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THE DELHI ELECTRICITY REFORM ACT, 2000

(DELHI ACT NO. 2 of 2001)

GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI

(DEPARTMENT OF LAW, JUSTICE & LEGISLATIVE ASSEMBLY AFFAIRS)
5, SHAM NATH MARG, DELHI- 110 054

Dated: 8/3/2001
NOTIFICATION
No. F –(27)/LA/2000 - The following Act of Legislative Assembly received the assent of
the President of India on 6th March 2001 is hereby published for general information:-

THE DELHI ELECTRICITY REFORM ACT, 2000

(DELHI ACT NO. 2 of 2001)
(As passed by the
Legislative Assembly of the National Capital Territory of Delhi
on 23-11-2000)

An
Act
To provide for the constitution of an Electricity Regulatory Commission, restructuring of
the electricity industry (rationalisation of generation, transmission, distribution and
supply of electricity), increasing avenues for participation of private sector in the
electricity industry and generally for taking measures conducive to the development
and management of the electricity industry in an efficient, commercial, economic
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and competitive manner in the National Capital Territory of Delhi and for matters
connected therewith or incidental thereto.
BE it enacted by the Legislative Assembly of the National Capital Territory Of Delhi in
the Fifty first year of the Republic Of India as follows:-

PART – I

PRELIMINARY

1. (1) This Act may be called the Delhi Electricity Reform Act, 2000.

(2) It extends to the whole of the National Capital Territory of Delhi excluding the areas
of the New Delhi Municipal Council and the Delhi Cantonment Board.

(3) It shall be deemed to have come into force on 3rd day on November 2000.:

2. (1) In this Act unless the context otherwise requires

(a) “area of transmission” means the area within which the holder of a
transmissionlicence is for the time being, authorised by licence to transmit energy;

(b) “ Central Act” means the Electricity Regulatory Commissions Act, 1998;

(c) “Commission” means the Delhi Electricity Regulatory Commission, refer section
3;

(d) “Government” means the Lieutenant Governor referred to in article 239AA, of the
Constitution;

(e) “licence” means a licence granted under Part II or Part II A of the Indian Electricity
Act, 1910 or Part VI of this Act;

(f) “licensee” or “licence holder” means a person licensed under Part II or Part II A of the
Indian Electricity Act, 1910 or under Part VI of this Act to transmit or supply energy;

(g) “Lieutenant Governor” means the Lieutenant Governor of the National Capital
Territory of Delhi appointed by the President under article 239 read with article 239AA
of the Constitution;

(h) “High Court” means High Court of Delhi;

(i) “member or members” means the member or members of the Commission and shall
include the Chairperson of the Commission;

(j) “prescribed’’ means prescribed by the rules or regulations made under this Act;

(k) “regulation” means a regulation made by the Commission under this Act;

(l) “rule’’ means a rule made by the Government under this Act;

(m) “selection committee” means the selection committee referred to in section 4;

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(n) “section” means a section of this Act; and

(o) “transmit” in relation to electricity means the transportation or transmission of

electricity by means of a system operated or 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 and/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.

(2) Words and expressions used but not defined in this Act and defined in the
Electricity (Supply) Act, 1948, have the meanings respectively assigned to them in
that Act;

(3) Words and expressions used but not defined either in this Act or in the
Electricity (Supply) Act, 1948 and defined in the Indian Electricity Act, 1910,
have the meanings respectively assigned to them in that Act.
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PART – II

DELHI ELECTRICITY REGULATORY COMMISSION

3.(1) There shall be an Electricity Regulatory Commission for the National Capital Territory
of Delhi to be known as“the Delhi Electricity Regulatory Commission”
(hereinafter referred to as “the Commission”) to exercise the powers
conferred on, and to perform the functions assigned to it under this Act.

(2) The Commission shall consist of one or more but not more than three members,
including the Chairperson, to be appointed by the Government in the manner
provided in Section 4, who shall be person or persons, as the case may be, of ability,
integrity and standing with knowledge of, and having shown capacity in, dealing
with problems relating to administration, engineering, finance, commerce
economics, law or management.

Provided that one member shall always be with adequate experience in generation,
transmission or distribution of electricity and, if there are more than one member, the
members shall be persons having expertise in different disciplines.

(3) The Commission established and constituted with one member under section 17 of
the Central Act shall be the first commission for the purposes of this Act and the
member appointed shall be the chairperson of the Commission.

(4) At all times the most senior member of the Commission shall act as Chairperson, such
seniority being reckoned from the date of the appointment of the members. In case
two or more persons are selected at the same time, the seniority amongst them shall
be determined by the Government while making the appointment.

(5) When the Chairperson of the Commission is unable to discharge the functions owing
to absence, illness or any other cause, the next senior member of the Commission
shall discharge the functions of the Chairperson, until the day on which the
Chairperson assumes the charge of his functions.

(6) No act or proceedings of the Commission shall be invalid by reason only of the
existence of any vacancy among its members or any defect in the constitution
thereof.

(7) The Commission shall have an official seal for the authentication of documents
required for the purposes of its functions.

(8) The Commission may by a general or special order in writing and subject to such
conditions as may be specified in the order delegate to any officer of the
Commission such of the administrative powers as the Commission considers
appropriate to aid and assist the work of the Commission.

4. (1) (a) The Government shall constitute a selection committee, as often as

may be required to select persons for appointment as members. The selection
committee shall consist of the following members: -

(i) A Judge of High Court or a former Judge of High Court – Chairperson

(ii) Chief Secretary of the Government – Member

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(iii) The Chairman of Central Electricity Regulatory Commission Member

(b) The Secretary in charge of the Department of Power of the Government shall act as
the convenor of the selection committee.

(2) The selection committee shall finalise the selection within a period of one month from
the date on which the reference is made to it.

(3) The selection committee shall recommend a panel of two names for every vacancy
referred to it.

(4) All decisions of the selection committee shall be by majority.

(5) The Government shall appoint the member from the two names recommended by
the selection committee.

(6) The method and manner of selection and appointment of members and designation
of one of the members as Chairperson shall be as prescribed by the Government
from time to time by the rules.

5(1) The persons who are considered for appointment as members of the Commission shall
notify to 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 or person or body corporate, or in the
names of any relatives, 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 generation, transmission, distribution supply or use
of electricity; and

(iv) any entity providing professional services to any of the businesses referred to in sub-
clauses (i), (ii) and (iii) above and any other business which is notified by the
Government on a later date taking into consideration the scope of work of the
Commission;

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

Explanation:- For the purpose of this sub-section, the term “relative” shall have the same
meaning as defined under section 6 of the Companies Act, 1956.

(2) The details received from the persons shall be placed for consideration of the
selection committee at the time of the selection and recommendation of the person
for appointment as member.

(3) Each member of the Commission shall, before taking charge of the office as member
or within such time not exceeding three months after taking charge as may be
allowed by the Government on the recommendation of the selection committee,
divest himself from the interest in the businesses mentioned in sub-section (1) as a
condition of his appointment.
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(4) If a person to be appointed as a member of the Commission holds any office under
the Government of India or the Government of any State or the Government of any
Union territory he shall submit his resignation or take voluntary retirement from that
service and shall not seek reappointment in the service of the Government or any
Government, corporation or private body, dealing with the power sector for a period
of two years after he ceases to be member of the Commission.

(5) So long as the person holds the office of the member and for a period of two years
after he ceases to be a member for any reason whatsoever, he shall not acquire,
hold or maintain, directly or indirectly, any office, employment or consultancy
arrangement or interest in businesses mentioned in sub-section (1) and if he acquires
any such interest involuntarily or by way of succession or testamentary disposition, he
will divest himself of such interest within a period of three months of such interest
being acquired.

(6) Before recommending any person as a member of the Commission, the selection
committee shall satisfy itself that the person does not have any financial or other
interest as referred to in sub-section (1) or otherwise which is likely to affect
prejudicially his functions as a member.

(7) A person shall be disqualified from being appointed as member of the Commission if
he is a member of Parliament or of the Legislative Assembly of any State or of the
Legislative Assembly of any Union Territory or of any local authority or holds any post
in a political party.

6. (1) Every member shall hold office for a period of five years from the date of
his appointment as member or until the age of sixty-five years, whichever is earlier,
and he shall not be eligible for re-appointment at any time after the expiry of his
term of appointment.

Provided that no person shall be appointed as a member after he attains the age of
sixty-two years.

(2) The Chairperson of the Commission and other members shall receive such
remunerations and other allowances and shall be governed by such conditions of
service as may be prescribed from time to time under the rules.
Provided that the terms shall not be varied to their disadvantage during the tenure of
the appointment.

(3) The Chairperson of the Commission and every other member shall, before entering
upon his office, make and subscribe to an oath of the office and of secrecy in such
form, in such manner and before such authority as may be prescribed.

