The Andhra Pradesh Electricity Reform Act, 1998.
**THE ANDHRA PRADESH ELECTRICITY REFORM ACT 1998**

**ACT No. 30 OF 1998**

**ARRANGEMENT OF SECTIONS**

**SECTIONS**

**PART - I**

**PRELIMINARY**

**1. Short title, extent and commencement**
**2. Definitions**

**PART - II**

**ANDHRA PRADESH ELECTRICITY REGULATORY**
**COMMISSION**

**3. Establishment and constitution of the Commission**
**4. Constitution of the selection committee to select members**
**5. Conditions for appointment as member of the Commission**
**6. Term of office, conditions of service, etc., of members**
**7. Removal of Members**
**8. Appointment of the Secretary, Staff and Consultants of the**
Commission

**PART - III**
**PROCEEDINGS, POWERS AND FUNCTIONS OF THE**
**COMMISSION**

**9. Proceedings, powers and functions of the Commission**
**10. Powers of the Commission**
**11. Functions of the Commission**

**PART - IV**
**POWERS OF THE STATE GOVERNMENT**

**12. General powers of the State Government**

**PART - V**
**APTRANSCO**

**13. Constitution and functions of the APTRANSCO**

**PART - VI**
**LICENSING OF TRANSMISSION AND SUPPLY**

**14. Licensing**

**15. Grant of licences by the Commission**

**16. Exemptions from the requirement to have a licence**

**17. General Duties and Powers of the licensees**

**18. Revocation of licences**

**19. Amendment of licences**

**20. Provisions where licence is revoked**

**21. Restrictions on licensees and Generating Companies**

**22. Annual Accounts of Licensee**


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**PART - VII**

**REORGANISATION OF THE ELECTRICITY INDUSTRY**

**23. Reorganisation of State Electricity Board**

**24. Provisions relating to personnel**

**25. Payment of compensation or damages on transfer**

**PART - VIII**
**TARIFFS**

**26. Licensee’s revenues and tariff**

**27. Finances of lincesses**

**PART - IX**
**COMMISSION’S POWER TO PASS ORDERS AND**
**ENFORCE DECISIONS**

**28. Interim orders for securing compliance**
**29. Final orders for securing compliance**
**30. Effect and enforcement of interim and final Orders and emergency**
provisions
**31. Fines and charges**
**31 -A. General control of the Commission**

**PART - X**
**ADVISORY COMMITTEE, CONSUMER**
**CONSULTATION**

**32. Commission Advisory Committee**
**33. Consumer protection; standards of performance**
**34. Electricity supply; overall performance standards**
**35. Information with respect to Levels of Performance**
**36. Restriction on disclosure of information**


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**PART - XI**
**ARBITRATION AND APPEALS**

**37. Arbitration by the Commission**
**38. Appeals from decisions of Electrical Inspectors**
**39. Appeals against the orders of the Commission**

**PART - XII**
**OFFENCES AND PENALTIES**

**40. Penalty for contravention of section 14**
**41. Penalties for contravention of other provisions**
**42. Offences by companies**
**43. Power to compound offences**
**44. Cognizance of offences**
**45. Penalties and proceedings not to prejudice other actions**

**PART - XIII**
**MISCELLANEOUS**

**46. Recovery of fees, fines and charges**
**47. Application of fine and charges**
**48. No part of the fines or penalties imposed to be passed on**
**49. Protection of action taken in good faith**
**50. Bar of Jurisdiction**
**51. Power to remove difficulties**
**52. Proceedings before the Commission to be Judicial Proceedings**
**53. Members and staff of Commission to be public servants**
**54. Power to make regulations**
**55. Power to make rules**

**PART - XIV**
**EFFECT ON EXISTING CENTRAL LEGISLATION**

**56. Effect of the Act on the Indian Electricity Act, 1910 and the**
Electricity (Supply) Act, 1948
**57. Savings**

**Schedules**

**THE ANDHRA PRADESH ELECTRICITY REGULATORY COMMISSION**

**PART-I**
**THE COMMISSION’S FINANCE, ACCOUNTS AND AUDIT**

**I. Annual Financial Statement**
**II. Accounts and Audit**
**PART-II**
**GENERAL**

**III. Remuneration etc.**
**IV. Official Seal**
**V. Performance of Functions**


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**THE ANDHRA PRADESH ELECTRICITY REFORM ACT, 1998**

**ACT No.30 OF 1998**

[29[th] October, 1998]

**AN ACT TO PROVIDE FOR THE CONSTITUTION OF AN ELECTRICITY**
**REGULATORY COMMISSION, RESTRUCTURING OF THE ELECTRICITY**
**INDUSTRY RATIONALISATION OF THE GENERATION, TRANSMISSION**
**DESTRIBUTION** **AND** **SUPPLY** **OF** **ELECTRICITY** **AVENUES** **FOR**
**PARTICIPATION OF PRIVATE SECTOR IN THE ELECTRICITY INDUSTRY**
**AND GENERALLY FOR TAKING MEASURES CONDUCIVE TO THE**
**DEVELOPMENT AND MANAGEMENT OF THE ELECTRICITY INDUSTRY IN**
**AN EFFICIENT, ECONOMIC AND COMPETATIVE MANNER AND FOR THE**
**MATTERS CONNECTED THEREWITH OR INCIDENTAL THERETO.**

Be it enacted by the Legislative Assembly of the State of Andhra Pradesh
in the Forty-ninth Year of the Republic of India, as follows:
**PART - I**
**PRELIMINARY**

**1.Short title, extent and commencement - (1) This Act may be called the**
Andhra Pradesh Electricity Reform Act, 1998.

(2) It extends to the whole of the State of Andhra Pradesh.

