KARNATAKA ELECTRICITY REFORM ACT, 1999

25 of 1999

An Act to provide for the constitution of an Electricity Regulatory Commission ('the Commission') for the State of Karnataka; to provide for the restructuring of the electricity industry in the State, the corporatisation of the Karnataka Electricity Board and the rationalisation of the generation, transmission, distribution and supply of electricity in the State; to provide for avenues for participation of private sector entrepreneurs in the electricity industry in the State and generally for taking measures conducive to the development and management of the electricity industry in the State in an efficient, economic and competitive manner to provide reliable quality power and to protect the interest of the consumer including vesting in the Commission the powers to regulate the activities of the power sector in the State and for matters connected therewith or incidental thereto. Be it enacted by the State Legislature of Karnataka in the Fiftieth Year of the Republic of India, as follows:-

PART 1 Preliminary

PART Section1 Short title, extent and commencement

(1) This Act may be called the Karnataka Electricity Reform Act, 1999.

(2) It extends to the whole of the State of Karnataka.

(3) It shall be deemed to have come into force with effect from the First day of June, 1999.

Section2 Definitions

In this Act, unless the context otherwise requires.

(a) "Area of transmission" means the area within which the holder of a transmission licensee is, for the time being, authorised by license to transmit energy;

(b) "Board" means the Karnataka Electricity Board;

(c) "Chairman" means the Chairman of the Commission;

(d) "Commission" means the Karnataka Electricity Regulatory Commission constituted under sub-section (1) of Section 3;

(e) "Licence" means a license granted under Section 19;

(f) "Licensee" or "licence holder" means any person licensed under this Act;

(g) "Licensing Authority" means the Commission, which is empowered to issue a license under Part VII of this Act;

(h) "Local Authority" means the Municipal Corporations, Municipal Councils, Town Panchayaths, Zilla Panchayaths, Taluk Panchayaths and Grama Panchayaths;

(i) "Member" means a member of the Commission and shall include the Chairman of the Commission;

(j) "Regulations" mean regulations made by the Commission;

(k) "Selection committee" means the selection committee constituted under Section 4;

(l) "Supply licence" means a license granted under sub-section (1)(b) of Section 19;

(m) "KPTC" means the Karnataka Power Transmission Corporation incorporated as a transmission company under the Companies Act, 1956;

(n) "Transmission license" means a license granted under subsection (l)(a) of Section 19;

(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 substation to another or otherwise from one place to another;

(p) Words and expressions used but not defined in this Act and defined in the Electricity (Supply) Act, 1948 (Central Act 54 of 1948), have the meanings respectively assigned to them in that Act;

(q) Words and expressions used but not defined either in this Act or in the Electricity (Supply) Act, 1948 (Act 54 of 1948) and defined in the Indian Electricity Act, 1910 (Act IX of 1910), have the meanings respectively assigned to them in that Act.

PART 2 Karnataka Electricity Regulatory Commission

PART Section3 Establishment and constitution of the Commission

(1) For the purposes of this Act within three months from the date of commencement of this Act, the State Government shall establish by notification, a Commission to be known as the Karnataka Electricity Regulatory Commission, which shall be a body corporate with perpetual succession and a common seal, with power to acquire, hold and dispose of property, movable and immovable and shall, by the said name, be entitled to sue and be sued.

(2) The Commission shall consist of three members to be appointed by the State Government from persons selected by the selection committee constituted for the purpose, in the manner provided in Section 4 and one of them shall be nominated as Chairman by the State Government.

(3) When the Chairman is unable to discharge the functions owing to absence, illness or any other cause, the next senior member shall act as the Chairman till the day the Chairman re-assumes the charge.

(4) The seniority of members shall be reckoned from the date of their appointment as indicated in their order of appointment. In case, two members are appointed at the same time, the State Government while making the appointment shall determine the seniority between them.

(5) 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.

(6) The Chairman shall be the Chief Executive of the Commission.

Section4 Constitution of the selection committee to select members

(1) The State Government shall expeditiously constitute a selection committee, as often as may be required, to select persons for appointment as members.

(2) The selection committee shall consist of three members, namely.

(a) A retired Chief Justice of a High Court or a retired Judge of the Supreme Court as Chairman;

(b) The Chief Secretary of the Government of Karnataka as a Member;

(c) The Chairman of the Central Electricity Authority or a person who has worked as Chairman of an Electricity Board for not less than three years as a Member; and the Secretary, in charge of the Energy Department, Government of Karnataka, shall act as the convener of the selection committee.

(3)

(a) The selection committee shall act expeditiously and shall generally finalise the selection to enable the State Government to make the appointment in time for the new members to take effective charge at the expiry of the term of the retiring member and without delay and generally within two months of vacancy arising for reasons other than the expiry of the term.

(b) The method and manner of the selection and appointment of members and designation of one of the members as Chairman shall be as may be prescribed.

(c) For the purposes of selection, the selection committee may call for application from individuals or nomination from such sources and in such other manner as the selection committee may consider appropriate.

(4) The selection committee shall select two suitable persons for each vacancy in the Commission who have such qualification and experience as provided in this Act and notify the State Government of the persons short listed by the selection committee. The State Government shall appoint one of the two persons short listed by the selection committee as a member within fifteen days of receipt of the recommendations of the selection committee.

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

Section5 Conditions for appointment as member of the Commission

(1) The members shall be persons of ability, integrity and standing who have adequate knowledge and experience of, and have demonstrated capacity in dealing with matters relating to, engineering, finance, economics, commerce, law or administration and further, that at all times.

(a) one member shall be a graduate electrical engineer with at least twenty-five years of experience of either generation, transmission or distribution of electricity and having worked in a senior position in the said field;

(b) two members shall have qualification in the field of law, finance, economics, commerce, or administration with at least twenty-five years of working experience and. shall have worked in a senior position in the said field:

Provided that at any point of rime the Commission shall not consist of more than one member from the same discipline.

(2) A person shall be disqualified from being appointed as a member if he is a Member of Parliament or of any State Legislature or of any local authorify or holds any post in a political party.

(3) The persons who are considered for appointment as members shall notify the convenor of the selection committee.

(a) of any office, employment or consultancy agreement or arrangement which he has in his own name or in any firm, association of persons or body corporate, or in the names of any relative, carrying on any of the following businesses or any financial interest therein.

(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, supply or otherwise dealing in machinery, plant, equipment, apparatus or fittings for the generation, transmission, distribution, supply or use of electricity; and

(iv) any entity providing professional services to any of the businesses referred to in clauses (i), (ii) and (iii) above; and

(b) of such other details and information as may be prescribed.

Explanation. For the purpose of this section, the term "relative" shall have the same meaning as defined under Section 6 of the Companies Act, 1956 and a member and his relatives shall not be taken as holding financial interest in any business of a public company if they are shareholders holding in aggregate less than two per cent of the issued share capital in that public company.

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

(5) Before recommending any person as a member, the selection committee shall satisfy itself that the person does not have any financial or other interest as referred to in sub-section (3) or otherwise which is likely to affect prejudicially his functions as a member.

(6) Each member 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 State Government on the recommendation of the selection committee, divest himself from the interest in the businesses mentioned in sub-section (3) as a condition of his appointment.

(7) If a person to be appointed as a member holds any office under the State or Central Government or any public sector corporation or any Government body or is otherwise gainfully employed or engaged in the service of any person he shall submit his resignation or take voluntary retirement from that service.

(8) A member, at any time within a period of two years after he ceases to be a member for any reason whatsoever, shall not be appointed in the service of the State Government or in any body corporate or institution or undertaking owned or controlled by the State Government or body dealing with power sector, in Karnataka.

(9) So long as a 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 businesses mentioned in sub-section (3) of this section within or outside the State, and if he acquires any such interest involuntarily or by way of succession or testamentary disposition, he will divest himself from such interest within a period of three months of such interest being acquired.

(10) A member, after he ceases to be a member for any reason whatsoever, shall not, for a period of three years, appear or otherwise represent any person including the Commission, before the Commission.

Section6 Term of office, conditions of service etc., of members

(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 reappointment in the Commission at any time after the expiry of his term of appointment:

Provided that a member shall be eligible for appointment as Chairman subject to his combined tenure in the Commission as Member and Chairman shall not exceed five years:

Provided further that the first three members shall be appointed for varying periods of three years, four years and five years respectively so as to avoid the retirement of all the first appointed members at the same time: Provided also that no person shall be appointed as member after he has completed the age of sixty-two years.

(2) The Chairman and other members shall receive such remuneration and other allowances and shall be governed by such conditions of service as may be prescribed:

Provided that the conditions of service once prescribed shall not be varied to the disadvantage of the members during the tenure of their appointment.

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

Section7 Removal of Members

(1) Subject to the provisions of sub-sections (2) and (3), the Governor may remove from office any member, who.

(a) has been adjudged an undischarged insolvent; or

(b) has been convicted of an offence involving moral turpitude; or

(c) has become physically or mentally incapable of acting as such member; or

(d) has without reasonable cause, refused or failed to discharge his functions for a period of at least three months; or

(e) ceases to fulfill any of the conditions of his appointment as member; or

(f) has acquired such financial or other interest that can affect prejudicially his functions as a member; or

(g) has conducted himself in a manner or has so abused his position as to render his continuance in office prejudicial to the public interest or to the objects and purpose of the Act.

(2)

(a) Except where a member admits the charge in writing, no member shall be removed from his office on the grounds specified in clauses (c), (d), (e), (f) and (g) of sub-section (1) until a sitting Judge of the High Court of Karnataka, as recommended by the Chief Justice of the High Court at the relevant time, has carried out an investigation and has forwarded a report to the Governor.

(b) Pending the investigation against a member under clause (a), the Governor may suspend the member from acting as Chairman or member, if the Judge appointed under clause (a) to carry out the investigation recommends the suspension.

(3) The Governor shall act in accordance with the recommendation under sub-section (2) and communicate the decision to the member concerned within a period of thirty days of the receipt of the report under sub-section (2).

(4) A member who has been removed shall not be eligible for reappointment as a member or in any other capacity in the Commission or in the State Government or in any State Government Undertakings, at any time.

(5) If the member removed under this section is the Chairman, he shall cease to be the Chairman.

(6) The vacancy caused by the removal of the member shall be filled in the same manner as provided for the appointment of a member or designation of the Chairman.

Section8 Appointment of the Secretary, staff, consultants etc

(1) The Commission shall appoint a person as Secretary for a period of not exceeding five years at a time to exercise and perform under control of the Chairman, such duties and powers as may be specified by regulations made by the Commission.

(2) The Commission shall have a senior officer to represent the common interest of the consumers in all matters, hearings and proceedings before the Commission:

Provided that such appointment of the senior officer to represent the interests of the consumers shall be in addition to, and not in derogation in any manner of, the other rights of the individual consumers and also of the representations by consumer fora and organisations before the Commission, as may be recognised by the Commission in the regulations or otherwise.

(3) The Commission shall, with the approval of the State Government, determine the number, nature and categories of other officers and employees required to assist the Commission in the discharge of its functions.

(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 funds of the State.

(5) The method and manner of selection of the Secretary, officers and other employees and the terms and conditions of their service may be specified by regulation by the Commission with prior approval of the State Government.

(6) The Commission shall be entitled to appoint, from time to time, consultants required to assist the Commission in the discharge of its functions on terms and conditions as may be specified.

(7) The Commission shall formulate annual budgets as provided in the Schedule.

PART 3 Proceedings, Powers and Functions of the Commission

PART Section9 Proceedings of the Commission

(1) The headquarters of the Commission shall be at Bangalore, but the Commission shall be entitled to conduct its proceedings, consultations and hearings in other places in the State.

(2)

(a) The Commission shall have the exclusive power to make regulations for the conduct of its proceedings and discharge of its functions and all such regulations made shall be notified.

(b) Unless otherwise specified by the Commission, all hearings and proceedings before the Commission shall be held in public.

(3) In case of a difference of opinion among the members of the Commission, the opinion of the majority shall prevail and the opinion of the Commission shall be expressed in terms of the views of the majority. Each member, of the Commission shall have one vote only.

(4) The Chairman shall have no casting or second vote except that in the event of there being two members only by reason of vacancy in the office of the Chairman or of a member or disability of the nature that the Commission cannot hold the proceedings with all the three members present, the Chairman or the senior-most member acting as Chairman, as the case may be, shall have a second and casting vote only during the period of such vacancy or disability.

(5) The quorum for the meeting of the Commission shall be two: 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, or against, the resolution proposed, the quorum for the meeting shall be all members of the Commission being personally present.

(6) The Chairman may instruct the Secretary to call a meeting of the Commission to be held at such time and at such place as the Chairman may direct. In addition, any member may request the Chairman to convene a meeting at any time by sending a notice in writing to the Chairman. The notice of all meetings shall be given to the members in writing.

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

(8) 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 a manner the Commission may by regulations specify.

Section10 Powers of the Commission

(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 Procedure, 1908 (Central Act 5 of 1908), while trying a suit in respect of the following matters, namely.

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

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

(c) the reception of evidence on affidavits;

(d) the requisition of any public record from any Court or office;

(e) the issue of commission for examination of witnesses;

(f) the appearance of parries and consequences of non-appearance;

(g) the grant of adjournments at the hearing; and

(h) review of its decisions, directions and orders.

(2) The Commission shall have the power to require any person.

(a) to produce before 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 necessary or relevant for the purposes of this Act or the discharge of the functions by 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) Where, during any inquiry or proceedings under this Act, the Commission has any grounds to believe that any books or papers or documents thereof, or relating to any unit or person in relation to which such inquiry is being made or which the owner of such unit may be required to produce in such inquiry, are being or may be, destroyed, mutilated, altered, falsified or secreted, it may, by a written order authorise any officer of the Commission to exercise the 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 (Central Act 1 of 1956).

(5) 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 concerning the activities carried on by such person relating to generation, transmission, distribution and supply or use of electricity, the connection between such person and any other person or undertaking including such other information relating to the organisation and the business, cost of production and other requirements as may be prescribed, to enable the Commission to carry out its functions under this Act.

(6) The Commission shall be entitled to exercise the above-mentioned powers to call for information, details, books, accounts and other documents from any person and make inquiry for the purposes of providing the same to the Central Electricity Authority, the Central Electricity Regulatory Commission, the Central Government and the State Government or other Government authorities.

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

(8) All persons to whom notices may be issued pursuant to this Act, shall duly, faithfully and effectively furnish the information, details, books, accounts and other documents, which the Commission directs to be provided and the persons shall be proceeded with and punishable for any failure or delay to comply with such requirements, directions and orders issued by the Commission.

(9) 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, appliances 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 the Act, subject to such conditions and restrictions as the Commission may provide, any of the powers which the telegraph authority possesses under the Indian Telegraph Act, 1885 with respect to placing of telegraph lines and post.

Section11 Functions of the Commission

(1) Subject to the provisions of this Act, the Commission shall be responsible to discharge, amongst others, the following functions, namely.

(a) to regulate the purchase, distribution, supply and utilisation of electricity, the quality of service, the tariff and charges payable keeping in view the interest of the consumer as well as the consideration that the supply and distribution cannot be maintained unless the charges for the electricity supplied are adequately levied and duly collected;

(b) to promote efficiency, economy and safety in the use of the electricity in the State including and in particular, in regard to quality, continuity and reliability of service, the standard of performance by the units engaged in the electricity supply industry in the State, the efficient utilisation and conservation of energy, appropriate demand side management and reduction of wastes and losses in the use of electricity and to enable all reasonable demands for electricity to be met;

(c) to issue licenses in accordance with the provisions of this Act and determine the conditions to be included in the licenses;

(d) to regulate the working of the licensees and to promote their working in an efficient, economical and equitable manner;

(e) to regulate the assets, properties and interest in properties concerning or related to the electricity industry in the State;

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

(g) to promote competitiveness and progressively involve the participation of private sector, while ensuring fair deal to the customers;

(h) to collect data and forecast on the demand for, and use of, electricity and to require the licensees to collect such data and forecast;

(i) to require licensees to formulate prospective plans and schemes in co- ordination with others for the promotion of generation, transmission, distribution and supply of electricity;

(j) to set appropriate codes of conduct and standards for the electricity industry in the State and standards of service to the consumers by licensees;

(k) to arbitrate or to nominate arbitrator(s) in matters of disputes and difference between licensees in accordance with the provisions of this Act;

(l) to co-ordinate with environmental regulatory agencies and to evolve policies and procedures for appropriate environmental regulations of electricity sector and utilities in the State; and

(m) to undertake all incidental or ancillary functions connected with the electricity sector.

(2) The Commission shall always act in a manner 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 achieving and shall seek to achieve such objectives and purposes.

(3) Notwithstanding the provisions of Section 52 of the Indian Electricity Act, 1910 (Central Act 9 of 1910), or the provisions of Section 3(l)(ii) and Section 76 of the Electricity (Supply) Act, 1948, the Commission shall have the power to act as arbitrator or nominate arbitrator or arbitrators to adjudicate and settle disputes arising between licensees in accordance with the regulations and this shall be a condition in all licences granted under this Act.

PART 4 Powers of the State Government

PART Section12 General powers of the State Government

(1) The State Government shall have the power to issue policy directives on matters concerning electricity in the State including the overall planning and co-ordination:

Provided that such policy directives shall be consistent with the objectives sought to be achieved by this Act and accordingly shall not adversely affect or interfere with the functions and powers of the Commission including but not limited to the determination of the structure of tariffs for supply of electricity to various classes of consumers:

Provided further that if the State Government requires the grant of any subsidy to any consumer or class of consumers in the tariff determined by the Commission under Part VIII, the State Government shall pay the amount to compensate the person affected by the grant of subsidy in the manner the Commission may direct, as a condition for the licensee or any other person concerned to implement the subsidy provided for by the State.

(2) The State Government shall consult the Commission in relation to any legislative proposals enacted affecting the electricity sector and shall duly take into account the recommendation, if any, given by the Commission within such reasonable time.

PART 5 Reorganisation of the Karnataka Electricity Board and the Transfer of Board's Functions, Transfer of Properties, Liabilities etc.

PART Section13 Karnataka Power Transmission Corporation

(1) Not later than sixty days from the date of commencement of this Act, the State Government shall cause a company to be incorporated under the provisions of the Companies Act, 1956 to be known as the Karnataka Power Transmission Corporation (KPTC) with the principal objects of engaging in the business of purchase, transmission, sale and supply of electrical energy.

