REGULATION OF
GENERATION, TRANSMISSION AND DISTRIBUTION OF ELECTRIC
POWER ACT, 1997
(XL of 1997)
[16th December, 1997]
An
Act
to provide for the
regulation of generation transmission and distribution of electric power
WHEREAS it is expedient to provide for
the regulation of generation, transmission and distribution of electric power
and matters connect therewith and incidental thereto; It is hereby enacted as
follows:—
CHAPTER I
GENERAL
1.
Short title,
extent and commencement.— (1) This Act may be called the Regulation of
Generation, Transmission and Distribution of electric Power Act, 1997.
(2)
It extends to the whole of Pakistan.
(3)
It shall come into force at once.
2.
Definitions.—
In this Act, unless there is anything repugnant in the subject or context,
—
(i)
"Authority” means the National Electric Power
Regulatory Authority
established under section 3;
(ii)
"bulk-power consumer" means a consumer who
purchases or receives electric power, at one premises, in an amount of one
megawatt or more or in such other amount and voltage level and with such other
characteristics as the Authority may determine and the Authority may determine
different amounts and voltage levels and
with such other characteristics for different areas;
(iii)
"Chairman" means the Chairman of the
Authority;
(iv)
"consumer" means a person or his
successor-in-interest who purchases or receives electric power for consumption
and not for delivery or re-sale to others, including a person who owns or
occupies a premises where electric power is supplied;
(v)
"distribution" means the ownership, operation,
management or control of
distribution facilities for the
movement or delivery or sale to consumers of electric power but shall not
include the ownership, operation, management and control of distribution
facilities located on private property and used solely to move or deliver
electric power to the person owning, operating, managing and controlling those
facilities or to tenants thereof shall not constitute distribution;
(vi)
"distribution company" means a person engaged
in the distribution of electric power;
(vii)
"distribution facilities" means electrical
facilities operating at distribution voltage and used for the movement or
delivery of electric power;
(viii)
“distribution voltage” means any voltage below minimum
transmission voltage;
(ix)
"electric power" means electrical energy or
the capacity for the production of electrical power;
(x)
"electric power services" means the
generation, transmission or distribution of electric power and all other
services incidental thereto;
(xi)
"generation" means the ownership, operation,
management or control of generation facilities for delivery or sale of electric
power and not solely for consumption by the person owning, operating, managing,
and controlling those facilities;
(xii)
"generation company" means a person engaged
in the generation of electric power;
(xiii)
"generation
facility" means the electrical facility used for the production of
electric power;
(xiv)
"inter-connection service" means the
connection of one company's electrical facilities to another company's
electrical facilities;
(xv)
"KESC" means the Karachi Electric Supply
Corporation, a public limited company, incorporated under the Companies Act,
1913;
(xvi)
"licence" means a licence issued for
generation, transmission or distribution under this Act;
(xvii)
"licensee" means a holder of a licence;
(xviii)
"member" means a member of the Authority
including the Chairman;
(xix)
"minimum transmission voltage" means
sixty-six kilovolts or such other voltage that the Authority may determine to
be the minimum voltage at which electrical facilities are operated when used to
deliver electric power in bulk;
(xx)
"National Grid Company" means the person
engaged in the transmission of electric power and granted a licence under
section 17;
(xxi)
"Person"
shall include an
association of persons,
concern, company, firm or undertaking;
(xxii)
"Prescribed" means prescribed by rules made
under this Act;
(xxiii)
"public
sector project" means
generation, transmission or
distribution facilities constructed, owned, managed or controlled by the
Federal Government, a Provincial Government,
a local authority
or any body
owned or controlled by
any such Government or authority;
(xxiv)
"regulations" means regulations made under
this Act;
(xxv)
"SHYDO" means the Sarhad Hydel Development
Organization, established under the Sarhad Hydel Development Organization Act,
1993 (NWFP Act No.1 of 1993);
(xxvi)
"transmission" means the ownership,
operation, management or control of
transmission facilities;
(xxvii)
"transmission facilities" means electrical
transmission facilities including electrical circuits, transformers and
sub-stations operating at or above the minimum transmission voltage but shall
not include—
(a)
electrical
circuits forming the
immediate connection between generation facilities and the
transmission grid to the extent that those circuits are owned by a
generation company and
are directly associated with that
company's generation facilities;
(b)
specified facilities operating at or above the minimum
transmission voltage which the Authority,
upon an application
by licensee under section
20, determines that such
facilities shall be owned and operated by a distribution licensee; and
(xxviii) "WAPDA"
means the Pakistan Water and Power Development Authority established under
the Pakistan Water and Power Development
Authority Act, 1958 (W.P. Act XXXI of 1958).
