Updated: Friday May 16, 2014/AlJumaa
Rajab 17, 1435/Sukravara
Vaisakha 26, 1936, at 09:22:36 PM
The
Regulation of Generation, Transmission and Distribution of Electric Power Act,
1997
(XL of 1997)
[16th December,
1997]
An Act to provide for the
regulation of generation transmission and distribution of electric power
WHEREAS it is expedient to provide for the regulation of generation,
transmission and distribution of electric power and matters connect therewith
and incidental thereto;
It is hereby enacted as
follows:---
CHAPTER I
GENERAL
1. Short title, extent and
commencement.- (1) This Act may be called the Regulation of Generation,
Transmission and Distribution of electric Power Act, 1997.
(2) It extends to the whole
of
(3) It shall come into
force at once.
2. Definitions.- In this
Act, unless there is anything repugnant in the subject or context,---
(i) “Authority” means the
National Electric Power Regulatory Authority established under section 3;
(ii) “bulk-power consumer”
means a consumer who purchases or receives electric power, at one premises, in
an amount of one megawatt or more or in such other amount and voltage level and
with such other characteristics as the Authority may determine and the
Authority may determine different amounts and voltage levels and with such
other characteristics for different areas;
(iii) “Chairman” means the
Chair man of the Authority;
(iv) “consumer” means a
person or his successor-in-interest who purchases or receives electric power
for consumption and not for delivery or re-sale to others, including a person
who owns or occupies a premises where electric power is supplied;
(v) “distribution” means
the ownership, operation, management or control of distribution facilities for
the movement or delivery or sale to consumers of electric power but shall not
include the ownership, operation, management and control of distribution
facilities located on private property and used solely to move or deliver
electric power to the person owning, operating, managing and controlling those
facilities or to tenants thereof shall not constitute distribution;
(vi) “distribution company”
means a person engaged in the distribution of electric power;
(vii) “distribution
facilities” means electrical facilities operating at distribution voltage and
used for the movement or delivery of electric power;
(viii) “distribution
voltage” means any voltage below minimum transmission voltage;
(ix) “electric power” means
electrical energy or the capacity for the production of electrical power;
(x) “electric power
services” means the generation, transmission or distribution of electric power
and all other services incidental thereto;
(xi) “generation” means the
ownership, operation, management or control of generation facilities for
delivery or sale of electric power and not solely for consumption by the person
owning, operating, managing, and controlling those facilities;
(xii) “generation company”
means a person engaged in the generation of electric power;
(xiii) “generation facility”
means the electrical facility used for the production of electric power;
(xiv) “inter-connection
service” means the connection of one company’s electrical facilities to another
company’s electrical facilities;
(xv) “KESC” means the
Karachi Electric Supply Corporation, a public limited company, incorporated
under the Com panies Act, 1913;
(xvi) “licence” means a
licence issued for generation, transmission or distribution under this Act;
(xvii) “licensee” means a
holder of a licence;
(xviii) “member” means a
member of the Authority including the Chair man;
(xix) “minimum transmission
voltage” means sixty-six kilovolts or such other voltage that the Authority may
determine to be the minimum voltage at which electrical facilities are operated
when used to deliver electric power in bulk;
(xx) “National Grid Company”
means the person engaged in the transmission of electric power and granted a
licence under section 17;
(xxi) “Person” shall
include an association of persons, concern, company, firm or undertaking;
(xxii) “Prescribed” means
prescribed by rules made under this Act;
(xxiii) “public sector project”
means generation, transmission or distribution facilities constructed, owned,
managed or controlled by the Federal Government, a Provincial Government, a
local authority or any body owned or controlled by any such Government or
authority;
(xxiv) “regulations” means
regulations made under this Act;
(xxv) “SHYDO” means the
Sarhad Hydel Development Organization, established under the Sarhad Hydel
Development Organization Act, 1993 (NWFP Act No.1 of 1993);
(xxvi) “transmission” means
the ownership, operation, management or control of transmission facilities;
(xxvii) “transmission
facilities” means electrical transmission facilities including electrical
circuits, transformers and sub-stations operating at or above the minimum
transmission voltage but shall not in clued,---
(a) electrical circuits
forming the immediate connection between generation facilities and the
transmission grid to the extent th at those circuits are owned by a generation
company and are directly associated with that company’s generation facilities;
(b) specified facilities
operating at or above the minimum transmission voltage which the Authority,
upon an application by licensee under section 20, determines that such
facilities shall be owned and operated by a distribution licensee; and
(xxviii) “WAPDA” means the
Pakistan Water and Power Development Authority established under the Pakistan
Water and Power Development Authority Act, 1958 (W.P.Act XXXI of 1958).
