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  "title": "REGULATION OF GENERATION, TRANSMISSION AND DISTRIBUTION OF ELECTRIC POWER ACT, 1997",
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  "text": "THE REGULATION OF GENERATION, TRANSMISSION AND \r\nDISTRIBUTION OF ELECTRIC POWER ACT, 1997 \r\n(XL of 1997) \r\nCONTENTS \r\nCHAPTER I  \r\nGENERAL \r\n1. Short title, extent and commencement  \r\n2. Definitions \r\nCHAPTER II \r\nESTABLISHMENT OF AUTHORITY \r\n3. Establishment of the Authority \r\n4. Resignation and removal of Chairman, etc \r\n5. Meetings of the Authority, etc \r\n6. Decisions of the Authority \r\n7. Powers and functions of the Authority \r\n8. Remuneration, etc., of Chairman and members \r\n9. Chairman, etc. to be public servant \r\n10. Staff and advisers, etc \r\n11. Tribunals \r\n12. Delegation \r\n13. Funds \r\n14. Accounts \r\nCHAPTER III \r\nLICENSES \r\n15. Generation licence \r\n16. Transmission licence \r\n17. National Grid Company \r\n18. Responsibilities of National Grid Company \r\n19. Special purpose transmission licence \r\n20. Distribution licenses \r\n21. Duties and responsibilities of distribution licensees \r\n22. Sale to bulk-power consumers \r\n23. Sale of electric power to other distribution companies \r\n24. Licensees to be companies \r\n25. Licences of Territory Served by KESC \r\n26. Modifications \r\n27. Assignment of licence prohibited \r\n28. Suspension and revocation \r\n29. Penalties \r\n30. WAPDA and SHYDO to be licensees \r\n31. Tariff \r\n32. Investment and power acquisition Programmes \r\n33. Organizational matters \r\n34. Performance Standards \r\n35. Industry standards and codes of conduct \r\n36. Uniform system of accounts \r\n37. Review of public sector projects \r\nCHAPTER-IV ADMINISTRATION \r\n38. Regulations \r\n39. Complaints \r\n40. Enforcement of orders of the Authority \r\n41. Sum payable to the Authority to be recoverable as land revenue \r\n42. Reports of the Authority \r\n43. Inspection by public \r\n44. Information \r\n45. Relationship to other laws \r\n46. Rules \r\n47. Provincial offices of inspection \r\nTEXT \r\nREGULATION OF GENERATION, TRANSMISSION AND DISTRIBUTION \r\nOF ELECTRIC POWER ACT, 1997 \r\n(XL of 1997) \r\n[16th December, 1997] \r\nAn \r\nAct \r\nto provide for the regulation of generation transmission and distribution of electric \r\npower \r\nWHEREAS it is expedient to provide for the regulation of generation, \r\ntransmission and distribution of elect ric power and matters connect therewith and \r\nincidental thereto; \r\nIt is hereby enacted as follows:– \r\nCHAPTER I  \r\nGENERAL \r\n1. Short title, extent and commencement.– (1) This Act may be called the \r\nRegulation of Generation, Transmission and Distribution of electric Power Act, 1997.  \r\n(2) It extends to the whole of Pakistan. \r\n(3) It shall come into force at once. \r\n2. Definitions.– In this Act, unless there is anything repugnant in the subject or \r\ncontext,– \r\n(i) \"Authority” means the  National  Electric  Power  Regulatory  \r\nAut hority  established  under section 3; \r\n(ii) \"bulk-power consumer\" means a consumer who purchases or \r\nreceives electric power, at  one premises, in an amount of one \r\nmegawatt or more or in such other amount and voltage level and with \r\nsuch other characteristics as the Authority may determine and the  \r\nAuthority may determine different amounts and voltage levels and with \r\nsuch other characteristics for different areas; \r\n(iii) \"Chairman\" means the Chairman of the Authority; \r\n(iv) \"consumer\" means a person or his successor-in-interest who \r\npurchases or receives electric  power for consumption and not for \r\ndelivery or re-sale to others, including a person who owns or occupies \r\na premises where electric power is supplied; \r\n(v) \"distribution\" means the ownership, operation, management or control \r\nof distribution facilities  for the movement or delivery or sale to \r\nconsumers of electric power but shall not  include the ownership, \r\noperation, management and control of distribution facilities located on \r\nprivate property and used solely to move or deliver electric power to \r\nthe person owning, operating,  managing and controlling those facilities \r\nor to tenants thereof shall not constitute distribution; \r\n(vi) \"distribution company\" means a person engaged in the distribution of \r\nelectric power;  \r\n(vii) \"distribution facilities\" means electrical facilities operating at \r\ndistribution voltage and used for the mov ement or delivery of  electric \r\npower; \r\n(viii) “distribution voltage” means any voltage below mini mum transmission \r\nvoltage; \r\n(ix) \"electric power\" means electrical energy or the capacity for the \r\nproduction of electrical power; \r\n(x) \"electric power services\" means the generation, transmission or \r\ndistribution of electric power and all other services incidental thereto; \r\n(xi) \"generation\" means the ownership, operation, management or \r\ncontrol of generation facilities for delivery or sale of electric power \r\nand not solely for consumption by the person owning, operating, \r\nmanaging, and controlling those facilities; \r\n(xii) \"generation co mpany\" means a pers on eng aged in the generation  of \r\nelectric power;  \r\n(xiii) \"generation facility\" means the electrical facility used for the \r\nproduction of electric power; \r\n(xiv) \"inter-connection service\" means the connection of one company's \r\nelectrical facilities to another company's electrical facilities; \r\n(xv) \"KESC\" means the Karachi Electric Supply Corporation, a public \r\nlimited company, incorporated under the Companies Act, 1913; \r\n(xvi) \"licence\" means a licence issued for generation, transmission or \r\ndistribution under this Act; \r\n(xvii) \"licensee\" means a holder of a licence; \r\n(xviii) \"member\" means a member of the Authority including the Chairman; \r\n(xix) \"minimum transmission voltage\" means sixty-six kilovolts or such \r\nother voltage that the  Authority may determine to be the minimum \r\nvoltage at which electrical facilities are operated when used to deliver \r\nelectric power in bulk; \r\n(xx) \"National Grid Company\" means the person engaged in the \r\ntransmission