1 [ The Himachal Pradesh Electricity Regulatory Commission (General Conditions of Transmission Licence) Regulations, 2004]

1 · [ The Himachal Pradesh Electricity Regulatory Commission (General Conditions of Transmission Licence) Regulations, 2004]

1 · . Corrigendum issued vide notification No. HPERC/381 dated 23 rd June, 2005 published in the R.H.P.(Extra) dated 27 th June, 2005 at p.1480.

2 · . (First Amendment) Regulations, 2005 notified vide Not. No. HPERC/381 dated 22 nd February, 2005 and published in the R.H.P. (Extra) dated 23 rd February, 2005 at p.39333934.

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

1 · Published in the R.H.P. (Extra) dated 11 th June, 2004 at p. 789-813.

3 · Term. -The transmission licence shall come into force on 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.

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.

7 · Provision of information to the Commission. -(1) The transmission licensee shall furnish to the Commission without undue delay such information, documents and details related to the licensed business or any other business of the transmission licensee, as the Commission may require from time to time for its own purposes or for the purposes of the Government of India, the State Government, the Central Commission and/or the Central Electricity Authority, the State Transmission Utility and the State Load Despatch Centre.

8 · Investments. -(1) The transmission licensee shall duly comply with the regulations, guidelines, directions and orders the Commission may issue from time to time in regard to the investments to be made in the transmission business.

9 · Transfer of assets. – (1) The transmission licensee shall segregate the utilized assets and unutilised, unproductive and un-remunerative assets and reduce asset inventory of unproductive and un-remunerative assets.

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 1 [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.

1 · Ins. vide Not. No. HPERC/ 381 dated 22 nd February, 2005 and published in the R H.P. (Extra) dated 23rd February, 2005 at p. 3933-3934, and by Corrigendum issued vide Not. No. HPERC/381 dated 23 rd June, 2005 published in the R H.P. (Extra) dated 27 thJ hJune, 2005 at p. 1480.

11 · Terms of revocation. -(1) Subject to the provisions of section 19 of the Act and the regulations framed thereunder, the Commission may, at any time initiate proceedings against the transmission licensee for revocation of the transmission licence and if satisfied in such proceedings on the grounds for revocation, duly considering the public interest, revoke the transmission licence. -

12 · Amendment of licence conditions. -(1) These general conditions of licence may at any time, if it is in public interest, be altered or amended by the Commission, in exercise of powers under Section 18 of the Act, subject to the condition that –

13 · Dispute resolution . – (1) The Commission shall be entitled to act as arbitrator or nominate person(s) as arbitrator(s) to adjudicate and settle disputes between the transmission licensee and any other licensee or between the transmission licensee and a generating company in pursuance of clause (f) of sub-section (1) of section 86, read with section 158, of the Act and the regulations of 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.

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.

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.

17 · Expected revenue calculation and tariffs . -(1) The transmission licensee shall, within such time as may be specified by 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.

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 or ancillary thereto.

22 · Repeal and savings. (1) Save as otherwise provided in these regulations, the general or specific conditions for the grant of the transmission licence laid down under the Indian Electricity Act, 1910 or the Electricity Regulatory Commissions Act, 1998 or any other law in force immediately before the commencement of these regulations are hereby repealed.