Haryana Distribution and Retail Supply Licence

{
    "id": 16955,
    "slug": "haryana-distribution-and-retail-supply-licence",
    "title": "Haryana Distribution and Retail Supply Licence",
    "short_title": "Haryana Distribution and Retail Supply Licence",
    "act_number": "Licence No. 2 of 1999. Published vide Notification",
    "act_year": 1999,
    "act_type": "STATE",
    "location": "Haryana",
    "law_status": "unknown",
    "enactment_date": null,
    "description": "Haryana Distribution and Retail Supply Licence",
    "preamble": "",
    "section_label": "Section",
    "sections": [
        {
            "number": "1",
            "title": "1. Short Title.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 0
        },
        {
            "number": "2",
            "title": "2. Definitions.",
            "chapter": null,
            "content": "\"Act\"\n\"Affiliate\n\"Area of Supply\"\n\"Auditors\"\n\"Authorised\"\n\"Bulk Supplier\"\n\"Bulk Supply\"\n\"Bulk Supply Business\"\n\"Central Electricity Regulatory Commission\"\n\"Commission\"\n\"Consumer\"\n\"Controlling Interest\"\n\"Distribution\"\n\"Distribution and Retail Supply Business\"\n\"Distribution Business\"\n\"Distribution Code\"\n\"Distribution System\"\n\"Distribution System Operating Standards\"\n\"Distribution System Planning and Security Standards\"\n\"Generating Set\"\n\"Generator Interconnection Facilities\"\n\"Grid Code\"\n\"Holding Company\"\n\"Interim Distribution Code\"\n\"Interim Grid Code\"\n\"Licensee\"\n\"Overall Performance Standards\"\n\"Regulations\"\n\"Related Person\"\n(i) who holds a Controlling Interest in the Licensee or\n(ii) in whom the Licensee holds Controlling Interest and includes a person who holds Controlling Interest in persons mentioned in Clauses (i) and (ii) above.\n\"Retail Supply\"\n\"Retails Supply Business\"\n\"Separate Business\"\n\"Standards of Performance\"\n\"Subsidiary\"\n\"Supplier\"\n\"Supply\"\n\"Transmission\"\n\"Transmission Business\"\n\"Transmission and Bulk Supply Licensee\"\n\"Transmission System\"",
            "footnote": "",
            "is_definition": true,
            "sort_order": 1
        },
        {
            "number": "3",
            "title": "3. Terms of the licence.",
            "chapter": null,
            "content": "Part II\nGeneral Conditions",
            "footnote": "",
            "is_definition": false,
            "sort_order": 2
        },
        {
            "number": "4",
            "title": "4. Directions.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 3
        },
        {
            "number": "5",
            "title": "5. Prohibited Activities.",
            "chapter": null,
            "content": "(a) purchase or import or otherwise acquire electricity for resale under this licence from any person other than a Bulk Supplier or a person who has generated the electricity using a source whose installed capacity does not exceed five MW; or\n(b) sell or otherwise dispose of electricity to any person, other than pursuant to its Transmission and Bulk Supply Licence or this licence; or\n(c) own or hold, directly or indirectly, any beneficial interest in any Generating Company or Generating Set (other than the Licensee's interest in Generating Sets pursuant to a power purchase agreement entered into in accordance with Condition 15 of its Transmission and Bulk Supply Licence) without the prior written approval of the Commission; or\n(d) own or hold, directly or indirectly, any beneficial interest in any other Supplier without the prior written approval of the Commission, other than a person who distributes and supplies electricity pursuant to a general exemption granted by the Commission, or in any facilities used for Distribution in the State of Haryana other than for the purpose of its Distribution and Retail Supply Business; or\n(e) provide services to third parties for the transportation of electricity through the Licensee's Distribution System, unless Authorised do so by the Commission; or\n(f) start any non-core activity, unless specifically authorised by the Commission and subject to such conditions as the Commission may impose.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 4
        },
        {
            "number": "6",
            "title": "6. Prohibition of Acquisition of Controlling Interest.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 5
        },
        {
            "number": "7",
            "title": "7. Prohibition of Subsidies.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 6
        },
        {
            "number": "8",
            "title": "8. Separate Accounts for Separate Business.",
            "chapter": null,
            "content": "(a) keep such accounting records as would be required to be kept in respect of each such Separate Business as if it were carried on by a separate company, so that the revenues, costs, assets, liabilities, reserves and provisions of, or reasonably attributable to, each Separate Business are separately identifiable in the books of the Licensee from those of any other business in which the Licensee is engaged, whether or not authorised by the Commission; and\n(b) prepare on a consistent basis from such accounting records :\n(i) for each financial year, accounting statements, comprising a profit and loss account, a balance sheet and a statement of source and application of funds, together with notes thereto, and showing separately in respect of each Separate Business the amounts of any revenue, cost, asset, liability, reserve or provision, which has been either :\n(a) charged from or to any other business (whether or not a Separate Business) together with a description of the basis of that charge; or\n(b) determined by apportionment or allocation between any Separate Business