of electric power and granted a licence under section 17; \r\n(xxi) \"Person\" shall include an association of persons, concern, company, \r\nfirm or undertaking; \r\n(xxii) \"Prescribed\" means prescribed by rules made under this Act; \r\n(xxiii) \"public sector project\" means generation, transmission or distribution \r\nfacilities constructed,  owned, managed or controlled by the Federal \r\nGovernment, a Provincial Govern ment, a local authority or any body \r\nowned or controlled by any such Government or authority; \r\n(xxiv) \"regulations\" means regulations made under this Act; \r\n(xxv) \"SHYDO\" means the Sarhad Hydel Development Organization, \r\nestablished under the Sarhad Hydel Develop ment Organization Act, \r\n1993 (NWFP Act No.1 of 1993); \r\n(xxvi) \"transmission\" means the ownership, operation, management or \r\ncontrol of transmission facilities; \r\n(xxvii) \"transmission facilities\" means electrical transmission facilities \r\nincluding electrical circuits, transformers and sub -stations operating at \r\nor above the minimum transmission voltage but shall not include– \r\n(a) electrical circuits forming the immediate connection between \r\ngeneration facilities and the transmission grid to the extent \r\nthat those circuits are owned by a generation company and are \r\ndirectly associated with that company's generation facilities; \r\n(b) specified facilities operating at or above the minimum \r\ntransmission voltage which  the Authority, upon an application \r\nby licensee under section 20, deter mines that such facilities \r\nshall be owned and operated by a distribution licensee; and \r\n(xxviii) \"WAPDA\" means the Pakistan Water and Power Development \r\nAuthority established under  the Pakistan Water and Power \r\nDevelopment Authority Act, 1958 (W.P. Act XXXI of 1958). \r\nCHAPTER II \r\nESTABLISHMENT OF AUTHORITY \r\n3. Establishment of the Authority.– (1) As soon as may be, but not later than \r\nthirty days after the commencement of this Act, the Federal Government shall, by \r\nnotification in the official Gazette,  establish a Nationa Electric Power Regulatory \r\nAuthority consisting of a Chairman to be appointed by the Federal Government and \r\nfour members, one from each Province, to be appointed by the Federal Government \r\nafter considering tile recommendations of the respective Provincial Governments. \r\n(2) There shall be a Vice -Chairman of  the Authority,  appointed from \r\namongst the members for a period of one year, by rotation, in the following order, \r\nnamely: \r\n(i) the member representing the Province of Baluchistan; \r\n(ii) the member representing the Province of North-west Frontier; \r\n(iii) the member representing the Province of the Punjab; and \r\n(iv) the member representing the Province of Sind. \r\n (3) [The Chairman shall be an eminent professional of known integrity \r\nand competence with at least twenty years of related experience in law, business, \r\nengineering, finance, accounting, econo mics, the electric utility business, public \r\nadministration or management]\r\n1\r\n \r\n                                                           \r\n1Sub. for “The Chairman shall be an eminent professional of known integrity and competence with at least twenty years of \r\nrelated experience in law, business, engineering, finance, accounting, ec onomics or the electric utility business” by  the \r\nRegulation of Generation, Transmission and Distribution of Electric Power (Amendment) Ordinance, 2008 (valid upto 20-\r\n06-2008). \r\nProvided that the Chairman shall preferably be a person who is or has been \r\na judge of a HighCourt or the Supreme Court.]\r\n2\r\n \r\n(4) Every member shall be a professional of known integrity and \r\ncompetence with at least fifteen  years of related experience in law, business, \r\nengineering, finance, accounting, economics or the electric utility business. \r\n(5) The Chairman and a member shall, unless he resigns or is removed \r\nfrom office earlier as hereinafter provided, hold office for a term of four years and \r\nshall be eligible for re-appointment for similar term: \r\nProvided that \r\n3\r\n[a Chairman or a member] shall not be appointed under sub -\r\nsection (1) if he has already attained the age of sixty-five years. \r\n(6) No act or proceeding of the Authority shall be invalid by reason only of \r\nthe existence of a vacancy in, or defect in, the constitution of the Authority. \r\n(7) The principal office of the Authority shall be in Islamabad and it may \r\nset up offices at such place or places as it may deem appropriate. \r\n4. Resignation and removal of Chairman, etc.– (1) The Chairman, or a \r\nmember may, by writing under his hand, resign from his office. \r\n(2) The Chairman or a member may be removed by the Federal \r\nGovernment from his office  if, on an inquiry by the Federal Public Service  \r\nCommission, he is  found incapable  of perf orming the functions of his office by \r\nreason of mental or physical incapacity or has been found guilty of misconduct. \r\n5. Meetings of the Authority, etc.– (1) The meetings of the Authority shall be \r\npresided over by the Chairman or, in his absence, the Vice-Chairman. \r\n (2) Three members shall constitute a quorum for meetings of the \r\nAuthority requiring a decision by the Authority. \r\n(3) The members shall have reasonable notice of the time and place of the \r\nmeeting and the matters on which a decision by the Authori ty shall be taken in such \r\nmeeting. \r\n(4) The decision of the Authority shall be taken by the majority of its \r\nmembers present, and in case of a tie, the person presiding the meeting shall have a \r\ncasting vote. \r\n6.  Decisions of the Authority.– All orders, determinations and decisions of \r\nthe Authority shall be taken in writing and shall identify the deter mination of the \r\nChairman and each member. \r\n7. Powers and functions of the Authority .