(2) Subject to the provisions of Section 12, KPTC shall be the principal company to undertake all planning and co-ordination concerning the electricity. KPTC shall also be the principal company to undertake transmission and work connected with transmission, determining the electricity requirements in the State in co-ordination with the Generating companies, State Government, the Commission, the Regional Electricity Board and the Central Electricity Authority.

(3) KPTC shall own and be responsible for the extra high voltage transmission system operation and shall operate the power system in an efficient manner.

(4) KPTC shall undertake the functions specified in this section and such other functions as may be assigned to it under the license to be granted to it by the Commission under this Act.

(5) Upon the grant of license to the KPTC under Chapter VII, the KPTC shall discharge such powers, duties and functions of the Board including those under the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948 or the rules framed thereunder, as may be specified in the license and it shall be the obligation of the KPTC to undertake and duly discharge the powers, duties and functions so assigned.

(6) Subject to sub-sections (1), (2) and (3) and subject to the overall supervision and control of the KPTC, a number of subsidiary or associated transmission or distribution companies may be established in the State and the Commission may grant licenses under the terms of this Act to such transmission or distribution companies, in consultation with KPTC.

Section14 Reorganisation of the Karnataka Electricity Board

(1) On and with effect from the date on which a transfer scheme prepared by the State Government to give effect to the object and purposes of this Act is published or such further date as may be prescribed (hereinafter referred to as the 'effective date of the first transfer'), any property, interest in property, rights and liabilities which immediately before the effective date of first transfer belong to the Board shall vest in the State Government on such terms as may be agreed between the State Government and the Board.

(2) Any property, interest in property, rights and liabilities vested in the State Government under sub-section (1) or part thereof may be revested by the State Government in the KPTC or any generating company or companies in accordance with the transfer scheme published under sub-section (1) along with such other property, rights and liabilities of the State Government as may be specified in such scheme, on such terms and conditions as may be agreed between the State Government and the KPTC or any generating company or companies, as the case may be.

(3) From the effective date of first transfer of properties etc., to the KPTC, the Board shall stand dissolved. The Chairman and Members of the Board shall be deemed to have vacated their office. Such of the functions, duties, rights and powers exercisable by the Board under the Indian Electricity Act, 1910 or Electricity (Supply) Act, 1948 or any rule framed thereunder as the State Government may by notification specify shall be exercisable by the KPTC or any generating company or companies as the case may be from the effective date of first transfer.

(4) Notwithstanding anything in this section, where.

(a) the transfer scheme involves the transfer of any property or rights to any person or undertaking not wholly owned by the State Government, the scheme shall give effect to the transfer only for fair value to be paid by the transferee to the State Government; and

(b) a transaction of any description is effected in pursuance of a transfer scheme, it shall be binding on all persons including third parties.

(5) The State Government may, after consulting the KPTC, require the KPTC to draw up a transfer scheme to vest in a further licensee (the "transferee licensee"), any of the function including a distribution function, any property, interest in property, rights and liabilities which have been vested in the KPTC under this section and publish the same as the scheme of transfer under this Act. The transfer scheme to be notified under this subsection shall have the same effect as the transfer scheme under sub-section (2) and shall be effective from the date specified (effective date of second transfer).

(6) A transfer scheme under this section may, amongst others.

(a) 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 undertaking; or

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

(b) provide that any rights or liabilities specified or described in the scheme shall be enforceable by or against the transferor, or the transferee, as the case may be;

(c) impose on KPTC or any licensee, an obligation to enter into such written agreements with, or execute such other instruments in favour of, any person as may be specified in the scheme;

(d) impose on any transferee licensee the obligations to comply with the power procurement and purchase arrangements with KPTC; and

(e) make such supplemental, incidental and consequential provisions as transferor licensee considers appropriate including provision specifying the order in which any transfer or transaction is to be regarded as taking effect.

(7) All debts and obligations incurred, all contracts entered into and all matters and things engaged to be done by, with or for the Board, or the KPTC or generating 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 the Board, with the Board or for the State Government or the KPTC or the transferee, and all suits or other legal proceedings instituted by or against the Board or transferor, as the case may be, may be continued or instituted by or against the State Government or the concerned transferee, as the case may be.

(8) If pursuant to a transfer scheme framed by the State Government, the KPTC is required to vest any part of its undertaking in another company or body corporate or person, the Commission shall amend the licence granted to enable the transferee to carry out the functions and activities assigned to the transferee.

Section15 Provisions relating to personnel

(1) The State Government may provide in a transfer scheme framed under Section 14 for the transfer of the personnel from the Board to the KPTC or to the generating company or companies or from the KPTC to further transferee, as the case may be, on the vesting of properties, rights and liabilities in the KPTC or further transferee as provided under Section 14 and such transfers shall be effective in the same manner as in the case of transfers under Section 14.

Explanation. For the purposes of this section and Section 16, the term "personnel" shall mean all persons who, on the effective date of the transfer, are the employees of the Board or KPTC, as the case may be.

(2) Upon such transfer scheme, the personnel shall hold office or service under the KPTC or generating company or companies or the transferee company on terms and conditions that may be determined, in accordance with the transfer scheme:

Provided that such terms and conditions on the transfer shall not in any way be less favourable than those which would have been applicable to them before the relevant transfer scheme and the continuity of service of the personnel shall be maintained:

Provided further that any such scheme under sub-sections (1) and (2) shall be consistent with the tripartite agreements entered into between the State Government, Board or KPTC, as the case may be and the employees.

(3) 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 sub-section (1) shall not entitle such employees to any compensation or damages under this Act, or any other Central or State law or under the general law, save as provided in the transfer scheme.

Section16 Variation of transfers

(1) Subject to the proviso of sub-section (2) of Section 15, the State Government may provide that the transfers in terms of Sections 14 and 15 shall be provisional for a period of twelve months from the effective date and reserve the right to alter, vary, modify, add or otherwise change the terms in such manner as the State Government may consider appropriate.

PART 6 Generating Companies and Generating Stations

PART Section17 Regulation of generating companies and stations

(1) A licensee or a bulk purchaser or any other person may enter into a contract with a generating company for purchase of electricity in the manner approved by the Commission and such approval granted by the Commission shall have the effect of the consent given by the State Government in terms of Section 43-A of the Electricity (Supply) Act, 1948:

Provided that, the approval granted by the Commission under this subsection shall not in any manner affect the requirements to obtain approvals and sanctions of the State Government or any other authority under any other law, rule or regulations.

(2) The provisions of Section 44 of the Electricity (Supply) Act, 1948 shall apply in regard to applications for consent to the establishment or acquisition of a new generating station, or to extend or replace any major unit or plant or works pertaining to generation of electricity in a generating station, to meet the applicant's need for the electricity, subject to the following modifications.

(a) the applicant shall apply for and obtain the prior consent in writing of the Commission in place of the Board;

(b) the Commission shall record the reasons for the grant or refusal of the consent.

(3) No generating company or generating station, except to the extent of the business of sale of electricity to the bulk purchaser or licensee or to such other person specifically authorised by the Commission, shall engage in the business of sale or supply of electricity or transmission of electricity in the State.

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

Provided that before granting consent the Commission may publish such notices inviting objection as the Commission may specify by regulations.

PART 7 Licensing of Transmission and Supply

PART Section18 Requirement of license

(1) No person, other than those authorised to do so by license or by virtue of exemption under this Act or authorised to or exempted by any other authority under the Electricity (Supply) Act, 1948, shall engage in the State 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 to operate and disconnect its apparatus.

(4) Notwithstanding anything contained in the other provisions of this Act and until the establishment of the Commission in terms of Section 3, the State Government shall have the power to grant provisional licenses under this section having a duration not exceeding twelve months to any person or persons to engage in the State in the business of transmission or supply of electricity on such terms and conditions as the State Government may determine consistent with the provision of this Act, subject however, to the following conditions.

(a) upon the establishment of the Commission, each of the provisional licenses granted by the State Government shall be placed before the Commission and shall be deemed to constitute an application for grant of a license by the Commission under the provisions of this Act; and

(b) each provisional license granted under this section shall cease to be valid and effective on the date on which the decision of the Commission is communicated to the provisional licensees.

(5) The State Government shall be entitled to confer on the provisional licensees under sub-section (4) such powers, rights and authorisation as the Commission is entitled to grant to the licensees under this Act.

(6) All licenses issued under the provisions of Indian Electricity Act, 1910, by the State Government or any competent authority shall be deemed to be a provisional licence and shall be subject to the conditions provided under sub-sections (4) and (5). All power purchase agreements, transmission services agreements and other contracts entered into shall continue in full force and effect and will be transferred to the successor entities.

Section19 Grant of licenses by the Commission

(1) The Commission may on an application made in such form and on payment of such fee as may be specified by regulations, grant a license authorising any person to.

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

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

(2) In respect of the grant of any such license, the following provisions shall apply.

(a) Any person applying for a license shall publish a notice of his application in such manner and with such particulars as may be specified by regulations within fourteen days after making the application;

(b) The Commission shall not grant a license until.

(i) all objections received relating to the application for the license have been considered by the Commission, provided that no objection shall be considered by the Commission unless it is received within such time from the date of the first publication of the notice under clause (a), above as may be specified by regulations, which shall not be less than forty-five days; and

(ii) in the case of an application for a license 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 license on the part of the Central Government;

(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 license 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) There shall be specified in the license the duration, extent to which and the terms and conditions under which the transmission or supply of energy is to be made and it shall also contain such other conditions as the Commission may consider appropriate for achieving the purposes of the Act.

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

(d) refer all disputes arising under the license 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 or State 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 rules framed thereunder insofar as they are applicable;

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

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

(i) notify the Commission of any scheme that he is proposing to undertake including the schemes in terms of the provisions of the Electricity (Supply) Act, 1948;

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

Explanation. The contracts concluded by the State Government or the Board with generating companies and transmission companies prior to the date of commencement of the Act shall stand assigned to KPTC in terms of Section 14 and KPTC may continue the purchase or transmission of power under such contracts for effecting bulk sales, distribution and supply to other licensees;

(k) the purchase of power from KPTC to the extent necessary to enable the KPTC to perform its obligations under the contracts concluded by the State Government or the Board referred to in clause (j);

(l) supply of electricity in bulk to other licensees or to customers.

(5) Without prejudice to the generality of sub-section (3), conditions included in a license granted by the Commission may require the holder of such a license to establish a tariff or to calculate its charges from time to time in accordance with the requirements specified by regulations by the Commission.

(6) The provisions contained in the Schedule to the Indian Electricity Act, 1910 shall be deemed to be incorporated with and form part of, every supply license granted under this Part save insofar as they are expressly varied or excepted by the supply license and shall, subject to any such additions, variations or exceptions which the Commission is empowered to make having regard to the purposes of the Act, apply to the undertaking authorised by the license in relation to its activities in the State:

Provided that where a supply license is granted by the Commission for the supply of energy to other licensees for distribution by them, then insofar as such license 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 license.

(7) The conditions included in a license 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 provisions included by virtue of sub-section (7) in a license shall have effect in addition to the provisions made under Sections 22(5) and 23 with respect to the amendment of the conditions of a license.

(9) Unless if so indicated in the terms of a license, the grant of a license under this section to a person shall not in any way hinder or restrict the grant of a license to another person within the same area of supply for a like purpose and the licensee shall not claim any exclusivity.

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

Section20 Exemptions from the requirement of license

(1) The Commission may make regulations to grant exemption from the requirement to have a supply license, 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 regulation, grant any exemption except with the consent.

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

(b) 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;

(c) in any area falling within the area of supply of a licensee, of that licensee:

Provided 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 a person; or

(b) to a class of persons;

(c) for a certain period.

(3) An exemption granted shall be published in such manner as the Commission considers appropriate.

(4) The exemption granted may be revoked by the Commission at any time for reasons to be recorded in writing.

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

Section21 General duties and powers of the licensees

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

(2) Each licensee 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), 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 license 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 license holder by his license, it shall have effect subject to such restrictions, exceptions and conditions as may be included in the license.

Section22 Revocation of licenses

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

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

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

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

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

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

(a) where the licensee, in the opinion of the Commission, has committed a wilful 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 State, read with the provisions of this Act;

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

(c) where the licensee fails within the period specified in his license 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 license; and

(ii) to make the deposit or furnish the security required by his license; 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 license.

(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 concerned local authority, if any, revoke a license as to the whole or any part of the area of transmission or supply upon such terms and conditions as it thinks fit.

(4) No license shall be revoked under sub-section (2) or (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 license 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 license, 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 license.

Section23 Amendment of licenses        

(1) The Commission may, where in its opinion the public interest so permits or requires, on the application of the licensee or otherwise and if the licensee is not a local authority, after consulting the concerned local authority, if any, make such alterations and amendments to the terms and conditions of a license as it thinks fit taking into account the object and purposes of the Act:

Provided that no such alterations or amendments, other than an alteration or amendment pursuant to a license condition referred to in sub-section (7) of Section 19 or sub-section (5) of Section 22 shall be made except with the consent of the licensee.

(2) Where the licensee has made an application under sub-section (1) proposing any alterations or amendments in his license, 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 specified by regulations;

(b) The Commission shall not make any alterations or amendments until all objections received by it with reference to the application within such time from the date of the first publication of the notice have been considered as the Commission may specify by regulations, which shall not be less than 45 days; and

(c) In the case of an application proposing alterations 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 alterations or amendments except with the consent of the Central Government.

(3) Before making any alterations or amendments in a license otherwise than on the application of the licensee, the Commission shall publish the proposed alterations or amendments and consider all objections received by it with reference to the proposed alterations or amendments within such time from the date of the first publication of the notice which the Commission may specify by regulations, which shall not be less than 45 days.

Section24 Provisions where the license is revoked

(1) Notwithstanding the provisions of Sections 6 and 7 of the Indian Electricity Act, 1910, where the Commission revokes a license, under sub-section (2) of Section 22 the following provisions 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;

(b) The Commission shall invite applications for acquiring the undertaking of the licensee whose license has been revoked and determine the terms and conditions of the sale of the undertaking;

(c) The Commission may by notice in writing require the licensee to sell, and thereupon the licensee shall sell the undertaking to the person whose application has been accepted by 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 additional directors for the undertaking;

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

(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, subject however to the Commission's directions to deposit any part of the purchase price towards payment of any fines, charges, or compensation levied on the licensee or any other amount due or outstanding from the licensee under any orders passed by the Commission.

(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 interest at such per cent not less than the Reserve Bank lending rate ruling at the time of delivery of the undertaking as the Commission may decide, on the purchase price for the period from the date of delivery of the undertaking to the date of payment.

(4) Where before the date fixed in the notice issued under sub-section (l)(a) as the date on which the revocation of the license 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 State Government shall acquire the undertaking on the date of revocation of the license and shall pay to the licensee the book value of the undertaking as on the date of acquisition and shall perform all the obligations of the licensee until such time as the State Government is able to sell the undertaking to a new licensee, which it shall endeavour to do when reasonably practicable. The State Government shall make payment of the book value of the undertaking on the date of acquisition after State Government is able to sell the undertaking to a new licensee, provided that such payment in any case be made within a period of one year from the date of such acquisition by the State Government.

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

Section25 General restriction on the licensees

(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 licence or the undertaking of, or associate himself with, so far as the business of generating, transmitting, 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 consent the Commission may publish such notices inviting objection and hear such persons or authority as the Commission may consider appropriate and specify by regulations.

(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) 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.

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

Section26 Annual accounts of the licensee

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 and it shall be a term of the licence that such statements shall be published in the manner specified by regulations.

PART 8 Tariffs and Financing the licensees

PART Section27 Tariffs

(1) The holder of each licence granted under this Act shall observe the 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 such revenues.

(2) The Commission shall, subject to sub-section (3), have the power to lay down methodology and the terms and conditions for determination of revenue of the licensee under sub-section (1) of this section and the determination of tariff, in such other manner as the Commission considers appropriate and for doing so, the Commission shall be guided by the following factors, namely.

(a) the financial principles and their applications provided in Sections 46,57 and 57-A of the Electricity (Supply) Act, 1948 (54 of 1948), and in the Sixth Schedule thereto;

(b) in the case of the Board or its successor entities, the principles under Section 59 of the Electricity (Supply) Act, 1948;

(c) that the tariff progressively reflects the cost of supply of electricity at an adequate and improving level of efficiency;

(d) the factors which would encourage efficiency, economical use of the resources, good performance and optimum investments and other matters which the Commission considers appropriate for the purpose of this Act; and

(e) the interest of the consumers are safeguarded and at the same rime, the consumers pay for the use of electricity in a reasonable manner based on the average cost of supply of energy;

(f) the electricity generation, transmission, distribution and supply are conducted on commercial principles;

(g) national and State power plans formulated by the Central or State Government, as the case may be:

Provided that the contracts concluded by the Government of Karnataka and/or the Board with generation and transmission companies prior to commencement of the Act shall be deemed to have been approved by the Commission under the provisions of this Act and shall be given effect by the Commission.

(3) Where the Commission departs from factors specified in the Sixth Schedule to the Electricity (Supply) Act, 1948 (Central Act 54 of 1948), while determining revenue of the licensee 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 objectives and purposes of the Act are duly achieved.

(5) Any tariff implemented under this Act.

(a) shall not show undue preference to any consumer of electricity, but may differentiate according to the consumer's load factor, power factor, and total consumption of energy during any specified period or the time at which supply is required, or the geographical position of any area, the nature of the supply and the purpose for which the supply is required; or paying capacity of category of consumers and need for cross subsidisation; and

(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 the Act, regulations and conditions of the license.

(6) The Commission also shall endeavour to fix tariff in such a manner that, as far as possible, similarly placed consumers in different areas pay similar tariff.

(7) Every licensee shall provide to the Commission, at such time and in such manner, as may be specified in the regulations, full details of its calculations for the ensuing financial year of the expected aggregate revenue from charges, which it believes to have been permitted to recover pursuant to the terms of its licence and such further information, as the Commission may reasonably require to assess such calculations. Within ninety days of the date on which the licensee has furnished all the information, the Commission shall notify either.

(a) that it accepts the licensee's revenue calculations and tariff proposals; or

(b) that it does not consider the licensee's revenue calculations and tariff proposals to be in accordance with the methodology or procedure prescribed, and such notice shall

(i) specify fully the reasons why the Commission considers that the revenue calculations or tariff proposals furnished do not comply with the methodology, specified procedure or are incorrect;

(ii) propose a modification or an alternative calculation of the expected revenue from charges, which the licensee shall accept.

(8) The Commission may, at the time of notifying the decision under sub-section (7) or within fifteen days of such decision, determine whether the tariff charged by the licensee is required to be modified and if so, require the licensee to modify the tariff or any part thereof.