CHAPTER II
ESTABLISHMENT OF AUTHORITY
3.
Establishment
of the Authority.— (1) As soon as may be, but not later than thirty days
after the commencement of this Act, the
Federal Government shall, by notification in the official Gazette, establish a
Nationa Electric Power Regulatory
Authority consisting of a Chairman to be appointed by the Federal Government
and four members, one from each Province, to be appointed by the Federal
Government after considering tile recommendations of the respective
Provincial Governments.
(2)
There shall be a Vice-Chairman of the Authority,
appointed from amongst the members for a period of one year, by rotation, in
the following order, namely:
(i)
the member representing the Province of Baluchistan;
(ii)
the member representing the Province of North-west
Frontier;
(iii)
the member representing the Province of the Punjab; and
(iv) the member representing the
Province of Sind.
(3)
[The Chairman shall be an eminent professional of known
integrity and competence with at least twenty years of related experience in
law, business, engineering, finance, accounting, economics, the electric
utility business, public administration or management][1]
Provided that
the Chairman shall preferably be a person who is or has been a judge of a
HighCourt or the Supreme Court.][2]
(4)
Every member shall be a professional of known integrity
and competence with at least fifteen years of related experience in law,
business, engineering, finance, accounting, economics or the electric utility
business.
(5)
The Chairman and a member shall, unless he resigns or
is removed from office earlier as hereinafter provided, hold office for a term
of four years and shall be eligible for reappointment for similar term:
Provided that [3][a Chairman or a member] shall not be
appointed under sub-section (1) if he has already attained the age of
sixty-five years.
(6)
No act or proceeding of the Authority shall be invalid
by reason only of the existence of a vacancy in, or defect in, the constitution
of the Authority.
(7)
The principal office of the Authority shall be in
Islamabad and it may set up offices at such place or places as it may deem
appropriate.
4.
Resignation
and removal of Chairman, etc.— (1) The Chairman, or a member may, by
writing under his hand, resign from his office.
(2)
The Chairman or a member may be removed by the Federal
Government from his office if, on an inquiry by the Federal Public Service
Commission, he is found incapable of performing the functions of his office by
reason of mental or physical incapacity or has been found guilty of misconduct.
5.
Meetings of
the Authority, etc.— (1) The meetings of the Authority shall be presided
over by the Chairman or, in his absence, the Vice-Chairman.
(2)
Three members shall constitute a quorum for meetings of
the Authority requiring a decision by the Authority.
(3)
The members shall have reasonable notice of the time
and place of the meeting and the matters on which a decision by the Authority
shall be taken in such meeting.
(4)
The decision of the Authority shall be taken by the
majority of its members present, and in case of a tie, the person presiding the
meeting shall have a casting vote.
6.
Decisions of
the Authority.— All orders, determinations and decisions of the Authority
shall be taken in writing and shall identify the determination of the Chairman
and each member.
7.
Powers and
functions of the Authority.— (1) The Authority shall be exclusively
responsible for regulating the provision of electric power services.
(2) In
particular and without prejudice to the generality of the foregoing power, only
the Authority, but subject to the provisions of sub-section (4), shall—
(a)
grant licenses for generation, transmission and
distribution of electric power;
(b)
prescribe procedures and standards for investment
programmes by generation, transmission and distribution companies;
(c)
prescribe and enforce performance standards for
generation, transmission and distribution companies;
(d)
establish a uniform system of accounts by generation,
transmission and
distribution companies;
(e)
prescribe fees including fees for grant of licenses and
renewal thereof;
(f)
prescribe fines for contravention of the provisions of
this Act and
(g)
perform any other function which is incidental or
consequential to any of the aforesaid functions.
(3)
Notwithstanding the provisions of sub-section (2) and without prejudice to the
generality of the power conferred by sub-section (1) the Authority shall—
(a)
determine tariff, rates, charges and other terms and
conditions for supply of electric power services by the generation,
transmission and distribution companies and recommend to the Federal Government
for notification;
(b)
review organizational affairs of generation,
transmission and distribution companies to avoid any adverse effect on the
operation of electric power services and for continuous and efficient supply of
such services;
(c)
encourage uniform industry standards and code of
conduct for generation, transmission and distribution companies;
(d)
tender advice to public sector projects;
(e)
submit reports
to the Federal Government in respect of activities
of generation, transmission and distribution companies; and
(f)
perform any other function which is incidental or
consequential to any of the aforesaid functions.