– (1) The Authority shall  be \r\nexclusively responsible for regulating the provision of electric power services. \r\n(2) In particular and without prejudice to the generality of the foregoing \r\npower, only the Authority, but subject to the provisions of sub-section (4), shall– \r\n(a) grant licenses for gener ation, trans mission and distrib ution of electric \r\n                                                           \r\n2Added by the Regulation of Generation, Transmission and Distribution of Electric Power (Amendment) Ordinance, 2001. \r\n3Subs. for “a Chairman or a member” by ibid. \r\npower; \r\n(b) prescribe procedures and standar ds for  investment program mes by \r\ngeneration, transmission and distribution companies; \r\n(c) prescribe and enforce perfor mance standards  for generation, \r\ntransmission and distribution companies; \r\n(d) establish a uniform system of accounts by generation, transmission \r\nand distribution companies; \r\n(e) prescribe fees including fees for grant of licenses and renewal thereof; \r\n(f) prescribe fines for contravention of the provisions of this Act and \r\n(g) perform any other function which is incidental or consequential to any \r\nof the aforesaid functions. \r\n(3) Notwithstanding the provisions of sub -section (2) and without prejudice \r\nto the generality of the power conferred by sub-section (1) the Authority shall– \r\n(a) determine tariff, rates, charges and other terms and conditions for \r\nsupply of electric power services by the generation, transmission and \r\ndistribution companies and recommend to the Federal Government for \r\nnotification; \r\n(b) review organizational affairs of generation, transmission and \r\ndistribution companies to avoid any adverse effect on the operation of \r\nelectric power services and for continuous and efficient supply of such \r\nservices; \r\n(c) encourage uniform industry standar ds and code of conduct for \r\ngeneration, transmission and distribution companies; \r\n(d) tender advice to public sector projects; \r\n(e) submit reports  to the Federal Govern ment in respect  of activities of  \r\ngeneration, transmission and distribution companies; and \r\n(f) perform any other function which is incidental or consequential to any \r\nof the aforesaid functions. \r\n(4) Notwithstanding anything contained in this Act, the Government of a \r\nProvince may construct power houses and grid stations and lay transmission lines \r\nfor use within the Province and de termine the tariff for distribution of  electricity \r\nwithin the Province. \r\n(5) Before approving the tariff for the supply of electric power by \r\ngeneration companies using hydro-electric plants, the Authority shall consider the \r\nrecommendations of the Government of the Provin ce in which such gen eration \r\nfacility is located. \r\n(6) In performing its functions under this Act, the Authority shall, as far \r\nas practicable, protect the interests of consumers and companies providing electric \r\npower services in accordance with guidelines, not inconsistent with the provisions of \r\nthis Act, laid down by the Federal Government. \r\n8. Remuneration, etc., of Chairman and members.– (1) The Chairman and \r\nmembers shall be  paid such emoluments as may be determined by the Federal \r\nGovernment which shall not be to their disadvantage during their term of office. \r\n(2) The Chairman and members shall not, during their term of office, \r\nengage themselves in  any other service, business, vocation or employment and \r\nbefore the expiration of two years thereof enter into the employment of, or accept \r\nany advisory or consultancy relationship with, any person engaged  in the \r\ngeneration, transmission or distribution of electric power in Pakistan or any related \r\nundertaking. \r\n(3) The Chairman and members shall not have any direct or indirect \r\nfinancial interest, or have  any connection with any company connected with the \r\nprovision of electric power services for so long as he holds office and for a period of \r\ntwo years thereafter. \r\n9. Chairman, etc. to be public servant .– The Chairman, members, staff, \r\nexperts, consultants, advisors and other employees of the Authority, when acting \r\nor purporting to act in pursuance of any of the provisions of this Act or the rules \r\nand regulations, shall be deemed to be public  servants within the meaning of \r\nsection 21 of the Pakistan Penal Code, 1860 (Act XLV of1860). \r\n10. Staff and advisers, etc.– (1) To carry out the purposes of this Act, the \r\nAuthority may, from time to time, employ officers, members of its staff, experts, \r\nconsultants, advisors and other employees on such ter ms and conditions as it may \r\ndeem fit. \r\n(2) All officers, members of staff, experts, consultants, advisors and \r\nother employees e mployed by the Authority shall not be deemed to be civil \r\nservants within the meaning of the Civil Servants Act, 1973 (Act LXXI of 1973). \r\n11. Tribunals.– The Authority may, from amongst its professional staff, \r\nestablish special tribunals for resolving contractual disputes between licensees or \r\nsuch other matters as the Authority may assign. \r\n12. Delegation.– The Authority may delegate to the Chairman, a member or \r\nany of its officers or a special tribunal constituted under section 11, all or any of its \r\npowers, functions or duties under this Act, except– \r\n(a) the power to grant, reject, a mend, vary or  revoke licenses or a ny \r\ncondition thereof;  \r\n(b) the power to determine or modify tariffs; \r\n(c) the power to approve, disapprove or modify an investment program or \r\na power acquisition program; \r\n(d) the power to make or repeal rules and regulations made under this Act; \r\nand \r\n(e) the power to make orders on an application for review of its orders. \r\n13. Funds.– (1) The operations of the Authority shall be funded from– \r\n(a) grants from the Federal Government, including an initial grant of one \r\nhundred million rupees; and \r\n(b) fees and fines collected by it as prescribed from time to time. \r\n14. Accounts.– (1) The Authority shall maintain complete and accurate books of \r\naccounts of its actual expenses and receipts. \r\n(2) The Accounts of the Authority shall be audited annually  by the Auditor \r\nGeneral of Pakistan. \r\nCHAPTER III \r\nLICENSES \r\n15. Generation licence.