and any other business of the Licensee or its Affiliate (whether or not a Separate Business) together with a description of the basis of the apportionment or allocation; and\n(ii) in respect of the first six months of the first financial year and of each subsequent financial year, an interim profit and loss account; and\n(c) provide, in respect of the accounting statements prepared in accordance with this Condition 8, an Auditor's report in respect of each financial year, stating whether in their opinion these statements have been properly prepared in accordance with this Condition 8 and give a true and fair view of the revenues, costs, assets, liabilities, reserves and provisions of, or reasonably attributable to, the Separate Business to which the statements relate; and\n(d) deliver to the Commission a copy of each interim profit and loss account not later than three months after the end of the period to which it relates, and copies of the accounting statements and Auditor's report not later than six months after the end of the financial year to which they relate.\n(a) be in the form prescribed by the Indian Companies Act, 1956 (1 of 1956) and the Indian Electricity Rule, 1956;\n(b) be prepared in accordance with generally accepted accounting practices;\n(c) state the accounting policies adopted; and\n(d) be published with the annual accounts of the Licensee, in the manner prescribed in the Regulations.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 7
        },
        {
            "number": "9",
            "title": "9. Prohibition of Undue Preference.",
            "chapter": null,
            "content": "9.2 Phasing out of Tariff Differentials.\n(a) within 180 days of the date of the issue of this licence, the Licensee shall submit to the Commission a plan for the phasing out of such tariff differentials over a specified period of time;\n(b) the Commission shall accept such plan or require modifications to it; and\n(c) the Licensee shall reduce tariff differentials in accordance with the plan or modifications to it approved by the Commission.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 8
        },
        {
            "number": "10",
            "title": "10. Provision of Information to the Commission.",
            "chapter": null,
            "content": "(a) submit a report giving full details of the facts of the incident and its cause. The Commission at its own discretion may require the submission of a report to be prepared by an independent person at the expense of the Licensee; and\n(b) give copies of the report to the Commission and to all parties involved in the major incident as the Commission may direct.\n\"Major incident\"",
            "footnote": "",
            "is_definition": false,
            "sort_order": 9
        },
        {
            "number": "11",
            "title": "11. Disposal of Assets.",
            "chapter": null,
            "content": "(a) the Commission confirms in writing that it consents to such disposal or relinquishment subject to such conditions as the Commission may impose; or\n(b) the Commission does not inform the Licensee in writing of any objection to such disposal of relinquishment of control within the notice period referred to in Condition 11.3.\n(a) the Commission has issued directions for the purposes of this Condition 11 containing a general consent (whether or not subject to conditions) to :\n(i) transactions of a specified description; and/or\n(ii) the disposal of or relinquishment of operational control over assets of a specified description; and\n(iii) the transaction or the assets are of description to which such directions apply and the disposal of or relinquishment is in accordance with any conditions to which the consent is subject; or\n(b) the disposal or relinquishment of operational control in question is required pursuant to the term of a contract or agreement, executed before the commencement of this licence or\n(c) the disposal or relinquishment of operational control in question is required by or under any enactment or subordinate legislation; or\n(d) the asset in question was acquired and used by the Licensee exclusively in connection with a non-core activity that it has been authorised by the Commission to carry on pursuant to Condition 5(f) and does not constitute a legal or beneficial interest in land, or form part of the Transmission System or the Distribution System.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 10
        },
        {
            "number": "12",
            "title": "12. Payment of Fees.",
            "chapter": null,
            "content": "(a) the Licensee shall be liable to pay to the Government of Haryana interest on the outstanding amount at a simple interest rate of two percent per month, the interest being payable for the period beginning on the day after which the amount became due, and ending on the day on which the Government of Haryana receives payment; and\n(b) the Licensee shall be subject to the proceedings for the recovery of such fees specified in the Act; and\n(c) The commission may revoke this licence pursuant to Section 18 of the Act and Condition 13 of this licence.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 11
        },
        {
            "number": "13",
            "title": "13. Terms as to Revocation.",
            "chapter": null,
            "content": "(a) if any amount payable under Condition 12 is unpaid after it has become due and remains unpaid for a period of 30 days or such longer time as the Commission may specify; or\n(b) if the Licensee wilfully fails to comply with Condition 6; or\n(c) if the Licensee has breached any of the Conditions of this licence and does not comply with an order of the Commission to rectify such breach.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 12