7. (1) Subject to the provisions of sub-section (3), any member of the

Commission shall only be removed from his office by order of the Lieutenant
Governor on the ground of proved misbehaviour after the High Court, on reference
being made to it by the Lieutenant Governor, has, on inquiry held in accordance
with the procedure prescribed in that behalf by the High Court, reported that the
member ought on any such ground to be removed.

(2) The Lieutenant Governor may suspend any member of the Commission in respect of
whom a reference has been made to the High Court under sub-section (1) until the
Lieutenant Governor has passed orders on the receipt of the report of the High Court
on such reference.
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3) Notwithstanding anything contained in sub-section (1), the Lieutenant Governor may,

by order, remove from office the member if he –

has been adjudged an insolvent; or

has been convicted of an offence which, in the opinion of the Government, involves
moral turpitude; or

has become physically or mentally incapable of acting as a member; or

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

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

has without reasonable cause refused or failed to act for a period of atleast six
months; or

ceases to fulfill any of the conditions of his appointment as member.

(4) Notwithstanding anything contained in sub-section (3), no member shall be removed

from his office on the ground specified in clause (d) or in clause (e) of that sub-
section unless the High Court on a reference being made to it in this behalf by the
Lieutenant Governor, has, on an inquiry held by it in accordance with such
procedure as prescribed in this behalf by the High Court, reported that the member
ought on such ground or grounds to be removed.

(5) The Government shall act in accordance with the recommendation in the final
report under sub-section (4) and the Government shall communicate its decision to
the member concerned within a period of two months of the receipt of such report.

(6) A member who has been removed shall not be eligible for re-appointment as a
member or in any other capacity in the Commission or in the Government or in any
Government undertakings.

(7) If the member removed under this section is the Chairperson of the Commission, he
shall cease to be the Chairperson of the Commission.

(8) Nothing contained in this section shall be construed to exclude the jurisdiction of the
Lokayukta and Uplokayukta.

8. (1) The Commission, in consultation with the Government, shall appoint a

person as Secretary of the Commission to assist the Commission to discharge its
functions.

(2) The Commission may, in consultation with the 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 method and manner of selection of the Secretary, officers and other employees
and the terms and conditions of their service may be prescribed by the Commission
by regulations in consultation with the Government.
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(4) The salaries and allowances payable to the members 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 National Capital Territory of Delhi.

(5) The Commission may appoint consultants from time to time to assist the Commission
in the discharge of its functions.
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PART – III

PROCEEDINGS, POWERS AND FUNCTIONS OF THE COMMISSION

9. (1) The headquarters of the Commission shall be at Delhi.

(2) The Commission may, by notification in the official Gazette, make regulations not
inconsistent with this Act and the rules made thereunder for discharging its functions.

(3) All decisions of the Commission shall be on the basis of majority of the members
present and voting. 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. Each member of
the Commission shall have one vote only. The Chairperson shall have no casting or
second vote.

(4) If there are more than one member in the Commission, the quorum for any meeting
of the Commission shall be two members.

Provided that for 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 and against the resolution proposed, the
quorum for the meeting shall be all members present.

(5) (a) The Chairperson may instruct the Secretary to call a meeting of the
Commission to be held at such time as the Chairperson may direct.

(b) Any member of the Commission may, subject to the consent of the Chairperson,
requisition a meeting of the Commission at any time by sending a notice in writing to
the other members with a copy to the Secretary.

(6) The Commission shall be entitled to decide urgent matters by circulation of the
papers to members.

(7) All decisions, directions and orders of the Commission shall be in writing and shall be
supported by reasons. 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 in such a manner as the Commission may prescribe.

10. (1) The Commission shall, for the purposes of any inquiry or proceedings under
this Act have the powers as are vested in a Civil Court under the Code of Civil
Procedures, 1908, while trying a suit in respect of the following matters, namely: -

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

(b) the discovery and production of any document or other material object producible
as evidence;

(c) the reception of evidence on affidavit;

(d) the requisition of any public record from any court or office;
(e) the issue of commission for examination of witnesses;
(f) the appearance of parties and consequences of non-appearance;
(g) the grant of adjournments at the hearing; and
(h) any other matter which may be prescribed.
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(2) The Commission shall have the power to require any person –

(a) to produce before it and allowed 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 the Commission considers is necessary or relevant for the purposes of this
Act or for the discharge of the functions of the Commission under 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) For the purpose of enforcing the attendance of witnesses, the local limits of the
jurisdiction of the Commission shall be the limits of the territory of India.

(4) The Commission shall have the powers to make such interim orders in any
proceedings, or hearing before the Commission, as the Commission considers
appropriate.

(5) 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 proceeding
relates, which the owner of such unit or person may be required to produce insuch
inquiry or proceeding, are being or may be destroyed, mutilated, altered,falsified or
secreted, it may, by a written order, authorize any officer of the Commission to
exercise the powers of entry, search and seizure as may be exercised by an
inspector appointed for inspection under sections 240 and 240-A of the Companies
Act, 1956.

(6) 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 licensees to furnish to the Commission, periodically or
as and when required, any information concerned with 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 related to the organisation, business,
cost of production, conducts, etc. as may be prescribed to enable the Commission
to carry out its functions under this Act.

(7) In the discharge of its functions, the Commission shall be entitled to and shall consult
to the extent the Commission considers appropriate from time to time such person or
group of persons as may be affected or are likely to be affected by the decisions of
the Commission.

(8) The Commission may, at any time, call for and examine, information, details, books,
accounts and other documents from any person including a generating company or
a licensee for the purposes of providing the same to the Central Electricity Authority,
the Central Electricity Regulatory Commission, the Central Government or the
Government if so required by them under any law for the time being in force.
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(9) Every person to whom notices may be issued under this Act shall be obliged to duly,
faithfully and expeditiously furnish such information, details, books, accounts and
other documents, as may be specified in the notice by the Commission.

(10)Notwithstanding anything contained in sections 12 to 16 (both inclusive) and sections 18

and 19 of the Indian Electricity Act, 1910, for the placing of the electric supply lines
appliance and apparatus for transmission, distribution and supply of energy, the
Commission may, by order in writing, confer upon licensees or any other person
engaged in the business of transmission, distribution or supply of energy to the
public under this Act, subject to such conditions and restrictions as
theCommission may prescribe, any of the powers which the telegraph authority
possesses under the Indian Telegraph Act 1985 with respect to placing of telegraph lines
and post.

11. (1) The Commission shall discharge the following functions, namely :-

(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 licensees and
transmission 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 and supply in the National Capital Territory of Delhi;

(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 aid and advise the Government in matters concerning electricity generation,
transmission, distribution and supply in the National Capital Territory of Delhi;

(f) to regulate the operation of the power system within the National Capital Territory of
Delhi;

(g) to set standards for the electricity industry in the National Capital Territory of Delhi
including standards related to quality, continuity and reliability of service;

(h) to promote competitiveness and make avenues for participation of private sector in
the electricity industry in the National Capital Territory of Delhi and also to ensure a
fair deal to the customers;

(i) to aid and advise the Government in the formulation of its power policy;

(j) to collect and publish data and forecasts on the demand for, and use of, electricity
in the National Capital Territory of Delhi and to require the licensees to collect and
publish such data;

(k) to regulate the assets, properties and interest in properties concerned or related to
the electricity industry in the National Capital Territory of Delhi including the
conditions governing entry into, and exit from the electricity industry in such manner
as to safeguard the public interest;

(l) to issue licences for transmission, bulk supply, distribution or supply of electricity and
determine the conditions to be included in the licences;
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(m) to regulate the working of the licensees and other persons authorised or permitted to
engage in the electricity industry in the National Capital Territory of Delhi and to
promote their working in an efficient, economical and equitable manner;

(n) to require licensees to formulate prospective plans and schemes in co-ordination

with others for the promotion of generation, transmission, distribution, supply and
utilisation of electricity, quality of service and to devise proper power purchase and
procurement process;

(o) to adjudicate upon the disputes and differences between the licensees and/or
transmission utilities and to refer the matter for arbitration;

(p) to aid and advise the Government on any other matter referred to the Commission
by the Government.

(2) The Commission shall always act consistent with the objectives and purposes for
which the Commission has been established as an independent statutory body
corporate and all acts, decisions and orders of the Commission shall be pursuant to
and shall seek to achieve such objectives and purposes.
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PART-IV

POWERS OF THE GOVERNMENT

12. (1) In the discharge of its functions, the Commission shall be guided by such directions in
matters of policy involving public interest as the Government may issue from time to
time.

(2) If any question arises as to whether any such direction relates to a matter of policy
involving public interest, the decision of the Government thereon shall be final.

(3) The Government shall be entitled to issue policy directions concerning any subsidy to
be allowed for supply of electricity or any other infrastructure services to any class or
classes of persons.