– (1) No person shall except under the authority of a \r\nlicence issued by  the Authority under this Act and subject to the conditions \r\nspecified in this Act and as may be i mposed by the Authority, cons truct, o wn or \r\noperate a generation facility. \r\n(2) An application for the grant of a l icence for generation facility shall \r\nspecify–  \r\n(i) the type of facility for which the licence is applied; \r\n(ii) the location of the generation facility; and \r\n(iii) the expected life of the generation facility. \r\n(3) The Authority may, after such enquiry as it may deem appropriate \r\nand subject to the conditions specified in this Act and as it may impose, grant a \r\nlicence authorizing the licensee to construct, own or operate a conne cted \r\ngeneration facility. \r\n(4) In the case of a generation facility connecting directly or indirectly to \r\nthe transmission facilities of the national grid company, the licensee shall make the \r\ngeneration facility available to the national grid company for the safe, reliable, non-\r\ndiscriminatory, economic dispatch and operation of the national transmission grid \r\nand connected facilities; subject  to the compensation fixed by the Authority for \r\nvoltage support and uneconomic dispatch directed by the national grid company. \r\n16. Transmission licence.– (1) No person shall except under the authority of \r\na licence issued  by the Authority under this Act and subject to the conditions \r\nspecified in this Act and as may be i mposed by the Authority, engage in  the \r\ntransmission of electric power. \r\n(2) An application for a licence for the trans mission of electric power shall \r\nspecify– \r\n(i) the type of service for which the licence is being sought; and \r\n(ii) the territory with location maps and plans to which ele ctric power shall \r\nbe transmitted. \r\n17. National Grid Company.– (1) The Authority may, after such enquiry as it \r\nmay deem appropriate and subject to the conditions specified in this Act and as It \r\nmay impose, grant a licence authorizing the licensee, to engage in the transmission \r\nof electric power: Provided that only one such licence s hall be granted at any one \r\ntime. \r\n(2) The licensee referred to in su b-section (1) shall have exclusive right to \r\nprovide trans mission service in the territory specified in  such licence except the \r\nterritory served by KESC. \r\n18.  Responsibilities of National Grid Company.– (1) The national grid \r\ncompany shall be responsible  to operate and provide safe, reliable transmission \r\nand interconnection services on a non discri minatory basis, including to a bulk \r\npower consumer who proposes to become directly connected to its facilities. \r\n(2) Without prejudice to the foregoing responsibi lities, the national g rid \r\ncompany shall– \r\n(a) make available to the general public the tariff specifying the \r\nAuthority's approved rates, charges and other terms and conditions \r\nfor transmission and interconnection services; \r\n(b) not levy any rate or charge or impose any condition for the \r\ntransmission of electric power which has not been approved by the \r\nAuthority as a tariff; \r\n(c) not cause a division or any associated undertaking to engage in \r\ngeneration and distribution: \r\nProvided that this clause shall not apply to the KESC and WAPDA \r\nso long as their electric systems remain integrated; and \r\n(d) develop, maintain and publicly make available, with the prior approval \r\nof the Authority,  an investment program for satisfying its service \r\nobligations and acquiring and selling its assets. \r\n19. Special purpose transmission licence.– Notwithstanding anything \r\ncontained in section 17, the Authority may, in the public interest, grant a licence \r\nauthorizing the licensee to engage in the construction, ownership maintenance and \r\noperation of specified transmission facilities on the conditions that the licensee shall– \r\n(a) provide transmission and inter-connection services to the national grid \r\ncompany and to others, wherever necessary, at such rates, charges \r\nand terms and conditions as the Authority may determine; \r\n(b) purchase interconnection service from the national grid company as \r\nmay be necessary and  to connect its facilities to the national \r\ntransmission grid at the rates, charges and ter ms and conditions \r\ndetermined by the Authority; \r\n(c) make its transmission facilities available for operation by the national \r\ngrid company consistent  with applicable instruc tions established by \r\nsuch company; \r\n(d) follow the performance standards laid down by the Authority for \r\ntransmission of electric power, including safety, health and \r\nenvironmental protection instructions issued by the Authority or any \r\nGovernment agency; \r\n(e) make public the tariff specifying the rates, charges and other terms \r\nand conditions of service for transmission and interconnection services \r\ndetermined by the Authority; and \r\n(f) maintain accounts in accordance with the manner and procedure \r\nprescribed by the Authority. \r\n20. Distribution licenses.– (1) No person shall, except under the authority of a \r\nlicence issued by the Authority under this Act and subject to the c onditions specified \r\nin t his Act and as may be imposed by the Authority, engage in the  distribution of \r\nelectric power. \r\n(2) An application for a licence for distr ibution of electric po wer shall \r\nspecify–  \r\n(i) the type of service for which licence is being sought; \r\n(ii) the territory in which electric power shall be distributed; and \r\n(iii) the source and scope of electric power and rates paid by it. \r\n21. Duties and responsibilities of distribution licensees.