(3) It shall come into force on such date as the State Government may, by
notification, appoint.

**2. Definitions - In this Act, unless the context otherwise requires,-**

(a)“area of transmission” means the area within which the holder of
a transmission licence is for the time being authorised by licence to
transmit energy in accordance with the conditions prescribed;

(b) “APTRANSCO” means the Transmission Corporation of Andhra
Pradesh Limited incorporated as a transmission company under the
Companies Act, 1956 (Central Act 1 of 1956) and as referred to in
section 13 of this Act;

(c) **“Commission” means the Andhra Pradesh Electricity Regulatory**
Commission constituted under sub-section (1) of section 3;

(d)“licence” means a licence granted under section 15 of this Act;

(e)“licensee” or “licence holder” means a person licensed under
section 14 of the Act to transmit or supply energy including
APTRANSCO;

(f) “member or members” means the members of the Commission
and shall include the Chairman of the Commission;

(g)“notification” means a notification published in the Andhra
Pradesh Gazette and the word “notified” shall be construed
accordingly;

(h)“prescribed” means prescribed by the rules or regulations made
under this Act;

(i) “regulations” means regulations made by the Commission under
this Act;

(j) “rules” means rules made by the State Government under this


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Act;

(k) **“selection** **committee”** means the selection committee
constituted under section 4 of this Act;

(l) “State” means the State of Andhra Pradesh;

(m) “State Government” means the Government of the State;

(n) “supply licence” means a licence under sub-section (1)(b) of
section 15;

(o) “transmission licence” means a licence under subsection (1) (a)
of section 15;

(p) “transmit” in relation to electricity means the transportation or
transmission of electricity by means of a system operated or
controlled by a licensee which consists, wholly or mainly, of extra
high voltage and extra high tension lines and electrical plant and is
used for transforming and for conveying and/or transferring
electricity from a generating station to a sub-station, from one
generating station to another or from one sub-station to another or
otherwise from one place to another;

(q) words and expressions used but not defined in this Act and
defined in the Electricity (Supply) Act, 1948 (Central Act 54 of 1948)
have the meanings respectively assigned to them in that Act;

(r) words and expressions used but not defined either in this Act or in
the Electricity (Supply) Act, 1948 (Act No.54 of 1948)and defined in
the Indian Electricity Act, 1910 (Act No. IX of 1910) have the
meanings respectively assigned to them in that Act.

**PART - II**
**ANDHRA PRADESH ELECTRICITY REGULATORY COMMISSION**

**3. Establishment and constitution of the Commission - (1) For the purposes**
of this Act, within three months of the Act coming into force, the State
Government shall establish by notification a Commission to be known as the
Andhra Pradesh Electricity Regulatory Commission, which shall be a body
corporate with perpetual succession and a common seal with power to acquire
and hold property, movable and immovable, and shall, by the said name, be
entitled to sue and be sued.

(2) The Commission shall consist of a Chairman and two members to be
appointed by the State Government from persons selected by the selection
committee constituted for the purpose, in the manner provided in section 4 of
this Act. The State Government shall specifically designate one of the three
members as the Chairman. The inter-se-seniority of the other two members
shall be indicated in the orders of appointment.

(3) When the Chairman of the Commission is unable to discharge the
functions owing to absence, illness or any other cause, the next senior member
of the Commission shall discharge the functions of the Chairman, until the day
on which the Chairman assumes office.

**4. Constitution of the selection committee to select members - (1) The**
State Government shall expeditiously constitute a selection committee, as often
as may be required to select persons for appointment as members of the
Commission, which shall consist of the following, namely:
(i) a retired Chief Justice of any High Court or a retired judge of
the Supreme Court.                  -– Chairman

(ii) Chief Secretary to the Government of Andhra


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Pradesh                               -- Member

(iii) the Chairman of the Central Electricity Authority -Member

(2) The Secretary in-charge of the Energy Department, Government of
Andhra Pradesh shall be the Convenor for the above Selection Committee.

(3) The selection committee shall call for nominations from general public
and from professional bodies, consumer organisations by giving wide publicity,
so as to act expeditiously and shall generally finalise the selection within a
period of three months to enable the State Government to make the final
selection and appointment in time for the new member to take charge at the
expiry of the term of the retiring member:

Provided that the selection of the members shall not be restricted to the
nominations received.

(4) The selection committee shall submit the panel of two suitable
persons for each vacancy in the Commission who have such qualification and
experience as provided in the Act, to the State Government in alphabetical
order from among whom the State Government shall appoint one of the two as
a member of the Commission.

(5) All decisions of the selection committee shall be by majority.

(6) The method and manner of the selection and appointment of
members and designation of one of the members as Chairman of the
Commission shall be as prescribed by the State Government.

**5. Conditions for appointment as member of the Commission – (1) The**
members of the Commission shall be persons of ability, integrity and standing
who have adequate knowledge or experience of, or have shown capacity in
dealing with problems relating to engineering, economics, commerce, finance,
accountancy, law or administration and that at all times the selection and
appointment shall be made in accordance with the qualifications and
experience specified below:
(i) one member shall be a graduate electrical engineer with
adequate experience in generation or transmission or
distribution of electricity;

(ii) two members shall have graduate qualification with
specialisation and adequate experience in any of the
disciplines like law, economics, commerce, finance,
accountancy or administration:

Provided that at any point of time the Commission shall
not consist of more than one member from the same
discipline:
Provided further that persons below the age of fifty five
years shall not be eligible for appointment as Chairman or
member, as the case may be.