Provided that the Government shall contribute an amount to compensate the Board
or any company affected to the extent of the subsidy granted.

The Commission shall determine such amounts, the terms and conditions on which
and the time within which such amounts are to be paid by the Government.

(4) The Government shall consult the Commission in relation to any proposed legislation
or rules concerning any policy direction and may take into account the
recommendations made by the Commission.

13. The Government may, if so required to do by the Central Government,

authorise the Commission to discharge the functions of Electricity Regulatory
Commission in respect of any other Union territory.
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PART – V

REORGANISATION OF ELECTRICITY INDUSTRY

14. (1) The government may, as soon as may be after the commencement
of this Act, cause one or more companies to be incorporated and set up under
the provisions of the Companies Act, 1956 for the purpose of generation, transmissionor
distribution of electricity, including companies engaged in more than one of the said
activities, in the National Capital Territory of Delhi and may transfer the existing
generating stations or the transmission system or distribution system, or any part of
the transmission system or distribution system, to such company or companies.

(2) The Government may designate any company set up under sub-section (1) to be the
principal company to undertake all planning and coordination in regard to
generation or transmission or both; and such company shall undertake works
connected with generation or transmission and determine the requirements of the
territory in consultation with the other companies engaged in generation or
transmission for the National Capital Territory of Delhi, the Commission, the Regional
Electricity Board and the Central Electricity Authority and any other authority under
any law in force for the time being, or any other Government concerned.

(3) The companies incorporated and set up under sub-section (1) shall undertake the
functions specified in this section and such other functions as may be assigned to
them by the Government.

(4) Subject to the provisions of this Act and of the duties and functions assigned to the
companies incorporated and set up under sub-section (1), other companies
engaged in generation, transmission or distribution of electricity, or more than one of
the said activities, may be incorporated and set up in the National Capital Territory of
Delhi.

(5) The Government may, in consultation with the Commission, determine the lines that
shall be treated as transmission or distribution lines for the purpose of division of
responsibilities between the companies incorporated and set up under this section,
having regard to the voltage levels of such lines and any other factor, which it may
consider relevant.

(6) The Government may convert the companies set up under this Act to joint venture
companies through a process of disinvestment, in accordance with the transfer
scheme prepared under the provisions of this Act.

(7) Upon the transfer of all functions of the Board to corporate entities in terms of this
Part, the Government may appoint an administrator for the purpose of finalisation of
the accounts of the Board for all the pending years till the date of such transfer and
thereafter for winding up the Board in such manner as the Government may direct.

15. (1) With effect from the date on which a transfer scheme prepared by the
Government to give effect to the objects and purposes of this Act, is published or
such further date as may be specified by the Government (hereinafter referred to as
“the effective date”), any property, interest in property, rights and, liabilities which
immediately before the effective date belonged to the Board shall vest in the
Government.
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(2) The Government may transfer such property, interest in property, rights and liabilities
to any company or companies established under section 14 for the purpose in
accordance with the transfer scheme prepared therefore.

(3) Such of the rights and power to be exercised by the Board under the Electricity (Supply)
Act, 1948, as the Government may, by notification in the official Gazette, specify, shall
be exercisable by a company or companies established as the case may be, under
section 14, for the purpose of discharge of the functions and duties with which it is
entrusted.

(4) Notwithstanding anything contained in this section or any other Act, where: -

(a) the transfer scheme involves the transfer of any property or rights to any person or
undertaking not wholly owned by the Government, the scheme shall give effect to
the transfer only after asset valuation; and

(b) where any transaction of any description is effected 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.

(5) The Government may require any transmitting or distributing company established
under the provisions of sub-section (1) of section 14 (hereinafter referred to as "the
transferor licensee") or any generating company to draw up a transfer scheme to
vest in a further licensee or licensees (the "transferee licensee or licensees"), or any
generating company, any property, interest in property, rights and liabilities which
have been vested in the transferor licensee or generating company, as the case
may be, under this section and publish the same in the official Gazette. The transfer
scheme to be notified under this sub-section shall have the same effect as a transfer
scheme under sub-section (2).

(6)A transfer scheme may-

(a) provide for the formation of subsidiaries, joint venture companies or other schemes of
division, amalgamation, merger, reconstruction or arrangements;

(b) define the property, interest in property, 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 property, rights and liabilities comprised
in a specified part of the transferor's under-taking, or

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

Provided that the property, interest in property, rights and liabilities shall be subject to
such further transfer as the Government may specify;

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

(d) impose on any licensee an obligation to enter into such written agreements with, or
execute such other instruments in favour of any other subsequent licensee as may be
specified in the scheme;
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(e) make such supplemental, incidental and consequential provisions as the transferor
licensee considers appropriate including provision specifying the order in which any
transfer or transaction is to be regarded as taking effect;

(f) provide that the transfer shall be provisional subject to the provisions of section 18.

(7) All debts and obligations incurred, all contracts entered into and all matters and
things done by, with or for the Board, or a company or companies established as the
case may be, under section 14 or generating company or distribution company or
companies before a transfer scheme becomes effective shall, to the extent specified
in the relevant transfer scheme, be deemed to have been incurred, entered into or
done by, with or for the Government or the transferee and all suits or other legal
proceedings instituted by or against the Board or transferor, as the case may be,
continued or instituted by or against the Government or concerned transferee, as
the case may be.

(8) In the event a licensee is required to vest any part of its undertakings in another licensee
pursuant to sub-section (5), the Government shall amend the transferee licence in
accordance with section 24 or revoke its licence in accordance with section 23.

(9) The Board shall cease to exist with the transfer of functions and duties specified and
with the transfer of assets as on the effective date.

(10) The exercise by a licensee of any of Board’s rights and powers may be
made on such conditions as shall be specified in the transfer scheme including a
condition that such rights and powers shall be exercised by the licensee only with the
approval of the Commission/Government.

16. (1) The Government may by a transfer scheme provide for the transfer of the
personnel from the Board to a company or companies established as the case may
be, under section 14 and distribution companies ('hereinafter referred to as
"transferee company or companies") on the vesting of properties, rights and liabilities
in a company or companies established, as the case may be, under section 14 or
the distribution companies.

(2) Upon such transfers the personnel shall hold office in the transferee company on
terms and conditions that may be specified in the transfer scheme subject, however,
to the following, namely:-

(a) that the terms and conditions of the service applicable to them in the transferee
company shall not in any way, be less favourable than or inferior to those applicable
to them immediately before the transfer;

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

c) that the benefits of service accrued before the transfer shall be fully recognised and
taken in account for all purposes including the payment of any and all terminal
benefits.

17. Notwithstanding anything contained in the Industrial Disputes Act, 1947 or any other
law as is applicable and except for the provisions made in this Act, the transfer of the
employment of the personnel referred to in section 16 shall not entitle such
employees to any compensation or damages under this Act, or any other law or
under the general law, save as provided in the transfer scheme.
 17

18. (1) The Government may provide that the transfers in terms of sections 15 and
16 shall be provisional for a period of twelve months from the effective date unless
confirmed earlier and reserve the right to alter, vary, modify, add or otherwise change
the terms in such manner as the Government may consider appropriate.

(2) At any time before the end of the period of twelve months commencing on the effective
date, a company or companies established as the case may be, under section 14 or
generating company or distribution company or companies, as the case may be, to
whom property, interest in property, rights, liabilities and personnel have been transferred,
may, with the consent of the Government draw up a transfer scheme to vest some or all
the property, rights, liabilities and personnel in another licensee, or generating company
subject to the consent of such other licensee or generating company to such vesting and
any such transfer scheme shall take effect as if it were a transfer scheme under section 15.
 18

PART – VI

LICENSING OF TRANSMISSION AND SUPPLY

19. (1) No person, other than those authorised to do so by licence or by virtue of

exemption under this Act or authorised to or exempted by any other authority under
the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948, shall engage
in the National Capital Territory of Delhi in the business of :-

(a) transmitting electricity; or

(b) supplying electricity including bulk supply.

(2) Where any difference or dispute arises as to whether any person is or is not engaged
or about to engage in the business of transmitting or supplying electricity as
described in sub-section (1), the matter shall be referred to the Commission and the
decision of the Commission shall be final.

(3) The Commission shall have the power to order any unlicensed person to cease
operation and disconnect its apparatus.

20. (1) The Commission may, on an application made in such form and on
payment of such fee, if any, as it may prescribe, grant a licence authorising any
person to –

(a) transmit electricity in a specified area of transmission; or

(b) supply electricity in a specified area of supply including bulk supply to licensees or
any person.

(2) In respect of the grant of any such licence, the following provisions shall apply –

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

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

(i) all objections received relating to the application for the licence have been
considered by the Commission.