– (1) The Authority \r\nmay, after such enquiry as it may deem appropriate and subject to the conditions \r\nspecified in this Act and as it may impose, grant a licence for d istribution of electric \r\npower. \r\n(2) The licensee shall– \r\n(a) possess the exclusive right to provide, for such period as may be \r\nspecified in the lice nce, distribution service and to make sales of \r\nelectric power to consumers in the ter ritory sp ecified in the lice nce \r\nand to frame schemes in respect of that territory: \r\nProvided that a generation company may make sales of electric power to \r\nbulk- power consumers within such territory as the Authority may, subject to section \r\n22, for a period of fifteen years, allow; \r\n(b) be responsible to provide distribution service and make sale of \r\nelectric power within its territory on a non-discriminatory basis to all the \r\nconsumers who meet the eligibility criteria laid down by the Authority: \r\nProvided that– \r\n(i) the licensee may not be required to make sale of electric power \r\nto a bulk -power consu mer who has contracted for electric \r\npower supply from another supplier; and \r\n(ii) the licensee may disconnect the provision of electric power to \r\na consumer for default  in payment of power charges or to a \r\nconsumer who is involved in theft of electric power; \r\n(c) publicly make available tariff specifying the Authority's approved \r\nrates, charges and other terms and conditions for distribution s ervices \r\nand power sales to consumers; \r\n(d) establish, within three months of the Issue of its licence for \r\ndistribution of electric power and make available to pu blic, instructions \r\nspecifying– \r\n(i) procedures for obtaining service; and \r\n(ii) the manner and procedure for metering, billing and collection of' \r\nthe licensee's approved  charges and disconnection in case of \r\nnon- payment of charges, electric power theft and use of energy \r\nfor purposes other than for which it was supplied  and \r\nprocedures for re-connection and recovery of arrears and \r\nother charges; \r\n(e) make its transmission facilities available for operation by the national \r\ngrid company consistent with ap plicable instruc tions established by \r\nsuch company; \r\n(f) follow the performance standards laid down by the Authority for \r\ndistribution and trans mission of electric power, including safety, \r\nhealth and environmental protection instructions issued by the \r\nAuthority or any Governmental agency; \r\n(g) maintain accounts in accordance with the manner and procedure \r\nlaid down by the Authority; and \r\n(h) develop, maintain and publicly make available, with the prior approval \r\nof the Authority,  an investment program for satisfying its service \r\nobligations and acquiring and selling its assets. \r\n22. Sale to bulk-power consumers.– (1) Notwithstanding anything contained in \r\nsection 21, for a period of fifteen years from the commencement of this Act, the \r\nAuthority may permit a generation  company or a distribution company to sell \r\nelectric power to bulk-power consumers located  in the service territory of another \r\ndistribution company and such permission shall be granted– \r\n(i) on a case to case basis on an application made in writing by a \r\ngeneration company or a distribution company; and \r\n(ii) if the bulk-power consumer has not defaulted in previous charges of \r\nelectric power to any other distribution company. \r\n(2) Where a bulk-power consumer intends to stop purchase of electric \r\npower from a distribution co mpany, it shall convey its intention by notice in \r\nwriting three years before such stoppage: \r\nProvided that such consumer shall continue to make payments to the \r\ndistribution company equal to the amount of cross-subsidy for uneconomic service \r\nfor which it would otherwise have provided through purchase of electric power by \r\nthe bulk power consumer. \r\n23. Sale of electric power to other distribution companies.– A distribution \r\ncompany may sell  electric power to other distribution companies and distribute \r\nelectric power sold by generation companies to other distribution companies or to \r\nbulk-power consumers within its service territory subject  to the provisions of \r\nsection 22 in accordance with the rates, charges and other terms and conditions of \r\nservice for such sales as approved by the Authority. \r\n24 Licensees to be companies.– Except the WAPDA, the SHYDO or any \r\nother person specially  exempted by the Authority, a generation, transmission or \r\ndistribution licence shall not be granted  to any person unless it is a company \r\nregistered under the Companies Ordinance, 1984 (XLVII of 1984). \r\n25. Licences of Territory Served by KESC.– (1) Notwithstanding anything \r\ncontained in this Act and subject to the provisions of this section, the Authority may \r\ngrant licenses for generation, transmission and distribution of electric power to one \r\nor more licensees for the territory served by the KESC at the time of commencement \r\nof this Act. \r\n(2) For a period of six months from the commencement of this Act, the \r\nKESC shall be deemed to be a licensee under this Act and, shall during the said \r\nperiod apply for an appropriate licence in accordance with the provisions of this Act. \r\n(3) Where a licence under this section is granted to the KESC, the \r\nconditions applicable to a licensee under this Act for generation, transmission and \r\ndistribution of electric power, as the case may be, shall equally be applicable to the \r\nKESC. \r\n26. Modifications.– If the Authority is of the opinion that it is in the public \r\ninterest, it may, with the consent of the licensee, amend or vary the conditions of \r\nany licence issued under this Act and  in the absence of licensee's consent, the \r\nAuthority shall conduct a public hearing on whether the proposed  amendment or \r\nvariance is in the public interest and shall make a determination consistent with the \r\noutcome to this hearing. \r\n27. Assignment of licence prohibited.– A licensee for generation, transmission \r\nand distribution  of electric power shall not, without the prior approval of the \r\nAuthority, surrender, assign or transfer its licence to any person. \r\n28. Suspension and revocation.– (1) The Authority may suspend or revoke \r\nany licence issued under this Act for consistent failure of the licensee to comply \r\nwith the conditions of the licence: \r\nProvided that before taking action under this section, the Authority shall \r\nissue a notice to show  cause and may provide an opportunity to rectify the \r\nomission subject to such conditions as the Authority may specify. \r\n(2) Where the Authority revokes or suspends a licence, it may undertake \r\nall or any of the following actions for continuance of the fa cilities covered under  the \r\nlicence, namely– \r\n(a) permit the lice nsee to continue operating such facilities  under such \r\nterms and conditions as the Authority may specify; \r\n(b) contract with another person to immediately t ake over the operation of  \r\nthe facilities; or \r\n(c) appoint an administrator to take over the operation of the facilities. \r\n(3) The actions specified in sub-section (2) may continue until a \r\nsuccessor licensee takes over  the charge of  the facilities on such terms and \r\nconditions as the Authority may determine, including  payment of compensation \r\nfor the plant, machinery and other equipment installed at a facility of the licensee \r\nwhose licence was revoked. \r\n29. Penalties.