        },
        {
            "number": "14",
            "title": "14. Indian Electricity Act, 1910 (9 of 1910) and Indian Electricity (Supply) Act, 1948 (54 of 1948).",
            "chapter": null,
            "content": "Part III\nTechnical Conditions",
            "footnote": "",
            "is_definition": false,
            "sort_order": 13
        },
        {
            "number": "15",
            "title": "15. Compliance with the Grid Code.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 14
        },
        {
            "number": "16",
            "title": "16. Distribution Code.",
            "chapter": null,
            "content": "(a) a Distribution planning and connection code containing :\n(i) connection conditions specifying the technical, design and operational criteria to be complied with by any person connected or seeking connection with the Licensee's Distribution System; and\n(ii) planning codes specifying the plan required for laying the distribution lines and the services lines in the Area of Supply, the technical and design criteria and procedures to be applied by the Licensee in the planning and development of the Licensee's Distribution System; and\n(b) a Distribution operating code specifying the conditions under which the Licensee shall operate the Licensee's Distribution System and under which persons shall operate their plant and/or Distribution System in relation to the Licensee's Distribution System, in so far as necessary to protect the security and quality of supply and safe operation of the Licensee's Distribution System under both normal and abnormal operating conditions.\n(a) within two months or such further time as the Commission may allow the Licensee shall submit for approval of the Commission the existing conditions of supply (the Interim Distribution Code);\n(b) the Licensee shall implement and comply with the Interim Distribution Code, subject to such modification as the Commission may order; and\n(c) within six months from the effective date of this licence, the Licensee shall submit to the Commission for its approval the Distribution Code specified in Condition 16.2 after consultation with the other Suppliers, the Transmission and Bulk Supply Licensee, the Generating Companies and such other persons as the Commission may specify.\n(a) a report on the outcome of such review;\n(b) any proposed revisions to the Distribution Code from time to time as the Licensee (having regard to the outcome of such review) reasonably thinks fit for the achievement of the objectives of the Distribution Code as mentioned in Condition 16.2; and\n(c) all written representations or objections from Suppliers (including any proposals by such Suppliers for revisions to the Distribution Code not accepted by the Licensee in the course of the review) arising during the consultation process.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 15
        },
        {
            "number": "17",
            "title": "17. Distribution System Planning and Security Standards, Distribution System Operating Standards, Overall Performance Standards.",
            "chapter": null,
            "content": "(a) plan and develop the Licensee's Distribution System in accordance with the Distribution System Planning and Security Standards proposed by the Licensee together with the Distribution Code as approved by the Commission; and\n(b) operate the Licensee's Distribution System in accordance with the Distribution System Operating Standards proposed by the Licensee together with the Distribution Code as approved by the Commission.\n(b) The document in which the Distribution System Planning and Security Standards are set forth pursuant to Clause (a) of this Condition 17.3 must include a statement by the Licensee as to how it proposes to implement the standards as so to:\n(i) ensure a satisfactory degree of standardisation of plant, apparatus, and equipment within the State of Haryana; and\n(ii) develop and observe a policy on spare parts required;\n(c) The Distribution System Planning and Security Standards and the Distribution System Operating Standards, with such modification as the Commission may specify, shall take effect from the date specified by the Commission.\n(a) a report on the outcome of such review;\n(b) any revision which the Licensee proposes to make to such standards from time to time (having regard to the outcome of such review); and\n(c) any written representation or objection (including those not accepted by the Licensee from the Suppliers, Generating Companies, or any Consumer or such other person as the Commission may order), arising during the review;",
            "footnote": "",
            "is_definition": false,
            "sort_order": 16
        },
        {
            "number": "18",
            "title": "18. Investment.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 17
        },
        {
            "number": "19",
            "title": "19. Obligation to Connect Consumers and Public Lamps.",
            "chapter": null,
            "content": "(b) Where the owner or occupier of any premises requires connection under the terms of Condition 19.1, the form of application to be made and the procedure for responding to that application shall be in accordance with the procedure specified by the Licensee and approved by the Commission.\n(c) Nothing in this Paragraph 19.1 shall require the Licensee to provide connection in circumstances where :\n(i) it is prevented from doing so by earthquakes, cyclones, floods, storms, unnatural weather conditions or other similar occurrences beyond his control, except that lack of finances shall not be deemed to be a circumstance beyond the control of the Licensee; or\n(ii) to do so would involve a breach of relevant laws or regulations concerned with electrical safety.\n(a) to provide the mains and other equipment for public lamps; and\n(b) to use for that purpose supports, if any, previously erected or set up by it for Supply of energy.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 18