(4)
Notwithstanding anything contained in this Act, the
Government of a Province may construct power houses and grid stations and lay
transmission lines for use within the Province and determine the tariff for
distribution of electricity within the Province.
(5)
Before approving the tariff for the supply of electric
power by generation companies using hydro-electric plants, the Authority shall
consider the recommendations of the Government of the Province in which such
generation facility is located.
(6)
In performing its functions under this Act, the
Authority shall, as far as practicable, protect the interests of consumers and
companies providing electric power services in accordance with guidelines, not
inconsistent with the provisions of this Act, laid down by the Federal
Government.
8.
Remuneration,
etc., of Chairman and members.— (1) The Chairman and members shall be paid
such emoluments as may be determined by the Federal Government which shall not
be to their disadvantage during their term of office.
(2)
The Chairman and members shall not, during their term
of office, engage themselves in any other service, business, vocation or
employment and before the expiration of two years thereof enter into the
employment of, or accept any advisory or consultancy
relationship with, any person engaged in the generation, transmission or distribution
of electric power in Pakistan or any related undertaking.
(3)
The Chairman and members shall not have any direct or
indirect financial interest, or have any connection with any company connected
with the provision of electric power services for so long as he holds office
and for a period of two years thereafter.
9.
Chairman,
etc. to be public servant.— The
Chairman, members, staff,
experts, consultants, advisors
and other employees of the Authority, when acting or purporting to act in
pursuance of any of the provisions of
this Act or the rules and regulations, shall be deemed to be public servants
within the meaning of section 21 of the Pakistan Penal Code, 1860 (Act XLV
of1860).
10.
Staff and
advisers, etc.— (1) To carry out the purposes of this Act, the Authority
may, from time to time, employ officers,
members of its staff, experts, consultants, advisors and other employees on
such terms and conditions as it may deem fit.
(2)
All officers, members of staff, experts, consultants,
advisors and other employees employed by the Authority shall not be deemed to
be civil servants within the meaning of the Civil Servants Act, 1973 (Act LXXI
of 1973).
11.
Tribunals.— The
Authority may, from amongst its professional staff, establish special tribunals
for resolving contractual disputes between licensees or such other matters as
the Authority may assign.
12.
Delegation.—
The Authority may delegate to the Chairman, a member or any of its
officers or a special tribunal
constituted under section 11, all or any of its powers, functions or duties
under this Act, except—
(a)
the power to grant, reject, amend, vary or revoke
licenses or any condition thereof;
(b)
the power to determine or modify tariffs;
(c)
the power to
approve, disapprove or
modify an investment
program or a power acquisition program;
(d)
the power to make or repeal rules and regulations made
under this Act; and (e) the power to make
orders on an application for review of its orders.
13.
Funds.— (1) The operations of the Authority shall be
funded from—
(a)
grants from the Federal Government, including an
initial grant of one hundred million rupees; and
(b)
fees and fines collected by it as prescribed from time
to time.
14.
Accounts.— (1)
The Authority shall maintain complete and accurate books of accounts of its
actual expenses and receipts.
(2) The Accounts of the Authority shall be
audited annually by the Auditor General of Pakistan.
CHAPTER III
LICENSES
15.
Generation
licence.— (1) No person shall except under the authority of a licence
issued by the Authority under this Act
and subject to the conditions specified in this Act and as may be imposed by
the Authority, construct, own or operate a generation facility.
(2) An application for the grant of a licence for generation facility
shall specify—
(i)
the type of facility for which the licence is applied;
(ii)
the location of the generation facility; and
(iii)
the expected life of the generation facility.
(3)
The Authority may, after such enquiry as it may deem
appropriate and subject to the conditions specified in this Act and as it may
impose, grant a licence authorizing the licensee to construct, own or operate a
connected generation facility.
(4)
In the case of a generation facility connecting
directly or indirectly to the transmission facilities of the national grid
company, the licensee shall make the generation facility available to the
national grid company for the safe, reliable, non-discriminatory, economic
dispatch and operation of the national transmission grid and connected
facilities; subject to the compensation fixed by the Authority for voltage
support and uneconomic dispatch directed by the national grid company.
16.
Transmission
licence.— (1) No person shall except under the authority of a licence
issued by the Authority under this Act and subject to the conditions specified
in this Act and as may be imposed by the Authority, engage in the transmission
of electric power.
(2)
An application for a licence for the transmission of
electric power shall specify—
(i)
the type of service for which the licence is being
sought; and
(ii)
the territory with location maps and plans to which
electric power shall be transmitted.