(2) A person shall be disqualified from being appointed a member of the
Commission if he is a member of Parliament or of any State Legislative
Assembly or any local authority or holds any post in a political party or if he
has any financial or other interest, directly or indirectly, in any private
company or undertaking dealing with any of the business referred to in clause
(a) of sub-section (3) subject to the conditions specified in sub-section (5).

(3) The persons who are considered for appointment as members of the
Commission shall intimate the convenor of the selection committee,

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(a) of any office, employment or consultancy agreement or
arrangement which he has in his own name or in any firm,
association of persons or body corporate, or in the names of any
relative, carrying on any of the following businesses, namely:
(i) generation, transmission, distribution or supply of electricity;
(ii) manufacture, sale or supply of any fuel for generation of
electricity;
(iii) manufacture, sale, lease, hire or otherwise; supply of or
dealing in machinery, plant, equipment, apparatus or fittings
for the generation, transmission, distribution, supply or use
of electricity; and
(iv) any entity providing professional services to any of the
businesses referred to in sub-clauses (i), (ii) and (iii) above;

(b) such other details and information as may be prescribed in the
rules.

**Explanation:- For the purpose of this section the term relative shall**
have the same meaning as defined under section 6 of the Companies
Act, 1956 ( Central Act 1 of 1956).

(4) The details received from the persons shall be placed for consideration
of the selection committee at the time of selection and recommendation of the
person for appointment as member.

(5) Each member of the Commission shall, before taking charge of the
office as member or within such time not exceeding three months after taking
charge as may be allowed by the State Government on the recommendation of
the selection committee, divest himself from the interest in the businesses
mentioned in sub-section (3) of this section as a condition of his appointment.

(6) If a person to be appointed as a member of the Commission holds any
office under the State or Central Government or any public sector corporation
or any Government body, he shall submit his resignation or take voluntary
retirement from that service and shall not seek reappointment in the service of
the State Government or any Government corporation or body dealing with the
power sector in Andhra Pradesh at any time within a period of two years after
he ceases to be a member of the Commission.

(7) So long as the person holds the office of the member and for a period
of two years after he ceases to be a member for any reason whatsoever, he shall
not acquire, hold or maintain, directly or indirectly any office, employment or
consultancy arrangement or businesses mentioned in sub-section (3) of this
section within or outside the State and if he acquires any such interest
involuntarily or by way of succession or testamentary disposition he will divest
himself from such interest within a period of three months of such interest
being acquired.

(8) Before recommending any person as a member of the Commission,
the selection committee, shall satisfy itself that the person does not have any
financial or other interest as referred to in sub-section (3) or otherwise which is
likely to affect prejudicially his functions as a member.

**6. Term of office conditions of service, etc., of members – (1) Every**
member shall hold office for a period of five years from the date of his
appointment as member or until the age of sixty-five years, whichever is earlier
and he shall not be eligible for re-appointment at any time after the expiry of
his term of appointment:

Provided that a member shall be eligible for appointment as Chairman
subject to his combined tenure in the Commission as Member and Chairman
shall not exceed five years:


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Provided further that the first three members shall be appointed for
varying periods of three years, four years and five years respectively so as to
avoid the retirement of all the members at the same time and ensure continuity
in the functioning of the Commission;

Provided also that no person shall be appointed as member after he has
attained the age of sixty two years so that he has a minimum tenure of three
years as member.

(2) The Chairman of the Commission and other members shall receive
such remuneration and other allowances as may be prescribed from time to
time under the rules:

Provided that the terms shall not be varied to their disadvantage
during the tenure of the appointment.

(3) The Chairman of the Commission and every other member shall
before entering upon his office, make and subscribe to an oath of office and of
secrecy in such form, in such manner and before such authority as may be
prescribed.

**7. Removal of Members - (1) The State Government may remove from office**
any member of the Commission in accordance with sub-section (2), who,
(a) has been adjudged as un-discharged insolvent; or

(b) has been convicted of an offence involving moral turpitude; or

(c) has become physically or mentally incapable of acting as such
member; or

(d) has without reasonable cause refused or failed to discharge his
functions for a period of at least three months; or

(e) ceases to fulfill any of the conditions or his appointment as
member; or

(f) has acquired such financial or other interest that can affect
prejudicially his functions as a member; or

(g)has conducted himself in a manner or has so abused his position
as to render his continuance in office prejudicial to the public interest
or to the objects and purpose of the Act.

(2) Except where a member admits the charge, in writing, no member of
the Commission shall be removed from his office on the grounds specified in
clauses (c), (d), (e), (f) and (g) of sub-section (1) until a sitting Judge of the High
Court of Andhra Pradesh, as recommended by the Chief Justice of the High
Court at the relevant time, has carried out an enquiry and has forwarded a
report to the State Government.

(3) The State Government shall act in accordance with the
recommendation in the final report under sub-section (2) and the State
Government shall communicate its decision to the member concerned within a
period of two months of the receipt of such report.

(4)  A member who has been removed shall not be eligible for reappointment as a member or in any other capacity in the Commission or in the
State Government or in any State Government undertakings.

(5) If the member removed under this section is the Chairman of the
Commission, he shall cease to be the Chairman of the Commission.

(6) The vacancy, caused by the removal of the member shall be filled
in the same manner as provided for the appointment of a member or
designation of the Chairman of the Commission.


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**8. Appointment of the Secretary, Staff and Consultants of the**
**Commission -(1) The Commission shall appoint a person as Secretary of the**
Commission to assist the Commission to discharge its functions.

