Distribution
System.
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12.2 For as long as this Licence remains in force, the Licensee shall, by the 10th of
April of every year, or such further period as the Commission may allow, pay to
the Commission the annual licence fee as mentioned hereinabove.
12.3 Where the Licensee fails to pay to the Commission any of the fees due under
Clauses 12.1 or 12.2 by the due dates :
b. the Licensee shall be subject to proceedings for the recovery of such fees
as specified in the DERA; and
12.4 The Licensee shall be entitled to take into account any fee paid by it under this
Clause 12 as an expense in the determination of aggregate revenues made in
accordance with Clause 24, but shall not take into account any interest paid
pursuant to Clause 12.3.
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13.2 Within one year of suspending the License, the Commission shall either revoke
the suspension and restore the License to the Licensee on such terms and
conditions as it may deem fit, proper and necessary in the public interest to do so
or revoke the License in accordance with the provisions of Section 19 and other
relevant provisions of the Electricity Act, 2003 and Section 23 of the DERA.
13.3 Subject to the provisions of Section 23 of the DERA and the relevant provisions
of The Electricity Act, 2003, and the Rules and Regulations framed thereunder,
the Commission may at any time initiate proceedings against the Licensee for
revocation of this Licence and if satisfied in such proceedings on the grounds for
revocation, revoke this Licence if the Licensee :
c. has in the opinion of the Commission, failed to comply with any order or
direction issued by the Commission; or
d. fails to pay the licence fee or any other fee or fine or charges within the
time allowed by the Commission; or
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g. has committed an act which renders this Licence revocable on any other
grounds specified in the DERA or the Regulations.
13.4 It is a condition of this Licence that the Licensee shall comply with all the
Regulations, codes and standards and also orders and directions of the
Commission. When the Commission expressly states that an order subjects the
Licensee to such compliance, failure to comply with that order will render this
Licence liable to revocation in accordance with Section 23 of the DERA without
prejudice to the Commission’s right to revoke this Licence on any other
applicable grounds.
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14.2 Notwithstanding anything contained in this License the Transfer Scheme shall
have an overriding effect on any provision of this License that is contrary to or in
conflict with the Transfer Scheme.
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15.2 Subject to the applicable provisions of the DERA, the Electricity Laws and the
Rules and Regulations framed thereunder, permission of concerned authorities,
the Licensee shall have all the power for the placing of electric supply lines,
appliances and apparatus for the Distribution and Retail Supply of electricity.
15.3 The Licensee shall comply with the directions of the Electrical Inspector issued
pursuant to the powers vested in him under the DERA, the Electricity Laws, and
any Rules framed thereunder, provided that any order passed by the Electrical
Inspector shall be subject to appeal as per the relevant provisions thereunder.
15.4 The Licensee shall, in the event of a proposed change in its constitution or
existing share holding pattern or management control, immediately, inform the
Commission of such proposed change.
15.5 This License is being issued subject to the No Objection Certificate issued by the
Central Government pursuant to the provisions of the Section 20 of the DERA.
The said No Objection Certificate is attached to this License as Schedule II. The
Licensee shall comply with the conditions subject to which the No Objection
Certificate has been issued.
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15.6 Nothing contained in this License shall be deemed to authorise or confer any
power or authorisation upon the Licensee to act in derogation or contravention of
any law for the time being in force. It is expected that the Licensee shall at all
times diligently discharge the duties cast upon it under any and every law for the
time being in force.
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16.2 All issues arising in relation to interpretation of this Licence and as to the terms
and conditions thereof shall be a matter for determination of the Commission and
the decision of the Commission on such issues shall be final, subject only to the
right of appeal.
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PART III
TECHNICAL CONDITIONS
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17.2 The Commission may, on reasonable grounds and after consultation with any
affected Generating Companies, the Transmission and Bulk Supply Licensee
and Bulk Suppliers or Retail Suppliers, issue directions relieving the Licensee of
its obligation under Clause 17.1 in respect of such parts of the Grid Code and to
such extent as may be specified by the Commission.
17.3 Till the Grid Code is approved by the Commission, the Licensee shall comply
with the Interim Grid Code.
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Provided that the Commission may, at the instance of the Licensee, issue
directions relieving the Licensee of its obligations under the Distribution Code in
respect of such parts of the Licensee’s Distribution System and to such extent as
may be specified by the Commission.
18.2 The Distribution Code shall cover all material technical aspects relating to
connections to, and the operation and use of, the Distribution System including
the operation of the electrical lines and electrical plant and apparatus connected
to the Distribution System in so far as relevant to the operation and use of the
Distribution System and shall include, but not be limited to:
i. a planning code specifying the plan for laying the Distribution lines
and the service lines in the Area of Supply, the technical and
design criteria and procedures to be applied by the Licensee in the
planning and development of the Licensee’s Distribution System;
and
b. the Distribution operating code specifying the conditions under which the
Licensee shall operate the Licensee’s Distribution System and under
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18.4 The Licensee shall, till the Distribution Code comes into force, follow the same
practices which had been followed by the Delhi Vidyut Board prior to its
reorganisation with such modifications as may be permitted by the Commission.