        },
        {
            "number": "20",
            "title": "20. Obligation to Supply and Power Supply Planning Standards.",
            "chapter": null,
            "content": "(a) the Licensee discontinues Supply to certain Consumers under Section 24 of Indian Electricity Act, 1910 (19 of 1910), or in accordance with the Code of Practice drawn up pursuant to Condition 21;\n(b) the Licensee is obliged to regulate the Supply to Consumers as may be directed by the State Government under Section 22-B of the Indian Electricity Act, 1910 (9 of 1910).\n(a) forecast the demand for power within the Area of Supply in each of the next succeeding 10 years;\n(b) prepare and submit such forecasts to the Commission in accordance with the Practice Guidelines issued by the Commission from time to time; and\n(c) co-operate with the Transmission and Bulk Supply Licensee in the preparation of power demand forecasts for the State of Haryana in such manner as the Transmission and Bulk Supply Licensee reasonably considers appropriate.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 19
        },
        {
            "number": "21",
            "title": "21. Consumer Service.",
            "chapter": null,
            "content": "(a) The Licensee shall, within six months after this licence has become effective, prepare and submit to the Commission for its approval a Code of Practice concerning the payment of electricity bills by Consumers and including appropriate guidance for the assistance of such Consumers who may have difficulty in paying such bills and procedures for disconnecting Consumers for non-payment. Upon receiving the Code of Practice, the Commission may hold consultations with Commission Advisory Committee and any body of persons which appears to the Commission to be representative of Consumers. In granting each approval, the Commission may make such modifications as it considers necessary in the public interest.\n(b) The Commission may, upon receiving a representation or otherwise, require the Licensee to review the Code of Practice prepared in accordance with Condition 21.1(a) and the manner in which it has been operated, with a view to determining whether any modification should be made to it or to the manner of its operation.\n(c) The Licensee shall, in consultation with such other persons as the Commission may direct, upon review submits any revision to the Code of Practice that it wishes to make to the Commission for its approval, including any representation received by the Licensee and not accepted by it. The Commission may modify the existing Code of Practice concerning payment of bill as its considers necessary.\n(d) The Licensee shall :\n(i) draw to the attention of Consumers the existence of the Code of Practice and each substantive revision of it and how they may inspect or obtain a copy of the Code of Practice in its latest form;\n(ii) make a copy of the Code of Practice revised from time to time available for inspection by members of the pubic during normal working hours; and\n(iii) provide free of charge a copy of the Code of Practice revised from time to time to each new Consumer and to any other person who requests it at a price not exceeding the reasonable cost of duplicating it.\n(a) The Licensee shall within three months after this licence has become effective establish with approval of the Commission a procedure for handling complaints from Consumers about the manner in which the Licensee conducts its Distribution and Retail Supply Business. The Commission may after holding such consultations with the Commission Advisory Committee or a person or body of persons appearing to be representative of the interest of the consumers, as the Commission considers necessary, make such modification of the procedure, as it believes necessary in the public interest.\n(b) The Commission may, upon receiving a representation or otherwise, require the Licensee to review the complaint handling procedure prepared in accordance with Condition 21.2(a) and the manner in which it has been operated, with a view to determining whether any modification should be made to it or to the manner of its operation.\n(c) Any procedure established pursuant to this Condition 21.2, including any revisions to it, shall specify the periods within which it is intended that different descriptions of complaint should be processed and resolved.\n(d) The Licensee shall submit any revision proposed to be made to the procedure established in accordance with Condition 21.2(a) to the Commission for its approval.\n(e) The Licensee shall :\n(i) make a copy of the procedure, revised from time to time, available for inspection by members of the public at each of the relevant premises during normal working hours; and\n(ii) provide free of charge a copy of the procedure revised from time to time to each new Consumer, and to any other person who requests it at a price not exceeding the reasonable cost of duplicating it.\n(a) Unless the Commission has framed regulations pursuant to Section 33 of the Act, the Licensee shall, within three months after this licence has come into force or such other time as the Commission may allow, prepare and submit to the Commission for approval a Consumer Rights Statement explaining to Consumes their rights as Consumers of the Licensee in its capacity as operator of its Distribution and Retail Supply Business. The Commission may, upon holding such consultation with the Commission Advisory Committee and such other persons or bodies of persons who the Commission considers as representing the interests of Consumers likely to be affected by it, make such modification of the statement, as it considers necessary in public interest.