Bare Acts Live

The Uttar Pradesh Electricity Reforms Act, 1999

(U P. Act No. 24 of 1999)

UP131

(As passed by the Uttar Pradesh Legislature)

Chapter I

Preliminary

(a) "area of supply" means the area within which a licensee is authorised to supply electricity;

(b) "area of transmission" means the area within which a licensee is authorised to transmit electricity;

(c) "Board" means the Uttar Pradesh Electricity Board constituted under Section 5 of the Electricity (Supply) Act, 1948;

(d) "Central Act" means the Electricity Regulatory Commissions Act, 1998 (Act No. 14 of 1998);

(e) "Chairperson" means the Chairperson of the Commission;

(f) "Commission" means the Uttar Pradesh Electricity Regulatory Commission referred to in Section 3;

(g) "licence" means a licence granted under Chapter V;

(h) "licensee" means a person who holds a licence and includes the provisional licensee referred to in clause (a) of sub-section (3) of Section 13;

(i) "Member" means a Member of the Commission and includes the Chairperson;

(j) "regulations" means regulations made under this Act;

(k) "relative" means relative as defined in Section 6 of the Companies Act, 1956;

(l) "supply licence" means a licence for supply of electricity granted under sub-section (1) of Section 15;

(m) "transmission" in relation to electricity, means the transportation or transmission of electricity by means of a system 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 and or transferring electricity' from a generating station to a sub-station or from one generating station to another generating station or from one sub-station to another sub-station or otherwise from one place to another;

(n) "transmission licence" means a licence for transmission granted under sub-section (1) of Section 15;

(o) "Power Corporation" means the Uttar Pradesh Power Corporation Limited referred to in Section 13;

(p) "utility" means a person engaged in the generation, transmission, sale, distribution or supply of electricity;

(q) words and expressions used but, not defined in this Act, shall have the meanings assigned to them in the Electricity (Supply) Act, 1948;

(r) words and expressions used but not defined in this Act or in the Electricity (Supply) Act, 1948, shall have the meanings assigned to them in the Indian Electricity Act, 1910.

Chapter II

Establishment Of Commission, Its Functions And Powers

(b) The Uttar Pradesh Electricity Regulatory Commission established and constituted under Section 17 of the Central Act, shall be the Commission under this Act, and the Chairperson and Members thereof shall be deemed to have been appointed as such under this Act.

(a) one person having Bachelor's Degree in Engineering with experience of not less than twenty-five years in the field of generation, transmission or supply of electricity and having worked for at least two years on the post of a Chief Engineer or on any other post equivalent thereto in a State Electricity Board or any other utility;

(b) one person having Bachelor's Degree with experience of not less than twenty-five years in the field of administration and having held a post of Additional Secretary to the Government of India or a post equivalent thereto under the Central or the State Government and having at least five years experience in one or more departments of finance, power, industry and commerce of Government.

(c) one person having Bachelor's Degree in any discipline of Economics, Commerce, Accountancy, Law or Management with experience of not less than twenty-five years and having worked as a Professor in an Indian Institute of Management or as a whole time Director in a Public Financial Institution specified under Section 4-A of the Companies Act, 1956 or as a whole time Director in a Scheduled Bank within the meaning of the Reserve Bank of India Act, 1934 or as a Joint Secretary to the Government of India or as a District Judge or has held any other post equivalent thereto.

(a) of any office, employment or consultancy agreement or arrangement which the person or his relative has in his own name or in any firm, association of persons or body corporate, owned or otherwise controlled by any of them 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 entity providing any professional services to any of the businesses referred to in clauses (i), (ii) and (iii) above.

(b) such other details and information as may be prescribed in the rules or by the Selection Committee.

(a) be ineligible for further employment under the State Government for a period of two years from the date he ceases to hold such office;

(b) not accept any commercial employment for a period of two years from the date he ceases to hold such office; and

(c) not represent any person before the Commission in any manner.

(i) "employment under the State Government" includes employment under any local or other authority within the territory of India, under the control of the State Government, or under any corporation or society owned or controlled by the State Government.

(ii) "commercial employment" means employment in any capacity under, or agency of, a person engaged in commercial, industrial or financial business in the electricity industry and includes also a director of a company or partner of a firm and it also includes setting up practice either independently or as partner of a firm or as an advisor or a consultant.

(a) has been adjudged an insolvent; or

(b) has become physically or mentally incapable of acting; or

(c) has been convicted and sentenced to imprisonment for any offence involving moral turpitude; or

(d) has acquired such financial or other interest as is likely to affect his functions as a member; or

(e) has so abused his position as to render his continuance in office prejudicial to the public interest; or

(f) is a Member of Parliament, the State Legislature or any local authority or is a candidate for election thereto; or

(g) is a member of a political party' or holds a post therein.