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

(10) No tariff or part of any tariff implemented under sub-section (5) may be amended more than once in any financial year, except in respect of any charges expressly permitted under the terms of any fuel surcharge formula as may be approved by the Commission. At least three months before the proposed date for implementation of any tariff or 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 (5). If the Commission considers that the proposed tariff or amended tariff of a licensee does not satisfy any of the provisions of sub-section (5) 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 a 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 Commission shall notify its decision on the proposed amended tariff within ninety days of receipt of all information.

(11) The licensee shall not amend any tariff unless the amendment has been approved by the Commission and the amended tariff is published in the manner provided under sub-section (9).

(12) Notwithstanding anything contained in Sections 57-A and 57-B of the Electricity (Supply) Act, 1948 (54 of 1948), no Rating Committee shall be constituted after the date of commencement of this Act and the Commission shall secure that the licensee comply with the provisions regarding the charges for the sale of electricity, both wholesale and retail, and for connection to, and use of, their assets or system in accordance with the provisions of this Act.

Explanation. (a) In this section "the expected revenue from charges" means the total revenue which the KPTC or the licensees are expected to recover from charges for the level of forecast supply used in the determination under sub-section (7), in any financial year, in respect of goods or services supplied to customers.

(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 of customers specified in the tariff published.

Section28 Finances of the licensees

(1) The State Government may, with the approval of the State Legislature, from time to time, make subventions to any licensee for the purpose of this Act or the Electricity (Supply) Act, 1948 for such amounts as may be recommended by the Commission and on such terms and conditions as the State Government may determine.

(2) The State 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 State Government on such terms and conditions, not inconsistent with the provisions of this Act or the Electricity (Supply) Act, 1948, as the State Government may determine.

(3) The State Government may guarantee in such manner as it thinks fit, the repayment of the principal or the payment of interest (or both) on any loan proposed to be raised by any licensee or generating company, which is for the time being wholly or partly owned by the State Government or the discharge of any other financial obligation of any licensee, provided that the State Government shall, so long as such guarantees are in force, lay before the State Legislature during the budget session in every year a statement of the guarantees, if any, given during the current financial year of the State and an up-to-date account of the total sums, if any, which have been paid out of State revenues in each case by reason of any such guarantees or paid into State revenues towards repayment of any money so paid out.

(4) The State Government shall be entitled to inspect and verify the accounts of every licensee obtaining the benefits under sub-sections (1), (2) and (3) of this section.

PART 9 Commission's power to pass Orders and enforce Decisions

PART Section29 Orders for securing compliance

(1) Where the Commission is satisfied that a licensee is contravening, or is likely to contravene any relevant condition or requirement of its license, it shall by final order under Section 30 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 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 whidh 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, setting out.

(i) the relevant conditions 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; and

(b) specifying the period (being not less than 5 days from the date of notice) within which the licensee may make representations or objections to the proposed order.

(4) Subject to sub-section (5), and after considering any representations or objections from the licensee pursuant to sub-section (3)(b), 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 sub-section (3), if.

(a) the Commission has good 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 the 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 bythe 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 30 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 30.

Section30 Final orders for securing compliance

(1) If the Commission proposes to make a final order or to declare an interim order to be a final order, it 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 sub-section (3)(a) of Section 29 in respect of the proposed final order; and

(c) specifying the period (being not less than 60 days from the date of publication of the notice) within which representations or objections to the proposed order may be made;

(2) A notice under sub-section (1) 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 after publications of the notice referred to in sub-section (1), unless.

(a) the licensee to whom the proposed final order relates has consented to the modifications; and

(b) the requirements of sub-section (4) are complied with.

(4) The requirements referred to in clause (b) of sub-section (3) are that the Commission shall.

(a) serve on the licensee to whorn 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 30 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 10 days of the receipt thereof.

(5) The provisions of clauses (a) and (b) of sub-section (6) of Section 29 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 29.

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

(a) staring 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 objections which are duly made and not withdrawn within ten days of the receipt thereof.

(8) If after giving notice under sub-section (7), 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 in the same manner as set out in clauses (a) and (b) of sub-section (7) of Section 29.

 Section31 Effect and enforcement of interim and final orders and emergency provisions

(1) Without prejudice to Section 47 of this Act, all orders and directions, interim or final, passed by the Commission shall be enforceable in law as if it were a decree passed by a Civil Court.

(2) The Commission shall be entitled to take such assistance of the police and other authorities in the State required to effectively enforce the orders and directions given by the Commission.

(3) The Commission shall be entitled to give directions for vesting of the management and control of any of the undertaking 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 object 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 order 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 29 and 30.

Section32 Fines and charges

(1) The Commission shall be entitled to impose such fines and charges as may be specified by the Commission in the regulations for 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 thereunder and directions or orders of the Commission made from time to time. The fines, which the Commission shall be entitled to impose, may extend upto Rupees Five lakhs for an act of non-compliance or violation and a further amount not exceeding Rupees Twenty thousand 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, 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.

Section33 General control of the Commission

(1) The licensees, the generating companies and other persons shall comply with the regulations framed by the Commission and the directions issued by the Commission from time to time governing the terms and conditions for the operation and maintenance of the integrated power system and its safety.

(2) The licensees shall be subject to such regulations made by the Commission in regard to assets, properties, interests in property and other facilities forming an integral part of, or used in connection with, the licensed activity in the State and the licensees shall not dispose off or disconnect such assets in violation of such regulations.

PART 10 Advisory Committee, Consumer Consultation, Disclosure of Information, Standard of Performance etc.

PART Section34 Advisory Committee

(1) The Commission shall constitute a Committee to be known as the Commission Advisory Committee, in consultation with the State 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 licensees in the State, holders of transmission licensees in the State; generating companies operating in the State, commerce, industry, transport, agriculture, labour employed in the electricity supply industry and consumers of electricity.

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

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

(4) The term of the Advisory Committee shall be three years and one-third of the members shall retire annually.

(5) The functions of the Commission Advisory Committee shall be as follows.

(a) to advise the Commission on major questions of policy, relating to the electricity supply industry in the State; 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.

Section35 Disclosure of Information

The Commission may, after consultation with Commission Advisory Committee, holders of supply licences and other persons or bodies appearing to the Commission to be representative of persons and categories of persons likely to be affected make regulations specifying.

(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 sub- section (1), or otherwise in connection with the electricity supply to the consumers; and

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

Section36 Electricity supply and standard of performance

(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, are 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.

Section37 Information with respect to level of performance

(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

(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 determined, the number of cases in which a penalty was levied and the aggregate amount of 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.

 Section38 Restriction on disclosure of Information

(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;

(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 Commission of any of its functions under this Act or by the State 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 Accountant General, Karnataka 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 law 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 State or Central legislation to which the information is directly relevant.

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

PART 11 Arbitration and Appeals

PART Section39 Arbitration by the Commission

(1) Notwithstanding anything contained in any other law including the Arbitration and Conciliation Act, 1996 (Central Act 26 of 1996), or substitution thereof, any dispute arising between licensees shall be referred to the Commission. The Commission may proceed to act as arbitrator or nominate arbirrator(s) to adjudicate and settle such dispute. The practice or procedure to be followed in connection with any such adjudication and settlement shall be such as may be specified by regulations.

(2) Where the award is made by the arbitrator appointed by the Commission it shall be filed before the Commission and the Commission shall be entitled to pass appropriate orders on the award including, orders as to

(a) confirming and enforcing the award;

(b) setting aside or modifying the award; or

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

(3) The award given by the Commission under 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 appealable as provided in this Act and shall not be subject to any proceedings under any law relating to Arbitration.

(4) An award made or an order passed by the Commission under subsection (2) shall be enforceable as if it were a decree of the Civil Court.

Section40 Appeals from the decision of the Electrical Inspectors

Notwithstanding anything to the contrary in the Indian Electricity Act, 1910 or the Electricity (Supply) Act, 1948, or any rule made thereunder, an appeal shall lie from the decision of an Electrical Inspector (other than an Inspector of the Central Government or the Central Electricity Authority or Central Electricity Regulatory Commission) to the Commission or to an arbitrator to be appointed by the Commission in terms of Section 39.

Section41 Appeals against the order of the Commission

Any person aggrieved by any decision or order of the Commission passed under this Act may file an appeal to the High Court of Karnataka within sixty 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 thirty days.

PART 12 Offences and Penalties

PART Section42 Penalty for contravention of Section 18

Whoever in contravention of the provisions of this Act or the regulations made 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 one year or with fine which may extend to Rupees Five lakhs or with both and a further fine which may extend to Rupees Twenty thousand for each day after the first during which the offence continues.

Section43 Penalty for contravention of other provisions

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 six months or with fine which may extend to Rupees Five lakhs or with both and a further fine which may extend to Rupees Twenty thousand for each day after the first during which the offence continues.

Section44 Offences by Companies

(1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. For the purposes of this section.

(a) "Company" means a body corporate and includes a firm or other association of individuals; and

(b) "Director" in relation to a firm, means a partner in the firm.

Section45 Power to compound offences

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.

Section46 Cognizance of offences

(1) No Court shall take cognizance of any offence punishable under this Act except upon a complaint in writing made by an officer of the Commission, generally or specially authorised in this behalf by the Commission, and no Court other than that of a Metropolitan Magistrate or a Judicial Magistrate of the First Class or a Court superior thereto shall try any such offence.

(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.

Section47 Penalties and proceedings not to prejudice other actions

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

PART 13 Miscellaneou

PART Section48 Recovery of fees, fines and charges

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 Karnataka Government Electrical Undertaking (Dues Recovery) Act, 1976, as if any such sum were a public demand as defined in that Act and handover the amount due to the person or authority concerned.

Section49 Application of fine and charges

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.

Section50 No part of the fines or penalties to be passed on

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

Section51 Protection of acts done in good faith

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

Section52 Bar of jurisdiction and saving of consumer actions

(1) No order or proceeding made under this Act or rules or regulations framed under the Act shall be appealable except as provided in the 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 has jurisdiction under this Act.

(2) Nothing in this Act shall in any way prejudice or affect the rights and privileges of the consumers under other laws including the Consumer Protection Act, 1986.

Section53 Power to remove difficulties

If any difficulty arises in giving effect to the provisions of this Act, the Government may, by order, not inconsistent with the provisions of this Act, remove the difficulties:

Provided that no such order shall be made after the expiry of a period of two years from the appointed day.

Section54 Proceedings before the Commission to be judicial proceedings

All proceedings before the Commission shall be deemed to be judicial proceeding within the meaning of Sections 193, 219 and 228 of the Indian Penal Code (45 of 1860), and the Commission shall be deemed to be a Civil Court for the purposes of Section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (Act 2 of 1974).

Section55 Members and staff of Commission to be public servants

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

Section56 Power to make regulations

(1) The Commission may, make regulations by notification in the Official Gazette, for the proper performance of its functions under this Act.

(2) In particular and without prejudice to the generality of the foregoing provisions and matters specifically provided for in this Act, such regulations may provide for all or any of the following matters, namely.

(a) the administration of the affairs of the Commission including the exercise of its administrative, quasi-judicial and judicial powers including arbitration and procedure, summoning and holding of the meeting of the Commission, the times and places at which such meetings shall be held, the conduct of the business thereof;

(b) the duties of the Secretary, officers and employees of the Commission, their salaries, allowances and conditions of service;

(c) determining of the functions to be assigned to licensees and others involved in the generation, purchase, transmission, distribution and supply of electricity, the manner in which such functions shall be discharged and the procedure and code to be adopted in regard to power system and electric supply lines;

(d) the procedure for licensing of transmission and supply, the conditions for the grant of licenses and particulars, details and documents to be made available by the persons applying for the licence, the standard and general conditions subject to which the licence shall be granted, the exemption from grant, revocation and amendment and effect thereof, of the license 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) the method and manner of determination of licensee's revenues, tariff fixation, the matters to be considered in such determination and fixation;

(h) the constitution of the Commission Advisory Committee;

(i) the determination of the standard of performance of the persons involved in the generation, transmission, distribution and supply of electricity in the State;

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

(k) to regulate the properties, assets and interest in the properties, used for, or in connection with the electricity supply industry in the State to the extent provided in the Act;

(l) any other matter which is required to be or may be specified by regulations.

Section57 Power to make rules

(1) The State Government may, by notification after previous publication make rules to carry out the purposes of this Act.

(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 the discharge of the functions under the Act;

(b) the preparation and implementation of the transfer scheme, the transfer of assets, liabilities and personnel to the KPTC, licensees and others in the State; and

(c) the financing, funding, giving of guarantee etc., to the persons involved in the generation, transmission, distribution and supply of electricity in the State.

(d) Any other matter required to be or which may be prescribed by rules.

(3) Every rule made under this Act shall be laid as soon as may be after it is made, before each House of the State Legislature while it is in session for a total period of thirty days which may comprised in one session or in two or more successive sessions and if, before the expiry of the session in which it is so laid or the sessions immediately following, both Houses agree in making any modification in the rule, or both Houses agree that the rules should not be made, and notify such decision in the Official Gazette, the rules shall from the date of publication of such notification 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 without prejudice to the validity of anything previously done or omitted to be done under that rule.

PART 14 Effect on existing Central Legislation

PART Section58 Effect of the Act on the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948

(1) Except as provided in Section 59 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 Board aas been concerned or dealing with, upon the constitution of the Commission the functions of the Board shall be discharged by the Commission and the KPTC:

Provided that.

(a) the State Government shall be entitled to issue all policy directives and shall undertake overall planning and co-ordination as specified in Section 12 of this Act and to this extent the powers and functions of the Karnataka Electricity Board as per the provisions of the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948 or rules thereunder shall vest in the State Government and the State Government shall co-ordinate and deal with the Central Government and the Central Electricity Authority;

(b) in respect of such matters which the Commission directs in terms of a general or special order, or in 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 the licences.

(3) Subject to sub-sections (1) and (2), upon the establishment of the Commission, the provisions of the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948 shall, insofar as the State is concerned, be read subject to the following modifications and reservations.

(a) All references to State Electricity Board in the Indian Electricity Act, 1910 insofar as the State is concerned shall be read as reference to the Karnataka Electricity Regulatory Commission or the KPTC or other licensees or wherever it relates to general policy matters the State Government in accordance with the provisions of this Act.

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

(c) The provisions of all other sections of the Indian Electricity Act, 1910 shall apply except that.

(i) the terms "licence" "licensee" and "license holder" shall have the meaning as defined under this Act and the licenses shall be construed as having been issued under this Act;

(ii) 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 the said Act;

(iii) 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 39 of this Act and the arbitration procedure specified under the Indian Electricity Act, 1910 shall not apply.

(d) 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.

(e) All references to State Electricity Board in the Electricity (Supply) Act, 1948 insofar as the State of Karnataka is concerned shall be read as reference to the Karnataka Electricity Regulatory Commission or the KPTC or other licensees or where it relates to general policy matters, the State Government in accordance with the provisions of this Act.

(f) In respect of matters provided in Sections 5 to 18,19, 20, 23 to 26, 27, 37, 40 to 43, 44, 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 State.

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

(i) the terms "licence" "licensee" and "license holder" shall have the meaning as defined under this Act and the licenses shall be construed as having been issued under this Act;

(ii) the reference to the sections of the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948 in the provisions of the Electricity (Supply) Act, 1948 shall be taken as reference to the corresponding provisions of this Act to the extent modified by this Act;

(iii) 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 39 of this Act and the arbitration procedure prescribed under the Electricity (Supply) Act, 1948 shall not apply.

(h) The provisions of Sections 72 and 73 of the Electricity (Supply) Act, 1948 shall be restricted to generating companies and reference to the State Electricity Board in these sections shall stand deleted.

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

Section59 Savings

(1) Notwithstanding anything contained in this Act, the powers, rights and functions of the Regional Electricity Board, the Central Electricity Authority, the Central Government and Authorities other than the State Electricity Board and the State Government under the Indian Electricity Act, 1910 or the Electricity (Supply) Act, 1948 or rules framed thereunder shall remain unaffected and shall continue to be in force.

(2) Nothing contained in this Act will apply to the Power Grid Corporation of India Limited, or other bodies or licensees in relation to the interState transmission of the electricity or generating companies owned or controlled by the Central Government or undertaking owned by the Central Government.

Section60 Repeal and Savings

(1) The Karnataka Electricity Reform Ordinance, 1999 (Karnataka Ordinance 3 of 1999) is hereby repealed.

(2) Notwithstanding such repeal anything done or action taken under the said Ordinance shall be deemed to have been done or taken under this Act.

SCHEDULE 1 KARNATAKA ELECTRICITY REGULATORY COMMISSION

[Sub-section (7) of Section 8] SCHEDULE

[Sub-section (7) of Section 8]

THE KARNATAKA ELECTRICITY REGULATORY COMMISSION

PART I

I. Annual Financial Statement.(1) In December of each year the Commission shall submit to the State Government a statement of its estimated expenditure for the ensuing financial year.

 (2) The Commission may, at any time during the year in respect of which a statement under sub-paragraph (1) has been submitted, submit to the State Government a supplementary statement and all the provisions of this section shall apply to such statement as they apply to the statement under the said sub-section.

II. Accounts and Audit.(1) The Commission shall cause proper accounts and other records in relation thereto to be kept, including a proper system of internal check and shall prepare an annual statement of accounts, in such form as may be prescribed in consultation with the Accountant General, Karnataka.

(2) The accounts of the Commission shall be audited by the Comptroller and Auditor General

of India (hereinafter referred to as 'auditor') in accordance with the provisions of the Comptroller and Auditor General's (Duties, powers and conditions of service) Act, 1971 and any expenditure incurred by him in connection with such audit shall be payable by the State Government .

(3) The Auditor in connection with the audit of the accounts of the Commission shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers of the Commission.

(4) The accounts of the Commission as certified by the Auditor together with the audit report thereon shall be forwarded to the State Government within six months of the close of the financial year to which the accounts audit report relates and the Commission shall cause the said accounts of the Commission to be published and make available copies thereof on sale at a reasonable price. The audit report shall contain full details of any discrepancies or irregularities in the accounts of the Commission. At the same time, the Commission shall publish an annual statement of its activities in relation to the functions carried out by it under this Act during the year to which the said accounts relate and make available copies thereof on sale at a reasonable price.

(5) The State Government shall cause the accounts of the Commission together with the audit report and the annual statement of activities thereof forwarded to it under sub-paragraph (4) to be laid annually before the State Legislature.