Provided that no objection shall be considered by the Commission unless it is received

within three months of the date of the first publication of the notice under clause (a)
above or if the Commission may, at any time prescribe a new time limit for filing
objection; and

(ii) in the case of an application for a licence to supply or transmit in an area which includes the
whole or any part of any cantonment, aerodrome, fortress, arsenal, dockyard or camp or of
any building or place in the occupation of the Central Government for defence purposes,
the Commission has ascertained that there is no objection to the grant of the licence on the
part of the Central Government.
 19

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

(d) no application for a licence shall be made by any local authority except
pursuant to a resolution passed at a meeting of such authority held after one month’s
previous notice of the same specifying the purpose thereof, has been given in the
manner in which notices of meetings of such local authority are usually given.

(3) A licence may prescribe the duration, extent to which, and the terms and conditions
under which the transmission or supply of energy is to be made and contain such other
conditions as the Commission may consider appropriate for achieving the purposes of
this Act.

(4) Without prejudice to the generality of sub-section (3), conditions included in a

licence by virtue of that sub-section may require the licensee to –

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

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

(c) act in accordance with the terms of the licence;

(d) refer all disputes arising under the licence for determination by the Commission;

(e) furnish information, documents and details which the Commission may require for its own
purpose or for the purposes of the Central Government or the Government or Central
Electricity Authority or Central Electricity Regulatory Commission.

(f) comply with the requirements of the Indian Electricity Act, 1910 and the Electricity
(Supply) Act, 1948 or the rules framed thereunder in so far as they are applicable;

(g) undertake such functions and obligations of the Delhi Vidyut Board under the Indian
Electricity Act, 1910 and the Electricity (Supply) Act, 1948 as the Commission
may prescribe;

(h) obtain the approval of the Commission of such things that are required
under the licence conditions or for deviation from the same;

(i) notify the Commission of any scheme that he proposes to undertake

including the schemes in terms of the provisions of the Electricity (Supply) Act, 1948.

(j) purchase of the power in an economical manner and under a transparent power
purchase procurement process; and

(k) supply in bulk to other licensees or to customers.

(5) Without prejudice to the generality of sub-section (3), conditions included in a

licence granted by the Commission may require the holder of such a licence to
establish a tariff or to calculate its charges from time to time in accordance with the
requirements prescribed by the Commission.

(6) The provisions contained in the Schedule to the Indian Electricity Act, 1910 shall be
deemed to be incorporated with, and to form part of, every supply licence granted
 20

under this Part save in so far as they are expressly varied or excepted by the supply
licence and shall, subject to any such additions, variations or exceptions which the
Commission is empowered to make having regard to the purposes of this Act, apply
to the undertaking authorised by the licence in relation to its activities in the National
Capital Territory of Delhi:

Provided that where a supply licence is granted by the Commission for the supply of
energy to other licensees for distribution by them, then in so far as such licence
relates to such supply, the provisions of clauses IV, V, VI, VII, VIII and XII of the said
Schedule shall not be deemed to be incorporated within the supply licence.

(7) The conditions included in a licence may contain provision for the conditions to
cease to have effect or be modified at such times, in such manner and in such
circumstances as may be specified in or determined by or under the conditions.

(8) Any provision included by virtue of sub-section (7) above in a licence shall have effect in
addition to the provision made by sub-section (5) of section 23 and section 24 of this Act
with respect to the amendment of the conditions of a licence.

(9) Unless indicated in the terms of a licence, 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 supply for a like purpose, the licensee shall not claim any exclusivity.

(10)The licence granted by the Commission in terms of this Act may provide that the licensee
shall have the powers and authorities to take appropriate actions for revenue realisation,
prosecution for theft, meter tampering, diversion of electricity, and all such and similar
matters to affecting the distribution and supply of electricity to the consumer.

(11) The Commission shall be entitled to authorise the licensees and persons to exercise
such power and authority as the licensees and persons could be given under the
provisions of the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948.

21. (1) The Commission may by order grant exemption from the requirement to
have a supply licence, but subject to compliance with such conditions, if any, as may
be specified in the order.

Provided that the Commission shall not under any such order, grant any exemption
except with the consent

(i) of the local authority, if any, constituted in the area where energy is to be supplied;

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

(iii) in any area falling within the area of supply of a licensee, of that licensee.

ovided 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
unreasonably withheld.

(2) An exemption may be granted –

(a) to persons of a particular category; or

 21

(b) to a particular person; or

c) for a particular period; and an exemption to persons of a particular

category or to a particular person shall be published in such manner, as the
Commission considers appropriate for bringing it to the attention of that person or
persons 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 be recorded in writing.

(4) An exemption, unless previously revoked, shall continue in force for such period as
may be specified in or determined by or under the exemption.

(5) Every order or exemption made by the Commission under this Act shall be published
in the official Gazette.

22. (1) It shall be the duty of the holder of a supply licence or a transmission
licence in respect of a particular area to develop and maintain an efficient,
coordinated and economical system of electricity supply or transmission in the
area of transmission or area of supply as the case may be.

(2) Each licensee 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 maintenance of power system and electric supply
lines.

(3) Subject to sub-section (4) of this section, sections 12 to 19 of the Indian Electricity
Act, 1910 (which relate to the carrying out of works) shall have effect in relation to a
person authorised by a licence under this Act to transmit or supply electricity, as if he
is a licensee in that Act.

(4) Where any of the sections mentioned in sub-section (3) above is applied to a licence
holder by his licence, it shall have effect subject to such restrictions, exceptions and
conditions as may be included in the licence.

23. (1) The Commission may inquire into the conduct or functioning of any licensee in
carrying out the obligations under this Act or rules or regulations framed
thereunder or the terms and conditions of its licence –

(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 Government or by the Central Government, the
Central Electricity Authority; or Central Electricity Regulatory Commission;

(c) upon receiving a complaint from any company or person involved in the generation,
transmission, distribution or supply of electricity; or

(d) upon its own knowledge or information derived from any source.

(2) Upon making such inquiry the Commission may, if in its opinion the public interest so
requires, revoke a licence in any of the following cases, namely: -
 22

(a) where the licensee, in the opinion of the Commission, has committed a willful or
unreasonable default in doing anything required of him by or under this Act, the
Indian Electricity Act, 1910, or the Electricity (Supply) Act, 1948 or rules made thereunder
to the extent applicable in the National Capital Territory of Delhi read with the provisions
of this Act;

(b) where the licensee commits a breach of any of the terms and conditions of his
licence the breach of which is expressly declared by such licence to render it liable
to revocation;

(c) where the licensee fails within the period specified in his licence or any longer period
which the Commission may allow by order–

(i) to show, to the satisfaction of the Commission, that he is in a position to fully and
efficiently discharge the duties and obligations imposed on him by his licence; and

(ii) to make the deposit or furnish the security required by his licence; and

(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 his licence.

(3) Notwithstanding the provisions of sub-sections (1) and (2), where in its opinion the
public interest so requires, the Commission may, 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, if any, revoke a supply licence as to the whole or any
part of the area of supply upon such terms and conditions as it thinks fit.

(4) No licence shall be revoked under sub-section (2) or sub-section (3) unless the
Commission has given to the licensee not less than three months’ notice in writing,
stating the grounds on which it is proposed to revoke the licence and has considered
any cause shown by the licensee within the period of that notice, against the
proposed revocation and has given reasons for such revocation.

(5) The Commission may instead of revoking the licence, permit it to remain in force
subject to such further terms and conditions as it thinks fit to impose and any further
terms or conditions so imposed shall be binding upon, and be observed by the
licensee, and be of like force and effect as if they were contained in the licence.

24. (1) The Commission may, where in its opinion the public interest so permits or
requires, on the application of the licensee if the licensee is not a local authority, on
the application of the local authority concerned or otherwise on its own may make
such alternations and amendments to the terms and conditions of a licence as it
thinks fit taking into account the objects and purposes of this Act.

Provided that no such alternations or amendments, other than an alternation or

amendment pursuant to a licence condition referred to in sub-section (7) of section
20 and sub-section (5) of section 23 of this Act shall be made except with the consent
of the licensee.

(2) Where the licensee has made an application under sub-section (1) proposing any
alternations or amendments in his licence, the following provisions shall apply –

(a) the licensee shall publish a notice of the application in the manner and with the
particulars as may be prescribed by the Commission,
 23

(b) the Commission shall not make any alterations or amendments until all objections
received by it with reference to the application within three months from the date of
the publication of the notice have been considered; and

(c) in the case of an application proposing alternations or amendments in an area of

supply comprising the whole or any part of the cantonment, aerodrome, fortress,
arsenal, dockyard or camp or of any building or place in the occupation of the
Central Government for defence purposes, the Commission shall not make any
alternations or amendments except with the consent of the Central Government.

(3) Before making any alternations or amendments in a licence otherwise than on the
application of the licensee, the Commission shall publish the proposed alternations or
amendments and consider all objections received by it with reference to the
proposed alternations or amendments within three months from the date of the
publication of the notice.