(a) to determine the tariff for electricity, wholesale, bulk, grid or retail, as the case may be;

(b) to determine the tariff payable for the use of the transmission facilities;

(c) to regulate power purchase and procurement process of the transmission utilities and distribution utilities including the price at which the power shall be procured from the generating companies, generating stations or from other sources for transmission, sale, distribution or supply in the State;

(d) to promote competition, efficiency and economy in the activities of the electricity' industry to achieve the objects and purposes of this Act;

(e) to regulate investment approval for transmission, distribution or supply of electricity to the entities operating within the State;

(f) to aid and advise the State Government in matters concerning electricity generation, transmission, distribution and supply in the State;

(g) to issue licence for transmission, distribution or supply of electricity and determine the conditions of the licence,

(h) to regulate the working of licensees and other persons authorised or permitted to engage in the electricity industry in the State and to make their working efficient, economical and equitable;

(i) to require licensees to formulate plans and schemes for the promotion of generation, transmission, distribution, supply or utilisation of electricity and quality of service and to device proper power purchase and procurement process;

(j) to set standards for the electricity industry in the State including standards relating to quality, continuity and reliability of service;

(k) to promote competitiveness and make avenues for participation of private sector in the electricity industry in the State and also to ensure a fair deal to the consumers;

(l) to lay down and enforce safety standards;

(m) to aid and advise the State Government in formulating power policy for the State;

(n) to collect and record information relating to generation, transmission, distribution or utilization of electricity;

(o) to collect and publish data and forecasts on the demand for, and use of electricity in the State and to require the licensees to collect and publish such data;

(p) to regulate the assets, properties and interest in properties relating to the electricity industry in the State in such manner as to safeguard the public interest;

(q) to adjudicate upon the disputes and differences between a licensee and utility or to refer the same for arbitration;

(r) to co-ordinate with environmental regulatory agencies for evolving policies and procedures for appropriate environmental regulation of Electricity Section in the State; and

(s) to aid and advise the State Government on any other matter referred by the State Government.

(a) summoning and enforcing the attendance of any person and examining him on oath;

(b) requiring the discovery' and production of any document;

(c) receiving evidence on affidavits;

(d) requisitioning any public record or copy thereof from any Court or office;

(e) issuing commissions for the examination of witnesses and documents; and

(f) any other matter which may be prescribed.

(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 or 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 any officer so specified such information in his possession, power or control as may be required by the Commission for the purposes of discharge of its functions under this Act.

Chapter III

Powers Of The State Government

(b) The amount of the subsidy to be paid under clause (a) and the method and manner of payment and the time within which such amount is to be paid by the State Government shall be determined by the Commission and the Commission will calculate such amount in accordance with the procedure provided in the regulations.

Chapter IV

The Uttar Pradesh Power Corporation Limited

(a) be provisional licensee for transmission and supply of electricity within the State until the grant of licence by the commission;

(b) be responsible for transmission system operations;

(c) be the legal successor of the Board in relation to all power purchase and transmission agreements entered into by the Board with generating and transmission companies including those owned or controlled by the Central Government; and

(d) undertake such other functions as may be required under the licence.

Chapter V

Licensing Of Transmission And Supply

(a) holds a licence; or

(b) is exempted under Section 16 from the requirement of a licence; or

(c) is so authorised under the Indian Electricity Act, 1910 or the Electricity (Supply) Act, 1948.

(a) any person applying for a licence shall publish a notice of his application in such manner, and with such particulars as may be provided in the regulations, within fourteen days after making the application;

(b) the Commission shall not grant a licence until -

(i) the objections, if any, received within three months from the date of last publication of the notice referred to in clause (a) have been considered by the Commission;

(ii) in the case of an application for licence to transmit or supply of electricity in an area which includes the whole or any part of any cantonment, aerodrome, fortress, arsenal, or camp or of any building or place in the occupation of the Central Government, for defence purposes, it has been ascertained that there is no objection to the grant of licence on the part of the Central Government;

(c) where an objection is received from any local authority, the Commission shall, if in its opinion the objection is insufficient, record reasons for such opinion and communicate it to such local authority;

(d) no application for a licence shall be made by a local authority except in pursuance of a resolution passed in a meeting of such authority held after a notice, specifying the purpose of the meeting, has been given in the manner in which the notices for the meetings of such local authority are usually given.