18.5 The Licensee shall from time to time, as appropriate, review the Distribution
Code. The Licensee shall also undertake such review as and when directed to do
by the Commission. Following any such review, the Licensee shall send to the
Commission :
18.6 All revisions to the Distribution Code shall require prior written approval from the
Commission.
18.7 The Licensee shall make available to any Person requesting for it, copies of the
Distribution Code and practices thereto in force at the relevant time, at a price not
exceeding the reasonable cost of duplicating it.
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18.8 A compilation of the existing codes and practices relating to construction of the
Licensee’s Distribution System and its Distribution facilities shall be filed with the
Commission by the Licensee within 30 days of the grant of this Licence. The
Licensee shall follow the existing codes and practices with such modification as
the Commission may direct from time to time. The construction practices shall be
reviewed and upgraded by the Licensee from time to time, as appropriate, based
on relevant technological improvements and changes.
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19.2 The Licensee shall plan and operate its Distribution System to ensure that,
subject to the availability of adequate power of appropriate quality, the system is
capable of providing Consumers with a safe, reliable and efficient Supply of
electricity. In particular, the Licensee shall:
19.3 The Licensee shall, within 90 days after this Licence becomes effective, prepare
and submit to the Commission the Licensee’s proposal for Distribution System
Planning and Security Standards and Distribution System Operating Standards.
19.4 The Commission may, with such amendments and modifications as it may deem
fit, proper and necessary, specify the Distribution System Planning and Security
Standards and Distribution System Operating Standards. The Licensee shall, at
all times, follow the Distribution System Planning and Security Standards and
Distribution System Operating Standards as specified by the Commission.
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19.5 If the Licensee fails to meet the Standards specified by the Commission under
Clause 19.4, without prejudice to any penalty that may be imposed or
prosecution initiated, the Licensee shall be liable to pay such compensation to
the person affected as may be determined by the Commission, after allowing the
Licensee a reasonable opportunity of being heard.
19.6 Upon receipt of any written representation received by the Commission or upon
its own motion, after giving the Licensee an opportunity to present its perspective
on the same, for reasons recorded in writing, the Commission may require the
Licensee to revise the Distribution System Planning and Security Standards and
the Distribution System Operating Standards, and Licensee shall comply with the
directions of the Commission.
19.7 The Licensee shall, within 3 months of the end of each financial year, submit to
the Commission a report indicating the performance of the Licensee’s
Distribution System during the previous financial year with reference to the
Standards specified by the Commission under Clause 19.4 as also the number of
cases in which compensation was awarded and the aggregate amount of such
compensation. The Licensee shall, if required by the Commission, publish a
summary of the report in a manner approved by the Commission.
19.8 The Licensee shall conduct its Licensed Business in the manner which it
considers to be best calculated to achieve the Overall Performance Standards in
connection with provision of Supply services and the promotion of the efficient
use of electricity by Consumers, as may be prescribed by the Commission
pursuant to the DERA or the Electricity Act, 2003.
19.9 The Licensee shall supply annually, information to the Commission as to the
means by which it proposes to achieve the Overall Performance Standards and
other standards referred to in this Clause 19.
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20.2 The Licensee shall, before commencing to lay down or place a service-line in any
area in which a Distribution main has not already been laid down or placed, serve
upon the local authority or authorities (if any) falling in the area as lies between
the points of origin and termination of the service line to be laid down or placed, a
notice stating that the Licensee intends to lay down or place a service line and
confirming that if within 21 days from the date of the notice, the local authority
require in accordance with Clauses 19 and 21, that a Supply shall be given for
any public lamps, the necessary Distribution main will be laid down or placed by
the Licensee at the same time as the service line. In addition to the above, the
Licensee shall publicise, to the fullest extent possible, the notice of such
proposed work for information of the public so as to enable any owner or
occupier of the premises abutting so much of the area lies between the points of
origin and termination of the service line to be laid down or placed and any one
or more occupiers may apply to the Licensee for laying down the distribution
main and connected works along with the service line.
20.3 Where, after Distribution mains have been laid down under the provisions of this
Clause 20 and the supply of energy through those mains or any of them has
commenced, a requisition is made by the State Government or by a local
authority requiring the Licensee to supply for a period of not less than two years,
energy for any public lamps within the Area of Supply, the Licensee shall supply
and, save in so far as it is prevented from doing so by events of Force Majeure
and technical viability / constraints, continue to supply energy for such lamps in
such quantities as the State Government or the local authority, as the case may
be, may require. The State Government or the relevant local authority, as the
case may be, may require the Licensee :
a. to provide the mains and other equipment for public lamps; and
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20.4 The Licensee may levy any reasonable charge(s) for carrying out works / release
of supply pursuant to Clauses 20.1; 20.2 and 20.3, in accordance with any
procedures that may be stipulated by the Licensee and approved by the
Commission as well as the provisions of the DERA and / or Regulations.