25.(1) Notwithstanding the provisions of sections 6 and 7 of the Indian Electricity Act, 1910.
where the Commission revokes a licence under sub-section (2) of section 23 of
this Act, the following shall apply:-

(a) the Commission shall serve a notice of revocation upon the licensee and shall fix a
date on which the revocation shall take effect. On and with effect from that date or
on and with effect from the date, if earlier, on which the undertaking of the licensee
is sold to a purchaser in pursuance of any of the provisions of this Act all the rights,
duties, obligations and liabilities of the licensee under this Act shall absolutely cease
and determine except for any liabilities that have accrued to that date;
(b) the Commission shall invite applications for acquiring the undertaking of the licensee
whose licence has been revoked and determine 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 licensee shall sell the undertaking to the person whose application has been
accepted by the Government, or as the case may be, the Commission. Such person is
referred to in this section as the “purchaser”, and

(d) the Commission may make such interim arrangement in regard to the undertaking of
the licensee for maintaining the electricity transmission and supply as may be
considered appropriate including the appointment of administrators and special
directors for the undertaking.

(2) Where an undertaking is sold under sub-section (1), the purchaser shall pay to the
licensee the purchase price of the undertaking determined in accordance with the
application submitted by the purchaser.

(3) Where the Commission issues any notice under sub-section (1) requiring the licensee
to sell the undertaking, it may by such notice require the licensee to deliver, and
thereupon the licensee shall deliver on a date specified in the notice, the
undertaking to the designated purchaser pending the payment of the purchase
price of the undertaking.

Provided that in any such case, the purchaser shall pay to the licensee interest at
such percent, exceeding the Reserve Bank lending rate ruling at the time of delivery
of the undertaking, as the Commission may decide, on the purchase price of the
undertaking for the period from the date of delivery of the undertaking to the date of
payment of the purchase price.
 24

(4) Where before the date fixed in the notice issued under clause (a) of sub-section (1)
as the date on which the revocation of the licence shall take effect, no notice has
been issued to the licensee requiring him to sell the undertaking or where for any
reason no sale of the undertaking has been effected under that sub section , the
Government shall acquire the undertaking on the date of revocation of the licence
and shall pay to the licensee an amount determined in accordance with sub-
sections (1) and (2) of section 7-A of the Indian Electricity Act, 1910 and shall perform
all the obligations of the licensee until such time as the Government is able to sell the
undertaking to a new licensee, which it shall endeavour to do when reasonably
practicable.

(5) The licensee shall duly implement the orders of the Commission,
notwithstanding that the licensee may be aggrieved by the orders of the
Government or as the case may be, the Commission and intends to take legal action
challenging the orders of the Government or the Commission, as the case may be.

26. (1) No licensee or generating company shall, at any time, without the previous
consent in writing of the Commission, acquire by purchase or otherwise the licenseor
the undertaking or associate himself with, so far as the business of generation,
transmission, distribution or supply of energy is concerned, any other licensee or
person generating, transmitting, supplying or intending to generate, transmit or supply
electricity.

Provided that before granting or refusing such consent, the Commission shall hear
such person or authority as the Commission may consider appropriate.

(2) The licensee shall not, at any time, assign his licence or transfer his undertaking, or
any part thereof, by sale, mortgage, lease, exchange or otherwise without the
previous consent in writing of the Commission.

(3) The provisions of section 44 of the Electricity (Supply) Act, 1948 shall apply except
that the persons to whom the section applies shall be required to obtain the
sanctions and consents from the Commission, instead of such sanctions and consents
to be obtained from the Board as provided under that section.

(4) A holder of a supply or transmission licence may, unless expressly prohibited by the
terms of its licence, enter into arrangements for the purchase of electricity from-

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

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

(5) Any agreement relating to any transaction of the nature described in sub-section (1),
(2), (3) or (4) unless made with, or subject to such consent as aforesaid, shall be void.

27. Every licensee shall, unless expressly exempted by the licence, prepare
and render to the Commission, on or before the date in each year specified in the
licence, an annual statement or statements of accounts of its undertaking and of
each separate business unit as specified in the licence made up to such date, in
such form and containing such particulars, as may be set out in the licence. It shall
be a term of the licence that such statements shall be published in manner
prescribed in the rules.
 25

PART-VII

TARIFFS

28.(1) The holder of each licence granted under this Act shall observe methodologies and
procedures specified by the Commission from time to time in calculating the
expected revenue from charges which it is permitted to recover pursuant to the terms of
its licence and in designing tariffs to collect those revenues.

(2) The Commission shall, subject to the provisions of sub-section (3), be entitled to
prescribe the terms and conditions for the determination of the licensee’s revenues
and tariffs by regulations duly published in the official Gazette and in such other
manner as the Commission considers appropriate.

Provided that in doing so, the Commission shall be guided by the following parameters,
namely:-

(a) the financial principles and their application provided in the Sixth Schedule to the
Electricity (Supply) Act, 1948 read with sections 57 and 57-A of the said Act;

(b) the factors which would encourage efficiency, economic use of the resources, good
performance, optimum investments and other matters which the Commission
considers appropriate keeping in view the salient objects and purposes of the
provisions of this Act;

(c)the interest of the consumers.

(3)Where the Commission departs from the factors specified in the Sixth Schedule of the
Electricity (Supply) Act, 1948 while determining the licensee’s revenues and tariffs, it
shall record the reasons therefor in writing.

(4) Any methodology or procedure specified by the Commission under sub-sections (1),
(2) and (3) above, shall be to ensure that the objects and purposes of this Act are
duly achieved.

(5) Every licensee shall provide to the Commission at least three months before the
ensuing financial year full details of its calculation for that financial year of the
expected aggregate revenue from charges which it believes it is permitted to
recover pursuant to the terms of its licence and thereafter it shall furnish such further
information as the Commission may reasonably require to assess the licensee's
calculation. Within ninety days of the date on which the licensee has furnished all the
information that the Commission requires, the Commission shall notify the licensee
either-

(a) that it accepts the licensee's calculation; or

(b) that it does not consider the licensee's calculation to be in accordance with the
methodology or procedure in its licence, and such notice to the licensee shall-

(i) specify fully the reasons why the Commission considers that the licensee's calculation
does not comply with the methodology or procedures specified in its licence or is in
any way incorrect, and

(ii) propose a modification or an alternative calculation of the expected revenue from

charges, which the licensee shall accept.
 26

(6) Each holder of a supply licence shall publish in the daily newspaper having
circulation in the area of supply, and make available to the public on request, the
tariff or tariffs for the supply of electricity within its licenced area and such tariff or
tariffs shall take effect only after seven days from the date of such publication.

(7) Any tariff implemented under this section -

(a) shall not show undue preference to any consumer of electricity, but may
differentiate according to the consumer's load factor or power factor, the
consumer's total consumption of energy during any specified period, or the time at
which supply is required;

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

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

(8) No tariff or part of any tariff required by sub-section (6) may be amended more
frequently than once in any financial year except in respect of any changes expressly
permitted under the terms of any fuel surcharge formula prescribed. At least three
months before the proposed date for implementation of any tariff or an amendment to
a tariff the licensee shall provide details of the proposed tariff or amendment to a tariff
to the Commission, together with such further information as the Commission may require
to determine whether the tariff, or amended tariff, would satisfy the provisions of sub-
section (7). If the Commission considers that the proposed tariff, or amended tariff, of a
licensee does not satisfy any of the provisions of sub-section (7), it shall, within sixty days of
receipt of all the information which it required, and after consultation with the
Commission Advisory Committee and the licensee, notify the licensee that the proposed
tariff, or amended tariff, is unacceptable to the Commission and it shall provide to the
licensee an alternative tariff or amended tariff, which shall be implemented by the
licensee. The licensee shall not amend any tariff unless the amendment has been
approved by the Commission.

(9) Notwithstanding anything contained in section 57A- and 57-B of the Electricity
(Supply) Act, 1948 no rating committee shall be constituted after the date of this
enactment and the Commission shall secure that licensees comply with the
provisions of their licences regarding their charges for the sale of electricity (both
wholesale and retail) and for the connection to and use of their assets or systems in
accordance with the provisions of this Act.

10) In this section-

(a) "the expected revenue from charges" means the total revenue which a licensee is
expected to recover from charges for the level of forecast supply used in the
determination under sub-section (5) above in any financial year in respect of goods or
services supplied to customers pursuant to a licensed activity; and

b) "tariff” means a schedule of standard 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.

29. (1) The Government may, with the approval of the Legislative Assembly of
the National Capital Territory of Delhi, from time to time make subventions to any
licensee for the purpose of this Act or the Electricity (Supply) Act, 1948 for such
 27

amounts as may be recommended by the Commission and on such terms and

conditions as the Government may determine.

