INDIA Law and Practice Contributed by: Anupam Varma, Poonam Verma Sengupta, Sakshi Kapoor and Rajesh Jha, JSA
Amendment, Relaxation and Revocation A licence may be amended under Section 18, on the licensee’s application or by the SERC on its own motion, after publication and the inviting of objections. It may be revoked under Section 19 or surrendered under Section 20. Relaxation of a licence condition or a condition under the applicable regulations is sought by petition before the SERC. Relaxation of a technical condition other than the licence or the SERC regulations is sought from the authority that imposed it (for example, the CEA or Electrical Inspector). 5.4 Eminent Domain, Condemnation or Expropriation Rights to Construct and Operate Electricity Distribution Facilities No Expropriation Rights A distribution licensee does not acquire land by emi- nent domain or expropriation. Rights to use the land for installation of distribution assets are obtained: • through right of way for the network from the municipal or land-owning agencies concerned; • through a licence for the right to use the land granted by the State Government; and • from the consumers who request the installation or shifting of the distribution assets on their premises. What the Statutory Works Powers Are The Electricity Act confers on a licensee the right to carry out the work of installation and repair of distribu- tion assets including the following: • Works in streets : In terms of Section 67 read with the Works of Licensees Rules, 2006, the licensee may open and break up streets and lay cables, mains and poles with the consent of the appropri- ate Government or local authority. • Telegraph Authority powers : Under Section 164, the appropriate Government may grant the licen- see powers of a Telegraph Authority under the Indian Telegraph Act, 1885 to place and maintain lines and posts over private and public land with- out acquiring it. • Overhead lines : Under Section 68, a licensee is empowered to install and maintain overhead elec-
A licensee’s network expansion additionally requires capital-investment approval from the SERC under its licence conditions and tariff regulations. Operation, Maintenance and Grid Security Operation and maintenance is governed by the SERC Grid Code, Supply Code, Performance Standard Reg- ulations and CEA Safety Regulations, 2023 providing the requirements for maintenance, periodic inspec- tion, testing and clearances, namely: • Compliance with the State Grid Code notified by the SERC and, to the extent applicable, the Indian Electricity Grid Code notified by CERC, which gov- ern planning, connectivity and secure operation. • The directions of the SLDC are binding under Sec- tion 33, and those of the RLDC under Sections 28 and 29, for integrated operation, scheduling and dispatch. • Demand management, estimation and forecasting, drawal of power within schedule, adherence to the Merit Order Despatch, load-shedding directions, and compliance with the CEA Grid Connectivity Standards. Deviations attract charges under the deviation-settlement mechanism and may invite penal action. Licence Conditions The distribution licence itself stipulates conditions for supply of electricity and binds the licensee to the uni- versal service obligation under Section 43, subject to: • Compliance with the Supply Code, the State Dis- tribution Code and the standards of performance, with automatic compensation to consumers for specified failures. • Compliance with the Electricity (Rights of Consum- ers) Rules, with grievance redressal through the Consumer Grievance Redressal Forum and the Electricity Ombudsman under Section 42. • Annual filing of the Aggregate Revenue Require- ment and adherence to the capital-investment guidelines and procurement guidelines, including obligations under the Revamped Distribution Sec- tor Scheme for the state-owned Discoms.
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