SCHEDULE

PART II

General

III. Remuneration.(1) As an expense of the Commission, there shall be paid to the Chairman and the members of the Commission such remuneration, such travelling and other expenses and allowances, as the State Government may determine, provided that the remuneration determined by the State Government for the Chairman and members of the Commission shall not be less than the remuneration paid to the Judge of the Karnataka High Court.

(2) The State Government may cause to be paid as an expense of the Commission, to or in respect of any person holding the office of Chairman or a member of the Commission, such pension, allowance or gratuity or such contributions or payments towards provision of such a pension, allowance or gratuity.

IV. Official Seal.The Commission shall have an official seal for the authentication of documents required for the purposes of its functions.

V. Performance of Functions.Anything authorised or required by or under this Act or any other enactment to be done by the Commission may be done by any member of the Staff of the Commission who is authorised generally or specially in that behalf by the Commission.

RULE

KARNATAKA ELECTRICITY REFORM (TRANSFER SCHEME) RULES, 1999

Whereas, the draft of the Karnataka Electricity Reform (Transfer Scheme) Rules, 1999 was published as required by Sections 14 and 15 read with Section 57 of the Karnataka Electricity Reform Act, 1999 (Kamataka Act 25 of 1999) in Notification No. DE 5 PSR 99, dated 28th August, 1999, published in Part IV, Section 2-C(i) of the Karnataka Gazette, Extraordinary, dated 30th August, 1999 inviting objections and suggestions from all persons likely to be affected thereby within fifteen days from the date of publication of the draft in the Official Gazette. Whereas, the said Gazette was made available to the public on the 30th August, 1999. And whereas, objections and suggestions received within the period specified above have been considered. Now, therefore, in exercise of powers conferred by Sections 14 and 15 read with Section 57 of the Karnataka Electricity Reform Act, 1999 (Karnataka Act 25 of 1999), the Government of Karnataka hereby makes the following rules, namely:

Rule1 Short title, extent and commencement

(1) These rules may be called the Karnataka Electricity Reform (Transfer Scheme) Rules, 1999.

(2) These rules extend to the whole of the territory of the State of Karnataka and also to Assets, Liabilities and Personnel of the Karnataka Electricity Board, which are existing outside the State.

(3) They shall come into force on the date of their publication in the Official Gazette.

Rule2 Definitions

(1) In these rules, unless there is anything repugnant in the subject or context.

(a) "Act" means the Karnataka Electricity Reform Act, 1999.

(b) "Asset" shall include dams, tunnels, intake and outlet structures of water conductor systems, generating stations with associated plant, machinery, equipment, transmission towers, land, building, offices, stores, installations, furniture, fixtures, vehicles, residential quarters and guest houses and amenities and installations pertaining thereto and other movable and immovable assets, cash in hand, cash at bank, investments, book debts, corporeal or incorporeal, tangible and intangible assets, benefits, licenses, consents, authorities, registrations, liberties, patents, trade marks and powers of every kind, nature and description whatsoever, privileges, liberties, easements, advantages, benefits and approvals, contracts, deeds, schemes, bonds, agreements and other instruments and interest of whatever nature and wherever situate;

(c) "Effective date of the first transfer" means the date notified by an order made by the State Government for effecting transfer of Assets, Liabilities, Proceedings or Personnel, Undertakings to the Visvesvaraya Vidyuth Nigama Limited (VVNL) or the Karnataka Power Transmission Corporation Limited (KPTCL), as the case may be, and different effective dates of the first transfer may be notified for different transfers;

(d) "Liabilities" shall include all liabilities, debts, duties, obligations, arrangement, dealings and other outgoing including statutory liabilities and Government levies of whatever nature including the contingent liabilities which may arise in regard to dealings before the effective date in respect of the specified undertakings however excluding personnel and personnel related matters;

(e) "Schedule" means a Schedule appended to these rules;

(f) "Transferee" shall mean KPTCL or Visvesvaraya Vidyuth Nigama Limited (VVNL), as the case may be, in whom the undertaking or undertakings are vested;

(g) "Tripartite Agreement" shall mean the applicable Agreements entered into by the State Government, the Board and the concerned Union or Association of the personnel as listed in Schedule 'D' and as may be modified by the parties to the said agreements from time to time;

(h) "Undertaking" shall mean a block or blocks of assets, liabilities, proceedings and personnel existing and engaged in the business of generation, purchase, transmission, system operation, sales and supply belonging to the Board before the effective date of transfer;

(i) ' "WNL" shall mean Visvesvaraya Vidyuth Nigama Limited, a company established by the Government of Karnataka with the principal object of taking over the existing generation under the control of the Karnataka Electricity Board and engaging in the business of Generation of Electricity in the State.

(2) Words and expressions used but not defined in these rules shall have the same meaning as in the Act.

Rule3 Transfer of assets, etc., to the State

(1) On the effective date of first transfer all property, interest in property, right and liability and all the assets, liabilities, all matters, arrangements, dealings and things of the Board shall stand transferred to and vest in the State absolutely and in consideration thereof all loans, subventions and obligations of the Board towards the State shall stand extinguished and cancelled, which consideration shall be in full and final settlement of all claims whatsoever of the Board.

(2) Nothing in sub-rule (1) shall apply to rights, responsibilities, liabilities and obligations in respect of the personnel and personnel related matter including statutory dues such as salary, wages, gratuity, pension, provident fund, if any, compensation and retirement benefits and the same shall be dealt with in the manner provided under Rule 6.

Rule4 Classification of assets etc., into Undertakings

(1) All the assets, liabilities, all matters, arrangements, dealings and things vested in the State in terms of Rule 3 and such other assets and liabilities as the State Government may consider to be appropriate but excluding those specified in sub-rule (3) shall stand classified into.

(a) Generation undertakings as set out in Schedule 'A'; and

(b) Transmission and Distribution undertakings, as set out in Schedule 'B'.

(2) The State Government may within three months from the effective date of first transfer by order notify the provisional balance sheets as at the effective date of first transfer of the Generation undertakings listed in Schedule 'A' and Transmission and Distribution undertakings listed in Schedule 'B'.

(3) The liabilities as may be specified by the State Government in the order made under sub-rule (2) shall not form a part of the liabilities classified in Generation and Transmission and Distribution undertakings, in Schedule 'A' or 'B', and they shall be retained by the State Government as residuary liabilities.

(4) If the assets under sub-rule (1) are subject to security documents or arrangements in favour of third parties for any financial assistance or obligation taken by the Board and the liabilities in respect thereof are to be classified in different undertakings, the State Government, may by order to be issued for the purpose, provide for the apportionment of the liabilities secured by such properties, assets and rights between the different undertakings and upon such apportionment the security shall be applicable to the apportioned liability only.

Rule5 Transfer of assets, liabilities, etc., by the State

(1) The assets, liabilities, all matters, arrangements, dealings and things forming part of generation undertaking as set out in Schedule 'A' shall stand transferred to and vest in VVNL on the effective date of first transfer without any further Act or thing to be done by the State Government or the Board or VVNL or any other person, subject, however, to the terms and conditions specified in these rules.

(2) The assets, liabilities, all matters, arrangements, dealings and things forming part of Transmission and Distribution undertakings, as set out in Schedule B, shall stand transferred to and vest in KPTCL on the effective date of first transfer notified for the purpose without any further Act or thing to be done by the State Government or the Board or KPTCL or any other person subject, however, to the terms and conditions specified in these rules.

(3) On such transfer and vesting of the assets, liabilities, all matters, arrangements, dealings and things in terms of sub-rule (1) to VVNL or sub-rule (2) to KPTCL, as the case may be, the KPTCL or the WNL, (Transferee) shall be responsible for all contracts, rights, deeds, schemes, bonds, agreements, arrangements or dealings and other instruments of whatever nature to which the Board was initially a party, subsisting or having effect on the effective date of first transfer, in the same manner as the Board was liable immediately before the effective date, and the same shall be in force and effect against or in favour of the transferee and may be enforced effectively as if the transferee had been a party thereto instead of the Board.

(4) The provisional Balance Sheets notified by the State Government under sub-rule (2) of Rule 4 shall be adopted by KPTCL or VVNL as the case may be as the Balance Sheets of KPTCL or WNL as on the effective date of first transfer.

(5) As consideration for the transfer and vesting of the assets, liabilities and things to KPTCL or WNL as mentioned in sub-rules (1), (2) and (3) and Schedule 'A' or 'B' as the case may be, shares and/or instruments as to be specified in the order notifying the provisional Balance Sheets under sub-rule (2) of Rule 4 will be issued to the State Government.

(6) Notwithstanding anything contained in these rules, with effect from First day of August, 1999 and till the effective date of first transfer, business of generation, purchase, transmission, sale and supply of electrical energy and all other acts in the State undertaken by, and all matters, arrangements, dealings and things done by KPTCL or WNL, as the case may be, in connection with the said businesses either in their names or otherwise shall be deemed to have been done for and on behalf of the Board and shall be accounted for in the Books of Accounts of the Board accordingly.

(7) The accounts of the Board shall be finalised as up to the date of effective date of first transfer and audited as per Section 69 of the Electricity (Supply) Act, 1948. Subject to the finalisation and audit of accounts of the Board, the Board shall stand dissolved with effect from the effective date of first transfer as provided in sub-section (3) of Section 14 of the Act.

Rule6 Transfer of Personnel

(1) The transfer of personnel in terms of these rules shall be subject to the terms and conditions contained in the Act and the applicable Tripartite Agreements, as listed in Schedule 'C'.

(2) Subject to sub-rule (1), the personnel on the effective date of first transfer shall stand classified, transferred and allocated to the services of KPTCL or WNL in the manner specified in Part 'A' and Part 'B' of Schedule 'C'.

(3) On such transfer and subject to the provisions of the Act and other provisions in these rules the personnel shall form part of the services of KPTCL or WNL, as the case may be, with the status and in the post, scale of pay and seniority being maintained in the same manner as in the Board on the effective date of first transfer:

Provided that review of seniority of personnel in respect of a period prior to the effective date of first transfer, done after such date in accordance with the direction of Court, Tribunal or other authority or any law, rule or regulation shall be taken into account while determining their seniority after such date.

(4) The transfer of personnel shall be further subject to the following conditions, namely.

(a) That the terms and conditions of the services applicable to them on the effective date of the first transfer shall not in any way be less favourable than or inferior to those applicable to them immediately before the said effective date;

(b) All such personnel shall have continuity of service in all respects;

(c) All benefits of service accrued before the said effective date shall be fully recognised and taken into account for all purposes including the payment of terminal benefits;

(d) Transfer shall be subject to orders that may be passed by the Courts in the proceedings pending on the said effective date of the first transfer in regard to seniority or other matters concerning the service conditions of the personnel;

(e) The personnel shall cease to be in the service of the Board and shall not assert or claim any benefit of service under the State Government or the Board except as provided in the Karnataka Electricity Reform Act, 1999, these rules and in the Tripartite Agreements;

(f) All other terms and conditions as specified in the Tripartite Agreements, shall apply.

(5) Subject to sub-rules (1) and (4) the transferee shall make regulations governing the conditions of services of personnel transferred to the transferee under these rules, and until such time the existing service conditions of the Board shall mutatis mutandis apply

(6) In respect of all statutory and other schemes and employment related matters including the provident fund, gratuity fund, pension and any other superannuation fund or any other special fund created or existing for the benefit of the personnel, the relevant transferee shall stand substituted for the Board for all purposes and all the rights, powers and obligations of the Board in relation to any and all such matters shall become those of the transferee concerned and the services of the personnel shall be treated as having been continuous for the purpose of the application of this sub-rule.

(7) The State Government shall make appropriate arrangements in regard to the funding of the pension funds and other personnel related funds to the extent they are unfunded on the effective date of first transfer of the personnel from the Board and till such arrangements are made all such payments for personnel who retire after the effective date shall be entirely arranged by the KPTCL.

(8) The State Government shall make appropriate arrangements in regard to the funding and due payment of all terminal benefits to the existing pensioners of the Board as on the effective date of transfer and till such arrangements are made the payment falling due shall be made by the KPTCL, subject to such adjustments as may be decided between the State Government and KPTCL.

Explanation. For the purposes of this sub-rule, the term

(i) "Existing Pensioner" means all the persons eligible for the pension as on the effective date of transfer from the Board and shall include family members of the personnel as per the applicable scheme; and

(ii) "Terminal Benefits" means the gratuity, pension, clearness and other applicable relief and other applicable benefits including the right to have the appropriate revisions in the above benefits consistent with the practice that were prevalent in the Board.

Rule7 Classifications and Transfer of Assets and Liabilities provisional in the first instance

(1) The classification of undertakings and the value of the assets and liabilities assigned in the provisional Balance Sheets notified under sub-rule (2) of Rule 4 shall be provisional and shall be final upon the expiry of one year from the effective date of transfer when the undertakings are transferred to KPTCL or VVNL in terms of these rules.

(2) So long as the classification is provisional the State Government by order to be notified shall be entitled to amend, vary, modify, add, delete or otherwise change the items classified and identified in an undertaking in such manner as the State Government may consider appropriate.

(3) All transfers and vesting specified in Rule 5 in the first instance shall be provisional and shall be final upon the expiry of one year from the effective date of first transfer when the undertakings are transferred to KPTCL or WNL in terms of these rules.

(4) At any time within a period of one year from the effective date of first transfer mentioned in sub-rules (1) and (3) above, the State Government may by order to be notified amend, vary, modify, add, delete or otherwise change the terms and conditions o'f the transfer including the value assigned to the assets and liabilities in the provisional Balance Sheets to be notified under sub-rule (2) of Rule 4, the items included in the transfer, and transfer of such assets, properties, liabilities and proceedings forming part of an undertaking of one transferee to that of any other transferee or to the State Government in such manner and on such terms and conditions as the State Government may consider appropriate.

(5) On the expiry of the period of one year from such effective date and subject to any directions given by the State Government, the transfer of undertakings, assets, liabilities, proceedings made in accordance with the rules shall become final.

(6) The provisions of this rule shall not apply to the transfer of personnel and personnel related matters.

Rule8 Power to remove difficulty etc.

(1) The State Government shall have the power to remove difficulties arising in implementing the transfers mentioned above.

(2) The State Government may exercise any of the powers vested in it under these rules by issue of an order to be notified in Official Gazette.

SCHEDULE A Generation Undertakings

SCHEDULE 'A'

[See Rule 4(l)(a)]

Generation Undertakings

Unless otherwise specified by the State Government the generation undertakings shall comprise of all the assets and liabilities concerning generation consisting of.

I. Hydel Power Stations

(a) Shivasamudram Generating Station.(i) Head works with power channel, control gates and 3 numbers of river scouring sluice gates, power channel from Head works to balancing reservoir, fare bay to cater and control water to the 10 penstocks with the help of gates, power house, draft rube gate, tail race channel with 10 generating units (4 turbines of 5,600 BHP and 6 turbines of 9,000 BHP) 10 generators (6 numbers of 3 MW and 4 numbers of 6 MW) and associate protective equipment, step-up power transformers, circuit breakers and associate equipments, outdoor switchyard and associate equipments, stores, communication equipments, office buildings, staff quarters and work in progress etc. Capacity: 42 MW.

(ii) Static Frequency Converter at Shivasamudram.With 2 x 15 MWs static frequency converter for conversion from 78 KV, 25 MHz to 66 KV 50 Hz, outdoor structures, power transformers, reactors, circuit breakers and associated protective equipments, communication equipments, control room building, stores, etc., and work in progress.

(b) Shimsha Generating Station.Netkal balancing reservoir, water canal, fore bay, penstocks and penstock gates, power house, draft tube gate, tail race channel with two Nos. of generators, turbines and associated protective equipments, step-up power transformers, circuit breakers and associated equipments, outdoor switchyard and associated equipments, cranes, stores, spare parts, consumable, raw materials etc., communication equipments office buildings and staff quarters and work in progress. Capacity: 2 x 8.6 = 17.2 MW.

(c) Mahatma Gandhi Hydroelectric Power Station, Jog (MGHE).Fore bay, controlling gates, power channel, balancing reservoir, penstocks and penstock gates, power house, draft tube gate, tail race channel with 8 Nos. of (4 x 12 MW and 4 x 18 MW = 120 MW) generators, turbines and associated protective equipments, step-up power transformers, circuit breakers, and associated equipments, outdoor switchyard and associated equipments, stores, communication equipments, office buildings and staff quarters, including renovation and modernisation and other works in progress etc.

(d) Munirabad Generating Station.Intake gates, penstocks and penstock gates, power house (capacity of 25 MW), draft tube gate, tail race channel with three Nos. of generators, turbines and associated protective equipments, step-up power transformers, circuit breakers and associated equipments, outdoor switchyard and associated equipments, stores, communication equipments, office buildings and staff quarters, work in progress etc.

(e) Tungabhadra Hydro Electric Station (TBHES).Inter-State Project of Andhra Pradesh Government and Karnataka Government with 20% share of Karnataka (14.41 MW) run by Tungabhadra Board with 8 units of 9 MW capacity each (4 at T.B. Dam and 4 at Hampi). All assets are owned by both the Governments and reaping the power benefits based on their shares.

II. Diesel Power Station

Yelahanka Diesel Power Plant, Yelahanka, Bangalore

With 6 generating units of 21.32 MW capacity each along with all associated and related equipment such as generators, boilers, alternators/ auxiliary units with controls and instrumentation, lubricating oil separating system, railway sidings, diesel handling system, water supply and treatment system, cooling system, air compressors with associated equipments and pipelines, waste heat recovery boilers and associated pipelines system, water pumps and associated systems, diesel service tank and associated diesel oil piping.

Switchyard including 7 Nos. of 11/66 KV step-up transformers and associated breakers, control and protection system, auxiliaries, stores, power house and staff quarters, guest house, club building and drinking water supply system. All are housed in 120 acres of land.

III. General Assets and Liabilities

Special tools and equipment, material handling equipment, earth movers, bulldozers, concrete mixers, cranes, trailers, heavy and light vehicles, furniture, fixtures, office equipment, air conditioners, refrigerators, computers and signal systems, spares, consumables, raw materials, lands and civil works installations including roads, buildings, schools, dispensaries, testing laboratories and equipments training centers, workshops, works in progress, machineries and equipments sent for repairs, scraps and obsolete.

IV. Other Assets

Other assets and movable properties including plant and machinery, motor car, jeeps, trucks, cranes, trailers and other vehicles, furniture, fixtures, air conditioners, computers, etc., to the extent they are utilised in, operated by or associated with the assets referred to under Clauses I to III above shall also form a part of Generation (VVNL) undertakings.