17.
National
Grid Company.— (1) The Authority may, after such enquiry as it may deem
appropriate and subject to the conditions specified in this Act and as It may
impose, grant a licence authorizing the licensee, to engage in the transmission
of electric power: Provided that only one such licence shall be granted at any
one time.
(2)
The licensee referred to in sub-section (1) shall
have exclusive right
to provide transmission service
in the territory specified in such licence except the territory served by
KESC.
18.
Responsibilities
of National Grid Company.— (1) The national grid company shall be
responsible to operate and provide safe, reliable transmission and
interconnection services on a non discriminatory basis, including to a bulk
power consumer who proposes to become directly connected to its facilities.
(2)
Without prejudice to the foregoing responsibilities,
the national grid company shall—
(a)
make available
to the general public the tariff specifying the Authority's approved
rates, charges and other terms and conditions for transmission and
interconnection services;
(b)
not levy any rate or charge or impose any condition for
the transmission of electric power which has not been approved by the Authority
as a tariff;
(c)
not cause a
division or any
associated undertaking to
engage in generation and distribution:
Provided that this clause shall
not apply to the KESC and WAPDA so long as their electric systems remain
integrated; and
(d)
develop,
maintain and publicly
make available, with
the prior approval
of the Authority, an investment program for satisfying its service
obligations and acquiring and selling its assets.
19.
Special
purpose transmission licence.— Notwithstanding anything contained in
section 17, the Authority may, in the public interest, grant a licence
authorizing the licensee to engage in the construction, ownership
maintenance and operation
of specified transmission
facilities on the conditions that
the licensee shall—
(a)
provide transmission and inter-connection services to
the national grid company and to others, wherever necessary, at such rates, charges and terms
and conditions as the Authority may determine;
(b)
purchase interconnection service from the national grid
company as may be necessary and to connect its facilities to the national
transmission grid at the rates, charges and terms and conditions determined by
the Authority;
(c)
make its transmission facilities available for
operation by the national grid company consistent with applicable instructions established by
such company;
(d)
follow the performance standards laid down by the
Authority for transmission of electric power,
including safety, health
and environmental protection instructions issued by the
Authority or any Government agency;
(e)
make public the tariff specifying the rates, charges
and other terms and conditions of service for transmission and interconnection
services determined by the Authority; and
(f)
maintain accounts in accordance with the manner and
procedure prescribed by the Authority.
20.
Distribution
licenses.— (1) No person shall,
except under the authority of a licence issued by the Authority under this Act
and subject to the conditions specified in this Act and as may be imposed by
the Authority, engage in the distribution of electric power.
(2)
An application for a licence for distribution of
electric power shall specify—
(i) the type of service for which licence is
being sought; (ii) the territory in
which electric power shall be distributed; and (iii) the source and scope of electric power and rates paid by it.
21.
Duties and
responsibilities of distribution licensees.— (1) The Authority may, after
such enquiry as it may deem appropriate and subject to the conditions specified
in this Act and as it may impose, grant a licence for distribution of electric
power.
(2) The licensee shall—
(a)
possess the exclusive right to provide, for such period
as may be specified in the licence, distribution service and to make sales of
electric power to consumers in the territory specified in the licence and to
frame schemes in respect of that territory:
Provided that a
generation company may make sales of electric power to bulk- power consumers
within such territory as the Authority may, subject to section 22, for a period
of fifteen years, allow;
(b)
be responsible to provide distribution service and make
sale of electric power within its territory on a non-discriminatory basis to
all the consumers who meet the eligibility criteria laid down by the Authority:
Provided that—
(i)
the licensee may not be required to make sale of
electric power to a bulkpower consumer who has contracted for electric power
supply from another supplier; and
(ii)
the licensee may disconnect the provision of electric
power to a consumer for default in payment of power charges or to a consumer
who is involved in theft of electric power;
(c)
publicly make available tariff specifying the
Authority's approved rates, charges and other terms and conditions for
distribution services and power sales to consumers;
(d)
establish, within three months of the Issue of its
licence for distribution of electric power and make available to public,
instructions specifying—
(i)
procedures for obtaining service; and
(ii)
the manner and procedure for metering, billing and
collection of' the licensee's approved
charges and disconnection
in case of
non- payment of
charges, electric power theft and use of energy for purposes other than
for which it was supplied and procedures for
re-connection and recovery of arrears and other charges;
(e)
make its transmission facilities available for
operation by the national grid company consistent with applicable instructions
established by such company;
(f)
follow the performance standards laid down by the
Authority for distribution and transmission of electric power, including
safety, health and environmental protection instructions issued by the
Authority or any Governmental agency;
(g)
maintain accounts in accordance with the manner and
procedure laid down by the Authority; and
(h)
develop,
maintain and publicly
make available, with
the prior approval
of the Authority, an investment program for satisfying its service
obligations and acquiring and selling its assets.