(2) The Commission shall, in consultation with the State Government
determine the number, nature and categories of other officers and employees
required to assist the Commission in the discharge of its functions.

(3) The salaries and allowance payable to the members and the
administrative expenses including salaries, allowances and pensions payable to
or in respect of the Secretary, officers and other employees of the Commission,
shall be charged to the Consolidated Fund of the State.

(4) The method and manner of selection of the Secretary, officers and
other employees and the terms and conditions of their service may be
prescribed by the Commission by regulations with prior approval of State
Government.

(5) The Commission shall be entitled to appoint from time to time
consultants required to assist the Commission in the discharge of its functions
on terms and conditions to be decided by the Commission.

**PART - III**
**PROCEEDINGS, POWERS AND FUNCTIONS OF THE**
**COMMISSION**

**9. Proceedings, powers and functions of the Commission -** (1) The
headquarters of the Commission shall be at Hyderabad in the State, but the
Commission shall be entitled to conduct its proceedings, consultations and
hearings at any place in the State.

(2) The Commission shall alone have the exclusive power to make
regulations for the conduct of its proceedings and discharge of its functions
and all such regulations framed shall be published in the Official Gazette.

(3) All decisions of the Commission shall be on the basis of majority of
the Members present and voting.

(4) The quorum for the meeting of the Commission shall be two and
each member shall have one vote and in case of equality of votes on any issue
or resolution, the Chairman or as the case may be the next senior member of
the Commission discharging the functions of the Chairman under sub-section
(3) of section 3 presiding over the meeting shall, in addition, have a casting
vote:

Provided that for a meeting of the Commission to review any previous
decision taken by the Commission, the quorum shall be that all members shall
be present.

(5) The Chairman of the Commission may instruct the Secretary to call
for a meeting of the Commission to be held at such time and at such place as
the Chairman may direct. In addition, any member of the Commission may
request a meeting of the Commission at any time by sending a notice in writing
to the other members under intimation of such notice to the Secretary. The
notice of all meetings shall be given to the member in writing, unless all the
members waive the notice in writing.

(6) The Commission shall be entitled to decide urgent matters by
circulation of the papers to members.
(7)  All decisions, directions and orders of the Commission shall be
in writing and shall be supported by reason. The decision, direction and orders
of the Commission shall be available for inspection by any person and copies of
the same shall also be made available in a manner the Commission may
prescribe.


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(8)  No act or proceeding of the Commission shall be deemed invalid by
reason only of some defect in the constitution of the Commission or by reason
of the existence of a vacancy or vacancies among its members.

**10. Powers of the Commission - (1) The Commission shall, for the purposes**
of any inquiry or proceedings under this Act shall have the powers as are
vested in a Civil Court under the Code of Civil Procedure, 1908 (Central Act 5
of 1908), while trying a suit in respect of the following matters, namely:
(a) the summoning and enforcing of attendance of any witness and
examining on oath;

(b) the discovery and production of any document or other material
object producible as evidence;

(c) the reception of evidence on affidavits;

(d) the requisition of any public record from any court or office;

(e) the issue of commission for examination of witnesses;

(f) the appearance of parties and consequences of non-appearance;

(g) the grant of adjournments at the hearing.

(2) The Commission shall have the power to require any person,
(a)  to produce before, and allowed to be examined and kept by an
officer of the Commission specified in this behalf, such books,
accounts, or other documents in the custody or under the control of
the person so required as may be specified or described in the
requisition, being documents relating to any matter concerning the
generation, transmission, distribution and supply or use of
electricity, the functioning of any undertaking involved in the above
areas and other matters, the examination of which the Commission
considers necessary or relevant for the purposes of this Act or the
discharge of the functions by the Commission under this Act; and

(b) to furnish to an officer so specified such information as may be
required for the purposes of, this Act or such other information as
may be in his possession in relation to any activity carried on by any
other person.

(3) For the purpose of enforcing the attendance of witnesses the local
limits of the jurisdiction of the Commission shall be the limits of the territory of
India.

(4) The Commission shall have the powers to review its decisions,
directions and orders.

(5) Where, during any inquiry or proceedings under this Act, the
Commission has any grounds to believe that any books or papers or
documents of, or relating to any unit or person in relation to which such
inquiry is being made or which the owner of such unit may be required to
produce in such inquiry, are being, or may be destroyed, mutilated, altered,
falsified or secreted, it may, by a written order authorise any officer of the
Commission to exercise the powers of entry, search and seizure as may be
exercised by an Inspector appointed for inspection under sections 240 and
240-A of the Companies Act, 1956 (Central Act 1 of 1956).

(6) Notwithstanding anything contained in any other law for the time
being in force, the Commission may, by a general or special order, call upon
any person including the generating companies or the licensees to furnish to
the Commission periodically or as and when required any information
concerning the activities carried on by such person related to generation,
transmission, distribution and supply or use of electricity, the connection
between such person and any other person or undertaking including such
other information relating to the organisation, business, cost of production and


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other requirements as may be prescribed to enable the Commission to carry
out its functions under this Act.

(7) In the discharge of its function the Commission shall be entitled to
and shall consult to the extent the Commission considers appropriate from
time to time such persons or group of persons who may be affected or are likely
to be affected by the decisions of the Commission.

(8) To exercise the powers conferred under this section to call for
information, details, books, accounts and other documents from any person
and make inquiry for the purposes of providing the same to the Central
Electricity Authority, the Central Government, the State Government or other
persons. The Central Electricity Authority, the Central Government and the
State Government shall be entitled to ask the Commission to make such
inquiry and provide the information, details and documents to them.