CHAPTER II
ESTABLISHMENT OF AUTHORITY
3. Establishment of the
Authority.- (1) As soon as may be, but not later than thirty days after the
commencement of this Act, the Federal Government shall, by notification in the
official Gazette, established National Electric Power Regulatory Authority
consisting of a Chairman to be appointed by the Federal Government and four
members, one from each Province, to be appointed by the Federal Government
after considering tile recommendations of the respective Provincial
Governments.
(2) There shall be a
Vice-Chair man of the Authority, appointed from amongst the members for a
period of one year, by rotation, in the following order, namely:
(i) the member representing
the
(ii) the member
representing the
(iii) the member
representing the Province of the
(iv) the member
representing the
(3) [The Chairman shall be
an eminent professional of known integrity and competence with at least twenty
years of related experience in law, business, engineering, finance, accounting,
economics, the electric utility business, public administration or management]1
Provided that the Chairman
shall preferably be a person who is or has been a judge of a High Court or the
Supreme Court.]2
(4) Every member shall be a
professional of known integrity and competence with at least fifteen years of
related experience in law, business, engineering, finance, accounting,
economics or the electric utility business.
(5) The Chairman and a
member shall, unless he resigns or is removed from office earlier as
hereinafter provided, hold office for a term of four years and shall be
eligible for re-appointment for similar term:---
Provided that3[a Chairman
or a member] shall not be appointed under sub-section (1) if he has already
attained the age of sixty-five years.
(6) No act or proceeding of
the Authority shall be in valid by reason only of the existence of a vacancy
in, or defect in, the constitution of the Authority.
(7) The principal office of
the Authority shall be in
4. Resignation and removal
of Chairman, etc.---
(1) The Chairman, or a
member may, by writing under his hand, resign from his office.
(2) The Chairman or a
member may be removed by the Federal Government from his office if, on an
inquiry by the Federal Public Service Commission, he is found incapable of
performing the functions of his office by reason of mental or physical
incapacity or has been found guilty of misconduct.
5. Meetings of the Authority,
etc.---
(1) The meetings of the
Authority shall be presided over by the Chairman or, in his absence, the
Vice-Chairman.
(2) Three members shall
constitute a quorum for meetings of the Authority requiring a decision by the
Authority.
(3) The members shall have
reasonable notice of the time and place of the meeting and the matters on which
a decision by the Authority shall be taken in such meeting.
(4) The decision of the
Authority shall be taken by the majority of its members present, and in case of
a tie, the person presiding the meeting shall have a casting vote.
6. Decisions of the
Authority.- All orders, determinations and decisions of the Authority shall be
taken in writing and shall identify the determination of the Chairman and each
member.
7. Powers and functions of
the Authority.- (1) The Authority shall be exclusively responsible for
regulating the provision of electric power services.
(2) In particular and
without prejudice to the generality of the foregoing power, only the Authority,
but subject to the provisions of sub-section (4), shall,---
(a) grant licenses for
generation, transmission and distribution of electric power;
(b) prescribe procedures
and standards for investment programmes by generation, transmission and
distribution companies;
(c) prescribe and enforce
performance standards for generation, transmission and distribution companies;
(d) establish a uniform
system of accounts by generation, transmission and distribution companies;
1 Sub. For “The Chairman
shall be an eminent professional of known integrity and competence with at
least twenty years of related experience inlaw, business, engineering, finance,
accounting, economics or the electric utility business” by the Regulation of
Generation, Transmission and Distribution of Electric Power (Amendment)
Ordinance, 2008 (valid upto 20-06-2008).