(a) enter into an agreement on specified terms with any other person for the use of any electric lines, electrical plant and associated equipment operated by the licensee;

(b) comply with any direction given by the Commission;

(c) refer all disputes arising under the licence for determination by the Commission or by an arbitrator nominated by it;

(d) furnish information, documents and details which the Commission may require;

(e) comply with the requirements of the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948, and the rules made thereunder in so far as they arc applicable;

(f) undertake such functions and obligations of the Board under the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948, as the Commission may specify;

(g) notify’ to the Commission any scheme which is proposed to be undertaken including the schemes under the Electricity (Supply) Act, 1948;

(h) purchase power in an economical manner in accordance with the guidelines, if any, issued by the Commission;

(i) supply electricity to any consumer or to any other licensee;

(j) establish a tariff or to calculate its charges from time to time in accordance with the directions of the Commission; and

(k) pay the fees and charges as may be required by the Commission;

(i) in case where electricity is to be supplied in an area forming part of any cantonment, aerodrome, fortress, arsenal, or camp or any building or place in the occupation of the Central Government for defence purposes, of the Central Government;

(ii) in case where electricity is to be supplied in an area falling within the area of supply of a licensee, of that licensee :

(a) the holder of a supply licence which permits the holder of such licence to supply electricity to other licensees for distribution by them; or

(b) any other person or generating company with the consent of the Commission.

(a) upon receiving a complaint from any consumer or consumer association or any trade association; or

(b) upon a reference made to it by the State Government, the Central Government, the Central Electricity Regulatory' Commission or Central Electricity Authority; or

(c) upon receiving a complaint from a person engaged in the generation, transmission, distribution or supply of electricity, or

(d) upon its own knowledge or information that the licensee is committing or has committed any default in carrying out such obligation.

(a) that the licensee has committed a willful default to do anything required to be done by or under this Act, the Indian Electricity Act, 1910 or the Electricity (Supply) Act, 1948;

(b) that the licensee has committed breach of any of the terms and conditions of the licence, the breach of which is expressly declared by the licence to render it liable to revocation;

(c) that the licensee has failed within the period specified in the licence or any longer period allowed by the Commission to show that he is in a position to fully and efficiently discharge the duties and obligations imposed on him by the licence or to pay the fees or charges or to make the deposit or furnish the security required by the licence;

(d) where in the opinion of the Commission the financial position of the licensee is such that he is unable to fully and efficiently discharge the duties and obligations imposed on him by the licence.

(a) the licensee shall publish a notice of the application in such manner and with such particulars as may be provided by regulations;

(b) the Commission shall not make any alteration or amendment until all the objections received within three months from the date of the last publication of the notice have been considered; and

(c) in the case of an application proposing amendments in an area of transmission or supply comprising the whole or any part of any cantonment, aerodrome, fortress, arsenal, or camp or of any building or place in the occupation of the Central Government, for defence purposes, the Commission shall not make any alteration or amendment except with the consent of the Central Government.

(a) the decision of the Commission shall be communicated to the licensee, and the licence shall stand revoked on such communication of the decision;

(b) the Commission shall, simultaneously with the communication of its decision under clause (a), make such interim arrangement in regard to the undertaking of the licensee for the purposes of maintaining and continuing transmission and supply of electricity as it may consider appropriate including the appointment of an administrator or administrators for such undertaking, and such administrator or administrators shall be deemed to be interim licensees;

(c) the Commission shall, by advertising in at least two widely circulated newspapers, invite applications from such persons as are intending to purchase the undertaking of the licensee whose licence has been revoked and are also willing to obtain a licence under Section 15;

(d) the Commission shall consider the applications received under clause (c) for the purposes of granting a licence under Section 15 and shall also determine the terms and conditions for the disposal of the said undertaking, and may and by notice in writing, require the licensee whose licence has been revoked, to sell his undertaking to the person whose application has been accepted by the Commission, hereinafter referred to in this section as the purchaser, for the purchase price put forward in the application; and

(e) on and with effect from the date of revocation, or, where the undertaking of the licensee is sold to a purchaser earlier in pursuance of any of the provisions of this Act, on and with effect from the date of such sale, all rights, duties, obligations and liabilities of the licensee under this Act, shall cease except from any liabilities that have accrued to that date.

Chapter VI

Reorganisation Of The Electricity Industry

(a) a transfer scheme involves the transfer of any property or right in favour of 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 transferee to the transferor;

(b) a transaction of any description is made in pursuance of a transfer scheme, it shall be binding on all persons including third parties, even if such persons have not consented to it.