(2) The Government may, from time to time advance loans to any licensee or generating
company which for the time being is wholly or partly owned by the Government on
such terms and conditions, not inconsistent with the provisions of this Act or the
Electricity (Supply) Act, 1948, as the Government may determine.

(3) The Government shall be entitled to inspect and verify the accounts of every licensee or
generating company claiming any benefits under sub-section (1) or sub-section (2).

PART-VIII

POWERS OF COMMISSION TO PASS ORDERS AND ENFORCE DECISIONS

30. (1) Where the Commission is satisfied that a licensee is contravening, or is

likely to contravene any relevant condition or requirement, it shall by final order
under section 31 and, if it thinks it appropriate in accordance with sub-section (2)
by Interim order under this section, issue such directions as it deems proper for
securing compliance.

(2) In determining whether it is appropriate that an interim order be made, the

Commission shall have regard, in particular to-

(a) the extent to which the contravention or likely contravention by the licensee 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 the
relevant condition or requirement, before a final order can be made; and

(c) the extent to which(having regard to the following provisions of this section) there is
any other available remedy in respect of the alleged contravention of a relevant
condition or requirement.

(3) If the Commission proposes to make an interim order, it shall give notice to the
licensee-

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

(b) setting out –

(i) the relevant condition or requirement which the proposed order is intended to
secure compliance;

(ii) the acts or omissions which, in its opinion constitute contravention of that condition or
requirement;

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

(iv) the effects of the proposed order;

(c) specifying the period (being not less than five days from the date of notice) within
which the licensee may make representations or objections to the proposed order.
 28

(4) Subject to sub-section (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 (which may be modified from the proposed order following the
licensee's representations or objections) at any time after the expiry of the period
referred to in clause (c) of sub-section (3), if

(a) the Commission has reason to believe that the 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 of securing
compliance with that condition or requirement.

(5) The Commission may not make an interim order if it is satisfied that licensee has
agreed to take and is taking all such steps as the Commission considers that the
licensee should take to secure or facilitate compliance with the condition or
requirement in question.

(6) An interim order-

(a) shall require the licensee to whom it relates (according to the circumstances of the
case) to do, or not to do, such things as are specified in the order or are of a
description so specified.

(b) shall take effect from such time, being the earliest practicable time as is determined
by the order; and

(c) may be revoked, modified or rescinded at any time by the Commission, but in any
event shall cease to have effect at the end of such period as is stated in the order
unless the Commission is at that time following the procedure set out in section 31 of
this Act to declare the interim order to be a final order.

(7) As soon as practicable after making an interim order, the Commission shall-

(a) serve a copy of the order on the licensee to whom the order relates;

(b) publish the order in such manner as it considers appropriate for the purpose of
bringing it to the attention of persons likely to be affected by it; and

(c) commence proceedings to declare the interim order to be a final order in

accordance with section 31 of this Act.

31. (1) If the Commission proposes to make a final order or to declare an interim
order to be a final order, the Commission shall give notice –

(a) stating that it proposes to make the final order or to declare the interim order to be a
final order;

(b) setting out the information referred to in clause (b) of sub-section (3) of section 30 of
this Act in respect of the proposed final order; and

(c) specifying the period (being not less than sixty days from the date of publication of
the notice) within which representations or objections to the proposed order may be
made; and shall consider any representations or objections that are duly made and
not withdrawn. The Commission shall publish notice of such representations or
objection and specify a period (being not less than thirty days from the date of
 29

publication of the notice) within which further representations or objections may be

made.

(2) A notice under sub-section (1) above shall be given –

(a) by publishing the notice in such manner as the Commission considers appropriate for
the purpose of bringing the matters to which the notice relates to the attention of
persons likely to be affected by them; and

(b) by serving a copy of the notice, and a copy of the proposed final order on the
licensee to whom the order relates.

(3) The Commission shall not modify the proposed final order as a result of any
representations or objections received following publication of the notice referred to
in sub-section(1) except –

(a) with the consent to the modification of the licensee to whom the proposed final
order relates, and

(b) after complying with the requirements of sub-section (4) below.

(4) The requirements mentioned in sub-section (3) above are that the Commission shall-

(a) serve on the licensee to whom the proposed final order relates such notice as
appears to the Commission requisite of its proposal to modify the proposed final
order, together with details of such modifications;

(b) in that notice specify the period (being not less than thirty days from the date of the
service of the notice) within which representations or objections to the proposed
modifications can be made; and

(c) consider any representations or objections which are duly made and not withdrawn
within ten days.

(5) The provisions of clauses (a) and (b) of sub-section (6) of section 30 shall apply to final
orders.

(6) As soon as practicable after making a final order, the Commission shall with respect to
the final order, follow the procedure set out in clauses (a) and (b) of sub-section (7) of
section 30.

(7) The Commission may revoke a final order at any time, but before revoking a final
order the Commission shall give notice –

(a) stating that it proposes to revoke the order and setting out its effect; and

(b) specifying the period (being not less than thirty days from the date of delivery of the
notice) within which representations or objections to the proposed publication may
be made, and shall consider any representations or objection which are duly made
and not withdrawn within ten days.

(8) If, after giving a notice under sub-section (7) above, the Commission decides not to
revoke the final order to which the notice relates, it shall give notice of its decision to
the concerned persons.
 30

(9) A notice under sub-section (7) or sub-section (8) above shall be given by the
procedure set out in clauses (a) and (b) of sub-section (7) of section 30.

32. (1) Without prejudice to section 52 of this Act, all orders and directions, interim
or final, passed by the Commission shall be enforceable in law as if it were a
decreepassed by a Civil Court.

(2) The Commission shall be entitled to take such assistance of the police and other
authorities in the National Capital Territory of Delhi as required to effectively enforce the
order and direction given by the Commission.

(3) The Commission shall be entitled to give directions for vesting of the management
and control of any of the undertakings of the licensee with the assets, interests and
rights of the undertaking pending any inquiry and passing of interim or final orders in
the matter, if the Commission considers, taking into account the objects and
purposes of this Act and the need to maintain continued supply of electricity in an
efficient and safe manner to the consumer, it is imminent to pass such orders or
directions. Such directions or orders shall not be questioned on the ground that no prior
notice of or hearing on the intention to pass the order or direction was given to the
licensee. The Commission shall however give opportunity to the licensee and hear the
licensee before passing further orders in terms of sections 30 and 31 of this Act.

33. (1) The Commission shall be entitled to impose such fines and charges
as may be prescribed by the Commission in the regulations of non-compliance
or violation on the part of the generating companies, licensees or other persons, of the
provisions or requirements of this Act or rules and regulations framed there under and
directions or orders of the Commission shall be made from time to time. The fines, which
the Commission shall be entitled to impose, may extend up to one lakh rupees for an act
of non-compliance or violation and a further amount not exceeding six thousand rupees
for every day during which the non-compliance or violation continues.

(2) The Commission shall, while making an interim or final order under this part, shall be
entitled to direct compensation to be paid by the person guilty of violation or non-
compliance as provided in sub-section (1) to the person or persons affected by such
violation or non-compliance.

(3) The fines, charges and compensation, which may be imposed by the Commission
under this section, shall be in addition to and not in derogation of any other liability,
which the person guilty of violation or non-compliance, may have incurred.

34. The generating companies shall comply with the directions of the
Commission given to them from time to time in relation to the terms and conditions
for the operation and maintenance of the power system and electric supply lines.

PART – IX

ADVISORY COMMITTEE, CONSUMER CONSULTATION, ETC.

35. (1) The Commission shall constitute a committee to be known as the

Commission Advisory Committee, in consultation with the Government which shall
consist of such number of persons being not less than nine and not more than
fifteen as the Commission may appoint after consultation with such representatives
or bodies representative of the following interests as the Commission thinks fit, that is
to say, holders of supply licences in the National Capital Territory of Delhi, commerce,
industry, transport, agriculture, labour employed in the electricity supply industry and
consumers of electricity.
 31

(2) The Chairman and member of the Commission shall be ex-officio Chairman and
member of the Commission Advisory Committee.

(3) The Commission Advisory Committee shall meet at least once in every three months.

(4) The functions of the Commission Advisory Committee shall be :-

(a) to advise the Commission on major question of policy related to the electricity
industry in the National Capital Territory of Delhi ; and

(b) to advise the Commission on any matters which the Commission may put before it,
including matters relating to the quality, continuity and extent of service provided by
licensees and compliance by licensees with the conditions and requirements of their
licences.

36. (1) The Commission may, after consultation with (a) holder of supply licences
(b) other persons or bodies appearing to the Commission to be representatives of
persons and categories of persons likely to be affected ; and (c) the Commission
Advisory Committee, frame regulations prescribing –

(a) the circumstances in which such licensees are to inform customers of their
rights;

(b) the standards of performance in relation to any duty arising under clause(a) above or
otherwise in connection with the electricity supply to the consumer ; and

(c) the circumstances in which licensees are to be exempted from any requirements of
the regulations of this section and may make different provision for different
licensees.