2 Added by the Regulation
of Generation, Transmission and Distribution of Electric Power (Amendment)
Ordinance, 2001.
3Sub for “a Chairman or a
member” by ibid.
(e) prescribe fees
including fees for grant of licenses and renewal thereof;
(f) prescribe fines for
contravention of the provisions of this Act and
(g) perform any other
function which is incidental or consequential to any of the aforesaid
functions.
(3) Notwithstanding the
provisions of sub-section (2) and without prejudice to the generality of the
power conferred by sub-section (1) the Authority shall,---
(a) determine tariff,
rates, charges and other terms and conditions for supply of electric power
services by the generation, transmission and distribution companies and
recommend to the Federal Government for notification;
(b) review organizational
affairs of generation, trans mission and distribution companies to avoid any
adverse effect on the operation of electric power services and for continuous
and efficient supply of such services;
(c) encourage uniform
industry standard s and code of conduct for generation, transmission and
distribution companies;
(d) tender advice to public
sector projects;
(e) submit reports to the
Federal Government in respect of activities of generation, transmission and
distribution companies; and
(f) perform any other
function which is incidental or consequential to any of the aforesaid
functions.
(4) Notwithstanding
anything contained in this Act, the Government of a Province may construct
power houses and grid stations and lay transmission lines for use within the
Province and determine the tariff for distribution of electricity within the
Province.
(5) Before approving the
tariff for the supply of electric power by generation companies using
hydro-electric plants, the Authority shall consider the recommendations of the
Government of the Province in which such generation facility is located.
(6) In performing its
functions under this Act, the Authority shall, as far as practicable, protect
the interests of consumers and companies providing electric power services in
accordance with guidelines, not inconsistent with the provisions of this Act,
laid down by the Federal Government.
8. Remuneration, etc., of
Chairman and members.- (1) The Chairman and members shall be paid such
emoluments as may be determined by the Federal Government which shall not be to
their disadvantage during their term of office.
(2) The Chairman and
members shall not, during their term of office, engage themselves in any other
service, business, vocation or employment and before the expiration of two
years thereof enter into the employment of, or accept any advisory or
consultancy relationship with, any person engaged in the generation, transmission
or distribution of electric power in Pakistan or any related undertaking.
(3) The Chairman and
members shall not have any direct or indirect financial interest, or have any
connection with any company connected with the provision of electric power
services for so long as he holds office and for a period of two years
thereafter.
9. Chairman, etc. to be
public servant.- The Chairman, members, staff, experts, consultants, advisors
and other employees of the Authority, when acting or purporting to act in
pursuance of any of the provisions of
this Act or the rules and regulations, shall be deemed to be public servants
within the meaning of section 21 of the Pakistan Penal Code, 1860 (Act XLV of
1860).
10. Staff and advisers,
etc.- (1) To carry out the purposes of this Act, the Authority may, from time
to time, employ officers, members of its staff, experts, consultants, advisors
and other employees on such terms and conditions as it may deem fit.
(2) All officers, members
of staff, experts, consultants, advisors and other employees employed by the
Authority shall not be deemed to be civil servants within the meaning of the
Civil Servants Act, 1973 (Act LXXI of 1973).
11. Tribunals.- The
Authority may, from amongst its professional staff, establish special tribunals
for resolving contractual disputes between licensees or such other matters as
the Authority may assign.
12. Delegation.- The
Authority may delegate to the Chairman, a member or any of its officers or a
special tribunal constituted under section 11, all or any of its powers,
functions or duties under this Act, except,---
(a) the power to grant,
reject, amend, vary or revoke licenses or any condition thereof;
(b) the power to determine
or modify tariffs;
(c) the power to approve,
disapprove or modify an investment program or a power acquisition program;
(d) the power to make or
repeal rules and regulations made under this Act; and
(e) the power to make
orders on an application for review of its orders.