22.
Sale to
bulk-power consumers.— (1) Notwithstanding anything contained in section
21, for a period of fifteen years from
the commencement of this Act, the Authority may permit a generation company
or a distribution
company to sell
electric power to
bulk-power consumers located
in the service
territory of another
distribution company and
such permission shall be granted—
(i)
on a case to case basis on an application made in writing
by a generation company or a distribution company; and
(ii)
if the bulk-power consumer has not defaulted in
previous charges of electric power to any other distribution company.
(2)
Where a bulk-power consumer intends to stop purchase of
electric power from a distribution company, it shall convey its intention by
notice in writing three years before such stoppage:
Provided that
such consumer shall continue to make payments to the distribution company equal
to the amount of cross-subsidy for uneconomic service for which it would
otherwise have provided through purchase of electric power by the bulk power
consumer.
23.
Sale of
electric power to other distribution companies.— A distribution company may
sell electric power to other distribution companies and distribute electric
power sold by generation companies to other distribution companies or to
bulk-power consumers within its service territory subject to the provisions of
section 22 in accordance with the rates, charges and other terms and conditions
of service for such sales as approved by the Authority.
24 Licensees to be companies.— Except the WAPDA, the SHYDO or any
other person specially exempted by the Authority, a generation, transmission or
distribution licence shall not be granted to any person unless
it is a company registered under the Companies Ordinance, 1984 ( XLVII
of 1984).
25.
Licences of
Territory Served by KESC.— (1) Notwithstanding anything contained in this
Act and subject to the provisions of this section, the Authority may grant
licenses for generation, transmission and distribution of electric power to one
or more licensees for the territory served by the KESC at the time of
commencement of this Act.
(2)
For a period of six months from the commencement of
this Act, the KESC shall be deemed to be a licensee under this Act and, shall
during the said period apply for an appropriate licence in accordance with the
provisions of this Act.
(3)
Where a licence under this section is granted to the
KESC, the conditions applicable to a licensee under this Act for generation,
transmission and distribution of electric power, as the case may be, shall
equally be applicable to the KESC.
26.
Modifications.—
If the Authority is of the opinion that it is in the public interest, it
may, with the consent of the licensee, amend or vary the conditions of any
licence issued under this Act and in the absence of licensee's consent, the
Authority shall conduct a public hearing on whether the proposed amendment or
variance is in the public interest and shall make a determination consistent
with the outcome to this hearing.
27.
Assignment of
licence prohibited.— A
licensee for generation,
transmission and distribution of
electric power shall not, without the prior approval of the Authority,
surrender, assign or transfer its licence to any person.
28.
Suspension
and revocation.— (1) The Authority may suspend or revoke any licence issued
under this Act for consistent failure of the licensee to comply with the
conditions of the licence:
Provided that
before taking action under this section, the Authority shall issue a notice to
show cause and may provide an opportunity to rectify the omission subject to
such conditions as the Authority may specify.
(2)
Where the Authority revokes or suspends a licence, it
may undertake all or any of the following actions for continuance of the
facilities covered under the licence, namely—
(a)
permit the licensee to continue operating such
facilities under such terms and conditions as the Authority may specify;
(b)
contract with another person to immediately take over
the operation of the facilities; or
(c)
appoint an administrator to take over the operation of
the facilities.
(3)
The actions specified in sub-section (2) may continue
until a successor licensee takes over the charge of the facilities on such
terms and conditions as the Authority may determine, including payment of
compensation for the plant, machinery and other equipment installed at a
facility of the licensee whose licence was revoked.
29.
Penalties.— In
addition to any penalty to which a licensee may be liable under section 28, the
Authority may impose a fine on the licensee which may extend to three hundred
thousand rupees for each violation for each day and where any contravention
continues, may impose a higher penalty as may be prescribed:
Provided that
the licensee shall, before imposition of any penalty under this section, be
given a notice to show cause and be provided with an opportunity of being
heard.
30.
WAPDA and
SHYDO to be licensees.— (1) Notwithstanding anything contained in this
Act for a period of six months
from the commencement of this Act, the
WAPDA and the SHYDO shall be deemed to be licensees under this Act, and
shall, during the said period, apply for appropriate licenses in accordance
with the provisions of this Act.