– In addition to any penalty to which a licensee may be liable under \r\nsection 28, the Authority may impose a fine on the licensee which may extend to \r\nthree hundred thousand rupees for  each violation for each day and where any \r\ncontravention continues, may impose a higher penalty as may be prescribed: \r\nProvided that the licensee shall, before imposition of any penalty under this \r\nsection, be given a notice to show cause and be provided  with an opportunity of \r\nbeing heard. \r\n30. WAPDA and SHYDO to be licensees.– (1) Notwithstanding anything \r\ncontained in this Act  for a period of six months from the commencement of this \r\nAct, the WAPDA and the SHYDO shall be deemed to be licensees under this Act, \r\nand shall, during the said period, apply for appropriate licenses in accordance with \r\nthe provisions of this Act. \r\n(2) Where a licence under this section is granted to the WAPDA or the \r\nSHYDO, the conditions  applicable to a licensee under this Act for generation, \r\ntransmission and distribution of electric power, as the case may be, shall equally be \r\napplicable to WAPDA or SHYDO. \r\n31. Tariff.– (1) As soon as may be, but not later than six months from the \r\ncommencement of this Act, the Authority shall determine and prescribe procedures \r\nand standards for determination, modification  or revision of rates, charges and \r\nterms and conditions for generation of electric power, trans mission, inter-\r\nconnection, distribution services and power sales to consumers by licensees and \r\nuntil such procedures and standards are prescribed, the Authority shall determine, \r\nmodify or revise such rates, charges and terms and conditions in accordance with \r\nthe directions issued by the Federal Government[: \r\n4\r\n[Provided that the Authority shall, on quarterly basis, determ ine overall electricity \r\ntariff and intimate the same to the Federal Government for notification in the official \r\nGazette.] \r\n(2) The Authority while determining the standards referred to in subsection \r\n(1) shall–  \r\n(a) protect consumers against monopolistic and oligopolistic prices; \r\n(b) keep in view the research, development and capital investment \r\nprogram costs of licensees; \r\n(c) encourage efficiency in licensees' operations and quality of service; \r\n(d) encourage economic efficiency in the electric power industry; \r\n(e) keep in view the economic and social policy objectives of the \r\nFederal Government; and \r\n(f) determine tariffs so as to eli minate exploitation and minimize economic \r\ndistortions.  \r\n(3) The procedures established under sub-section (1) shall include– \r\n(a) time frame for decision by the Authority on tariff applications; \r\n(b) opportunity for customers and other interested parties to \r\nparticipate meaningfully in the tariff approval process; and \r\n(c) protection for refund, if any, to custo mers while tariff decisions \r\nare pending. \r\n(4) Notification of the Authority's approved tariff, rates, charges, and \r\nother terms and conditions  for the supply  of electric power services by \r\ngeneration, transmission and distribution companies shall be made, in the official \r\n                                                           \r\n4by the Regulation of Generation, Transmission and Distribution of Electric Power (Amendment) Ordinance 2009. \r\nGazette, by the Federal Government upon intimation by the Authority  [within a \r\nperiod of fifteen days of such intimation except where the Federal Government \r\nrefers the matter to the Authority for reconsideration under sub-section (4A)] \r\n[Provided further that the Authority shall, on a monthly basis and not later \r\nthan a period of seven  days, review the fuel charges in the approved tariff on \r\naccount of any variation whatsoever and notify such revision in the official Gazette \r\nfor the purposes of approved tariff applicable with effect from the said notification.]\r\n5\r\n \r\n[(4A) The Federal Government may, as soon as possible but not later \r\nthan fifteen days of rec eipt of the Authority’s intimation, require the Authority to \r\nreconsider its determination of tariff, rates, charges and other terms and conditions \r\nmade under sub-section (1) and the Authority shall reconsider and determine the \r\nsame anew within a period of fifteen days from the  date of the reference by the \r\nFederal Government. \r\n(4B) Within three days of the expiry of the period available to the \r\nAuthority under sub- section (4A), the Federal Government shall notify in the official \r\nGazette,– \r\n(a) the tariff reconsidered and determined by the Authority under sub-\r\nsection (4A), if available; or \r\n(b) where the Authority has not concluded the reconsideration, the tariff \r\ndetermined by the Authority under sub-section (1). \r\nInserted by ibid. \r\n6\r\n[Provided that the Federal Government may, as soon as may be, but not \r\nlatter than fifteen days  of receipt of the Authority's intimation, require the Authority \r\nto reconsider its deter mination of such tariff, rates, ch arges and oth er terms a nd \r\nconditions. Whereupon the Authority shall, within fifteen days, determine these \r\nanew after reconsideration and intimate the same to the Federal Government: \r\nProvided further that the Authority shall, on a monthly basis  review and \r\nrevise the approved tariff on account of any  variations in the fuel charges and \r\npolicy guidelines as the Federal Government may issue in this behalf and \r\nrecommend the tariff so re vised to t he Federal Government f or notification in the \r\nofficial Gazette.” by ibid.] \r\n (4C) [Notwithstanding anything contained in this section, the Authority \r\nshall continue to conclude its reconsideration under sub-section(4A) and the effect \r\nof such reconsideration shall be adjusted by the Authority in the tariff, rates, \r\ncharges or other terms and conditions determined by it under sub-section(1) for the \r\nsubsequent period.]