13. Funds.- (1) The
operations of the Authority shall be funded from,---
(a) grants from the Federal
Government, including an initial grant of one hundred million rupees; and
(b) fees and fines
collected by it as prescribed from time to time.
14. Accounts.- (1) The
Authority shall maintain complete and accurate books of accounts of its actual
expenses and receipts.
(2) The Accounts of the
Authority shall be audited annually by the Auditor General of
CHAPTER III
LICENSES
15. Generation licence.-
(1) No person shall except under the authority of a licence issued by the
Authority under this Act and subject to the conditions specified in this Act
and as may be imposed by the Authority, construct, own or operate a generation
facility.
(2) An application for the
grant of a licence for generation facility shall specify,---
(i) the type of facility
for which the licence is applied;
(ii) the location of the
generation facility; and
(iii) the expected life of
the generation facility.
(3) The Authority may,
after such enquiry as it may deem appropriate and subject to the conditions
specified in this Act and as it may impose, grant a licence authorizing the
licensee to construct, own or operate a connected generation facility.
(4) In the case of a
generation facility connecting directly or in directly to the transmission
facilities of the national grid company, the licensee shall make the generation
facility available to the national grid company for the safe, reliable,
non-discriminatory, economic dispatch and operation of the national
transmission grid and connected facilities;
subject to the compensation
fixed by the Authority for voltage support and uneconomic dispatch directed by
the national grid company.
16. Transmission licence.-
(1) No person shall except under the authority of a licence issued by the
Authority under this Act and subject to the conditions specified in this Act
and as may be imposed by the Authority, engage in the transmission of electric
power.
(2) An application for a
licence for the transmission of electric power shall specify,---
(i) the type of service for
which the licence is being sought; and
(ii) the territory with
location maps and plans to which electric power shall be transmitted.
17. National Grid Company.-
(1) The Authority may, after such enquiry as it may deem appropriate and
subject to the conditions specified in this Act and as it may impose, grant a
licence authorizing the licensee, to engage in the transmission of electric
power: Provided that only one such licence shall be granted at any one time.
(2) The licensee referred
to in sub-section (1) shall have exclusive right to provide transmission
service in the territory specified in such licence except the territory served
by KESC.
18. Responsibilities of
National Grid Company.- (1) The national grid company shall be responsible to
operate and provide safe, reliable transmission and interconnection services on
anon discriminatory basis, including to a bulk power consumer who
proposes to become directly connected to its facilities.
(2) Without prejudice to
the foregoing responsibilities, the national grid company shall,---
(a) make avail able to the
general public the tariff specifying the Authority’s approved rates, charges
and other terms and conditions for transmission and interconnection services;
(b) not levy any rate or
charge or impose any condition for the transmission of electric power which has
not been approved by the Authority as a tariff;
(c) not cause a division or
any associated undertaking to engage in generation and distribution:---
Provided that this clause shall
not apply to the KESC and WAPDA so long as their electric systems remain
integrated; and
(d) develop, maintain and
publicly make available, with the prior approval of the Authority, an investment
program for satisfying its service obligations and acquiring and selling its
assets.
19. Special purpose transmission
licence.- Notwithstanding anything contained in section 17, the Authority may, in
the public interest, grant a licence authorizing the licensee to engage in the
construction, ownership maintenance and operation of specified transmission
facilities on the conditions that the licensee shall,---
(a) provide transmission and
inter-connection services to the national grid company and to others, wherever
necessary, at such rates, charges and terms and conditions as the Authority may
determine;
(b) purchase interconnection
service from the national grid company as may be necessary and to connect its facilities
to the national transmission grid at the rates, charges and terms and
conditions determined by the Authority;
(c) make its transmission facilities
available for operation by the national grid company consistent with applicable
instructions established by such company;
(d) follow the performance standards
laid down by the Authority for transmission of electric power, including
safety, health and environmental protection instructions issued by the
Authority or any Government agency;
(e) make public the tariff specifying
the rates, charges and other terms and conditions of service for transmission
and interconnection services determined by the Authority; and
(f) maintain accounts in accordance
with the manner and procedure prescribed by the Authority.