V. Miscellaneous

1. Contracts, agreements, interest and arrangements to the extent they are associated with or related to generation activities or to the undertakings or assets referred to in Clauses I to IV above.

2. Loans secured and unsecured to the extent they are associated with or related to generation activities or to the undertakings or assets referred to in Clauses I to IV above and included in the provisional Balance Sheets to be notified under sub-rule (2) of Rule 4.

3. Cash and bank balance to the extent they are associated with or related to generation activities or the undertaking or assets referred to in Clauses I to IV above and included in the provisional Balance Sheets to be notified under sub-rule (2) of Rule 4.

4. Provident Fund, Pension Fund, Gratuity Fund and any other funds based on servicing capability of the undertaking.

5. Other current assets to the extent they are associated with or related to generation activities or to the undertakings or assets referred to in Clauses I to IV above and included in the provisional Balance Sheets to be notified under sub-rule (2) of Rule 4.

6. Other current liabilities and provisions to the extent they are associated with or related to generation activities or the undertakings or assets referred to in Clauses I to IV above and included in the provisional Balance Sheets to be notified under sub-rule (2) of Rule 4.

7. Other liabilities to the extent they are associated with or related to generation activities or to the undertakings or assets referred to in Clauses I to IV above and included in the provisional Balance Sheets to be notified under sub-rule (2) of Rule 4.

8. Proceedings to the extent they are associated with or related to generation activities or to the undertakings or assets referred to in Clauses I to IV above.

VI. The State Government may however transfer any of the above assets and liabilities, within one year from the effective date, as it may consider appropriate, to the KPTCL or VVNL, under the powers vested in it under these rules.

SCHEDULE B Transmission and Distribution Undertakings

SCHEDULE 'B'

[See Rule 4(l)(b)]

Transmission and Distribution Undertakings

All assets and liabilities belonging to the Karnataka Electricity Board other than those included in Schedule 'A' as Generation Undertakings or specified by the State Government as residuary assets, residuary liabilities and residuary proceedings, under Rule 4(1) and including but not limited to the following:

I. Transmission Assets

All transmission lines with towers of voltage 66 KV, 110 KV, 220 KV and 400 KV (under construction) on double circuit/single circuit/single circuit on double circuit towers with Grid Sub-stations of various capacities with all associated and related equipment, including step-up, step-down transformers, circuit breakers, metering arrangements and other protective devices with power-line communication system, allied control rooms, load dispatch center, lands (including right of way), buildings, roads and other auxiliary assets spread over within and outside the territory of the State including such assets under construction and assets acquired, transferred or rights of which were vested with the Board by transfer, sale, lease or otherwise, but excluding such constructions or installations lawfully owned and operated by others.

II. Distribution Assets

All 33 KV, 11 KV, LT (Single Phase 2 Wire to 3 Phase 5 Wire) lines (with overhead lines, Aerial Bunched cables and underground cables) on different types of supports with various sizes of conductors and step-up/step-down transformers, breakers, protective and metering devices and control rooms, testing laboratories, lands (including right of way), buildings, roads, diesel generating sets or other conventional and non-conventional generating units, service connections and installations inside consumer's premises, street lighting and signal systems owned by or leased to the Board but excluding fittings, fixtures and installations owned, by private persons or local authorities.

III. General Assets and Liabilities

Special tools and equipment, material handling equipment, earth movers, bulldozers, concrete mixers, cranes, trailers, heavy and light vehicles, furniture, fixtures, office equipment, air conditioners, refrigerators, computers and signal systems, spares, consumables, raw materials, lands and civil works installations including roads, buildings, schools, dispensaries, testing laboratories and equipments, training centers, workshops, works in progress, machineries and equipments sent for repairs, scrap and obsolete materials.

IV. Other Assets

Other assets and movable properties including plant and machinery, motor car, jeeps, trucks, cranes, trailers and other vehicles, furniture, fixtures, air conditioners, computers, etc., to the extent they are utilized and operated by or associated with the assets referred to under Clauses I, II and III above shall also form a part of Transmission and Distribution (KPTCL) undertakings.

V. Miscellaneous

1. Contracts, agreements, interest and arrangements to the extent they are associated with or related to T and D activities or to the undertakings or assets referred to in Clauses I, II, III and IV above.

2. Loans, secured and unsecured to the extent they are associated with or related to T and D activities or to the undertakings or assets referred to in Clauses I, II, III and IV above and included in the provisional Balance Sheets to be notified under sub-rule (2) of Rule 4.

3. Cash and Bank balance to the extent they are associated with or related to T and D activities or the undertakings or assets referred to in Clauses I, II,III and IV above and included in the provisional Balance Sheets to be notified under sub-rule (2) of Rule 4.

4. Other current assets to the extent they are associated with or related to T and D activities or to the undertakings or assets referred to in Clauses I, II, III and IV above and included in the provisional Balance Sheets to be notified under sub-rule (2) of Rule 4.

5. Other current liabilities and provisions to the extent they are associated with or related to T and D activities or the undertakings or assets referred to in Clauses I, II, III and IV above and included in the provisional Balance Sheets to be notified under sub-rule (2) of Rule 4.

6. Contingent liabilities to the extent they are recognised and are associated with or related to T and D activities or to the undertakings or assets referred to in Clauses I, II, III and IV above and included in the provisional Balance Sheets to be notified under sub-rule (2) of Rule 4.

7. Other liabilities to the extent they are associated with or related to T and D activities or to the undertakings or assets referred to in Clauses I, II, III and IV above and included in the provisional Balance Sheets to be notified under sub-rule (2) of Rule 4.

8. Proceedings to the extent they are associated with or related to T and D activities or to the undertakings or assets referred to in Clauses I, II, III and IV above.

VI. The State Government may however transfer any of the above assets and liabilities, within one year from the effective date, as it may consider appropriate, to the KPTCL or VVNL, under the powers vested in it under these rules.

SCHEDULE C SCHEDULE

Personnel shall stand transferred according to Rule 6.

Name of the Office Duties and Functions

 Transferred to

Board Secretariat, KEB, Cauvery Bhavan, B'lore together

with all officers

and staff attached to Chairman,

Members, Secretary,

Additional Secretary, DIG (Vigilance),

Chief Law Officer,

Deputy Secretaries, Assistant Secretaries including the cadres borne in Engineering, Accounts,

Vigilance, etc.

 Incharge of administration assisting Chairman and Members in the day-to-day work related to Finance, Administration, Personnel, Technical, Public Relations and all other allied matters.

 KPTCL

 CEE(G), KEB, B'lore

 Incharge of Administration, Technical, Planning, Commercial.

 KPTCL

Chief Engineer, Ele., Zones (B'lore/Hubli/

Mangalore/Gulbarga)

 Incharge of respective zones connected with Administration, Transmission and Distribution.

 KPTCL

 Chief Engineer, Ele., Major Works, B'lore Zone/Davanagere Zone

 Incharge of construction activities of transmission lines of 66 KV and above and receiving stations.

 KPTCL

 Chief Engineer, Ele., (TA and QC), Bangalore.

 Incharge of Technical Audit and Quality Control of all activities of KEB.

 KPTCL

 Chief Engineer, Ele., Load Despatch, B'lore (Also Ex officio Member, power State Level PTCC)

 Incharge of grid operation.

 KPTCL

 Chief Engineer, Ele., REC, B'lore

 Incharge of electrification and other related works.

 KPTCL

 Director (Research), B'lore

 Incharge of Research Activities in connection with electricity and earth mat design of sub-stations.

 KPTCL

 Director, I.T.C., B'lore

 Incharge of imparting Technical training to Executive and Maintenance Staff.

 KPTCL

 Chief Engineer, Ele., Material Management

and Purchase

 Incharge of Material Management and Purchase activities.

 KPTCL

 Chief Engineer, Ele., PFC and ADB, B'lore

 Incharge of preparations of detail project report and Technical and Commercial evaluation of Tenders in respect of projects and equipments for which loan is sanctioned by PFC.

 KPTCL

 Chief Engineers, Ele., Joint Venture, B'lore

 Co-ordination between Governments and British firm entrusted with the evacuation of power on 400/220 KV line from the proposed Power Projects, in M'lore area.

 KPTCL

 Superintending Engineer,

Ele., O and M Circles, B'lore (South), B'lore (North), Tumkur, Hubli, Belgaum, Shimoga,

Mangalore, Gulbarga, Munirabad.

 Assisting Zonal Chief Engineers, Ele. In the work related to Transmission, Distribution and Maintenance of stations within their respective jurisdictions.

 KPTCL

 Superintending Engineer,

Ele., Major Works Circles, Bangalore,

Shimoga, Hubli, Munirabad, Mysore

 Incharge of construction activities of receiving stations erection of HT lines including stringing of conductors in their respective jurisdictions.

 KPTCL

 Superintending Engineer,

Ele., Diesel Generating

Station Yelahanka, B'lore, Gulbarga, Mangalore.

 Incharge of Diesel Generation.

 VVNL

 Superintending Engineer,

Ele., MRT Circles,

B'lore, Hubli.

 Incharge of Meter and Relay Testing, Transformers calibration and providing protection of Electrical faults etc.

 KPTCL

 Name of the Office

 Duties and Functions

 Transferred to

 Superintending Engineer,

Ele., Hydel Generating

Station, Jog Falls.

 Incharge of Hydel Generation.

 VVNL

 Executive Engineer, Ele., Hydel Generating

Station, Shivanasa-mudram/Shimsha.

 Incharge of Hydel Generation.

 VVNL

 Executive Engineer, Ele., Hydel Generating

Station, M'bad.

 Incharge of Hydel Generation.

 VVNL

 Executive Engineer, Ele., Telecommunication

Division, Banga-lore/Hubli.

 Incharge of Telecommunication and power line equipment maintenance in their respective jurisdictions.

 KPTCL

Executive Engineer, Ele., Master Plan Division,

B'lore.

 Incharge of maintenance of underground cable system.

 KPTCL

Superintending Engineer,

Ele., System Implement

Cell, B'lore/Hubli.

 Incharge of system improvement.

 KPTCL

 All 400 KV/200 KV Receiving stations spread over throughout

the State.

 Incharge of receiving and retransmitting energy including the maintenance work.

 KPTCL

 Executive Engineer, Ele., MRT at B'lore (S), B'lore (N), Tumkur, Shimoga, Mysore, Mangalore, Hubli, Gulbarga, Bellary,

Belgaum.

 Incharge of meter and relay testing, transformers calibration and providing protection of electrical faults etc.

 KPTCL

 Executive Engineer, Ele., All O and M Divisions spread over throughout the State

 Incharge of work related to transmission, distribution and maintenance of stations within the jurisdiction of their respective Divisions.

 KPTCL

 Executive Engineer, Ele., All Major Works Divisions spread over the State

 Incharge of construction activities of Receiving Stations, erection of HT lines including stringing of conductors in their respective Divisions.

 KPTCL

The Chief Financial Advisor, KEB, Bangalore

 Incharge of matters relating to Finance, Accounts, Auditing and other related works.

 KFTCL

 The Chief Controller (Accounts), KEB, Bangalore

 Incharge of Board's Accounts and other related matters.

 KFTCL

 The Chief Controller (Internal Audit), KEB, Bangalore

 Incharge of Audit.

 KFTCL

 The Chief Controller, (Budget and Resources), KEB, Bangalore

 Incharge of Planning, Budget and Resource Management in KEB.

 KFTCL

 The Chief Controller (Revenue Monitoring),

KEB, Bangalore

 Incharge of Revenue realization etc.

 KFTCL

The Chief Controller (O and D), KEB, Bangalore

 Incharge of Organization and Development.

 KFTCL

 All other offices either subordinate or independent,

covered or not covered under the above offices.

 Incharge of relative work assigned to it.

 KPTCL

SCHEDULE D List of Tripartite Agreements

SCHEDULE 'D'

[See Rule 2(g)]

List of Tripartite Agreements

1. The Government of Karnataka, KEB and KEB Employees' Union (Regn. No. 65 Recognised).

2. The Government of Karnataka, KEB and KEB Engineers' Association (Regn. No. 76 Recognised).

3. The Government of Karnataka, KEB and KEB Accounts Officers' Association (Regn. No. 326 Recognised).

KARNATAKA PROVISIONAL DISTRIBUTION AND RETAIL SUPPLY LICENCE(KPTC), 1999

In exercise of the powers conferred by sub-section (4) of Section 18 of the Karnataka Electricity Reforms Act, 1999 (Karnataka Act 25 of 1999), the Government of Karnataka, hereby grants to the Karnataka Power Transmission Corporation (KPTC), with effect from 30th August, 1999 provisional licences to engage in the business of transmission and supply of Electricity in the State of Karnataka, on the terms and conditions set out in the licences appended to this notification. The provisional licence granted by the Government of Karnataka under sub-section (4) of Section 18 of the Karnataka Electricity Reform Act, 1999 (Karnataka Act 25 of 1999) to the Karnataka Power Transmission Corporation (KPTC) for carrying on the business of Distribution and Retail Supply of Electricity within the State of Karnataka shall be with the powers and upon the terms and conditions specified below:-

Rule1 Short title and commencement

This Licence may be called as the Karnataka Provisional Distribution and Retail Supply Licence, 1999.

Rule2 Definitions

(1) In this licence unless the context otherwise requires:

(a) "Act" means the Karnataka Electricity Reform Act, 1999;

(b) "Affiliate" means in relation to the licensee, any subsidiary of the Licensee, any company or entity which has any commercial or financial interest in the licensee or in which the licensee has any commercial or financial interest;

(c) "Area of distribution and bulk supply" means the area referred to in the Schedule of this licence as modified from time to time;

(d) "Bulk supplier" means any person who is authorised to provide bulk supply of electricity;

(e) "Bulk supply" means the provision of Electricity to an authorised person for resale;

(f) "Distribution" means the transportations of Electricity by means of a distribution system;

(g) "Distribution and retail supply business" means any authorised business of the licensee (i) in or ancillary to distribution (whether for its own account or that of third parties) through any system owned and/or operated by the licensee and (ii) in the retail supply of electricity to consumers;

(h) "Distribution system" means any system (including the licensee's distribution system) consisting (wholly or mainly) of cables, service lines and overhead lines, electrical plant and metering equipment (excluding generator interconnection facilities) having an operating voltage other than EHV owned or operated by an electricity operator authorised to supply Electricity and used for the transportation of electricity to a EHV consumer.

(i) "Generating plant" means any plant or apparatus for the production of electricity and shall where appropriate include a generating station comprising one or more generating set;

(j) "Generator" means a person owning a generating plant connected to the licensee's transmission or distribution system;

(k) "Generator interconnection facilities" means any elector lines, busbars, switchgear, transformers plant or apparatus owned by generator and utilised for access to the transmission or distribution system;

(l) "Licensee" means the Karnataka Power Transmission Corporation (KFTC), constituted under Section 13 of the Act which is the holder of this licence;

(m) "Licensee's distribution system" means any distribution system owned and/or operated by a distribution and retail supply licensee.

(n) "Licensee's transmission system" means the transmission system owned and/or operated by a transmission and bulk supply licensee;

(o) "Regulations" means the regulations made by the Commission under the Act;

(p) "Retail supply" means sale of electricity for use of the consumers;

(q) "Separate business" means each of the transmission and bulk supply business, distribution and retail supply business taken separately from one another and from any other business of the licensee or any affiliate of the licensee;

(r) "Supplier" means any electricity operator who carriers out or provides bulk supply or retail supply;

(s) "Supply" means the bulk supply of the retail supply of electricity;

(t) "Transmission and bulk supply business" means the authorised business of a licensee in transmission and bulk supply;

(u) "Transmission system" means the system consisting of Extra High Voltage Electric lines being operated at EHV (excluding generator interconnection facilities) owned and/or operated by the licensee for the purpose of the transmission of electricity from one power station to a sub-station or to another power station or between sub-stations or to or from any external interconnection equipment upto the interconnection with the distribution system, any plant and apparatus and meters owned or used by the licensee in connection with the transmission of electricity, but shall not include any part of the licensee's distribution system;

(2) The words, terms and expressions used in this licence but not defined shall have the same meaning assigned to them in the Karnataka Electricity Reform Act, 1999 (Ordinance No. 3 of 1999) and rules and regulations made thereunder;

(3) Words, terms and expressions used in this licence but not defined in this licence or in the Karnataka Electricity Reform Act, 1999 shall have the same meaning given to them in the Indian Electricity Act, 1910 (9 of 1910) and the Electricity (Supply) Act, 1948 (54 of 1948), as the case may be;

(4) Any references to any enactment or any section of, or Schedule to, or other provision of any such enactment shall be construed, at any particular time, as including a reference to any modification or re-enactment thereof then in force as the same may have been so modified or re-enacted from time to time.

 Rule3 Term of licence

This licence shall come into force on the 30th day of August, 1999 and shall cease to be valid and effective on completion of twelve months from the said date of commencement on the date on which the decision of the Commission was communicated under Section 18(4)(b) of the Act whichever is earlier.

Rule4 Grant of licence

(1) The licensee shall upon the establishment of the Commission, place this licence before the Commission which shall be deemed to constitute an application by the Licence for grant of Distribution and retail Supply Licence.

(2) After grant of licence by the Commission the licensee shall have power or authority to take appropriate actions for:

(a) revenue realisation;

(b) prosecution for theft;

(c) tampering with meters;

(d) diversion of electricity; and

(e) all such similar matters affecting the distribution and retail supply of electricity.

(3) The State Government or the Commission as the case may be, may add, alter or substitute any of the conditions contained in this licence with prior consultation with the licensee during the term of this licence.

Rule5 Prohibited activities

(1) The licensee shall not on its own account:

(a) purchase or import or otherwise acquire from any person, unless that person has a supply licence or its generator with installed capacity of five MW or less or sell or otherwise dispose of electricity to any person other than pursuant to this licence;

(b) own or hold any beneficial interest in, or operate, any generating set or other sources of production of power in the area of supply; except for meeting its emergency power requirements, provided however the above prohibition shall not apply to non-conventional energy sources; or

(c) own or hold any beneficial interest in, or operate, any facilities for the transmission of electricity in the area of supply other than pursuant to the carrying of its transmission business and its distribution business respectively; or

(d) commence any non-core activity.

(2) For the purposes of this paragraph, "non-core activity" means any activity of the licensee or an affiliate of the licensee other than those authorised or licensed under the provisions of the Act.