\r\n7\r\n \r\n                                                           \r\n5\r\nInserted by ibid. \r\n6Sub. for “Provided that the Federal Government may, as soon as may be, but not latter than fifteen days  of receipt of the \r\nAuthority's intimation, require the Authority to reconsider its determination of such tariff, rates, charges and other terms and \r\nconditions. Whereupon the Authority shall, within fifteen days, determine these anew after reconsideration and intimate \r\nthe same to the Federal Government: \r\nProvided further that the Authority shall, on a monthly basis  review and revise the approved tariff on account of any  \r\nvariations in  t he  fuel  charges  a nd  policy guidelines as  t he  Fede ral Government  may issue  in  t his  beha lf  a nd \r\nrecommend the tariff so revised to the Federal Government for notification in the official Gazette.” by ibid. \r\n7\r\nInserted by ibid \r\n(5) [Each distribution company shall pay to the Federal Government such \r\nsurcharge as the Federal Government, from time to time, notify in respect of each \r\nunit of electric power sold to the consumers and any amount paid under this sub-\r\nsection shall be considered as a cost incurred by the distribution co mpany to be \r\nincluded in the tariff determined by the Authority.]\r\n8\r\n \r\n32. Investment and power acquisition Programmes.– (1) The Authority \r\nshall, within eighteen  months from the commencement of this Act, prescribe \r\nprocedures and standards for the Authority 's prior approval of the transmission \r\ncompanies' and distribution companies' investment and power acquisition \r\nprogrammes. \r\n(2) Any procedure prescribed by the Authority under this section shall \r\nadvance the goal of minimizing regulatory oversight of contracts entered into by the \r\nnational gird company and distribution companies. \r\n(3) Any investment program or power acquisition program, approved by \r\nthe Authority under this section shall take into account the n ational energy plans \r\nissued by the Federal Government. \r\n(4) Upon the Authority's approval of an investment programmes or a \r\npower acquisition progra m, the Authority shall, subject to such terms and \r\nconditions including rates and charges of electric power, per mit the  distribution \r\ncompany to enter into long term contracts for power purchases. \r\n33. Organizational matters.– Subject to the procedures established by the \r\nAuthority under this  Act, the Authority may, in the public interest, with or without \r\nmodifications, approve the following activities by a  licensee for generation, \r\ntransmission and distribution, namely:– \r\n(a) the undertaking of a merger or a major acquisition or sale of facilities; \r\n(b) the expansion of the licensee’s business activities; and \r\n(c) the undertaking of a re -organization of the licen see’s business \r\nstructure. \r\n34. Performance Standards.– The Authority shall prescribe performance \r\nstandards for generation,  transmission and distribution companies to encourage \r\nsafe, efficient and reliable service, including standards for– \r\n(i) service characteristics such as voltage and stability; \r\n(ii) scheduled and unscheduled outages; \r\n(iii) reserve margins where applicable; \r\n(iv) time required to connect new customers; and \r\n(v) principles and priorities of load shedding. \r\n35. Industry standards and codes of conduct.– The Authority shall encourage \r\nthe develop ment of industry standa rds and unif orm codes of conduct so as to \r\nprovide– \r\n                                                           \r\n8Added by the Finance Act, 2008 \r\n(a) planning criteria for safety, r eliability and cost e ffectiveness of \r\ngeneration, transmission and distribution facilities; \r\n(b) construction practices and standards of such facilities;  \r\n(c) operating standards and procedures; \r\n(d) maintenance schedules; \r\n(e) maintenance of adequate spinning reserves and plans to satis fy \r\ndemand; \r\n(f) equipment specification and standardization; and \r\n(g) load-shedding and restoration procedures. \r\n36. Uniform system of accounts.– The authority  shall prescribe a uniform \r\nsystem of accounts which shall  be followed  by the licensee of generation, \r\ntransmission and distribution facilities within such period as may be prescribed. \r\n37. Review of public sector projects.– (1) For the purposes of co-ordination, in \r\nthe case of any public sector project, the advice of the Authority shall be sought \r\nby the agency planning to undertake such project. \r\n(2) The provision of sub-section (1) shall not apply to public sector \r\nprojects which do not supply electricity to the national grid. \r\nCHAPTER-IV \r\nADMINISTRATION \r\n38. Provincial offices of inspection.– (1) Each Provincial Government shall–  \r\n(a) establish offices of inspection that shall be empowered to– \r\n(i) enforce c ompliance with dist ribution co mpanies' in structions \r\nrespecting metering, billing, electricity consumption charges and \r\ndecision of cases of theft of energy; and \r\n(ii) make determination in respect of disputes over metering, billing \r\nand collection of tariff and  such powers may be conferred on the \r\nElectric Inspectors appointed  by the Provincial Government \r\nunder section 36 of the Electricity Act, 1910 (Act IX of 1910), \r\nexercisable, in addition to their duties under the said Act. \r\n(b) establish procedures whereby distribution companies and consumers \r\nmay bring violations  of the instructions in respect of metering, billing \r\nand collection of tariff and other connected matters before the office of \r\ninspection; and \r\n(c) enforce penalties deter mined by the Provin cial Govern ment for any \r\nsuch violation. \r\n(2) The Provincial Governments may, upon request by the Authority, \r\nsubmit to the Authority– \r\n(a) a copy  of any document in  the charge of  the Provincial  Government \r\nrelating to Provincial offices of inspection; and \r\n(b) other reports, statements and information as the Authority determines \r\nto be necessary or appropriate  for the Authority's periodic assessment \r\nof the effectiveness of inspection made by Provincial  Officers of \r\ninspection. \r\n39. Complaints.