(2)
Where a licence under this section is granted to the
WAPDA or the SHYDO, the conditions applicable to a licensee under this Act for
generation, transmission and distribution of electric power, as the case may
be, shall equally be applicable to WAPDA or SHYDO.
31.
Tariff.— (1)
As soon as may be, but not later than six months from the commencement of this
Act, the Authority shall determine and prescribe procedures and standards for
determination, modification or revision of rates, charges and terms and
conditions for generation of electric power, transmission, inter-connection,
distribution services and power sales to consumers by licensees and until such
procedures and standards are prescribed, the Authority shall determine, modify
or revise such rates, charges and terms and conditions in accordance with the
directions issued by the Federal Government[:
[4][Provided that the Authority shall,
on quarterly basis, determine overall electricity tariff and intimate the same
to the Federal Government for notification in the official Gazette.]
(2)
The Authority while determining the standards referred
to in subsection (1) shall— (a) protect
consumers against monopolistic and oligopolistic prices;
(b)
keep in
view the
research, development and
capital investment program costs of licensees;
(c)
encourage efficiency in licensees' operations and
quality of service;
(d)
encourage economic efficiency in the electric power
industry;
(e)
keep in view the economic and social policy objectives
of the Federal Government; and
(f)
determine tariffs so as to eliminate exploitation and minimize
economic distortions.
(3)
The procedures established under sub-section (1) shall
include— (a) time frame for decision
by the Authority on tariff applications;
(b)
opportunity for customers and other interested parties
to participate meaningfully in the tariff approval process; and
(c)
protection for refund, if any, to customers while
tariff decisions are pending.
(4)
Notification of the Authority's approved tariff, rates,
charges, and other terms and conditions for the supply of electric power
services by generation, transmission and distribution companies shall be made,
in the official Gazette, by the Federal Government upon intimation by the
Authority [within a period of fifteen days of such intimation except where the
Federal Government refers the matter to the Authority for reconsideration under
sub-section (4A)]
[Provided further
that the Authority shall, on a monthly basis and not later than a period of
seven days, review the fuel charges in the approved tariff on account of any
variation whatsoever and notify such revision in the official Gazette for the
purposes of approved tariff applicable with effect from the said notification.][5]
[(4A) The
Federal Government may, as soon as possible but not later than fifteen days of
receipt of the Authority’s intimation, require the Authority to reconsider its
determination of tariff, rates, charges and other terms and conditions made under sub-section (1) and
the Authority shall reconsider and determine the same anew within a period of
fifteen days from the date of the reference by the Federal Government.
(4B) Within
three days of the expiry of the period available to the Authority under sub-
section (4A), the Federal Government shall notify in the official Gazette,—
(a)
the tariff reconsidered and determined by the Authority
under sub-section (4A), if available; or
(b)
where the Authority has not concluded the
reconsideration, the tariff determined by the Authority under sub-section (1).
Inserted by ibid.
[6][Provided
that the Federal Government may, as soon as may be, but not latter than fifteen
days of receipt of the Authority's intimation, require the Authority to
reconsider its determination of such tariff, rates, charges and other terms and
conditions. Whereupon the Authority shall, within fifteen days, determine these
anew after reconsideration and intimate the same to the Federal Government:
Provided further
that the Authority shall, on a monthly basis review and revise the approved
tariff on account of any variations in
the fuel charges and
policy guidelines as the Federal
Government may issue in
this behalf and recommend the tariff so revised to the
Federal Government for notification in the official Gazette.” by ibid.]
(4C)
[Notwithstanding anything contained in this section, the Authority shall
continue to conclude its reconsideration
under sub-section(4A) and the effect of such reconsideration shall be adjusted
by the Authority in the tariff, rates, charges or other terms and conditions
determined by it under sub-section(1) for the subsequent period.][7]
(5) [Each distribution
company shall pay to the Federal Government such surcharge as the Federal
Government, from time to time, notify in respect of each unit of electric power
sold to the consumers and any amount paid under this sub-section shall be
considered as a cost incurred by the distribution company to be included in the
tariff determined by the
Authority.][8]
32.
Investment
and power acquisition Programmes.— (1) The Authority shall, within eighteen
months from the commencement of this
Act, prescribe procedures and standards for the Authority's prior approval of
the transmission companies' and distribution companies' investment and power
acquisition programmes.
(2)
Any procedure prescribed by the Authority under this
section shall advance the goal of minimizing
regulatory oversight of contracts entered into by the national gird
company and distribution companies.