(a) define the property, interest, rights and liabilities to be allocated -

(i) by specifying the property, rights and liabilities;

(ii) by referring to all the properties, interests, rights and liabilities comprising a specified part of the transferor's undertaking; or

(iii) partly in one way and partly in the other;

(b) provide that the rights or liabilities specified in the scheme shall be enforceable by or against the transferor or the transferee;

(c) impose on the transferee an obligation to enter into such written agreements with or execute such other instruments in favour of any other transferee as may be rectified in the scheme; and

(d) make such supplemental, incidental and consequential provisions as the transferor may consider appropriate including provisions specifying the order in which any transfer or transaction shall take effect.

(a) terms and conditions of service of the personnel shall not be less favourable to the terms and conditions which were applicable to them immediately before the transfer;

(b) the personnel shall have continuity of service in all respects; and

(c) all benefits of service accrued before the transfer shall be fully recognised and taken into account for all purposes including the payment of any or all terminal benefits :

Chapter VII

Tariffs

(a) the financial principles and their application provided in Sections 46, 57 and 57-A of the Electricity (Supply) Act, 1948 and in the Sixth Schedule thereto;

(b) the factors which would encourage efficiency, economical use of the resources, good performance, optimum investments, observance of the conditions of the licence and other matters which the Commission may consider appropriate for the purposes of this Act; and

(c) the interest of the consumers;

(b) The licensee shall also publish, within three days of submission of his proposal for the tariff for the ensuing year, a notice in at least two daily newspapers, widely circulating in the area of supply, outlining the proposed tariff and calling for objections from the interested persons and the State Government.

(c) The Commission while determining the tariff shall also take into consideration the objections, if any, received, within one month from the date of last publication of the notice referred to in clause (b).

(a) accepts the licensee's calculations; or

(b) does not consider the licensee's calculations to be in accordance with the procedure given in the licence or considers that it is otherwise incorrect, specifying the reasons therefor and proposing modifications or alternative calculations.

(a) shall not show any preference or favour to any consumer of electricity, but may differentiate on the ground of the consumer's load factor or purpose of use or power factor, the consumer's total consumption of electricity during any specified period, or the time during which the supply is required;

(b) shall be just and reasonable and be such as to promote economy and efficiency in the supply and consumption of electricity; and

(c) shall accord with all other relevant provisions of this Act, and the conditions of licence.

(a) the word "licensee" shall include a person authorised to transmit, sell, distribute or supply electricity;

(b) "the expected revenue from charges” means the revenue which a licensee is expected to recover from charges on supply forecast used in the determination of tariff under sub-section (4); and

(c) "tariff means a schedule of standard prices or charges for specified services, which are applicable to all such specified services, provided to the category' or categories of customers specified in the tariff.

Chapter VIII

Commission’s Power To Pass Orders And Enforce Directions

(a) the extent to which the contravention referred to in sub-section (1) will affect the achievement of the objects and purposes of this Act;

(b) the extent to which any person is likely to sustain loss or damage in consequence of anything which is likely to be done or omitted to be done in contravention of any of the terms and conditions of the licence, before an order can be made; and

(c) any other remedy available in respect of the contravention referred to in sub-section (1).

(a) stating that it proposes to make the order;

(b) setting out, -

(i) conditions or requirements, with which the proposed order is intended to secure compliance;

(ii) the acts or omissions which, in its opinion, constitute contravention of any of the terms and conditions of the licence; and

(iii) any other facts which, in its opinion, justify the making of the order; and

(c) specifying the period not being less than thirty days from the date of the notice within which the licensee may make representation or objections to the proposed order.

(a) the Commission has reasons to believe that the licensee has contravened or is contravening or may in all probability contravene any of the terms and conditions of the licence; and

(b) the order appears to be necessary for securing compliance with the terms and conditions of the licence.

(a) shall take effect from such prospective date as may be specified in the order; and

(b) may be revoked or modified at any time by the Commission after affording an opportunity of being heard to the licensee and all other such persons as arc likely to be affected by such order.

Chapter IX

Electricity Advisory Committee And Consumer Protection

(a) The circumstances in which licensees arc to inform customers of their rights;

(b) standards of performance in relation to any duty arising out of the rights referred to in clause (a), and

(c) the circumstances in which the licensees are to be exempted from any requirements of the regulations,

(a) determine such standards of overall performance in respect of electricity supply services and promotion of the efficient use of electricity by consumers, as in its opinion, are economical and ought to be achieved by such licensees, and different standards may be determined for different licensees; and

(b) publish the standards so determined in such form and in such manner as the Commission may consider proper.

(a) the number of cases in which a penalty was imposed and the amount of the penalty; and

(b) the level of performance achieved by the licensee for each standard determined under Section 31.

Chapter X

Arbitration And Appeals

(a) confirm and enforce the award,

(b) set aside or modify the award; or

(c) remit the award for reconsideration by the arbitrator.