Rule6 Information to the State Government or Commission

(1) Subject to sub-paragraph (2) the licensee shall supply to the State Government Commission in the manner and at the times specified by the State Government or Commission, such information as the State Government or Commission may consider necessary in respect of the conditions or as it may require for the purpose of performing its functions and duties under the provisions of the Act.

(2) The power of the State Government or Commission to require information under sub-paragraph (1) is in addition to the power of the State Government or Commission to require information under or pursuant to any other condition of this licence or provisions of the Act.

(3) "Information" under this condition shall include any documents, accounts, estimates, returns or reports whether or not prepared specifically at the request of the State Government or Commission of any description specified by the State Government or Commission. This information may be:

(a) for the Commission's own purpose; or

(b) for the purposes of the Government of India; or

(c) for the purposes of the State Government; or

(d) for the purposes of the Central Electricity Authority.

(4) The licence shall notify to the State Government and Commission as soon as possible of any major incident affecting any part of the total system which has occurred and shall within two months of the date of such major incident:

(a) prepare report giving full details of the facts of the incident and its causes, and

(b) furnish copies of the report to the State Government and Commission and to all parties involved in the major incident.

Rule7 Disposal of assets

(1) The licensee shall not dispose of or relinquish operational control over any asset unless permitted by the State Government or the Commission as the case may be,

(2) In this condition: "Asset" means any asset with a replacement cost in excess of Rs. 50 lakhs or such other figure as the State Government prior to the constitution of the Commission, and thereafter by the Commission may specify for the time being and from time to time forming part or intended to form part of the distribution and retail supply business or for any use in conjunction therewith and any legal or beneficial right, title or interest in land upon which any of the foregoing is situated; and "Disposal" includes any sale, gift, transfer, lease, licence, the grant of any right of possession or ownership whether immediate or in the future, transfer of ownership, loan, security, mortgage, change or grant or any other encumbrance or the permitting of any encumbrance to subsist or any other disposition to a third party and "dispose" shall be construed accordingly.

Rule8 Health and safety

The licensee shall duly comply with all health and safety requirements under the Indian Electricity Rules, 1956 and other applicable laws and regulations in force at the relevant time.

Rule9 Application of Indian Electricity Act, 1910 (9 of 1910) and the Electricity (Supply) Act, 1948 (54 of 1948)

(1) The licensee shall comply with the requirements of the Indian Electricity Act, 1910 and Electricity (Supply) Act, 1948 and rules made thereunder, to the extent they have not been disapplied under the Act, in carrying out its functions and obligations under this licence.

Rule10 Application of the Indian Telegraph Act, 1885 (13 of 1885)

The licensee shall have all powers for the placing of appliances and apparatus for the transmission of Electricity, that a telegraph authority possesses under the Indian Telegraph Act, 1885 (13 of 1885), with respect to the placing of telegraph lines and posts for the purposes of a telegraph established or maintained by the Government or to be so established or maintained.

Rule11 Basis of charges

(1) The tariffs notified by the erstwhile KEB vide Board Notification No. KEB/B10/2424/97-98, dated 14-7-1998 or under any other order/s or instrument/s shall continue to apply and the KPTC shall be entitled to recover charges as per the above notification till further orders as provided in paragraph 11(2).

(2) The State Government or the Commission, as the case may be, may issue orders for separate tariffs for distribution, retail supply, or any other activity or services by the KPTC. The KPTC shall be entitled to recover the charges as per the revised orders from the date notified in the said orders.

(3) Except as mentioned above the tariff shall be determined in accordance with the provisions of Section 27 of the Act.

Rule12 Conditions of supply

The licensee shall prepare its conditions of supply and implement the same after obtaining the approval of the Commission, till then the "Terms and Conditions of Supply and Electricity Supply Regulations" and the procedure being followed /by erstwhile KEB shall apply,

KARNATAKA PROVISIONAL DISTRIBUTION AND RETAIL SUPPLY LICENCE(KSCST), 1999

In exercise of the powers conferred by sub-section (4) of Section 18 of the Karnataka Electricity Reforms Act, 1999 (Karnataka Act 25 of 1999), the Government of Karnataka, hereby grant to the Karnataka State Council for Science and Technology (KSCST), Bangalore, with effect from 11th November, 1999 provisional licence to engage in the business of distribution and supply of electricity for the local community at Elaneer in Dakshina Kannada District from out of its Micro Hydel Demonstration Project allotted in G.O. No. DE 67 NCE 98, dated 5-12-1998 on the terms and conditions set out in the licence appended to this notification. The provisional licence granted by the Government of Karnataka under sub-section (4) of Section 18 of the Karnataka Electricity Reform Act, 1999 (Karnataka Act 25 of 1999) to the Karnataka State Council for Science and Technology (KSCST), Bangalore for carrying on the business of Distribution" and Retail Supply of electricity in Elaneer, Dakshina Kannada District shall be with the powers and upon the terms and conditions as specified below:

Rule1 Short title and commencement

This licence may be called as the Karnataka Provisional Distribution and Retail Supply Licence, 1999.

Rule2 Definitions

(1) In this licence unless the context otherwise requires:

(a) "Act" means the Karnataka Electricity Reform Act, 1999;

(b) "Affiliate" means in relation to the licensee, any subsidiary of the licensee, any company or entity which has any commercial or financial interest in the licensee or in which the licensee has any commercial or financial interest;

(c) "Area of distribution and bulk supply" means the area referred to in the Schedule to this licence as modified from time to time;

(d) "Bulk supplier" means any person who is authorised to provide bulk supply of electricity;

(e) "Bulk supply" means the provision of electricity to an authorised person for resale;

(f) "Distribution" means the transportation of electricity by means of a distribution system;

(g) "Distribution and retail supply business" means any authorised business of the licensee (i) in or ancillary to distribution (whether for its own account or that of third parties) through any system owned and/or operated by the licensee and (ii) in the retail supply of electricity to consumers;

(h) "Distribution system" means any system (including the licensee's distribution system) consisting (wholly or mainly) of cables, service lines and overhead lines, electrical plant and metering equipment (excluding generator interconnection facilities) having an operating voltage other than EHV owned or operated by an electricity operator authorised to supply electricity and used for the transportation of electricity to a EHV consumer;

(i) "Generating plant" means any plant or apparatus for the production of electricity and shall where appropriate include a generating station comprising one or more generating set;

(j) "Generator" means a person owning a generating plant connected to the licensee's transmission or distribution system;

(k) "Generator interconnection facilities" means any electric lines, busbars, switchgear, transformers plant or apparatus owned by generator and utilised for access to the transmission or distribution system;

(l) "Licensee" means the Karnataka State Council for Science and Technology (KSCST), Bangalore, which is the holder of this licence;

(m) "Licensee's distribution system" means the distribution system owned and/or operated by a Distribution and Retail Supply licensee;

(n) "Licensee's transmission system" means the Transmission System owned and/or operated by a Transmission and Bulk Supply licensee;

(o) "Regulations" means the regulations made by the Commission under the Act;

(p) "Retail supply" means sale of electricity for use of the consumers;

(q) "Separate business" means each of the Transmission and Bulk Supply business, Distribution and Retail Supply business taken, separately from one another and from any other business of the licensee or any affiliate of the licensee;

(r) "Supplier" means any electricity operator who carries out or provides bulk supply or retail supply;

(s) "Supply" means the bulk supply or the retail supply of electricity;

(t) "Transmission and bulk supply business" means the authorised business of a licensee in transmission and bulk supply;

(u) "Transmission system" means the system consisting of Extra High Voltage electric lines being operated at EHV (excluding generator interconnection facilities) owned, and/or operated by the licensee for the purpose of the transmission of electricity from one power station to a sub-station or to another power station or between sub-stations or to or from any external interconnection equipment upto the interconnection with the distribution system, any plant and apparatus and meters owned or used by the licensee in connection with the transmission of electricity, but shall not include any part of the licensee's distribution system;

(2) The words, terms and expressions used in this licence but not defined shall have the same meaning assigned to them in the Karnataka Electricity Reform Act, 1999 (Ordinance No. 3 of 1999) and rules and regulations made thereunder;

(3) Words, terms and expressions used in this licence but not defined in this licence or in the Karnataka Electricity Reform Act, 1999 shall have the same meaning given to them in the Indian Electricity Act, 1910 (9 of 1910) and the Electricity (Supply) Act, 1948 (54 of 1948), as the case may be;

(4) Any references to any enactment or any section of or Schedule to or other provision of any such enactment shall be constructed, at any particular time, as including a reference to any modification or re-enactment thereof then' in force as the same may have been so modified or re-enacted from time to time.

Rule3 Term of licence

This licence shall come into force on the 11th day of November, 1999 and shall cease to be valid and effective on completion of twelve months from the said date of commencement or on the date on which the decision of the Commission was communicated under Section 18(4)(b) of the Act whichever is earlier.

Rule4 Grant of licence

(1) The licensee shall upon the establishment of the Commission, place this licence before the Commission which shall be deemed to constitute an application by the licensee for grant of Distribution and Retail Supply licence.

(2) After grant of licence by the Commission the licensee shall have power or authority to take appropriate actions for:

(a) revenue realisation;

(b) prosecution for theft;

(c) tampering with meters;

(d) diversion of electricity; and

(e) all such similar matters affecting the distribution and retail supply of electricity.

(3) The State Government or the Commission, as the case may be, may add, alter or substitute any of the conditions contained in this licence with prior consultation with the licensee during the terms of this licence.

Rule5 Prohibited activities

(1) The licensee shall not on its own account,

(a) purchase or import or otherwise acquire from any person, unless that person has a supply licence or its generator with installed capacity of five MW or less or sell or otherwise dispose of electricity to any person other than pursuant to this licence;

(b) own or hold any beneficial interest in, or operate, any generating set or other sources of production of power in the area of supply; except for meeting its emergency power requirements, provided however the above prohibition shall not apply to non-conventional energy sources; or

(c) own or hold any beneficial interest in, or operate, any facilities for the transmission of electricity in the area of supply other than pursuant to the carrying on of its transmission business and its distribution business respectively; or

(d) commence any non-core activity.

(2) For the purposes of this paragraph, "non-core activity" means any activity of the licensee or an affiliate of the licensee other than those authorised or licensed under the provisions of the Act.

Rule6 Information to the State Government or Commission

(1) Subject to sub-paragraph (2) the licensee shall supply to the State Government and Commission in the manner and at the times specified by the State Government or Commission, such information as the State Government or Commission, may consider necessary in respect of the conditions or as it may require for the purpose of performing its functions and duties under the provisions of the Act.

(2) The power of the State Government or Commission to require information under sub-paragraph (i) is in addition to the power of the State Government or Commission to require information under or pursuant to any other condition of this licence or the provisions of the Act.

(3) "Information" under this condition shall include any documents, accounts, estimates, returns or reports whether or not prepared specifically at the request of the State Government or Commission of any description specified by the State Government or Commission. This information may be:

(a) for the Commission's own purpose; or

(b) for the purposes of the Government of India, or

(c) for the purposes of the Slate Government, or

(d) for the purposes of the Central Electricity Authority.

(4) The licensee shall notify to the State Government and Commission as soon as possible of any major incident affecting any part of the total system which has occurred and shall within two months of the date of such major incident:

(a) prepare a report giving full details of the facts of the incident and its causes, and

(b) furnish copies of the report to the State Government and Commission and to all parties involved in the major incident.

Rule7 Disposal of assets

(1) The licensee shall not dispose of or relinquish operational control over any asset unless permitted by the State Government or the Commission, as the case may be.

(2) In this condition: "Asset" means any asset with a replacement cost in excess of Rs. 50 lakhs or such other figure as the State Government prior to the constitution of the Commission, and thereafter by the Commission, may specify for the time being and from time to time forming part or intended to form part of the Distribution and Retail Supply Business or for any use in conjunction therewith and any legal or beneficial right, title or interest in land upon which any of the foregoing is situated; and "Disposal" includes any sale, gift, transfer, lease, licence, the grant of any right of possession or ownership whether immediate or in the future, transfer of ownership, loan, security, mortgage, change or grant of any other encumbrance or the permitting of any encumbrance to subsist or any other disposition to a third party and "dispose" shall be construed accordingly.

Rule8 Health and safety

The licensee shall duly comply with all health and safety requirements under the Indian Electricity Rules, 1956 and other applicable laws and regulations in force at the relevant time.

Rule9 Application of Indian Electricity Act, 1910 (9 of 1910) and the Electricity (Supply) Act, 1948 (54 of 1948)

The licensee shall comply with the requirements of the Indian Electricity Act, 1910 and Electricity (Supply) Act, 1948 and rules made thereunder, to the extent they have not been disapplied under the Act, in carrying out its functions and obligations under this licence.

Rule10 Application of the Indian Telegraph Act, 1885 (13 of 1885)

The licensee shall have all powers for the placing of appliances and apparatus for the distribution and supply of electricity, that a telegraph authority possesses under the Indian Telegraph Act, 1885 (13 of 1885), with respect to the placing of telegraph lines and posts for the purposes of a telegraph established or maintained by the Government or to be so established or maintained.

Rule11 Basis of charges

(1) The tariffs notified by the erstwhile KEB vide Board Notification No. KEB/B13/3545/91-92, dated 1-6-1999 or under any other order/s or instrument/s shall continue to apply and the KSCST shall be entitled to recover charges as per the above notification till further orders as provided in paragraph 11(2), infra.

(2) The State Government or the Commission, as the case may be, may issue orders for separate tariffs for distribution, retail supply, or any other activity or services by the KPTC. The KPTC shall be entitled to recover the charges as per the revised orders from the date notified in the said orders.

(3) Except as mentioned above the tariff shall be determined in accordance with the provisions of Section 27 of the Act.

Rule12 Conditions of supply

The licensee shall prepare its conditions of supply and implement the same after obtaining the approval of the Commission, till then the "Terms and Conditions of Supply and Electricity Supply Regulations" and the procedure being followed by erstwhile KEB shall apply.

KARNATAKA PROVISIONAL TRANSMISSION AND BULK SUPPLY LICENCE, 1999

In exercise of the powers conferred by sub-section (4) of Section 18 of the Karnataka Electricity Reforms Act, 1999 (Karnataka Act 25 of 1999), the Government of Karnataka, hereby grants to the Karnataka Power Transmission Corporation (KPTC), with effect from 30th August, 1999 provisional licences to engage in the business of transmission and supply of Electricity in the State of Karnataka, on the terms and conditions set out in the licences appended to this notification. The Provisional Licence granted by the Government of Karnataka under sub-section (4) of Section 18 of the Karnataka Electricity Reforms Act, 1999 (Karnataka Act 25 of 1999) to the Karnataka Power Transmission Corporation (KPTC) for carrying on the business of Transmission and Bulk Supply of electricity within the State of Karnataka and through the transmission lines owned by the KPTC and connected to the Karnataka Transmission System shall be upon the terms and conditions specified below:

PART 1 Preliminary

PART Rule1 Short title and commencement

This Licence may be called as the Karnataka Provisional Transmission and Bulk Supply Licence, 1999.

Rule2 Definitions

(1) In this licence unless the context otherwise requires.

(a) "Act" means the Karnataka Electricity Reforms Act, 1999;

(b) "Affiliate" means in relation to the licensee, any subsidiary of the licensee, any company or entity which has any commercial or financial interest in the licensee or in which the licensee has any commercial or financial interest;

(c) "Area of transmission and bulk supply" means the area referred to in the Schedule of this licence;

(d) "Bulk supplier" means any person who is authorised to provide bulk supply;

(e) "Bulk. supply" means the provision of Electricity to an authorised person for resale;

(f) "Distribution" means the transportation of Electricity by means of a distribution system;

(g) "Distribution and retail supply business" means any authorised business of the licensee (i) in or ancillary to distribution (whether for its own account or that of third parties) through any system owned and/or operated by the licensee and (ii) in the retail supply of electricity to consumers;

(h) "Distribution system" means any system (including the licensee's distribution system) consisting (wholly or mainly) of cables, service lines and overhead lines, electrical plant and metering equipment (excluding generator interconnection facilities) having an operating voltage other than EHV owned or operated by an electricity operator authorised to supply Electricity and used for the transportation of Electricity to consumers. The distribution system shall not include any part of a EHV system, except the terminal equipment used for the supply of Electricity to a EHV consumer;

(i) "Generating plant" means any plant or apparatus for the production of Electricity and shall where appropriate include a generating station comprising one or more generating sets;

(j) "Generator" means a person owning a generating plant connected to the licensee's transmission or distribution system;

(k) "Generator interconnection facilities" means any elector lines, busbars, switchgear, transformers plant or apparatus owned by generator and utilised for access to the transmission or distribution system;

(l) "Grid Code" means the Grid Code prepared under condition 11 of this Licence;

(m) "Licensee" means the Kamataka Power Transmission Corporation (KPTC), incorporated under Section 13 of the Act which is the holder of this licence;

(n) "Licensee's distribution system" means any distribution system owned and/or operated by a Distribution and Retail Supply Licensee;

(o) "Licensee's transmission system" means the transmission system of the transmission and bulk supply power licensee;

(p) "Regulations" means the regulations made by the erstwhile Karnataka Electricity Board until the constitution of the Commission, and/or thereafter by the Commission under the Act;

(q) "Retail supply" means sale of electricity for use of the consumers';

(r) "Separate business" means each of the Transmission and bulk supply business taken separately from one another and from any other business of the licensee or any affiliate of the Licensee;

(s) "Supplier" means any electricity operator who carries out or provides bulk supply or retail supply;

(t) "Supply" means the bulk supply of the retail supply of electricity;

(u) "Transmission and bulk supply-business" means the authorised business of a licensee in transmission and bulk supply;

(v) "Transmission system" means the system consisting of Extra High Voltage Electric lines being operated at EHV (excluding generator interconnection facilities) owned and/or operated by the licensee for the purpose of the transmission of Electricity from one power station to a sub-station or to another power station or between sub-stations or to or from any external interconnection equipment upto the interconnection with the distribution system, any plant and apparatus and meters owned or used by the licensee in connection with the transmission and bulk supply of electricity, but shall not include any part of the licensee's distribution system.

(2) The words, terms and expressions used in this licence shall have the same meaning assigned to them in the Karnataka Electricity Reforms Act, 1999 (Karnataka Act 25 of 1999) and rules and regulations made thereunder.

(3) Words, terms and expressions used in this licence which are not defined in this Licence or in the Karnataka Electricity Reforms Act, 1999 (Karnataka Act 25 of 1999) shall have the same meaning given to them in the Indian Electricity Act, 1910 (9 of 1910) and the Electricity (Supply) Act, 1948 (54 of 1948) as the case may be.