20. Distribution licenses.-
(1) No person shall, except under the authority of a licence issued by the
Authority under this Act and subject to the conditions specified in this Act
and as may be imposed by the Authority, engage in the distribution of electric
power.
(2) An application for a
licence for distribution of electric power shall specify,---
(i) the type of service for
which licence is being sought;
(ii) the territory in which
electric power shall be distributed; and
(iii) the source and scope
of electric power and rates paid by it.
21. Duties and responsibilities
of distribution licensees.- (1) The Authority may, after such enquiry as it may
deem appropriate and subject to the conditions specified in this Act and as it
may impose, grant a licence for distribution of electric power.
(2) The licensee shall,---
(a) possess the exclusive right
to provide, for such period as may be specified in the licence, distribution service
and to make sales of electric power to consumers in the territory specified in
the licence and to frame schemes in respect of that territory:---
Provided that a generation company
may make sales of electric power to bulk- power consumers within such territory
as the Authority may, subject to section 22, for a period of fifteen years,
allow;
(b) be responsible to provide
distribution service and make sale of electric power within its territory on anon-discriminatory
basis to all the consumers who meet the eligibility criteria laid down by the
Authority:---
Provided that,---
(i) the licensee may not be
required to make sale of electric power to a bulk-power consumer who has contracted
for electric power supply from another supplier; and
(ii) the licensee may disconnect
the provision of electric power to a consumer for default in payment of power charges
or to a consumer who is involved in theft of electric power;
(c) publicly make available
tariff specifying the Authority‘s approved rates, charges and other terms and
conditions for distribution services and power sales to consumers;
(d) establish, within three
months of the issue of its licence for distribution of electric power and make
available to public, instruction s specifying,---
(i) procedures for
obtaining service; and
(ii) the manner and procedure
for metering, billing and collection of the licensee‘s approved charges and
disconnection in case of non-payment of charges, electric power theft and use of
energy for purposes other than for which it was supplied and procedures for re-connection and recovery of arrears and other
charges;
(e) make its transmission facilities
available for operation by the national grid company consistent with applicable
instructions established by such company;
(f) follow the performance standards
laid down by the Authority for distribution and transmission of electric power,
including safety, health and environ mental protection instructions issued by
the Authority or any Governmental agency;
(g) maintain accounts in accordance
with the manner and procedure laid down by the Authority; and
(h) develop, maintain and
publicly make available, with the prior approval of the Authority, an investment
program for satisfying its service obligations and acquiring and selling its
assets.
22. Sale to bulk-power
consumers.-
(1) Notwithstanding anything contained in section 21, for a period of fifteen years
from the commencement of this Act, the Authority may permit a generation
company or a distribution company to sell electric power to bulk, power consumers
located in the service territory of another distribution company and such permission
shall be granted,---
(i) on a case to case basis
on an application made in writing by a generation company or a distribution
company; and
(ii) if the bulk-power consumer
has not defaulted in previous charges of electric power to any other
distribution company.
(2) Where a bulk-power consumer
intends to stop purchase of electric power from a distribution company, it shall
convey its intention by notice in writing three years before such stoppage:---
Provided that such consumer
shall continue to make payments to the distribution company equal to the amount
of cross-subsidy for uneconomic service for which it would otherwise have
provided through purchase of electric power by the bulk power consumer.
23.
24. Licensees to be companies.-
Except the WAPDA, the SHYDO or any other person specially exempted by the Authority,
a generation, transmission or distribution licence shall not be granted to any person
unless it is a ccompany registered under the Companies
Ordinance, 1984 (XLVII of 1984).
25. Licences of Territory Served
by KESC.- (1) Notwithstanding anything contained in this Act and subject to the
provisions of this section, the Authority may grant licenses for generation,
transmission and distribution of electric power to one or more licensees for the
territory served by the KESC at the time of commence ment of this Act.