(3)
Any investment program or power acquisition program,
approved by the Authority under this section shall take into account the
national energy plans issued by the Federal Government.
(4)
Upon the Authority's approval of an investment
programmes or a power acquisition program, the
Authority shall, subject to such terms and conditions including rates
and charges of electric power, permit the distribution company to enter into
long term contracts for power purchases.
33.
Organizational
matters.— Subject to the procedures established by the Authority under
this Act, the
Authority may, in
the public interest,
with or without
modifications, approve the
following activities by a licensee for generation, transmission and
distribution, namely:—
(a)
the undertaking of a merger or a major acquisition or
sale of facilities;
(b)
the expansion of the licensee’s business activities;
and
(c)
the undertaking of a re-organization of the licensee’s
business structure.
34.
Performance
Standards.— The Authority shall prescribe performance standards for
generation, transmission and distribution companies to encourage safe,
efficient and reliable service, including standards for—
(i)
service characteristics such as voltage and stability;
(ii)
scheduled and unscheduled outages;
(iii)
reserve margins where applicable;
(iv)
time required to connect new customers; and (v) principles and priorities of load
shedding.
35.
Industry standards
and codes of
conduct.— The Authority shall
encourage the development of industry standards and uniform codes of conduct so
as to provide—
(a)
planning criteria for safety, reliability and cost
effectiveness of generation, transmission and distribution facilities;
(b)
construction practices and standards of such
facilities;
(c)
operating standards and procedures;
(d)
maintenance schedules;
(e)
maintenance of adequate spinning reserves and plans to
satisfy demand; (f) equipment
specification and standardization; and (g) load-shedding
and restoration procedures.
36.
Uniform system
of accounts.— The authority
shall prescribe a uniform system of accounts which shall be followed by the
licensee of generation, transmission and distribution facilities within such
period as may be prescribed.
37.
Review of
public sector projects.— (1) For the purposes of co-ordination, in the case
of any public sector project, the advice of the Authority shall be sought by
the agency planning to undertake such project.
(2)
The provision of sub-section (1) shall not apply to
public sector projects which do
not supply electricity to the
national grid.
CHAPTER-IV ADMINISTRATION
38.
Provincial
offices of inspection.— (1) Each Provincial Government shall—
(a) establish
offices of inspection that shall be empowered to—
(i)
enforce compliance with distribution companies'
instructions respecting metering, billing, electricity consumption charges and
decision of cases of theft of energy; and
(ii)
make determination in respect of disputes over
metering, billing and collection of tariff
and such powers
may be conferred
on the Electric
Inspectors appointed by the Provincial
Government under section 36 of the Electricity Act, 1910 (Act IX of
1910), exercisable, in addition to their duties under the said Act.
(b)
establish procedures whereby distribution companies and
consumers may bring violations of the instructions in respect of metering,
billing and collection of tariff and other connected matters before the office
of inspection; and
(c)
enforce penalties determined by the Provincial
Government for any such violation.
(3)
The
Provincial Governments may,
upon request by
the Authority, submit
to the Authority—
(a)
a copy of any document in the charge of the
Provincial Government relating
to Provincial offices of inspection; and
(b)
other reports, statements and information as the
Authority determines to be necessary or
appropriate for the
Authority's periodic assessment
of the effectiveness of inspection made by Provincial Officers of
inspection.
39.
Complaints.—
(1) Any interested person, including a Provincial Government, may file a
written complaint with the Authority against a licensee for contravention of
any provision of this Act or any order, rule, regulation, licence or
instruction made or issued there under.
(2)
The Authority shall, on receipt of a complaint, before
taking any action thereon, give notice to the licensee or any other person
against whom such complaint has been made to show cause and provide such
licensee or such other person an opportunity of being heard.
40.
Enforcement
of orders of the Authority.—The Authority's determinations on decisions by
tribunals set up under section 11 of this Act shall be deemed to be decrees of
a civil court under the Code of Civil Procedure, 1908 (Act V of 1908).
41.
Sum payable
to the Authority to be recoverable as land revenue.— All sums
payable to the Authority in accordance with the provisions of this Act
and the rules shall be recoverable as arrears of land revenue.
42.
Reports of
the Authority.— (1) The Authority shall submit, to the Council of Common
Interests and to the Federal Government, at the end of every financial year,
but before the last day of September of that year—
(a)
a report on the conduct of Its affairs for that year
including anticipated developments for the following year; and
(b)
report on the state of electric power services in the
country identifying the ownership, operation, management, efficiency and
control of electric power facilities, amount of transmission and generation
capacity, present and future demand of electricity, cost of electric power
services and other matters relating to electric power services.