– (1) Any interested person, including a Provincial Government, \r\nmay file a written complaint with the Authority against a licensee for contravention \r\nof any provision of this Act or any order, rule, regulation, licence or instruction made \r\nor issued there under. \r\n(2) The Authority shall, on receipt of a complaint, before taking any action \r\nthereon, give notice  to the licensee or any other person against whom such \r\ncomplaint has been made to show cause and provide such licensee or such oth er \r\nperson an opportunity of being heard. \r\n40. Enforcement of orders of the Authority.– The Authority's determinations \r\non decisions by tribunals set up under section 11 of this Act shall be deemed to be \r\ndecrees of a civil court under the Code of Civil Procedure, 1908 (Act V of 1908). \r\n41. Sum payable to the Authority to be recoverable as la nd revenue .– All \r\nsums payable to the Authority in accordance with the provisions of this Act and the \r\nrules shall be recoverable as arrears of land revenue. \r\n42. Reports of the Authority.– (1) The Authority shall submit, to the Council of \r\nCommon Interests  and to the Federal Government, at the end of every financial \r\nyear, but before the last day of September of that year– \r\n(a) a report on the conduct of Its affairs for that year including anticipated \r\ndevelopments for the following year; and \r\n(b) report on the state of electric power services in the country identifying \r\nthe ownership, operation,  management, efficiency and control of \r\nelectric power facilities, amount of trans mission and generation \r\ncapacity, present and future demand of electricity, cost of electric \r\npower services and other matters relating to electric power services. \r\n43. Inspection by public.– (1) The Authority shall maintain public files that \r\nshall be kept open in convenient form for public inspection and examination \r\nduring reasonable business hours. \r\n(2) Subject to procedures and standards for confidentiality, the \r\nAuthority's public files shall inclu de all rele vant docu ments to be maintained and \r\nindexed as the Authority deems fit. \r\n(3) The Provincial Governments shall keep open in convenient form for \r\npublic inspection and examination during reasonable business hours all complaints, \r\nresponses and decisions relating to the Provincial inspection offices. \r\n44. Information.– The Authority may call for any information, required by it for \r\ncarrying out  the purposes of this Act from any person involved directly or \r\nindirectly, in the provision of electric  power services or any matter incidental or \r\nconsequential thereto. Any such person shall be lia ble to provide the prescribed \r\ninformation called by the Authority, failing which he shall be liable to a fine or other \r\npenalty as prescribed from time to time. \r\n45. Relationship to other laws.– The provisions of this Act, rules and \r\nregulations made and licenses issued there under shall have effect notwithstanding \r\nanything to the contrary contained in any other law, rule or regulation, for the time \r\nbeing in force and any such law, rule or regulation shall, to the  extent of any \r\ninconsistency, cease to have any effect from the date this Act comes into force and \r\nthe Authority shall, subject to the provisions of this Act, be exclusively empowered \r\nto determine rates, charges and other ter ms and conditions for electric power \r\nservices: \r\nProvided that  nothing in this Act shall affect the jurisdiction, powers or \r\ndeterminations of the Corporate Law Authority or the Monopoly Control Authority. \r\n46. Rules.– (1) The Authority may, with the approval of the Federal Government, \r\nby notification in the official Gazette, make rules to carry out the purposes of this Act. \r\n(2) Without prejudice to the generality of the foregoing powers, such \r\nrules may provide for:– \r\n(a) procedure for seeking no minations of members from  the Provincial \r\nGovernments; \r\n(b) the form and manner of applications to be made for a licence for \r\ngeneration, transmission or distribution facilities; \r\n(c) the fees and docu ments to be acco mpanied with the applications for \r\nlicenses; \r\n(d) determination of rates, fees, charges and  other terms and conditions of \r\nlicenses; \r\n(e) publication of rates and charges of electricity consumption, procedure \r\nfor metering, billing and collection of electric power charges by the \r\nlicensees; \r\n(f) procedure for resolving disputes amongst the licensees and consumers \r\nand the licensees; \r\n(g) procedure for submission of various reports to the Council of Common \r\nInterests or to the Federal Government and the manner of preparation \r\nof such reports; \r\n(h) procedure for inquiry and investigation into the affairs of an applicant \r\nfor a licence and for any contravention of any provision of this Act; \r\n(i) the manner and procedure of show cause notices; \r\n(j) safe, effective and least environ mentally har mful supply of electric \r\npower; \r\n(k) performance and industrial standards for supply of electric power; \r\n(l) standards for investment programmes or power acquisition \r\nprogrammes for transmission and distribution companies; \r\n(m) the seeking of information, and the fines or penalties for failure to \r\nfurnish information; and \r\n(n) any other matter incidental or consequenti al to t he i mplementation of  \r\nthis Act. \r\n47. Regulations.– (1) The Authority may, by notification in the official \r\nGazette, make regulations, not inconsistent with the provisions of this Act or the \r\nrules, for the carrying out of its functions under this Act. \r\n(2) Without prejudice to the foregoing powers, such regulations may \r\nprovide for appointment of its officers, members of staff and such other persons and \r\nthe terms and conditions of their service.",
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