(9) All persons to whom notices may be issued shall have a statutory
obligation under this Act to duly, faithfully and effectively furnish the
information, details, books, accounts and other documents, which the
Commission considers relevant in connection with its functions under this Act
or which may be required to be obtained at the instance of the Central
Electricity Authority, the Central Government or the State Government as the
case may be and shall be proceeded with and punishable for any failure or
delay to comply with such requirements and the directions and orders issued
by the Commission.

(10) Notwithstanding anything contained in sections 12 to 16 and
sections 18 and 19 of the Indian Electricity Act, 1910 (Act No.IX of 1910), for
the placing of the electric supply lines, appliances and apparatus for
transmission, distribution and supply of energy, the Commission may, by order
in writing confer upon licensees or any other person engaged in the business of
transmission, distribution or supply of energy to the public under the Act,
subject to such conditions and restrictions as the Commission may provide,
any of the powers which the telegraph authority possess under the Indian
Telegraph Act, 1885 (Act XIII of 1885) with respect to placing of telegraph lines
and posts.

**11. Functions of the Commission - (1) Subject to the provisions of this Act,**
the Commission shall be responsible to discharge amongst others the following
functions, namely:
(a) to aid and advise, in matters concerning electricity generation,
transmission, distribution and supply in the State;

(b) to regulate the working of the licensees and to promote their
working in an efficient, economical and equitable manner including
laying down standards of performance for the licensees in regard to
services to consumers;

(c) to issue licences in accordance with the provisions of this Act and
determine the conditions to be included in the licences;

(d) to promote efficiency, economy and safety in the use of the
electricity in the State including and in particular in regard to quality,
continuity and reliability of service and enable to meet all such
reasonable demands for electricity;

(e) to regulate the purchase, distribution, supply and utilisation of
electricity, the quality of service, the tariff and charges payable
keeping in view both the interest of the consumer as well as the
consideration that the supply and distribution cannot be maintained
unless the charges for the electricity supplied are adequately levied
and duly collected;


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(f) to promote competitiveness and progressively involve the
participation of private sector, while ensuring fair deal to the
customers;

(g) to collect data and forecast on the demand and use of electricity
and to require the licensees to collect such data and forecast;

(h) to require licensees to formulate perspective plans and schemes in
co-ordination with others for the promotion of generation,
transmission, distribution and supply of electricity;

(i) to regulate the assets, properties and interest in properties
concerning or related to the electricity industry in the State;

(j) to lay down a uniform system of accounts among the licensees;

(k) to regulate working of licensees and promote their working in an
efficient economical and equitable manner; and

(l) to undertake all incidental or ancillary things.

(2) The Commission shall always act consistent with the objectives and
purposes for which the Commission has been established as an independent
statutory body corporate and all acts, decisions and orders of the Commission
shall be pursuant to and shall seek to achieve such objectives and purposes.

(3) Notwithstanding the provisions, of section 52 of the Indian Electricity


Act, 1910 (Central Act IX of 1910) or the provisions of section 3 (1) (ii) and
section 76 of the Electricity (supply) Act, 1948 (Central Act 54 of 1948), the
Commission shall have the power to act as arbitrator or nominate arbitrator or
arbitrators to adjudicate and settle the disputes arising between the licenses in
accordance with the regulations to be prescribed and this shall be a condition
precedent of the grant of licences.

**PART - IV**
**POWERS OF THE STATE GOVERNMENT**

**12. General powers of the State Government - (1) The State Government**
shall have the power to issue policy directions on matters concerning electricity
in the State including the overall planning and co-ordination. All policy
direction shall be issued by the State Government consistent with the objects
sought to be achieved by this Act and accordingly shall not adversely affect or
interfere with the functions and powers of the Commission including but not
limited to determination of the structure of tariffs for supply of electricity to
various classes of consumers.

(2) If any dispute arises between the Commission and the State
Government as to whether or not a question is a matter of policy or whether a
policy direction issued by the State Government adversely affects or interferes
with the exercise of the functions of the Commission, the same shall be
referred by the State Government to a retired judge of the Supreme Court in
consultation with the Chief Justice of the Supreme Court whose decision
thereon shall be final and binding.

(3) The State Government shall be entitled to issue policy directions
concerning the subsidies to be allowed for supply of electricity to any class or
classes of persons or in respect of any area in addition to the subsidies
permitted by the Commission while regulating and approving the tariff
structure provided that the State Government shall contribute the amount to
compensate such concerned body or unit affected by the grant of the subsidies
by the State Government to the extent of the subsides granted. The
Commission shall determine the amounts and the terms and conditions and
time frame on which such amounts are to be paid by the State Government.


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(4) The State Government shall consult the Commission in relation to
any proposed legislation or rules concerning any policy direction and shall duly
take into account the recommendation by the Commission on all such matters.

**PART - V**
**APTRANSCO**
**13. Constitution and functions of the “APTRANSCO” - (1) Not later than**
sixty days of the Act coming into force the State Government shall constitute
APTRANSCO to be incorporated and organised under the provisions of the
Companies Act, 1956 (Central Act 1 of 1956) as the Transmission Corporation
of Andhra Pradesh Limited, with the principal of objects of engaging in the
business of procurement, transmission and supply of electric energy.

(2) Subject to the powers of the State Government under section 12, the
APTRANSCO established by the State Government in terms of sub-section (1)
shall be the principal company to undertake all planning and co-ordination in
regard to transmission; undertaking the works connected with transmission,
determining the electricity requirements in the State in co-ordination with the
Generating companies, State Government, the Commission, the Regional
Electricity Boards, and the Central Electricity Authority; the operation of the
power system.