Chapter XI

Offences And Penalties

(a) in contravention of the provisions of this Act, the rules or the regulations made under this Act or of the provisions of the Indian Electricity Act, 1910 the Electricity (Supply) Act, 1948 or the rules made thereunder, engages in the business of transmission or supply of electricity, or

(b) refuses or fails without reasonable cause to comply with, or give effect to, any direction, order or requirement made under this Act,

(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.

Chapter XII

Accounts And Audit

Chapter XIII

Miscellaneous

(a) the administration of the affairs of the Commission in the exercise of its functions;

(b) determination of the functions to be assigned to licensees and other persons involved in the generation, purchase, transmission, distribution or supply of electricity', the manner in which such functions shall be discharged and the procedures to be adopted and enforced in regard to the operation and maintenance of power system and electric supply lines;

(c) the procedure and the conditions for the grant of licences, the particulars and documents to be made available by the persons applying for licences, the standards and general conditions subject to which the licence shall be granted, the grant of exemptions from the requirement of a licence, the revocation and amendment of licences and the effect thereof and all matters related thereto;

(d) the duties, powers, rights and obligations of licensees;

(e) the particulars to be furnished, and the form and manner for furnishing information, particulars, documents, accounts and books by the persons involved in the generation, transmission, distribution, supply or use of electricity;

(f) the terms and conditions and the procedure for determination of revenues and tariffs;

(g) the determination of the standards of performance of the persons involved in the generation, transmission, distribution or supply of electricity in the State;

(h) the fees and charges payable by the licensee and the consumer of electricity;

(i) the amount of fines and penalties to be imposed for violation of the provisions of this Act including the method and manner of imposition of fines and penalties and collection of the same;

(j) any other matter which is required to be, or may be, provided by regulations.

(a) the procedure to be adopted by the Selection Committee for selection and appointment of the Chairperson and the Members;

(b) the form and manner in which the accounts of the Commission shall be maintained; and

(c) any other matter which is required to be, or may be, prescribed by rules.

Chapter XIV

Effect On Existing Central Law

(a) the Board shall cease to undertake the functions which are to be discharged by the Commission in terms of the provisions of this Act, or any rules or regulations made under the Act;

(b) upon the issue of notifications in terms of Section 23 of this Act, the Board shall cease to undertake such of the functions of the Board as are assigned under the notification to the companies or body corporate or persons or authority.

(i) All references to the State Electricity Board in the Indian Electricity Act, 1910 in so far as this State is concerned shall be read as reference to the Commission or companies or body corporate or person or authority as provided in this Act or any rules or regulations framed under this Act and wherever it relates to general policy matters, the State Government.

(ii) The provisions of Sections 3 to 11, 28, 36(2), 49-A, 50, 51 and 52 of the Indian Electricity Act, 1910, to the extent this Act has made specific provisions, shall not apply in the State.

(iii) The provisions of all other sections of the Indian Electricity Act, 1910 shall apply except that :-

(a) the terms "licence", or "licensee" shall have the meaning as defined in this Act and the licences issued under the said Act of 1948 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 references to the corresponding provisions of this Act to the extent modified by this Act;

(c) the reference to arbitration in this Act, except where it is by the Central Electricity Authority, shall be taken as reference to the proceedings under Section 34 of this Act and the arbitration procedure prescribed under the Indian Electricity Act, 1910 shall not apply;

(iv) The Schedule to the Indian Electricity Act, 1910 shall be applicable only with reference to the provisions of this Act wherein the applications of the Schedule are specified and not otherwise.

(v) All reference to the State Electricity Board in the Electricity (Supply) Act, 1948, in so far as this State is concerned shall be read as references to the Commission or companies or body corporate or person or authority as provided in this Act or any rules or regulations framed under this Act and wherever it relates to general policy matter, the State Government.

(vi) In respect of matters provided in Sections 5 to 15, 16, 17, 18, 19, 20, 23 to 26, 27, 37, 40 to 43, 44, 45 to 54, 56 to 69, 72, 75 and 76 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 in the State.

(vii) The provisions of all other sections of the Electricity (Supply) Act, 1948, shall apply except that :-

(a) the terms "licence", or "licensee" shall have the meaning as defined under this Act and the licences issued under the said Act of 1948 shall be construed as having been issued under this Act;

(b) the reference to the sections of the Indian Electricity Act, 1910 and 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 34 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 references to the State Electricity Board in these sections shall stand omitted.

(ix) The Schedules to the Electricity (Supply) Act, 1948, shall be applicable only with reference to the provisions of this Act wherein the application of the Schedules are specified and not otherwise.

Notification