(2) For a period of six months
from the commencement of this Act, the KESC shall be deemed to be a licensee under
this Act and, shall during the said period apply for an appropriate licence in
accordance with the provisions of this Act.
(3) Where a licence under this
section is granted to the KESC, the conditions applicable to a licensee under this
Act for generation, transmission and distribution of electric power, as the case
may be, shall equally be applicable to
the KESC.
26. Modifications.- If the Authority
is of the opinion that it is in the public interest, it may, with the consent of
the licensee, amend or vary the conditions of any licence issued under this Act
and in the absence of licensee‘s consent, the Authority shall conduct a public hearing
on whether the proposed amendment or variance is in the public interest and shall
make a determination consistent with the outcome to this hearing.
27. Assignment of licence
prohibited.- A licensee for generation, transmission and distribution of electric
power shall not, without the prior approval of the Authority, surrender, assign
or transfer its licence to any person.
28. Suspension and
revocation.- (1) The Authority may suspend or revoke any licence issued under this
Act for consistent failure of the licensee to comply with the conditions of the
licence:---
Provided that before taking
action under this section, the Authority shall issue a notice to show cause and
may provide an opportunity to rectify the omission subject to such conditions as
the Authority may specify.
(2) Where the Authority revokes
or suspends a licence, it may undertake all or any of the following actions for
continuance of the facilities covered under the licence, namely,---
(a) permit the licensee to
continue operating such facilities under such terms and conditions as the
Authority may specify;
(b) contract with another
person to immediately take over the operation of the facilities; or
(c) appoint an administrator
to take over the operation of the facilities.
(3) The actions specified in
sub-section (2) may continue until a successor licensee takes over the charge
of the facilities on such terms and conditions as the Authority may determine,
including payment of compensation for the plant, machinery and other equipment installed
at a facility of the licensee whose licence was revoked.
29. Penalties.- In addition
to any penalty to which a licensee may be liable under section 28, the Authority
may impose a fine on the licensee which may extend to three hundred thousand rupees
for each violation for each day and where any contravention continues, may impose
a higher penalty as may be prescribed:---
Provided that the licensee shall,
be fore imposition of any penalty under this section, be given a notice to show
cause and be provided with an opportunity of being heard.
30. WAPDA and SHYDO to be
licensees.- (1) Notwithstanding anything contained in this Act for a period of six
months from the commencement of this Act, the WAPDA and the SHYDO shall be deemed
to be licensees under this Act, and shall, during the said period, apply for appropriate
licenses in accordance with the provisions of this Act.
(2) Where a licence under this
section is granted to the WAPDA or the SHYDO, the conditions applicable to a licensee
under this Act for generation, transmission and distribution of electric power,
as the case may be, shall equally be applicable to WAPDA or SHYDO.
31. Tariff.- (1) As soon as
may be, but not later than six months from the commencement of this Act, the Authority
shall determine and prescribe procedures and standards for determination,
modification or revision of rates, charges and terms and conditions for generation
of electric power, transmission, inter-connection, distribution services and power
sales to consumers by licensees and until such procedures and standards are prescribed,
the Authority shall determine, modify or revise such rates, charges and terms and
conditions in accordance (4C) [Notwithstanding
anything contained in this section, the Authority shall continue to conclude its
reconsideration under sub-section(4A) and the effect of such reconsideration shall
be adjusted by the Authority in the tariff, rates, charges or other terms and conditions
determined by it under sub-section(1) for the subsequent period.] 7(5) [Each distribution
company shall pay to the Federal Government such surcharge as the Federal Government,
from time to time, notify in respect of each unit of electric power sold to the
consumers and any amount paid under this sub-section shall be considered as a cost
incurred by the distribution company to be included in the tariff determined by
the Authority.]8
32. Investment and power acquisition
Programmes.- (1) The Authority shall, within eighteen months from the commencement
of this Act, prescribe procedures and standards for the Authority‘s prior approval
of the transmission companies’ and distribution companies’ investment and power
acquisition programmes.