(4) Any references to any enactment or any section of, or Schedule to, or other provision of any such enactment shall be construed, at any particular time, as including a reference to any modification or re-enactment thereof then in force as the same may have been so modified or re-enacted from time to time.

Rule3 Term of licence

This Licence shall come into force on the 30th day of August, 1999 and shall cease to be valid and effective after twelve months from the said date of commencement on the date on which the decision of the Commission was communicated under Section 18(4)(b) of the Act whichever is earlier.

PART 2 General Conditions

PART Rule4 Grant of licence

(1) The Licensee shall upon the establishment of the Commission, place this licence before the Commission for a Transmission and Bulk Supply Licence which shall be deemed to constitute an application for grant of licence.

(2) The State Government or the Commission as the case may be, may add, alter or substitute any of the conditions contained in this licence with prior consultation with the licensee during the term of this licence.

Rule5 Prohibited activities

(1) The Licensee shall not on its own account.

(a) purchase or otherwise procure electricity or sell or otherwise dispose of electricity to any person other than pursuant to its transmission and Bulk Supply Business except that the licensee shall be permitted to enter into arrangements for the purchase of ancillary services; or

(b) own, hold any beneficial interest in, or operate, any generating set or other sources of production of power in the area of transmission and bulk supply; except for meeting its emergency power requirements; or

(c) own, hold any beneficial interest in, or operate, any facilities for the transmission of electricity in the area of transmission and bulk supply other than pursuant to a licence granted by the State Government; or

(d) commence any non-core activity;

(2) For the purposes of this paragraph the terms "ancillary services" and "non-core activity" shall have the following meaning; "ancillary services" means black start reactive power, frequency control and such other services as any electricity operator may be required to have available as ancillary services pursuant to the Grid Code or any agreement with the licensee primarily for the purpose of securing stability of operation of the licensee's transmission system; "non-core activity" means any activity of the Licensee or an affiliate of the licensee other than those authorised or licensed under the Act.

Rule6 Information to the State Government or Commission

(1) Subject to paragraph 6(2) the licensee shall supply to the State Government or Commission in the manner and at the times specified by the State Government or Commission, such information as the State Government or Commission may consider necessary in respect of the conditions or as it may require for the purpose of performing its functions and duties under the provisions of the Act.

(2) The power of the State Government or Commission to require information under paragraph 6(1) is in addition to the power of the State Government or Commission to require information under or pursuant to any other condition of this licence or provisions of the Act.

(3) "Information" under this condition shall include any documents, accounts, estimates, returns or reports whether or not prepared specifically at the request of the State Government or Commission of any description specified by the State Government or Commission. This information may be.

(a) for the Commission's own purpose; or

(b) for the purposes of the Government of India; or

(c) for the purposes of the State Government; or

(d) for the purposes of the Central Electricity Authority.

(4) The licensee shall notify to the State Government and Commission as soon as possible of any major incident affecting any part or part of the total system which has occurred and shall within two months of the date of such major incident.

(a) prepare report giving full details of the facts of the incident and its causes; and

(b) furnish copies of the report to the State Government and Commission and to all parties involved in the major incident.

Rule7 Disposal of assets

(1) The licensee shall not dispose of or relinquish operational control over any asset unless permitted by the State Government or the Commission as the case may be.

(2) In this condition. "asset" means any asset with a replacement cost in excess of Rs. 50 lakhs or such other figure at the State Government or the Commission, as the case may be, may specify for the time being and from time to time forming part of intended to form part of the transmission and bulk supply business or for any use in conjunction therewith and any legal or beneficial right, title or interest in land upon which any of the foregoing is situated; and "disposal" includes any sale, gift, transfer, lease, licence, the grant of any right of possession or ownership whether immediate or in the future, transfer of ownership, loan, security, mortgage, change or grant of any other encumbrance or the permitting of any encumbrance to subsist or any other disposition to a third party and "dispose" shall be construed accordingly.

Rule8 Health and safety

The licensee shall duly comply with all health and safety requirements under the Indian Electricity Rules, 1956 and other applicable laws and regulations in force at the relevant time.

Rule9 Application of Indian Electricity Act, 1910 (9 of 1910) and the Electricity (Supply) Act, 1948 (54 of 1948)

(1) The licensee shall comply with the requirements of the Indian Electricity Act, 1910 and Electricity (Supply) Act, 1948 and rules made thereunder, to the extent they have not been disapplied under the Act, in carrying out its functions and obligations under this licence.

(2) The State Government may publish an order authorising the licensee to exercise any power or authority which could be given to the licensee under the Indian Electricity Act, 1910 (9 of 1910) and the Electricity (Supply) Act, 1948 (54 of 1948).

Rule10 Application of the Indian Telegraph Act, 1885 (13 of 1885)

The licensee shall have all powers for the placing of appliances and apparatus for the transmission of electricity, that a telegraph authority possesses under the Indian Telegraph Act, 1885 (13 of 1885), with respect to the placing of telegraph lines and posts for the purposes of a telegraph established or maintained by the Government or to be so established or maintained.

PART 3 Technical Conditions

PART Rule11 Grid Code

(1) Subject to paragraph 11(3) the licensee shall in consultation with generators, other licensees and persons materially affected thereby prepare as soon as possible and ensure that there is in force at all times a Grid Code and shall implement and comply. The Grid Code shall.

(a) cover all material technical aspects relating to connections to the operation and use of the licensee's transmission system including the operation of electric lines connected to the Licensee's Transmission System; and

(b) be designed so as to permit the development, maintenance and operation of an efficient, co-ordinated and economical system for the transmission for electricity in the Licensee's area of transmission and bulk supply.

(2) Following consultation with generators, licensees and persons materially affected thereby as the State Government or Commission may consider appropriate, the State Government or the Commission as the case may be, may issue directions requiring the licensee to revise the Grid Code in such manner as may be specified in the directions, and the licensee shall forthwith comply with any such directions.

(3) The State Government, or the Commission, as the case may be, may following consultations as it may consider appropriate with the licensee issue directions relieving the licensee of its obligations to implement or comply with the Grid Code in respect of such parts of the Licensee's transmission system or to such extent as may be specified in the directions.

 Rule12 Capacity procurement procedure

(1) Except in the case of non- conventional sources of energy, the Licensee may not enter into any new arrangement to purchase electricity or arrangements for the construction of additional generation capacity, without an authorisation granted by the State Government or the Commission, as the case may be, under the terms of this paragraph.

(2) An authorisation required under paragraph 12(1) will be granted when the licensee demonstrates to the satisfaction of the State Government or the Commission as the case may be, that.

(a) there is need for the additional power which it proposes to purchase;

(b) the licensee has examined the economic, technical, system and environmental aspects of all available alternatives to the proposals for purchasing additional electricity including arrangements for reducing the level of demand and such examination has been carried out in the manner approved by the State Government or the Commission as the case may be; and

(c) the licensee will obtain tenders from independent power producers and other parties, specifying the prices and other terms on which they will sell electricity or construct and operate generating plant, the obtaining of such tenders to be in a manner approved by the State Government or the Commission, as the case may be. The restrictions imposed in paragraph 12(1) and 12(2) shall not be applicable for purchases or arrangements already contracted or in the process and such purchases or arrangements in the process shall be continued and finalised with the approval of the State Government.

PART 4 Tariffs

PART Rule13 Basis of charges

(1) The tariffs notified by the KEB vide Board Notification No. KEB/B10/2424/97-98 dated 14-7-1998 or under other orders or instruments shall continue to apply and the KPTC shall be entitled to recover charges as per the above notification or orders or instruments till further orders as provided in paragraph 13(2).

(2) The State Government or the Commission, as the case may be, may issue orders for separate tariffs for transmission, bulk supply or any other activity or services by the KPTC. The KPTC shall be entitled to recover the charges as per the revised orders from the date notified in the said orders.

(3) Except as mentioned above the tariff shall be determined in accordance with the provisions of Section 27 of the Act.

REGULATION

KARNATAKA ELECTRICITY REGULATORY COMMISSION (GENERAL AND CONDUCT OF PROCEEDINGS) REGULATIONS, 2000

In exercise of the powers conferred on it by Section 56 of the Karnataka Electricity Reform Act, 1999 (Act 25 of 1999) and all powers enabling it in that behalf, the Karnataka Electricity Regulatory Commission hereby make the following regulations, namely:

CHAPTER 1 General

Regulation1 Short title, commencement and extent

(1) These regulations may be called the Karnataka Electricity Regulatory Commission (General and Conduct of Proceedings) Regulations, 2000.

(2) They shall come into force from the date of their publication in the Official Gazette.

(3) They extend to the whole of the State of Karnataka.  

Regulation2 Definitions

(1) In these regulations, unless the context otherwise requires.

(a) "Act" means the Karnataka Electricity Reform Act, 1999;

(b) "Chairman" means the Chairman of the Karnataka Electricity Regulatory Commission;

(c) "Commission" means the Karnataka Electricity Regulatory Commission;

(d) "Consumer Forum" or "Consumer Fora" means such consumer forum or consumer fora as has been recognised by the Commission under Regulation 18;

(e) "Member" means a member of the Karnataka Electricity Regulatory Commission;

(f) "Officer" means an Officer of the Karnataka Electricity Regulatory Commission;

(g) "Petition" shall mean and include all petitions, applications, complaints, appeals, replies, rejoinders, supplemental pleadings, other papers and documents filed before the Commission;

(h) "Proceedings" shall include proceedings of all nature that the Commission may hold in the discharge of its functions under the Act;

(i) "Receiving Officer" means the officer designated by the Commission in terms of Regulation 23(1);

(j) "Regulations" means the Karnataka Electricity Regulatory Commission (General and Conduct of Proceedings) Regulations, 1999;

(k) "Seal" means the common seal and the official seal of the Commission as contemplated in Part B of the Schedule to the Act, wherever applicable;

(l) "Secretary" means Secretary of the Karnataka Electricity Regulatory Commission.

(2) Words or expressions occurring in these regulations and not defined herein above shall bear the same meaning as in the Act.

Regulation3 Commission's offices, office hours and sittings

(1) Unless otherwise directed, the headquarters and other offices of the Commission shall open daily, except on Saturdays, Sundays and holidays notified by the Commission. The headquarters and other offices of the Commission shall open at such hours as the Commission may direct from time to time.

(2) Where the last day for doing of any act falls on a day on which the office of the Commission is closed and by reason thereof the act cannot be done on that day, it may be done on the next day on which the office is open.

Regulation4 Language

(1) The proceedings of the Commission shall be conducted in English or Kannada.

(2) Petitions, documents or other matters contained in any language other than English or Kannada shall be accepted by the Commission only if the same is accompanied by a translation thereof in English.

(3) Any translation which is agreed to by the parties to the Proceedings or which any of the parties may furnish with an authenticity certificate of the person who had translated it into English may be accepted by the Commission as a true translation.

Regulation5 Use of the Seal

(1) The Seal of the Commission shall be kept in the custody of the Secretary or Officer as shall be designated by the Secretary for this purpose.

(2) Every order made, notice issued or certified copy granted by the Commission shall be stamped with the appropriate Seal of the Commission and shall be authenticated by the Secretary or an Officer designated for the purpose.

Regulation6 Conduct of Business

In the conduct of its business and in the discharge of its functions under the Act, the Commission may, adopt one of the following methods.

(a) Hold Proceedings under Chapter II;

(b) Subject to Section 9(7), by circulation of papers.

Regulation7 Functions of the Secretary

(1) The Secretary, who is the Principal Officer of the Commission, shall exercise his powers and perform his duties under the control of the Chairman. In particular and without prejudice to the generality of the above provisions, the Secretary shall have the following powers and perform the following duties, viz.

(a) To supervise and guide the functioning of all the Officers and Staff of the Commission;

(b) To prepare or cause to be prepared briefs and summaries of all pleadings presented by various parties in each case before the Commission in discharge of its functions;

(c) To assist the Commission in the proceedings relating to the powers exercisable by the Commission;

(d) To ensure execution of the orders passed by the Commission; and

(e) To collect from the State Government or other offices, companies or firms or any other party as may be directed by the Commission, such information as may be considered useful for the purpose of efficient discharge of the functions of the Commission under the Act and place the said information before the Commission.

(f) To keep in his custody the Seal and records of the Commission.

(2) The Secretary, with the approval of the Chairman of the Commission, may delegate to any officer of the Commission any function required by these regulations or otherwise, to be exercised by the Secretary.

(3) In the absence of the Secretary, such other Officer of the Commission, as may be nominated by the Chairman, may exercise all the functions of the Secretary.

Regulation8 Powers of Review, Revision etc.

(1) The Commission may, either on its own motion or on an application made by any interested or affected party, within 90 days of the making or issuing of any decision, direction, order, notice or other document or the taking of any action in pursuance of these regulations, review, revoke, revise, modify, amend, alter or otherwise change such decision, direction, order, notice or other document issued or action taken by the Commission or any of its Officers.

(2) An application under sub-regulation (1) shall be filed in the same manner as a petition under Chapter-II of these regulations.

Regulation9 Confidentiality

Subject to Section 38 of the Act, the Commission may, by order, direct that any information, documents and other papers and materials produced before the Commission or any of its officers, consultants, representatives or otherwise which may come into their possession or custody, shall be confidential or privileged and shall not be available for inspection or supply of copies, and the Commission may also direct that such document, papers or materials shall not be used in any manner except as specifically authorised by the Commission.

Regulation10 Issue of orders and practice directions

Subject to the provisions of the Act and these regulations, the Commission may, from time to time, issue orders and practice directions in regard to the implementation of the regulations and procedure to be followed on various matters which the Commission has been empowered by these regulations to specify or direct.

Regulation11 Saving of inherent power of the Commission

(1) Nothing in these regulations shall be deemed to limit or otherwise affect the inherent power of the Commission to make such orders as may be necessary for meeting the ends of justice or to prevent the abuse of the process of the Commission.

(2) Nothing in these regulations shall bar the Commission from adopting a procedure which is at variance with any of the provisions of these regulations, if the Commission, in view of the special circumstances of a matter or class of matters and for reasons to be recorded in writing, deems it necessary or expedient for dealing with such a matter or class of matters.

(3) Nothing in these regulations shall, expressly or impliedly, bar the Commission from dealing with any matter or exercising any power under the Act for which no regulations have been framed, and the Commission may deal with such matters, powers and functions in a manner it thinks fit.

(4) In the exercise of its powers under the Act and in the discharge of its functions, the Commission shall as circumstances may permit, be guided by the principles of natural justice.

Regulation12 Power to remove difficulties

If any difficulty arises in giving effect to any of the provisions of these regulations, the Commission may, by general or special order, do anything, not being inconsistent with the provisions of the Act, which appears to it to be necessary or expedient for the purpose of removing the difficulties.

Regulation13 Power to dispense with the requirement of the Regulations

The Commission shall have the power, for reasons to be recorded in writing and with notice to the affected parties, dispense with the requirements of any of the regulations in specific cases subject to such terms and conditions as may be specified.   

Regulation14 Extension or abridgment of time prescribed

Subject to the provisions of the Act, the time prescribed by these regulations or by order of the Commission for doing any act may be extended (whether it has already expired or not) or abridged for sufficient reason by order of the Commission.

Regulation15 Effect of non-compliance

Failure to comply with any requirement of these regulations shall not invalidate any proceedings merely by reason of such failure unless the Commission is of the view that such failure has resulted in miscarriage of justice.

CHAPTER 2 Proceedings before the Commission

Regulation16 Proceedings before the Commission

The Commission may, from time to time, hold such proceedings as it considers appropriate, for the discharge of its functions under the Act, provided that all matters which the Commission is required under the Act to undertake and discharge through hearing of the affected parties shall be done only through proceedings.

Regulation17 Representation at Proceedings

(1) A party to any proceedings under this Chapter may be represented before the Commission in one of the following manners,

(a) In person;

(b) Through an authorised employee;

(c) Through an authorised professional who may be an Advocate or a Chartered Accountant, or a Cost and Works Accountant or a Company Secretary holding a Certificate of practice.

(2) The Commission may be represented at any proceeding by such officer or officers of the Commission or such other person or persons as the Commission may appoint to represent the matter as the Commission's representative in the proceedings.

Regulation18 Consumer Interests

(1) In exercise of its powers under the proviso to sub-section (2) of Section 8 of the Act and without prejudice to its right to recognise other Consumer Fora under that Section, the Commission hereby recognises as a Consumer Forum authorised to initiate and appear before the Commission in any proceedings under these regulations, any society registered under the laws of the State for the registration of societies, and having for its objects, inter alia, protection of the interests of consumers.

(2) The Commission may, for the sake of timely completion of proceedings, direct grouping of Consumer Fora who have a common interest so that they can make collective affidavits.

(3) The Commission may appoint any officer or any other person to represent the interest of the consumers in general or any class or classes of consumers as the Commission may consider appropriate. If any person, not being an officer is appointed as above, the Commission may direct payment to such person of such fee, cost and expenses by such of the parties to the proceedings as the Commission may consider appropriate.

(4) The Commission may, in appropriate cases, permit any individual with specialised knowledge of the issues concerned to participate in any proceedings before the Commission.

Regulation19 Initiation of Proceedings

Proceedings may be initiated under these regulations in one of the following manners.

(a) Suo motu by the Commission;

(b) Upon a petition being filed by any affected party:

Provided that the term 'affected party' shall mean only a party having a substantial cause in the interest of the public at large or a segment of the public, and shall include a Consumer Forum. Provided however that the Commission shall have the power to rule that any party is not an affected party for the purpose of these regulations.

Regulation20 Initiation of Proceedings SMO motu

(1) When the Commission initiates the Proceedings suo motu, it shall be by a notice of inquiry (hereinafter referred to as the "Notice of Inquiry") issued by the office of the Commission.

(2) While issuing the Notice of Inquiry, the Commission may pass such orders and directions as may be deemed necessary for service of notices to the affected or interested parties and for the filing of replies and rejoinders in opposition or in support of the petition in such form as the Commission may direct.

(3) The Commission may, if it considers appropriate, issue orders for advertisement of the Notice of Inquiry inviting comments from the public or any class of persons on the issue involved in the Proceedings in such form as the Commission may direct in such order.

(4) While issuing the Notice of Inquiry the Commission may, in suo motu proceedings and other appropriate cases, designate an Officer of the Commission or any other person whom the Commission considers appropriate to present the matter in the capacity of a petitioner in the case.