(3) APTRANSCO shall own the extra high voltage transmission system,
shall be responsible for the transmission system operation and shall operate
the power system in an efficient manner.

(4) APTRANSCO shall undertake the functions specified in this section
and such other functions as may be assigned to it by the licence to be granted
to it by the Commission under this Act.

(5) Upon the grant of licence to the APTRANSCO under clause (a) of subsection (1) of section 15 of this Act, the APTRANSCO shall discharge such
powers and perform such duties and functions of the Andhra Pradesh State
Electricity Board including those under the Indian Electricity Act, 1910 and the
Electricity (Supply) Act, 1948 or the rules framed thereunder as the
Commission may specify in the licence and it shall be the statutory obligation
of the APTRANSCO to undertake and duly discharge the powers, duties and
functions so assigned.

(6) Subject to the provisions of sub-sections (1) and (2) and to the overall
supervision and control of the APTRANSCO a number of subsidiary or
associated transmission companies may be established in the State and the
Commission may grant licences under the terms of this Act to such
transmission companies, in consultation with the APTRANSCO.

**PART - VI**
**LICENSING OF TRANSMISSION AND SUPPLY**

**14. Licensing - (1) No person, other than those authorised to do so by licence**
or by virtue of exemption under this Act or authorised to or exempted by any
other authority under the Electricity (Supply) Act, 1948, shall engage in the
State in the business of,
(a) transmitting electricity; or
(b) supplying electricity.

(2) Where any difference or dispute arises as to whether any person is
engaged or is not engaged or about to engage in the business of transmitting or
supplying electricity as specified in sub-section (1), the matter shall be referred
to the Commission and the decision of the Commission shall be final.

(3) The Commission shall have the power to order any unlicensed person
to cease operating and disconnect its apparatus.


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(4) Notwithstanding anything contained in any other provisions of this
Act and until the establishment of the Commission in terms of section 3, the
State Government shall have the power to grant provisional licences under this
section having a duration not exceeding twelve months to any person or
persons to engage in the state in the business of transmission or supply of
electricity on such terms and conditions as the State Government may
determine consistent with the provisions of this Act, subject to the following
conditions namely:
(a) upon the establishment of the Commission, each of the provisional
licences granted by the State Government shall be placed before the
Commission and shall be deemed to constitute an application for
grant of a licence by the Commission under the provisions of this Act;
and

(b) each provisional licence granted under this section shall cease to
be valid from the date notified by the Commission.

(5) The State Government, shall be entitled to confer on the provisional
licensees under sub-section (4) such powers, rights and authorisation as the
Commission is entitled to grant to the licensees under this Act.

**15. Grant of licences by the Commission - (1) The Commission may on an**
application made in such form and on payment of such fee, as may be
prescribed, grant a licence authorising any person to,
(a) transmit electricity in a specified area of transmission; or

(b) supply electricity in a specified area of supply including bulk
supply to licensees or any person.

(2) In respect of the grant of any such licence the following procedure
shall be followed namely:
(a) any person applying for a licence shall publish a notice of his
application in such manner, and with such particulars as may be
prescribed by the Commission within 14 days after making the
application;

(b) the Commission, shall not grant a licence until,
(i) all objections received relating to the application for the
licence have been considered by the Commission; provided that
no objection shall be considered by the Commission unless it is
received within three months of the date of the first publication
of the notice under clause (a) above; and

(ii) in the case of an application for a licence to supply or
transmit in an area which includes the whole or part of any
cantonment, aerodrome, fortress, arsenal, dockyard or camp or
of any building or place in the occupation of the Central
Government for defence purposes, the Commission shall
ascertain whether there is any objection to the grant of the
licence on the part of the Central Government;

(c) where an objection is received from any local authority concerned,
the Commission shall, if in its opinion the objection is insufficient,
record in writing and communicate to such local authority its reasons
for such opinion; and

(d) no application for a licence shall be made by any local authority
except pursuant to a resolution passed at a meeting of such authority
held after one month's previous notice of the same specifying the
purpose thereof has been given in the manner in which notices of
meetings of such local authority are usually given.


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(3) A licence shall prescribe the duration, extent to which and the terms
and conditions under which the transmission or supply of energy is to be made
and contain such other conditions as the Commission may consider
appropriate for achieving the purposes of the Act.

(4) Without prejudice to the generality of sub-section (3), the conditions
included in a licence by virtue of that sub-section may require the licensee to,
(a) enter into agreements on specified terms with other persons for
the use of any electric lines, electrical plant or plants and associated
equipment operated by the licensee;

(b) comply with any direction given by the Commission;

(c) act in accordance with the terms of the licence;

(d) refer all disputes arising under the licence for determination by
the Commission;

(e) furnish information, documents and details which the
Commission may require for its own purpose or for the purposes of
the Central or State Government or Central Electricity Authority;

(f) comply with the requirements of the India Electricity Act, 1910;
and the Electricity (Supply) Act, 1948 or rules framed thereunder in
so far as they are applicable;

(g) undertake such functions and obligations of the Andhra Pradesh
State Electricity Board under the provisions of the Indian Electricity
Act, 1910 and the Electricity (Supply) Act, 1948 as the Commission
may prescribe;

(h) obtain the approval of the Commission of such things that are
required under the licence conditions or for deviation from the same;

(i) notify the Commission of any scheme that he is proposing to
undertake including the schemes in terms of the provisions of the
Electricity (Supply) Act, 1948;

(j) purchase power in an economical manner and under a transparent
power purchase process; and

(k)supply in bulk to other licensees or to customers.