(2) Any procedure prescribed
by the Authority under this section shall advance the goal of minimizing
regulatory oversight of contracts entered into by the national gird company and
distribution companies.
(3) Any investment program or
power acquisition programm, approved by the Authority under this section shall
take into account the national energy plans issued by the Federal Government.
(4) Upon the Authority‘s approval
of an investment programmes or a power acquisition program, the Authority shall,
subject to such terms and conditions including rates and charges of electric
power, permit the distribution company to enter into long term contracts for
power purchases.
33. Organizational matters.-
Subject to the procedures established by the Authority under this Act, the
Authority may, in the public interest, with or without modifications, approve the
following activities by a licensee for generation, transmission and
distribution, namely:---
(a) the undertaking of a
merger or a major acquisition or sale of facilities;
(b) the expansion of the
licensee‘s business activities; and
(c) the undertaking of a
re-organization of the licensee’s business structure.
34. Performance Standards.-
The Authority shall prescribe performance standards for generation, transmission
and distribution companies to encourage safe, efficient and reliable service,
including standards for,---
(i) service characteristics
such as voltage and stability;
(ii) scheduled and
unscheduled outages;
(iii) reserve margins where
applicable;
(iv) time required to
connect new customers; and
(v) principles and
priorities of load shedding.
35. Industry standards and
codes of conduct.- The Authority shall encourage the development of industry
standards and uniform codes of conduct so as to provide,---
(a) planning criteria for
safety, reliability and cost effectiveness of generation, transmission and
distribution facilities;
(b) construction practices
and standards of such facilities;
(c) operating standards and
procedures;
(d) maintenance schedules;
(e) maintenance of adequate
spinning reserves and plans to satisfy demand;
(f) equipment specification
and standardization; and
(g) load-shedding and
restoration procedures.
36. Uniform system of accounts.-
The authority shall prescribe a uniform system of accounts which shall be
followed by the licensee of generation, transmission and distribution facilities
within such period as may be prescribed.
7 Inserted by ibid
8 Added by the Finance Act,
2008
37. Review of public sector
projects.-
(1) For the purposes of co-ordination, in the case of any public sector
project, the advice of the Authority shall be sought by the agency planning to
undertake such project.
(2) The provision of sub-section
(1) shall not apply to public sector projects which do not supply electricity
to the national grid.
CHAPTER-IV
ADMINISTRATION
38. Provincial offices of
inspection.- (1) Each Provincial Government shall,---
(a) establish offices of inspection
that shall be empowered to,---
(i) enforce compliance with
distribution companies’ instructions respecting metering, billing, electricity consumption
charges and decision of cases of theft of energy; and
(ii) make determination in respect
of disputes over metering, billing and collection of tariff and such powers may
be conferred on the Electric Inspectors appointed by the Provincial Government under
section 36 of the Electricity Act, 1910 (Act IX of 1 910), exercisable, in addition
to their duties under the said Act.
(b) establish procedures whereby
distribution companies and consumers may bring violations of the instructions in
respect of metering, billing and collection of tariff and other connected
matters before the office of inspection; and
(c) enforce penalties
determined by the Provincial Government for any such violation.
(2) The Provincial
Governments may, upon request by the Authority, submit to the Authority,---
(a) a copy of any document in
the charge of the Provincial Government relating to Provincial offices of
inspection; and
(b) other reports, statements
and information as the Authority determines to be necessary or appropriate for
the Authority‘s periodic assessment of the effectiveness of inspection made by
Provincial Officers of inspection.
39. Complaints.- (1) Any interested
person, including a Provincial Government, may file a written complaint with the
Authority againsta licensee for contravention of any provision of this Act or any
order, rule, regulation, licence or instruction made or issued there under.
(2) The Authority shall, on
receipt of a complaint, before taking any action thereon, give notice to the licensee
or any other person against whom such complaint has been made to show cause and
provide such licensee or such other person an opportunity of being heard.