43.
Inspection
by public.— (1) The Authority shall maintain public files that shall be
kept open in convenient form for public inspection and examination during
reasonable business hours.
(2)
Subject to procedures and standards for
confidentiality, the Authority's public files
shall include all relevant
documents to be maintained and indexed as the Authority deems fit.
(3)
The Provincial Governments shall keep open in
convenient form for public inspection and examination during reasonable
business hours all complaints, responses and decisions relating to the
Provincial inspection offices.
44.
Information.—
The Authority may call for any information, required by it for carrying out
the purposes of this Act from any person
involved directly or indirectly, in the provision of electric power services or
any matter incidental or consequential thereto.
Any such person shall be liable to provide the prescribed information
called by the Authority, failing which he shall be liable to a fine or other
penalty as prescribed from time to time.
45.
Relationship
to other laws.— The provisions of this Act, rules and regulations made and
licenses issued there under shall have effect notwithstanding anything to the
contrary contained in any other law, rule or regulation, for the time being in
force and any such law, rule or regulation shall, to the extent of any
inconsistency, cease to have any effect from the date this Act comes into force
and the Authority shall, subject to the provisions of this Act, be exclusively
empowered to determine rates, charges and other terms and conditions for
electric power services:
Provided that
nothing in this Act shall affect the jurisdiction, powers or determinations of
the Corporate Law Authority or the Monopoly Control Authority.
46.
Rules.— (1) The
Authority may, with
the approval of
the Federal Government,
by notification in the official Gazette, make rules to carry out the
purposes of this Act.
(2)
Without prejudice to the generality of the foregoing
powers, such rules may
provide for:-
(a)
procedure for seeking nominations of members from the
Provincial Governments;
(b)
the form and
manner of applications
to be made
for a licence
for
generation, transmission or
distribution facilities;
(c)
the fees and documents to be accompanied with the
applications for licenses;
(d)
determination of rates, fees, charges and other terms
and conditions of licenses;
(e)
publication of rates and charges of electricity
consumption, procedure for
metering, billing and collection
of electric power charges by the licensees;
(f)
procedure
for resolving disputes
amongst the licensees
and consumers and the licensees;
(g)
procedure for submission of various reports to the
Council of Common Interests or to the Federal Government and the manner of
preparation of such reports;
(h)
procedure for inquiry and investigation into the
affairs of an applicant for a licence and for any contravention of any
provision of this Act;
(i)
the manner and procedure of show cause notices;
(j)
safe, effective and least environmentally harmful
supply of electric power;
(k)
performance and industrial standards for supply of
electric power;
(l)
standards for investment programmes or power
acquisition programmes for transmission and distribution companies;
(m)
the seeking of information, and the fines or penalties
for failure to furnish information; and
(n)
any other matter incidental or consequential to the
implementation of this Act.
47.
Regulations.—
(1) The Authority may, by notification in the official Gazette, make
regulations, not inconsistent with the provisions of this Act or the rules, for
the carrying out of its functions under this Act.
(2)
Without
prejudice to the
foregoing powers, such
regulations may provide for appointment of its officers,
members of staff and such other persons and the terms and conditions of their
service.
[1] Sub. for “The Chairman
shall be an eminent professional of known integrity and competence with at
least twenty years of related experience in law, business, engineering,
finance, accounting, economics or the electric utility business” by the
Regulation of Generation, Transmission and Distribution of Electric Power
(Amendment) Ordinance, 2008 (valid upto 20-06-2008).
[2] Added by the Regulation of
Generation, Transmission and Distribution of Electric Power (Amendment)
Ordinance, 2001.
[3] Sub for “a Chairman or a
member” by ibid.
[4] by the Regulation of
Generation, Transmission and Distribution of Electric Power (Amendment)
Ordinance 2009.
[5] Inserted by ibid
[6] Sub. for “Provided that
the Federal Government may, as soon as may be, but not latter than fifteen days
of receipt of the Authority's intimation, require the Authority to reconsider
its determination of such tariff, rates, charges and other terms and
conditions. Whereupon the Authority shall, within fifteen days, determine these
anew after reconsideration and intimate the same to the Federal Government:
Provided further that the
Authority shall, on a monthly basis review and revise the approved tariff on
account of any variations in the fuel
charges
and policy guidelines as the
Federal Government may issue in
this behalf and recommend the tariff so revised to the
Federal Government for notification in the official Gazette.” by ibid.
[7] Inserted by ibid
[8] Added by the Finance Act,
2008
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