(5) Without prejudice to the generality of sub-section (3), the conditions
included in a licence granted by the Commission may require the holder of
such a licence to establish a tariff or to calculate its charges from time to time
in accordance with the requirements prescribed by the Commission.

(6) The provisions contained in the Schedule to the Indian Electricity Act,
1910 shall be deemed to be incorporated with, and to form part of every supply
licence granted under this Part save in so far as they are expressly varied or
excepted by the supply licence and shall, subject to any such additions,
variations or exceptions which the Commission is empowered to make having
regard to the purposes of the Act, apply to the undertaking authorised by the
licence in relation to its activities in the State:

Provided that where a supply licence is granted by the Commission for
the supply of energy to other licensees for distribution by them, then in so far
as such licence relates to such supply, the provisions of clauses IV, V, VI, VII,
VIII and XII of the said Schedule shall not be deemed to be incorporated within
the supply licence.

(7) The conditions included in a licence may contain provision for the
conditions to cease to have effect or be modified at such times, in such manner
and in such circumstances as may be specified in or determined by or under
the conditions.


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(8) Any provisions included by virtue of sub-section (7) above in a licence
shall have effect in addition to the provision made by sub-section (5) of section
18 and section 19 with respect to the amendment of the conditions of a licence.

(9) Unless indicated in the terms of a licence, the grant of a licence under
this section to a person shall not in any way hinder or restrict the grant of a
licence to another person within the same area of supply for a like purpose and
accordingly the licensee shall not claim any exclusivity.

(10) The licence granted by the Commission in term of this Act may
provide that the licensee shall have the powers and authority to take
appropriate actions for revenue realisation, prosecution for theft, meter
tampering, diversion of electricity, and all such and similar matters affecting
the distribution and supply of electricity to the consumer;

(11) The Commission shall be entitled to authorise the licensees and
persons to exercise such power and authority as the licensees and persons
could be given under the provisions of the Indian Electricity Act, 1910 and the
Electricity (Supply) Act, 1948.

**16. Exemptions from the requirement to have a licence-** (1) The
Commission may make regulations to grant exemptions from the requirement
to have a supply licence, but subject to compliance with such conditions, if
any, as may be specified in the order:

Provided that the Commission shall not, under any such regulation,
grant any exemption except with the consent,
(i) of the local authority, if any, constituted in the area where
energy is to be supplied;

(ii) in any case where energy is to be supplied in any area
forming part of any cantonment, aerodrome, fortress, arsenal,
dockyard or camp or any building or place in the occupation of
the Central Government for defence purposes, of the Central
Government;

(iii) in any area falling within the area of supply of a licensee, of
that licensee:

Provided that except in a case falling under clause (ii) no
such consent shall be necessary if the Commission is satisfied
that such consent has been unreasonably withheld.

(2) An exemption may be granted,
(a) to persons of a particular category; or
(b) to a particular person; or
(c) for a particular period;

and an exemption to persons of a particular category or to a particular person
shall be published in such manner as the Commission considers appropriate
for bringing it to the attention of that person or persons of that category and of
the public in general.

(3) The exemption granted may be revoked by the Commission at any
time for reasons to be recorded in writing.

(4) An exemption, unless previously revoked, shall continue in force for
such period as may be specified in or determined by or under the exemption.

(5) Every regulation or exemption made by the Commission under this
Act shall be published in the Official Gazette.


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**17. General Duties and Powers of the licensees - (1) It shall be the duty of**
the holder of a supply licence or a transmission licence in respect of a
particular area to develop, maintain and provide to the consumers or the
licensees as the case may be or any other person an efficient, co-ordinated and
economical system of electricity supply or transmission in the area of
transmission or area of supply, as the case may be.

(2) Each licensee and Generating Company in discharge of its duties
shall comply with the provisions of the regulations framed from time to time
governing the terms and conditions for the operation and maintenance of
power system and electric supply lines.

(3) Subject to sub-section (4) of section 12 and sections 13 to 19 of the
Indian Electricity Act, 1910 (Which relate to the carrying out of works) shall
have effect in relation to a person authorised by a licence under this Act to
transmit or supply electricity as if he is a licensee in that Act.

(4) Where any of the sections mentioned in sub-section (3) above is applied
to a licence holder by his licence, it shall have effect subject to such
restrictions, exceptions and conditions as may be included in the licence.

**18. Revocation of licences - (1) The Commission may inquire into the conduct**
or functioning of any licensee in carrying out the obligations under the Act or
rules or regulations framed thereunder or the terms and conditions of its
licence,
(a) upon receiving a complaint from any consumer or consumer
association or any trade association; or

(b) upon a reference made to it by the State Government or by the
Central Government or the Central Electricity Authority; or

(c) upon receiving a complaint from any company or person involved
in the generation, transmission, distribution or supply of electricity;
or

(d) upon its own knowledge or information derived from any source.

(2) Upon making such inquiry the Commission may, if in its opinion the
public interest so requires, revoke a licence in any of the following cases,
namely:
(a)where the licensee, in the opinion of the Commission, has
committed a willful or unreasonable default in doing anything
required of him by or under this Act, the Indian Electricity Act, 1910,
or the Electricity (Supply) Act, 1948, or rules made thereunder to the
extent applicable in the State read with the provisions of this Act;

(b)where the licensee commits a breach of any of the terms and
conditions of his licence the breach of which is expressly declared by
such licence to render it liable to revocation.