40. Enforcement of orders of
the Authority.- The Authority‘s determinations on decisions by tribunals set up
under section 11 of this Act shall be deemed to be decrees of a civil court under
the Code of Civil Procedure, 1908 (Act V of 1908).
41. Sum payable to the
Authority to be recoverable as land revenue.- All sums payable to the Authority
in accordance with the provisions of this Act and the rules shall be recoverable
as arrears of land revenue.
42. Reports of the
Authority.- (1) The Authority shall submit, to the Council of Common Interests and
to the Federal Government, at the end of every financial year, but before the last
day of September of that year,---
(a) a report on the conduct
of its affairs for that year including anticipated developments for the
following year; and
(b) report on the state of electric
power services in the country identifying the ownership, operation, management,
efficiency and control of electric power facilities, amount of transmission and
generation capacity, present and future demand of electricity, cost of electric
power services and other matters relating to electric power services.
43. Inspection by public.- (1)
The Authority shall maintain public files that shall be kept open in convenient
form for public inspection and examination during reasonable business hours.
(2) Subject to procedures and
standards for confidentiality, the Authority‘s public files shall
include all relevant documents to be maintained and indexed as the Authority
deems fit.
(3) The Provincial Governments
shall keep open in convenient form for public inspection and examination during
reasonable business hours all complaints, responses and decisions relating to the
Provincial inspection offices.
44. Information.- The Authority
may call for any information, required by it for carrying out the purposes of this
Act from any person involved directly or indirectly, in the provision of
electric power services or any matter incidental or consequential thereto.
Any such person shall be
liable to provide the prescribed in formation called by the Authority, failing
which he shall be liable to a fine or other penalty as prescribed from time to
time.
45. Relationship to other laws.- The provisions of this
Act, rules and regulations made and licenses issued there under shall have
effect notwithstanding anything to the contrary contained in any other law,
rule or regulation, for the time being in force and any such law, rule or regulation
shall, to the extent of any inconsistency, cease to have any effect from the
date this Act Comes into force and the Authority shall, subject to the
provisions of this Act, be exclusively empowered to determine rates, charges
and other terms and conditions for electric power services:---
Provided that nothing in
this Act shall affect the jurisdiction, powers or determinations of the
Corporate Law Authority or the Monopoly Control Authority.
46. Rules.- (1) The Authority may,
with the approval of the Federal Government, by notification in the official
Gazette, make rules to carry out the purposes of this Act.
(2) Without prejudice to
the generality of the foregoing powers, such rules may provide for:---
(a) procedure for seeking
nominations of members from the Provincial Governments;
(b) the form and manner of
applications to be made for a licence for generation, transmission or
distribution facilities;
(c) the fees and documents
to be accompanied with the applications for licenses;
(d) determination of rates,
fees, charges and other terms and conditions of licenses;
(e) publication of rates
and charges of electricity consumption, procedure for metering, billing and
collection of electric power charges by the licensees;
(f) procedure for resolving
disputes amongst the licensees and consumers and the licensees;
(g) procedure for
submission of various reports to the Council of Common Interests or to the
Federal Government and the manner of preparation of such reports;
(h) procedure for inquiry
and investigation into the affairs of an applicant for a licence and for any
contravention of any provision of this Act;
(i) the manner and
procedure of show cause notices;
(j) safe, effective and
least environ mentally harmful supply of electric power;
(k) performance and
industrial standards for supply of electric power;
(l) standards for
investment programmes or power acquisition programmes for transmission and
distribution companies;
(m) the seeking of
information, and the fines or penalties for failure to furnish information; and
(n) any other matter
incidental or consequential to the implementation of this Act.
47. Regulations.- (1) The Authority may,
by notification in the official Gazette, Make regulations, not inconsistent
with the provisions of this Act or the rules, for the carrying out of its
functions under this Act.
(2) Without prejudice to
the foregoing powers, such regulations may provide for appointment of its
officers, members of staff and such other persons and the terms and conditions
of their service.
The National Electric Power
Regulatory Authority Performance Standards (Distribution) Rules, 2005
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