\n(b) The Commission may, upon receiving a representation or otherwise require the Licensee to review the Consumer Rights Statement prepared in accordance with Condition 21.3(a) and the manner in which it has been operated, with a view to determining whether any modification should be made to it or to the manner of its operation.\n(c) The Licensee shall submit any revision to the Consumer Rights Statement that it wishes to make to the Commission for its approval, including any representation received by the Licensee and not accepted by it. The Commission may modify the existing Consumer Rights Statement as it considers necessary in public interest.\n(d) The Licensee shall :\n(i) make a copy of the Consumer Rights Statement, revised from time to time, available for inspection by members of the public at each of the relevant premises during normal working hours;\n(ii) provide free of charge a copy of the Consumer Rights Statement, revised from time to time, to all new Consumers, and to any person who requests it at a price not exceeding the reasonable cost of duplication it; and\n(iii) distribute the statement in any other manner that the Commission may specify.\nPart IV\nTariffs and Expected Revenue Calculation",
            "footnote": "",
            "is_definition": false,
            "sort_order": 20
        },
        {
            "number": "22",
            "title": "22. Tariffs and Expected Revenue Calculation.",
            "chapter": null,
            "content": "(a) The Licensee shall establish a tariff acceptable to the Commission for each of its Distribution and Retail Supply Business and shall calculate its charges only in accordance with this licence and the other requirements prescribed by the Commission.\n(b) Subject to any contrary direction of the Commission, the Licensee may publish a combined tariff for its Distribution and Retail Supply Business reflecting the tariff rates and the other terms and conditions contained in the approved tariffs referred to in Condition 22.1(a).\n(a) Each year not later than 31st December, the Licensee shall prepare and submit to the Commission a report of its expected aggregate revenues and cost of service (including financing costs and its proposed return on equity) for its Distribution and Retail Supply Business for the next succeeding financial year in the manner and form prescribed by the Commission from time to time.\n(b) If the report referred to in paragraph 22.2(a) indicates a significant difference between its expected aggregate revenues and its expected cost of service, the Licensee shall also submit with its report an explanation of the measures it proposes to take, including any proposed tariff amendments, to eliminate the difference.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 21
        },
        {
            "number": "23",
            "title": "23. Amendment of Tariffs and Charges.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 22
        },
        {
            "number": "24",
            "title": "24. Powers of the Licensee for Revenue Realisations, Meter Tempering, etc.",
            "chapter": null,
            "content": "(a) revenue realisations;\n(b) prosecution for theft;\n(c) deterring tampering with meters; and\n(d) preventing diversion of electricity;",
            "footnote": "",
            "is_definition": false,
            "sort_order": 23
        },
        {
            "number": "25",
            "title": "25. Provision of Subsidies to Certain Consumers.",
            "chapter": null,
            "content": "(a) the revenue which the Licensee is entitled to recover under the terms of Condition 22.1; and\n(b) the revenue received from the tariff consistent with the tariff proposed under Paragraph 23.3.\nPart V\nCompetition Conditions",
            "footnote": "",
            "is_definition": false,
            "sort_order": 24
        },
        {
            "number": "26",
            "title": "26. Introduction of Competition in Bulk Supply.",
            "chapter": null,
            "content": "(b) The Commission may issue such orders modifying or amending the Conditions of this licence as it shall consider appropriate for the purpose of implementing the arrangements referred to in this Condition 26.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 25
        },
        {
            "number": "27",
            "title": "27. Introduction of Competition in Retail Supply.",
            "chapter": null,
            "content": "(b) The Commission may issue such orders modifying or amending the Conditions of this licence as it shall consider appropriate for the purpose of implementing the arrangements referred to in this Condition 27.\nPart VI\nPenalty",
            "footnote": "",
            "is_definition": false,
            "sort_order": 26
        },
        {
            "number": "28",
            "title": "28. Penalty for Contravention of Conditions of the Licence.",
            "chapter": null,
            "content": "Schedule 1\nArea of Distribution and Retail Supply",
            "footnote": "",
            "is_definition": false,
            "sort_order": 27
        }
    ],
    "metadata": {
        "Act ID": "hl159",
        "Act Number": "Licence No. 2 of 1999. Published vide Notification Haryana Government Gazette Extraordinary dated 16.3.1999.",
        "Enactment Date": "",
        "Act Year": "1999",
        "Short Title": "Haryana Distribution and Retail Supply Licence",
        "Type": "STATE",
        "Location": "Haryana"
    },
    "updated_at": "2026-09-29 21:55:19"
}