20.5 The Licensee shall allow any person for the use of the Distribution System
operated by the Licencee on the terms and conditions prescribed by the
Commission.
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i. Electrified Area;
b. forecast annually, and submit before the Commission, the demand for
power within the Area of Supply in each of the next succeeding, at least, 5
years;
c. prepare and submit a detailed plan for the development of the Distribution
System and the systematic & planned electrification of the Area of Supply.
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21.3 Subject to the foregoing Clauses, the Licensee shall purchase electricity from
Bulk Suppliers and others as permitted by the Commission to meet the expected
demand of the Licensee’s Consumers, or where appropriate, such lesser
quantities as the Bulk Suppliers and others are able to provide on account of
shortage of available sources of electricity generation, imports or supply.
21.4 The Licensee shall purchase electricity in the manner specified in Clause 5.4.
21.5 The Licensee shall, as soon as possible and no later than 180 days after this
Licence has come into force or such other time as the Commission may allow,
prepare and submit for information before the Commission, a Disaster
Management Plan, to address emergencies that may arise in connection with
and arising out of the conduct of the Licenced Business.
21.6 The Licensee shall prepare the Disaster Management Plan in consultation with
the local authorities and keep them fully abreast of the provisions thereof. The
Disaster Management Plan shall cover, without limitation :
iii. the person or authority co-ordinating amongst the Licensee, the local
Municipal Agencies, the Police and other para-military authorities, the
State Administration, the Government and other appropriate or concerned
Authorities;
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21.7 For purposes of Clause 21.5, an emergency shall mean any condition and / or
situation that materially and adversely :
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22.2 The Commission may, after considering the code and after such consultation as
it may deem fit, proper and necessary, issue new Regulations or amend any
existing Regulations concerning the above mentioned subjects.
b. make a copy of the Regulations, revised from time to time, available for
inspection by members of the public during normal working hours; and
c. provide a copy of the Regulations, revised from time to time, to any other
Person who requests for it at a price not exceeding the reasonable cost of
duplicating it.
22.4 The Licensee shall comply with the practice and procedures of the erstwhile
Delhi Vidyut Board with respect to the above mentioned subjects with such
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22.5 The Commission may evaluate the Licensee's compliance with the Regulations
set forth in accordance with this Clause 22 and the Licensee shall provide to the
Commission such information as it may require to enable it to do so.
22.6 The Licensee shall provide all such information as may be requested for by a
Consumer or an Applicant for a connection in so far as it related to his or its own
connection or supply within 30 (thirty) days of the request being made.
22.7 If the Licensee fails to adhere to or comply with any Regulations framed by the
Commission, without prejudice to any other liability or action that the Licensee
may suffer on that count, it shall be liable to pay to the Consumer such
compensation as may be determined by the Commission. The Commission may
also require the Licensee to pay directly to the Consumers concerned the
compensation amount and file a statement thereof with the Commission. The
Commission may issue directions and pass orders to give effect to the above.
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23.2 The Licensee shall, within ninety days after this Licence has come into force or
such other time as the Commission may allow, prepare and submit to the
Commission for approval, the “The General Terms and Condition of Supply” with
such proposed modifications as the Licensee considers necessary with reasons
for making the modifications.
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PART IV
EXPECTED REVENUE CALCULATION AND TARIFFS
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a. Not later than 30th of November every year, the Licensee shall prepare
and submit to the Commission :
ii. the annual investment plan giving specific details of the investment
which the Licensee proposes to make in the ensuing financial year
and which the Licensee desires to be covered under the revenue
requirements in the ensuing financial year with appropriate
references to Schemes, if any, already approved by the
Commission of which such investments form a part;
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24.3 Tariffs
a. The approved tariff shall be the schedule of standard prices or charges for
specified services that the Commission determines in accordance with the
provisions of Section 28 of the DERA.
b. The Licensee shall implement the approved tariff and shall calculate and
recover the charges under the approved tariff in accordance with the
orders of the Commission, the Regulations, the conditions of this Licence
and other directions or requirements issued by the Commission from time
to time.
24.4 The Licensee may apply to the Commission to amend its tariffs in accordance
with the DERA and applicable Regulations and directions of the Commission. If
the Commission so directs, the Licensee shall apply to the Commission to amend
its tariffs in accordance with the DERA and applicable Regulations.
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b. Revenue realisation;
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PART V
COMPETITION CONDITIONS
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26.2 The Commission may, in accordance with the provisions of the DERA and the
Electricity Laws, issue such orders modifying or amending the terms or
conditions of this Licence as it may consider appropriate for the purpose of
implementing the arrangements referred to in this Clause 26.
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PART VI
PENALTY
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27. Penalty
27.1 The Licensee shall be liable for penal action under the applicable provisions of
the DERA, the Electricity Laws and the Rules and Regulations framed
thereunder.
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SCHEDULE I
Area of Supply
SCHEDULE II
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