Regulation21 Initiation of Proceedings through presentation of petitions

(1) All petitions shall be filed in 6(Six) copies together with sufucient number of copies for service on the respondent, if any, and all such copies shall be complete in all respects. Such fees as may be prescribed by the Commission by order shall be payable along with the petition. The orders/directions issued by the Commission for the prescription of the fees payable on petitions shall be displayed for the inspection and information of the public at every office of the Commission.

(2) All petitions to be filed before the Commission shall be type written, cyclostyled or printed neatly and legibly on one side of white paper and every page shall be consecutively numbered. The contents of the petition shall be divided appropriately into separate paragraphs, which shall be numbered serially. Notwithstanding the aforesaid, the Commission may, at its discretion allow a petition to be presented in an electronic form, such as in a floppy disc or through e-mail, subject to such conditions as the Commission may, prescribe by way of directions to the petitioner.

(3) The petition shall be accompanied by all the documents that are relied upon by the petitioner. If presented through an agent, the document authorising the said agent to represent the petitioner, including the vakalatnamain the case of an Advocate, shall be filed along with the petition, if not already filed on the record of the case.

(4) Every petition filed shall be verified by an affidavit and every such affidavit shall be in Form 2. Every affidavit shall be signed and notarised. Where any statement in the affidavit is stated to be true to the information received by the deponent, the affidavit shall also disclose the source of the information and a statement that the deponent believes that information to be true.

Regulation22 General headings

The general heading in all petitions before the Commission and in all advertisements and notices shall be in Form 1 hereto.

Regulation23 Presentation and Admission of Petitions

(1) Petitions may either be presented by the petitioner in person or through an authorised representative, or sent by registered post to the headquarters of the Commission or such other filing centre as may be designated and notified by the Commission from time to time. All petitions shall be received by an Officer designated by the Commission as the Receiving Officer, who shall enter the details of the petition in a record to be maintained for that purpose.

(2) If the petition is found to be in order, the Receiving Officer shall stamp the Petition and enter the date of receipt thereon. The Receiving Officer shall also issue an acknowledgement with stamp and date to the person filing the petition. In case the petition is received by registered post the date on which the petition is actually received at the office of the Commission shall be taken as the date of the presentation of the petition. The Receiving Officer may decline to accept any petition which is not in conformity with the provisions of the Act or the regulations or directions given by the Commission or otherwise defective or which is presented otherwise than in accordance with the regulations or directions of the Commission.

Provided however that no petition shall be refused for defect in the pleadings or in their presentation, without giving an opportunity to the person filing the petition to rectify the defect within such time as may be granted by the Receiving Officer for this purpose. The Receiving Officer shall advise in writing the person filing the petition of the defects in the petition filed.

(3) A party aggrieved by any order of the Receiving Officer in regard to the presentation of petition may request the matter to be placed before the Commission for appropriate orders.

(4) If the Commission finds the petition to be defective, it may issue such directions as are necessary for rectifying the petition. Once the defects are rectified to the satisfaction of the Commission, the Commission may admit the petition for hearing without requiring the attendance of the party filing the petition. The Commission shall not pass an order refusing admission without giving the party concerned an opportunity of being heard. The Commission may if it is considered appropriate, issue notice to such person or persons as may be considered necessary to hear the petition for admission. If the defects are not removed after notice, the Commission may reject the petition without any further proceedings.

(5) If the Commission admits the petition, it may give such orders and directions as may be deemed necessary, for service of notices to the respondent and other affected or interested parties in the petition for the filing of replies and rejoinders in opposition or in support of the petition in such form and manner as the Commission may prescribe.

Regulation24 Service of notices and processes issued by the Commission

(1) Any notice or process issued by the Commission may be any one or more of the following modes as may be directed by the Commission.

(a) by hand delivery/courier;

(b) under a certificate of posting;

(c) by registered post acknowledgement due;

(d) by facsimile transmission or electronic mail (e-mail);

(e) by publication in newspaper in cases where the Commission is satisfied that it is not reasonably practicable to serve the notices, processes, etc., on any person in the manner mentioned above;

(f) in any other manner as may be considered appropriate by the Commission. The Commission shall be entitled to decide in each case the person (s) who shall bear the cost of such service and publications.

(2) Every notice or process required to be served on or delivered to any person may be sent to that person or his agent empowered to accept service at the address furnished by him for service or at the place where the person or his agent ordinarily resides or carries on business or personally works for gain.

(3) In the event any matter is pending before the Commission and the person to be served has authorised an agent or representative to appear for and represent him or her in the matter, such agent or representative shall be deemed to be duly empowered to take service of the notices and processes on behalf of the party concerned in all matters and the service on such agent or representative shall be taken as due service on the person to be served.

(4) Where a notice is served by a party to the proceedings on any other party either in person or through registered post, an affidavit of service shall be filed by the party with the Commission giving details of the date and manner of service of notices and processes.

(5) Where any petition is required to be advertised it shall be advertised within such time as the Commission may direct and, unless otherwise directed by the Commission, in one issue each of a daily newspaper in English language and two daily newspapers in Kannada language having circulation in the area specified by the Commission.

(6) In default of compliance with the requirements of the Regulations or directions of the Commission as regards the service of notices, summons or processes or the advertisement and publication thereof, the Commission may either dismiss the petition or give such other or further directions, as Commission considers appropriate.

(7) No service or publication required to be done shall be deemed invalid by reason of any defect in the name or description of a person provided that the Commission is satisfied mat such service is in other respects sufficient and no proceedings shall be invalidated by reason of a defect or irregularity in the service or publication unless the Commission, on an objection taken, is of the opinion that substantial injustice has been caused by such defect or irregularity or there are otherwise sufficient reasons for doing so.

Regulation25 Filing of reply and other documents by the Respondents

(1) Each respondent intending to contest the Notice of Inquiry or the petition filed against him shall file his reply to the Notice of Inquiry or the petition in 6 (Six) sets along with the documents relied upon by him, within such period, not exceeding 21 (Twenty one) days from the date of service of petition upon the respondent, as may be fixed by the Commission.

(2) In the reply filed under sub-regulation (1), the respondent shall specifically admit, deny or explain the facts stated in the notice of inquiry or the petition and may also state such additional facts as he considers necessary for a just decision of the case. The reply shall be signed and verified and supported by affidavit in the same manner as in the case of a petition. The respondent shall also indicate in the reply whether he wishes to participate in the proceedings and be orally heard.

(3) The respondent shall serve a copy of the reply along with the documents referred to in sub-regulation (1) duly attested to be true copies on the petitioner or his authorised representative and file proof of such service with the office of the Commission at the time of filing the reply.

(4) The Commission may, if so satisfied, allow filing of the reply after the expiry of the prescribed period.

(5) Where the respondent wishes to state additional facts as may be necessary for the just decision of the case, the Commission may allow the petitioner to file a rejoinder to the reply filed by the respondents. The procedure mentioned above for filing of the reply shall apply mutatis mutandis to the filing of the rejoinder.

Regulation26 Filing of objections etc., by the public

(1) Every person who intends to file objections or comments in regard to a matter pending before the Commission, pursuant to the advertisement or publication issued for the purpose (other than the persons to whom notices, processes, etc., have been issued calling for reply) shall deliver to the Receiving Officer, the statement of objections or comments in triplicate along with evidence in support thereof within the time fixed for the purpose.

(2) The Commission may permit such person or persons as it may consider appropriate to participate in the proceedings before the Commission, if on the report received from the Receiving Officer, the Commission considers that the participation of such person or persons will facilitate the proceedings and the decision in the matter.

(3) Unless permitted by the Commission, the person filing objections or comments shall not be entitled to participate in the proceedings. However, the Commission shall be at liberty to take into account the objections and comments filed after giving such opportunity to the parties in the proceedings as the Commission considers appropriate to deal with the objections and comments.

Regulation27 Hearing of the matter

(1) The Commission may determine the manner, the place, the date and the time of the hearing of the matter.

(2)

(i) The Commission may decide the matter on the pleadings of the parties or may at its sole discretion call for the parties to produce evidence by way of affidavit or lead oral evidence;

(ii) If the Commission directs evidence of a party to be led by way of affidavit, the Commission may as and when the Commission considers it to be necessary, grant an opportunity to the other party to cross-examine the deponent of the affidavit;

(iii) The Commission may, if considered necessary or expedient, direct that the evidence of any of the parties be recorded by an Officer or person designated for the purpose by the Commission;

(iv) The Commission may direct the parties to file written notes of arguments or submissions in the matter.

Regulation28 Power of the Commission to call for further information, evidence, etc.

(1) The Commission may, at any time before passing orders on the matter, require the parties or any one or more of them or any other person whom the Commission considers appropriate, to produce such documentary or other evidence as the Commission may consider necessary for the purpose of enabling it to pass orders.

(2) The Commission may direct the summoning of the witnesses, discovery and production of any document or other material objects producible in evidence, requisitioning any public record from an office, examination by an officer of the books, accounts or other documents or information in the custody or control of any person which the Commission considers relevant for the matter.

Regulation29 Reference of issues to others

(1) At any stage of the proceedings, the Commission shall be entitled to refer such issue or issues in the matter as it considers appropriate to persons including, but not limited to, the Officers and consultants of the Commission whom the Commission considers as qualified to give expert or specialised advice or opinion on such issue or issues.

(2) The Commission may nominate from time to time any person including, but not limited to the officers and consultants to visit any place or places for inspection and report on the existence or status of the place or any facilities therein.

(3) The Commission, if it thinks fit, may direct the parties to appear before the persons designated in clause (1) or (2) above to present their respective views on the issues or matters referred to.

(4) The report or the opinion received from such person shall form a part of the record of the case and parties shall be given the copies of the report or opinion given by the person designated by the Commission. The parties shall be entitled to file their version either in support or in opposition to the report or the opinion.

(5) The Commission shall duly take into account the report or the opinion given by the person and the reply filed by the parties while deciding the matter and if considered necessary, examine the person giving the report or the opinion.

Provided however that the Commission shall not be bound by the report or the opinion given as conclusive.

Regulation30 Procedure to be followed where any party does not appear

(1)When, on the date fixed for hearing of the petition or on any other date to which such hearing may be adjourned, any party or his authorised representative does not appear when the matter is called for hearing, the Commission may, in its discretion, either dismiss the petition for default when the petitioner or the person who moves the Commission for hearing is absent or proceed to hear and decide the petition ex parte.

(2) Where a petition is dismissed in default or decided ex parte, the person aggrieved may file an application within 30 days from the date of receipt of the order of such dismissal or proceeding held ex parte, as the case may be, for recall of the order passed, and the Commission may recall the order on such terms as it thinks fit, if the Commission is satisfied that there was sufficient cause for the non-appearance when the petition was called for hearing.

Regulation31 Orders of the Commission

(1) No member shall exercise his vote on a decision unless he was present during all substantial hearings of the Commission on the matter.

(2) The Commission shall pass orders on the petition in writing and the Members of the Commission who heard the matter and voted on the decisions will sign the orders.

(3) The reasons given by the Commission in support of the orders, including those by a dissenting member, if any, shall form a part of the order and shall be available for inspection and supply of copies in accordance with these regulations.

(4) All orders and decisions issued or communicated by the Commission shall be certified by the signature of an officer empowered in this behalf by the Chairman and shall bear the Seal of the Commission.

(5) A copy of every interim order granting or refusing or modifying interim reliefs and every final order passed on any petition or Notice of Inquiry shall be communicated to the petitioner or the applicant and to the respondents and other parties concerned in the petition under the signature of an officer empowered in this behalf by the Chairman or the Secretary, free of cost.

Regulation32 Fines and Charges

In any order passed in pursuance of proceedings, the Commission may levy such fines or charges as the Commission may deem appropriate for acts (including omissions to act) of non-compliance or violation by any party of any of the provisions of the Act, the rules framed thereunder, the regulations or the directions or orders of the Commission:

Provided that no fine or charge levied in pursuance of this regulation shall exceed Rs. 5. lakhs for the first act of non-compliance or violation, or Rs. 20 Thousand for each day during which the non-compliance or violation continues:

Provided further that such fine or charge shall be commensurate with the level of damage or other harm caused by such non-compliance or violation in each case.

Regulation33 Inspection of records and supply of certified copies

(1) Records of every proceeding, except those parts which for reasons specified by the Commission in terms of Section 38 of the Act are confidential, shall be open to inspection by any person subject to such person complying with such terms as the Commission may direct by order from time to time including in regard to time, place and manner of inspection and payment of fees.

(2) Any person shall be entitled to obtain certified copies of the orders, decisions, directions and reasons in support thereof given by the Commission as well as the pleadings and papers and other parts of the records of the Commission to which he is entitled, subject to payment of fees and compliance with such other terms as the Commission may direct.

 Regulation34 Continuance of Proceedings after death, etc.

(1) Wherein any proceedings any of the parties to the proceedings dies or is adjudicated as an insolvent or in the case of a Company under liquidation/winding up, the proceedings shall continue with the successors-in-interest, the executor, administrator, receiver, liquidator or other legal representative of the party concerned.

(2) The Commission may, for reasons to be recorded, treat the proceedings as abated in case the Commission so directs and dispense with the need to bring the successors-in-interest to come on record.

(3) In case any person wishes to bring on record the successor-in-interest, etc., the application for the purpose shall be filed within 90 days from the event requiring the successor-in-interest to come on record.

Regulation35 Proceedings to be open to public

The proceedings before the Commission shall ordinarily be open to the public. However, admission to the hearing room during proceedings shall be subject to the availability of sitting accommodation, provided that the Commission may, if it thinks fit, and for reasons to be recorded in writing, order at any stage of the proceedings of any particular case that the public generally or any particular person or group of persons shall not have access to or be or remain in, the room or building used by the Commission.

Regulation36 Publication of Petition

(1) Where any application, petition, or other matter is required to be published under the Act or these regulations or as per the directions of the Commission, it shall, unless the Commission otherwise orders or the Act or Regulations otherwise provide, be advertised not less than 5 days before the date fixed for hearing.

(2) Except as otherwise provided, such advertisement shall give a heading describing the subject matter in brief.

(3) Such advertisement to be published shall be approved by the Officer of the Commission designated for the purpose.

Regulation37 Costs

(1) Subject to such conditions and limitations as may be directed by the Commission, the cost of all proceedings shall be awarded at the discretion of the Commission and the Commission shall have full power to determine by whom or out of what funds and to what extent such costs are to be paid and give all necessary directions for the aforesaid purposes.

(2) The costs shall be paid within 30 days from the date of the order or within such time as the Commission, may, by order, direct. The order of the Commission awarding costs shall be executed in the same manner as the decree/order of a Civil Court.

Regulation38 Enforcement of order passed by the Commission

38 Enforcement of order passed by the Commission

The Secretary shall ensure execution of the orders passed by the Commission in accordance with the provisions of the Act and the Regulations and if necessary, may seek the orders of the Commission for directions.

CHAPTER 3 Investigation, Inquiry, Collection of Information, etc

Regulation39 Collection of information

(1) The Commission may make such order or orders as it may consider appropriate in terms of Section 10 of the Act for collection of information, inquiry, investigation, entry, search and seizure and without prejudice to the generality of its powers in regard to the following.

(a) The Commission may, at any time, direct the Secretary or any one or more Officers or consultants or any other person as the Commission considers appropriate to study, investigate or furnish information with respect to any matter within the purview of the Commission under the Act;

(b) The Commission may for the above purpose give such other directions as it may deem fit and specify the time within which the report is to be submitted or information furnished;

(c) The Commission may issue or authorize the Secretary or an Officer to issue directions to any person to produce before it and allow to be examined and kept by an officer of the Commission specified in this behalf the books, accounts, etc., or to furnish to an officer information, etc., as provided in sub-section (2) of Section 10 of the Act;

(d) The Commission may, for the purpose of collecting any information particulars or documents which the Commission consider necessary in connection with the discharge of its functions under the Act, issue such directions and follow any one or more of the methods provided for in sub-section (1) of Section 10 of the Act;

(e) If any such report or information obtained a specified in Section 10 of the Act or in these regulations appears to the Commission to be insufficient or inadequate, the Commission or the Secretary or an officer authorized for the purpose may give directions for further inquiry, report and furnishing of information;

(f) The Commission may direct such incidental, consequential and supplemental matters which may be considered relevant in connection with the above, be attended to.

(2) In connection with the discharge of the functions under Section 10 of the Act and the regulations, the Commission may, if it thinks fit, direct a notice of inquiry to be issued and proceed with the matter in a manner provided under Chapter II of these regulations.

Regulation40 Assistance of Experts

(1) The Commission may, at anytime, take the assistance of any institution, consultant, experts, engineers, chartered accountants, advocates,, surveyors and such other technical and professional persons, as it may consider necessary, and ask them to study, investigate, inquire into any matter or issue and submit report or reports or furnish any information. The Commission may determine the terms and conditions for engagement of such professionals.

(2) If the report or information obtained in terms of the above regulations or any part thereof is proposed to be relied upon by the Commission in forming its opinion or view in any proceedings, the parties in the proceedings shall be given a reasonable opportunity for filing objections and making submissions on the report or information. 

APPENDIX 1 General Heading for proceedings

FORM I

[See Regulation 22]

General Heading for proceedings

Before the Karnataka Electricity Regulatory Commission, Bangalore

..Case No.

(To be filled by the Office if number has

not earlier been assigned)

In the Matter of:

(Gist of the purpose of the petition or application)

And

In the Matter of:

(Names and full address of the petitioners/applicants and names and full

addresses of the respondents)

APPENDIX 2 Before the Karnataka Electricity Regulatory Commission, Bangalore

FORM 2

[See Regulation 21(4)]

Before the Karnataka Electricity Regulatory Commission, Bangalore

....Case No.

.....(To be filled by the Office if number has

....not earlier been assigned)

In the Matter of:

(Gist of the purposes of the petition or application)

And

In the Matter of:

(Names and full address of the petitioners/applicants and names and full addresses of the respondents)

Affidavit verifying the petition (specify nature of petition)

..I, AB, son of...................aged..........residing at........... do........solemnly affirm and say as follows:

1. I am a Director/Secretary/...................of...................Limited. The petitioner in the above matter and am duly authorised by the said petitioner to make this affidavit on its behalf.

2. The statements made in paragraphs..................of the etition herein now shown to me and marked with the letter 'A' are true to my knowledge and the tatements made in paragraphs...............are based on information received and I believe them to be true.

Solemnly affirmed at..................on this day of..............that the contents of the above affidavit are true to my know-ledge, no part of it is false and nothing material has been concealed therefrom.

..Identified before me by: