Compendium of HPERC Regulations, March 2021

1 · Short title and commencement - (1) These Regulations may be called the Himachal Pradesh Electricity Regulatory Commission (General Conditions of Transmission Licence) Regulations, 2004.

2 · Definitions: In these regulations unless the context otherwise requires

3 · Term: The transmission licence shall come into force 0n the date to be mentioned by the Commission in the order granting the licence and subject to the terms and conditions of the grant of licence, shall remain in force for the period mentioned in the order

4 · Compliance with laws, rules and regulations. (1) The transmission licensee shall comply with the provisions of the Act, rules, regulations, orders and directions issued by the Commission from time to time and the provisions of all other applicable laws

2 · The transmission licensee shall act in accordance with this general conditions contained in these regulations, except where the transmission licensee is exempted from any provisions of these general conditions at the time of the grant of licence Or otherwise specifically obtains the approval of the Commission for any deviation therefrom:

5 · Activities of the transmission licensee. (1) The transmission licensee shall duly discharge the duties of the transmission licensee as provided under section 40 of the Act:

6 · Accounts: (1) The transmission licensee shall conduct study on its total financial planning, budgeting and restructuring to determine an optimal capital structure, including key financial parameters, which the transmission licensee shall follow in order to monitor its financial performance.

6 · The accounting statements under sub regulation (3) shall, unless or otherwise approved or directed by the Commission, be prepared and published with the annual accounts of the transmission licensee; state the accounting policies adopted;

5 · The transmission licensee shall not undertake schemes involving major investments, not covered under the investment plan approved by the Commission under sub regulation (3) without the prior approval of the Commission, and for such approval the transmission licensee shall demonstrate to the satisfaction of the Commission the factors mentioned in sub regulation (3). The transmission licensee shall invite and finalise tenders for procurement of equipment, material andlor services relating to major investment, in accordance with a transparent tendering procedure as may be directed by the Commission: The transmission licensee shall, in consultation with the Commission;

5 · The transmission licensee shall give to the Commission prior written notice of its intention to transfer or relinquish operational control over any asset whose value exceeds the amount decided by the Commission as per sub-regulation (4) and the transmission licensee shall disclose all relevant facts in the communication to the Commission. The Commission may, within 30 days of the receipt of the notice, seek further information in support of the transaction and shall, generally within 30 days of such further information being submitted by the transmission licensee, and where no such further information is sought by the Commission as above, within 60 days of the filing of the application, approve the transfer arrangement subject to such terms and conditions Or modifications as is considered appropriate Or reject the same, for reasons recorded in writing in the order to be issued by the Commission.

6 · The transmission licensee may transfer o relinquish operational control over any asset as is detailed in any notice given under sub regulation (5) where- a) the Commission confirms in writing that it consents to such transfer or relinquishment of operational control subject to such conditions as the Commission may impose; O (b) the Commission does not inform the transmission licensee in writing of any objection to such transfer O relinquishment of operational control within the notice period referred to in sub-regulation (5) and the transfer is effected by transparent and competitive bidding procedures.

10 · Payment of licence fees: (1) Within such period as the Commission may direct, the transmission licensee shall pay to the Commission the licence fees, initial and also periodic, mentioned [in the Himachal Pradesh Electricity Regulatory Commission (Conduct of Business) Regulations, 2005 or] in the specific condition in such manner as the Commission may direct in the said specific condition.

12 · Amendment of licence conditions - (1) These general conditions of licence may at any time, if it is in public interest; be altered O amended by the Commission, in exercise of powers under Section 18 of the Act, subject to the condition that a where the transmission licensee has made an application under sub-section (1) of section 18 of the Act proposing any alteration or amendment in the general conditions of licence, the transmission licensee shall publish a notice of such application with such particulars and in such manner as may be directed by the Commission;

14 · Transmission Planning and Security Standards; Transmission Operating Standards - (1) The transmission licensee shall plan and operate the transmission system; SO as to ensure that transmission system built, operated and maintained to provide an efficient; economical and coordinated system of transmission, in accordance with the grid code and the overall performance standards. (2) The transmission licensee shall make arrangements, within such time as the Commission may direct;- a) to meet the power supply planning and security standards and power supply operating standards;

8 · The transmission licensee shall, upon request by the Commission, provide to the Commission such information as the Commission may require under r for the purpose of monitoring the duties and responsibilities of the transmission licensee under this regulation.

15 · Grid Code. (1) The transmission licensee shall ensure due compliance with the National Grid Code, the Regional Grid Code and the State Grid Code in operation. (2) The State Grid Code shall be formulated from time to time by the Commission under clause (h) of sub-section (1) of section 86 of the Act: Until such State Grid Code is formulated the transmission licensee shall follow the Interim Grid Code.

16 · Connection and use of system. (1) The transmission licensee shall make such arrangements for non-discriminatory open access to the use of his transmission system by the users subject however to the availability of the adequate transmission capacity in accordance with open access regulations notified by the Commission and further subject to the users agreeing to pay all applicable charges including the transmission charges and surcharges wherever applicable. (2) On application made for grant of a connection by any person intending to use the transmission system the transmission licensee shall offer to enter into an agreement with such person for connection to the transmission system or for modification of such an existing connection and such offer shall make provision for (a) carrying out of works necessary to make the required connection, including the installation of meters; carrying out of any necessary works to reinforce the transmission licensee' $ transmission system; the connection charges to be paid as directed by the Commission and the completion date and such other terms as are relevant to the circumstances.

2 · The transmission licensee shall calculate the expected revenue from charges which it is permitted to recover, in accordance with the provisions of the Act; the regulations of the Commission, the tariff terms and conditions and other guidelines, orders and directions issued by the Commission from time to time. (3) The transmission licensee shall file the expected revenue calculation and the application containing tariff proposals in the manner provided in and consistent with the regulations under section 61 of the Act:

8 · The transmission licensee may apply to the Commission to amend its tariffs in accordance with the Act and applicable regulations and directions of the Commission.

18 · Application of the general conditions to the State Transmission Utility. The provisions of these regulations shall apply to the State Transmission Utility save as the provisions relating to revocation of the transmission licence and the functions of State. Load Despatch Centre under section 39 of the Act and activities of the State Transmission Utility under clauses (b) and (c) of sub-section (2) of section 39 of the Act:

19 · Miscellaneous - (1)All issues arising in relation to interpretation of these regulation and as to the terms and conditions thereof shall be a matter for the determination of the Commission and the decision of the Commission on such issues shall be final, subject only to the right of appeal under section 111 of the Act. (2) The Commission may, at the time of grant of transmission licence, waive or modify the application of any of the provisions of these regulations either in the order granting the licence or by specific conditions made applicable to a specific transmission licence.

20 · Provisions to apply to deemed licensees: The general conditions contained herein shall apply to all applicants for grant of transmission licence after the coming into force of the Act and also to all deemed transmission licensees under provisos first, second, third and fifth to section 14 of the Act:

21 · Removal of difficulties. - (1) Subject to the provisions of the Act, the Commission may, from time to time, issue orders and practice directions in regard to the implementation of these regulations and procedures to be followed on various matters, which the Commission has been empowered by these regulations to direct and matters incidental 0r ancillary thereto.