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Haryana Electricity Regulatory Commission was established on 17th August 1998 as an independent statutory body corporate as per the provision of the Haryana Electricity Reform Act, 1997. Haryana was the second State in India to initiate the process of Reform & Restructuring of the Power sector in India.
The Haryana Electricity Reform Act 1997 (Act No. 10 of 1998) was passed by the Haryana State Legislative Assembly on 22nd of July 1997. After receiving the Presidential assent on 20th Feb.1998, this Act came into force on 14th August1998. The erstwhile Haryana State Electricity Board was unbundled into two corporate bodies namely Haryana Power Generation Company Limited (HPGCL) for the Generation of Power and Haryana Vidyut Prasaran Nigam Limited (HVPNL) for the Transmission & Distribution of power within the state of Haryana. Subsequently, the activity of distribution and retail supply of power was entrusted w.e.f. 1st July 1999, to Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL) for north circles and Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL) for south circles of Haryana.
The Government of India notified The Electricity Act, 2003 with effect from 10th June 2003. However, in Haryana the provisions of the Electricity Act 2003 were deferred by six months from 10th June 2003 vide notification No. 1/4/2003-IP dated 8.9.2003. Therefore, in Haryana provisions of the Electricity Act, 2003 as well as the provisions of the Haryana Electricity Reform Act, 1997, which are not inconsistent with the Electricity Act, 2003, are applicable.
The broad objectives of the Electricity Act, 2003 as incorporated in its preamble is to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity and generally for taking measures conducive to development of electricity industry, promoting competition therein, protecting interest of consumers and supply of electricity to all areas, rationalisation of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmentally benign policies, constitution of Central Electricity Authority, Regulatory Commissions and establishment of Appellate Tribunal and for matters connected therewith or incidental thereto.
As per the Electricity Act, 2003, the main functions of the Commission are as under :-
(a) determine the tariff for generation, supply, transmission and wheeling of electricity, wholesale, bulk or retail, as the case may be, within the State: Providing that where open access has been permitted to a category of consumers under Section 42, the State Commission shall determine only the wheeling charges and surcharge thereon, if any, for the said category of consumers;
(b) regulate electricity purchase and procurement process of distribution licensees including the price at which electricity shall be procured from the generating companies or licensees or from other sources through agreements for purchase of power for distribution and supply within the State;
(c) facilitate intra-state transmission and wheeling of electricity;
(d) issue licences to persons seeking to act as transmission licensees, distribution licensees and electricity traders with respect to their operations within the State;
(e) promote congenration and generation of electricity from renewable sources of energy by providing suitable measures for connectivity with the grid and sale of electricity to any person, and also specify, for purchase of electricity from such sources, a percentage of the total consumption of electricity in the area of a distribution licence;
(f) adjudicate upon the disputes between the licensees, and generating companies and to refer any dispute for arbitration;
(g) levy fee for the purposes of this Act;
(h) specify State Grid Code consistent with the Grid Code specified under clause (h) of sub-section (1) of section 79;
(i) specify or enforce standards with respect to quality, continuity and reliability of service by licensees;
(j) fix the trading margin in the intra-State trading of electricity, if considered, necessary; and
(k) discharge such other functions as may be assigned to it under this Act.
The Commission is also required to advise the State Government on all or any of the following matters, namely :-.
(i) promotion of competition, efficiency and economy in activities of the electricity industry;
(ii) promotion of investment in electricity industry;
(iii) reorganization and restructuring of electricity industry in the State;
(iv) matters concerning generation, transmission , distribution and trading of electricity or any other matter referred to the State Commission by that Government.
In addition to the above, the functions of the commission as per the Haryana Electricity Reform Act, 1997 are the following.
(a) to regulate the working of the licensees and to promote their working in an efficient, economical and equitable manner;
(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 and enable all reasonable demands for electricity to be met;
(c) to regulate the purchase, distribution, supply and utilization of electricity, the quality of service, the tariff and charges payable keeping in view both 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;
(d) to promote competitiveness and progressively involve the participation of private sector, while ensuring fair deal to the customers;
(e) to collect data and forecast on the demand for and use of electricity and to require the licensees to collect such data and forecast;
(f) to require licensees to formulate perspective plans and schemes in coordination with others for the promotion of generation, transmission, distribution and supply of electricity;
(g) to set appropriate code of conduct and standards for the electricity industry in the State;
(h) to regulate the assets, properties and interest in properties concerning or related to the electricity industry in the State; and
(i) to undertake all incidental or ancillary things.
The Commission for the purposes of any inquiry or proceedings under this Act, have the same powers as are vested in a Civil Court under the Code of Civil Procedure, 1908 in respect of the following matters, namely: -
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) discovery and production of any document or other material object producible as evidence;
(c) receiving evidence on affidavits;
(d) requisitioning of any public record;
(e) issuing commission for the examination of witnesses;
(f) reviewing its decisions, directions and orders;
(g) any other matter which may be prescribed.
The Commission has the power to pass such interim order in any proceeding, hearing or matter before the Commission, as that Commission may consider appropriate. The Commission may also authorise any person, as it deems fit, to represent the interest of the consumers in the proceedings before it.
The Commission or any officer, not below the rank of a Gazetted Officer specially authorised in this behalf by the Commission, may enter any building or place where the Commission has reason to believe that any document relating to the subject matter of the inquiry may be found, and may seize any such document or take extracts or copies there from subject to the provisions of section 100 of the Code of Criminal Procedure, 1973, insofar as it may be applicable.
Power of punishment for non-compliance of directions issued by the Commission
In case any complaint is filed before the Commission by any person or if that Commission is satisfied that any person has contravened any provisions of this Act or rules or regulations made thereunder, or any direction issued by the Commission, the Commission may after giving such person an opportunity of being heard in the matter, by order in writing, direct that, without prejudice to any other penalty to which he may be liable under this Act, such person shall pay, by way of penalty, which shall not exceed one lakh rupees for each contravention and in case of a continuing failure with an additional penalty which may extend to six thousand rupees for every day during which the failure continues after contravention of the first such direction.
All proceedings before the Commission are deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code and the Commission is deemed to be a civil court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973.
The Haryana Electricity Regulatory Commission is functioning consistently with the objectives and purposes for which the Commission has been established. The Commission has taken up its role earnestly in the aforesaid historical and legal perspective. The Commission is ensuring transparency while exercising its powers and discharging its functions.