(2) Nothing in this or other provisions of this Act shall in any way prejudice
or affect the rights and privileges of the consumers under other laws including but not
limited to the Consumer Protection Act, 1986.

37. (1) The Commission may after consultation with the licensees, the Commission
Advisory Committee, and with persons or bodies appearing to it to be representative
of persons likely to be affected, from time to time -

(a) determine such standards of overall performance in connection with the provision of
electricity supply services and in connection with the promotion of the efficient use of
electricity by consumers as, in its opinion, is economic and ought to be achieved by
such licensees; and

(b) arrange for the publication, in such form and in such manner as it considers
appropriate, of the standards so determined.

(2) Different standards may be determined under this section for different licensees.

38. (1) The Commission shall, from time to time, collect information with respect to -

(a) the fines or penalties levied on licensees under this Act.

(b) the levels of overall performance achieved by such licensees in connection with the
transmission and provision of electricity supply services; and
 32

(c) the levels of performance achieved by such licensees in connection with the
promotion of the efficient use of electricity by consumers.

(2) On or before such date in each year as may be specified in a direction given by the
Commission, each licensee shall furnish to the Commission the following information:-

(a) with respect to each standard prescribed the number of cases in which a penalty was
levied and the aggregate amount or value of those penalties; and

(b) with respect to each standard determined such information with respect to the level
of performance achieved by the licensee as may be so specified.

(3) The Commission shall, at least once in every year, arrange for the publication, in such
form and in such manner as it considers appropriate, of such of the information
collected by or furnished to it under this section as may appear to the Commission to
be so required.

39. (1) Subject to the provisions of this Act, no confidential information with respect to
any particular business which-

(a) has been obtained by the Commission under or by virtue of any of the provisions of
this Act; and

(b) relates to the affairs of any individual or to any particular business:

shall during the lifetime of that individual or for so long as that particular business
continues to be carried on, be disclosed by the Commission without the consent of that
individual or the person for the time being carrying on that business.

(2) The restriction contained in sub-section(1) above shall not apply to any disclosure of
information which is made –

(a) for the purpose of facilitating the carrying out by the Government of any of its
functions under a statute;

(b) for the purpose of facilitating the carrying out by the Central Government of any of
its duties or functions under this Act or any Central legislation;

(c) for the purpose of facilitating the carrying out by the Comptroller and Auditor
General of India of his duties and functions under this Act;

(d) for the purpose of enabling or assisting any competent person to carry out his
functions under the enactment relating to insolvency;

(e) in connection with the investigation of any criminal offence or for the purposes of any
criminal proceedings; or

(f) for the purposes of any civil proceedings brought under or by virtue of this Act or any
other law for the time being in force in the National Capital Territory of Delhi to which
the information is directly relevant.

(3) The restrictions contained in sub-section (1) above do not apply to the disclosure of
any information, which is otherwise in the public domain.
 33

PART – X

ARBITRATION AND APPEALS

40. (1) Any dispute arising between licensees or in respect of matters provided
under section 36 shall be referred to the Commission. The Commission may proceed to act
as arbitrator ornominate arbitrator (s) to adjudicate and settle such dispute. The practice
or procedure to be followed in connection with any such adjudication and
settlement shall be the same as laid down in the Arbitration and Conciliation Act,
1996.

(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; or

(b) Set aside the award;

(3) The award given by the Commission under the sub-section (1) or the order passed by
the Commission under sub-section (2) shall be a decision or order of the Commission
and shall be open to an appeal 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.

41. Notwithstanding the provisions of sub-section (2) of section 36 of the

Indian Electricity Act, 1910 in the absence of any express provision to the contrary in
the Indian Electricity Act, 1910 or the Electricity (Supply) Act, 1948 or any rule made
there under, an appeal shall lie from the decision of the Electrical Inspector (other
than an Inspector of the Central Government, Central Electricity Authority or the
Central Electricity Regulatory Commission) to the Commission or to an arbitrator to
be appointed by the Commission in terms of section 40.

42. A person aggrieved by any decision or order of the Commission passed

under this Act may file an appeal to the High Court of Delhi within ninety days from the
date of communication of the decision or order of the Commission to him, on
questions of law arising out of such order.

Provided that the High Court may, if it is satisfied that the appellant was prevented by
sufficient cause from filing the appeal within the said period, allow it to be filed within
a further period not exceeding sixty days.
 34

PART -XI

OFFENCES AND PENALTIES

43. Whoever in contravention of the provision 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, engages in the business of
transmission or supply or use of energy, shall be punishable with imprisonment
which may extend to three years or with penalty by way of fine which may
extend to five lakh rupees, or with both and a further penalty which may extend to
twenty thousand rupees for each day after the first, during which the offence
continues.

44. 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 two years, or with penalty by way of fine which may extend to five lakh rupees, or
with both and a further penalty which may extend to twenty thousand rupees for
each day after the first, during which the offence continues.

45 (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 as 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 purpose 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.

46. 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.

47. (1) No Court shall take cognizance of any offence punishable under this
Act except upon a complaint in writing made by the Commission or by any other
officer of the Commission generally or specially authorised by the Commission for the
purpose and no court other than that of a Metropolitan Magistrate or a Court
superior thereto shall try any such offence.
 35

(2) Notwithstanding anything contained in the Code of Criminal procedure, 1973 (2) of
1974), the Court may, if it sees reason so to do, dispense with the personal
attendance of the officer of the Commission filing the complaint.

48. 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 and in particular, under the Indian Electricity Act, 1910 and the Electricity
(Supply) Act, 1948.
 36

PART - XII

ACCOUNTS, AUDIT AND REPORT OF THE COMMISSION

49. The Government shall after due appropriation made by the Legislative
Assembly of the National Capital Territory of Delhi by law in this behalf, pay to the
Commission by way of grant such sums of money as the Government may think fit
for being utilized for the purposes of this Act.

Provided that the expenditure in respect of salaries and allowances of the

Chairperson and other members shall be charged on the Consolidated Fund of the
National Capital Territory of Delhi.

50. (1) the Commission shall maintain accounts and other records and shall
cause to be prepared an annual statement of accounts in such form as may be
prescribed.

(2) The accounts of the Commission shall be audited by the Comptroller and Auditor-
General of India, or by any officer authorised by him in this behalf.

(3) The copies of annual statement of accounts of the Commission together with the
audit report thereon shall be forwarded to the Government.

(4) A copy of the annual statement of accounts of the Commission together with the audit
report thereon received by the Government under sub-section (3) shall be laid before
the House of the Legislative Assembly of the National Capital Territory of Delhi.

51. The Commission shall prepare, in such form and at such time, for each financial year,
as may be prescribed, its annual report, giving a full account of its activities during
the previous financial year and copies thereof shall be forwarded to the
Government.
 37

PART – XIII

MISCELLANEOUS

52. The Commission shall be entitled to recover all sums due to it under this Act, whether
by way of licence, fees or fines and charges in accordance with the provisions of the
Dues Recovery Act, 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.

53. 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.

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

55. No suit or legal proceedings shall lie against the Commission or the Chairperson or
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 rule or regulations or order made thereunder.

56. No order or proposal made under this Act or rules or regulations framed under this
Act shall be open to an appeal except as provided in this Act and no Civil Court
including under the Arbitration and Conciliation Act, 1996 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.

57. (1) If any difficulty arises in giving effect to the provisions of this Act or
rules, regulations, schemes or orders made thereunder, the Government may, by
orderpublished in the official Gazette, make such provisions, not inconsistent with
the provisions of this Act as may appear to it to be necessary or expedient for removing
the difficulty.

Provided that no order shall be made under this section after the expiry of two years
from the date of the commencement of this Act.

(2) Every order made under this section shall be laid, as soon as may be after it is made,
before the Legislative Assembly of the National Capital Territory of Delhi.

58. 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 purpose of
section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973.

59. The Chairperson, members, officers and other employees of the Commission
appointed for carrying out the objects and purposes of this Act shall be deemed,
when acting or purporting to act in pursuance of any provisions of this Act, to be
public servants within the meaning of section 21 of the Indian Penal Code, 1860.

60. (1) The Government may, by notification in the official Gazette, make rules to
carry out the purposes of this Act.
 38

(2) In particular and without prejudice to the generality of the foregoing power, 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 functions
under this Act;

(b) prescribing other details and information required to be notified to the convenor of
the selection committee by persons who are considered for appointment as
members of the Commission;

(c) prescription of remuneration and other allowances in respect of the Chairperson and
other members of the Commission and the conditions of the service under which
they would be governed from time to time;

(d) prescription of the form, the manner in which and the authority before whom oath of
office and secrecy would be subscribed by the Chairperson and other members of
the Commission;

(e) prescribing the form in which annual statements of accounts is to be prepared by the
Commission;

(f) prescribing the form and the time within which the annual report of the Commission
shall be furnished to the Government;

(g) the preparation and implementation of the transfer scheme, the transfer of assets,
liabilities and personnel of generating companies, licensees and others in the
National Capital Territory of Delhi;

(h) the financing, funding, giving of guarantee, etc. to the persons involved in the
generation, transmission, distribution and supply of electricity in the National Capital
Territory of Delhi; and

(i) any other matter which is to be, or may be, prescribed or in respect of which
provision is to be made by rules.

61. (1) The Commission may by notification in the official Gazette, make
regulations consistent with this Act and the rules made thereunder to carry out the
purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such
regulations may provide for all or any of the following matters, namely:-

(a) the administration of the affairs of the Commission including the discharging of its
functions, the exercise of its administrative, quasi-judicial and judicial powers
including arbitration and procedure, summoning and holding of the meetings of the
Commission, the times at which such meetings shall be held, the conduct of business
thereof and the manner in which copies of decision , directions and orders of the
Commission shall be made available;

(b) the duties of the Secretary, officers and employees of the Commission, method and
manner of their selection for appointment, their salaries, allowances and conditions
of service;

(c) determination of the functions to be assigned to licensees and others involved in the
generation, purchase, transmission, distribution and supply, the manner in which
such functions shall be discharged, furnishing of periodical information by them to the
 39

Commission related to generation, transmission, distribution and supply or use of

electricity or information related to organisation, business, cost of productions, etc as
may be prescribed, conferring upon licensees and other persons any of the powers
which the telegraph authority possesses under the Indian Telegraph Act,1885 with
respect to placing of telegraph lines and post and the procedure and code to be
adopted with regard to power system and electric supply lines;

(d) the procedure for licensing of transmission and supply, the conditions for the grant of
licences and particulars, details and documents to be made available by the
persons applying for licence, the standard and general conditions subject to which,
the licence shall be granted prescribing the form of application for grant of licence
and fee payable for such licence, the exemption from grant of licence, revocation
and alteration and amendment and effect thereof, of the licence, and all matters
related to the above;

(e) the duties, powers, rights and obligations of the licensee;

(f) the particulars to be furnished, the collection of information, details, particulars,

documents, accounts, books etc., 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) to govern the terms and conditions for the operation and maintenance of power
system and electric supply lines;

(j) the determination of the standard of performance of the persons involved in the
generation, transmission, distribution and supply of electricity in the National Capital
Territory of Delhi;

(k) 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;

(l) to prescribe the form and manner in which the accounts of the Commission shall be
maintained;

(m) to regulate the properties, assets and interest in the properties used for or in connection
with the electricity industry in the National Capital Territory of Delhi; and

(n) any other matter which is to be, or may be, prescribed or in respect of which
provision is to be made by regulations.

62. Every rule made by the Government and every regulation made by the
Commission under this Act shall be laid, as soon as may be after it is made, before
the House of the Legislative Assembly of the National Capital Territory of Delhi,while
it is in session, for a total period of thirty days which may be comprised in one session
or in two or more successive sessions, and if before the expiry of the session
immediately following the session or the successive sessions aforesaid, the House
agrees in making any modification in the rule or regulation or the House agrees that
the rule or regulation should not be made, the rule or regulation shall thereafter
 40

have effect only in such modified form or be of no effect, as the case may be; so,
however, that any such modification or annulment shall be without prejudice to the
validity of anything previously done under that rule or regulation.
 41

PART – XIV

EFFECT ON EXISTING CENTRAL LEGISLATION

63. (1) Except as provided in section 63 of this Act, 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 Delhi Vidyut 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 the companies established
under section 14.

Provided that -

(a) the Government shall be entitled to issue all policy directives and undertake overall
planning and coordination as specified in section 12 of this Act and to this extent
the powers and functions of the Delhi Vidyut Board as per the provisions of the
Indian Electricity Act, 1910 and the Electricity (Supply ) Act, 1948 or rules thereunder
shall vest in the Government and the Government shall coordinate and deal with
the Central Government and the Central Electricity Authority.

(b) in respect of such matters as the Commission directs in term of a general or special
order, or in the regulations or in the licence, as the case may be, the generating
company or companies, the licensees 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-section (1) and sub-section (2) of this section, upon the
establishment of the Commission the provisions of the Indian Electricity Act, 1910 and
the Electricity (Supply) Act, 1948 shall, in so far as the National Capital Territory of
Delhi is concerned, shall be read subject to the following modifications and
reservations, namely:-

The Indian Electricity Act,1910

(i) All references to State Electricity Board in the Indian Electricity Act, 1910 in so far as
the National Capital Territory of Delhi is concerned shall be read as references to the
Delhi Electricity Regulatory Commission or the companies established under section 14 or
other licensees or wherever it relates to general policy matters, to the Government.

(ii) In respect of matters provided in sections 3 to 11, 28, 36(2), 49-A, and 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 in the National Capital
Territory of Delhi.

(iii) The provisions of all other sections of the Indian Electricity Act, 1910 shall apply except
that:-
 42

(a) the term “licence”, “licensee” , “licence holder” shall have the meanings 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
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 or the Central Electricity Regulatory Commission shall be taken as
reference to the proceedings under section 40 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 wherein the applications of the Schedules are
specified and not otherwise.

The Electricity (Supply) Act,1948

(v) All references to State Electricity Board in the Electricity (Supply) Act, 1948 in so far as
the National Capital Territory of Delhi is concerned shall be read as references to
the Delhi Electricity Regulatory Commission or the companies established under section
14 or other licensees or where it relates to general policy matters, to the Government.

(vi) In respect of matters provided in sections 5 to 18, 19, 20, 23 to 27, 37, 40 to 45, 46 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 in the National Capital Territory of Delhi.

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

(a) the term “licence” , “licensee” , “licence holder” shall have the meanings as defined
under this Act and the licences shall be construed as having been issued under this
Act;

(b) the references 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 the 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 40
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.

64. (1) Notwithstanding anything contained in this Act, the powers, rights and
functions of Regional Electricity Authority, the Central Electricity Authority, the
 43

Central Electricity Regulatory Commission, the Central Government and authorities,

other than the Delhi Vidyut 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,
National Thermal Power Corporation or other bodies or licensees in relation to the
inter-state transmission of the Electricity or generating companies owned or
controlled by Central Government or undertaking owned by the Central
Government.
 44

STATEMENT OF OBJECTS AND REASONS

At present, the Delhi Vidyut Board ( DVB ) constituted under section 5 of

the Electricity (Supply) Act, 1948 is charged with the functions of generation,

transmission, and distribution of electrical energy in Delhi. With rapid growth and

expansion of the transmission and distribution system, it is felt necessary to reorganise

generation, transmission and distribution into separate units to achieve

improvement in management. In order to meet these objectives, it is proposed to

constitute separate corporations for generation, transmission and distribution and to

make them commercially viable units, and at the same time ensure a fair deal to

the customers with regard to price, quality, etc. The existing generation, transmission

and distribution functions under the DVB are proposed to be split into separate units

and corporatised.

The essence of restructuring is to achieve the balance required to be

maintained with regard to competitiveness and efficiency on the one hand and

the social objective of ensuring that the consumers get a fair deal on the other

hand. The Commission may act as the body which determine, tariff which issue and

enforce licensees; which balances the interests of the State, the consumers, the units

involved in generation, transmission, distribution and supply of electricity and investors

in the electricity industry; which monitors, controls and regulates the working of the

units; which gathers information; which monitors price and quality of service; which

prevents monopoly abuse; promotes competition and fosters private participation

in power sector; which regulates and adjudicates on the tariffs and other related

issues and also acts as a body to resolve or set up machinery to resolve speedily

disputes among the licensees.

The present power system is in urgent need of modernisation and

upgradation. This needs huge capital investment. To meet the growing need of

funds, participation of private capital for generation, transmission and distribution has
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become imperative. The Government of India has already amended the Electricity

(Supply) Act, 1948 to allow private participation in generation of electricity.

The functional matters such as generation, transmission, distribution and

supply will vest in corporate bodies. In so far as transmission of electricity, the

functions shall vest in a transmission company to be established, initially, as a

government corporation and to be licensed under the Act. While the overall policy

be defined by the Government of NCT of Delhi, the technical co-ordination with the

Central Electricity Authority, the Government authorities in the National Capital

Territory of Delhi and regional authorities at the Centre will be undertaken by the

transmission company. Generation functions would vest in a government

corporation to be incorporated under the Companies Act, 1956. The distribution

functions would be performed either by government Corporation(s) or Joint Venture

company(ies) licensed under this Act.

The Act seeks to achieve the aforesaid objectives.

(VIJAI KAPOOR)
Lt.Governer Delhi