(c) where the licensee fails within the period specified in his licence or
any longer period which the Commission may allow by order,
(i) to show, to the satisfaction of the Commission, that he
is in a position to fully and efficiently discharge the
duties and obligations imposed on him by his licence;
and

(ii) to make the deposit or furnish the security required by
his licence; and

(d) where in the opinion of the Commission the financial position of
the licensee is such that he is unable to fully and efficiently discharge the
duties and obligations imposed on him by his licence.


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(3) Notwithstanding the provisions of sub-sections (1) and (2) where in its
opinion the public interest so requires, the Commission may, on the
application or with the consent of the licensee, and if the licensee is not a local
authority, after consulting the local authority concerned, if any, revoke a
transmission or supply licence as to the whole or any part of the area of
transmission or supply upon such terms and conditions as it thinks fit.

(4) No licence shall be revoked under sub-section (2) or (3) unless the
Commission has given to the licensee not less than three months notice in
writing stating the grounds on which it is proposed to revoke the licence and
has considered any cause shown by the licensee within the period of that
notice, against the proposed revocation and has given reasons for such
revocation.
(5) The Commission may, instead of revoking the licence, permit it to
remain in force subject to such further terms and conditions as it thinks fit to
impose and any further terms or conditions so imposed shall be binding upon,
and be observed by, the licensee, and be of like force and effect as if they were
contained in the licence.

**19. Amendment of licences - (1) The Commission may where in its opinion**
the public interest so permits or requires, on the application of the licensee and
if the licensee is not a local authority, on the application of the local authority
concerned or otherwise on its own may make such alterations and
amendments to the terms and conditions of a licence as it thinks fit taking into
account the objects and purposes of the Act:

Provided that no such alterations or amendments, other than an alteration
or amendment pursuant to a licence condition referred to in sub-section (7) of
section 15 or sub-section (5) of section 18 shall be made except with the
consent of the licensee.

(2) Where the licensee has made an application under sub-section (1)
proposing any alterations or amendments in his licence, the following
provisions shall apply,
(a) the licensee shall publish a notice of the application in the manner
and with the particulars as may be prescribed by the Commission;

(b) the Commission shall not make any alterations or amendments
until all objections received by it with reference to the application
within three months from the date of the first publication of the
notice have been considered; and

(c) in the case of an application proposing alterations or amendments
in an area of supply comprising the whole or any part of the
cantonment, aerodrome, fortress, arsenal, dockyard or camp or of
any building or place in the occupation of the Central Government for
defence purposes, the Commission shall not make any alterations or
amendments except with the consent of the Central Government.

(3) Before making any alterations or amendments in a licence otherwise
than on the application of the licensee, the Commission shall publish the
proposed alterations or amendments and consider all objections received by it
with reference to the proposed alterations or amendments within three months
from the date of the first publication of the notice.

**20.Provisions where licence is revoked - (1) Notwithstanding the provisions**
of sections 6 and 7 of the Indian Electricity Act, 1910 where the Commission
revokes a licence, under sub-section (2) of section 18, the following provisions
shall apply:
(a)the Commission shall serve a notice of revocation upon the
licensee and shall fix a date on which the revocation shall take effect
with effect from that date or with effect from the earlier date on which
the undertaking of the licensee is sold to a purchaser in pursuance of
any of the provisions of this Act, all the rights, duties, obligations and


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liabilities of the licensee under this Act shall absolutely cease and
determine except for any liabilities that have accrued to that date;

(b)the Commission shall invite applications for acquiring the
undertaking of the licensee whose licence has been revoked and
determine terms and conditions of the sale of the undertaking;

(c) the Commission may, by notice in writing, require the licensee to
sell, and thereupon the licensee shall sell the undertaking to the
person whose application has been accepted by the Commission.
Such person is referred to in this section as the “purchaser”; and

(d) the Commission may make such interim arrangement in regard to
the undertaking of the licensee for maintaining the electricity
transmission and supply as may be considered appropriate including
the appointment of administrators and special directors for the
undertaking.

(2) Where an undertaking is sold under sub-section (1), the purchaser
shall pay to the licensee the purchase price of the undertaking determined in
accordance with the application submitted by the purchaser.

(3) Where the Commission issues any notice under sub-section (1)
requiring the licensee to sell the undertaking, it may by such notice require the
licensee to deliver, and thereupon the licensee shall deliver on a date specified
in the notice, the undertaking to the designated purchaser pending the
payment of the purchase price of the undertaking. Any pending fines and
charges shall be deducted from the amounts payable to the licensee:

Provided that in any such case, the purchaser shall pay to the licensee
interest at such rate not less than the Reserve Bank lending rate ruling at the
time of delivery of the undertaking as the Commission may decide, on the
purchase price of the undertaking for the period from the date of delivery of the
undertaking to the date of payment of the purchase price.

(4) Where before the date fixed in the notice issued under clause (a) of
sub-section (1) as the date on which the revocation of the licence shall take
effect, no notice has been issued to the licensee requiring him to sell the
undertaking or where for any reason no sale of the undertaking has been
effected under that sub-section, the State Government shall acquire the
undertaking on the date of revocation of the licence and shall pay to the
licensee an amount determined in accordance with sub-sections (1) and (2) of
section 7-A of the Indian Electricity Act, 1910, as amended in the State and
shall perform all the obligations of the licensee until such time as the State
Government is able to sell the undertaking to a new licensee which it shall
endeavour to do expeditiously without undue delay.

(5) The licensee shall duly implement the orders of the Commission,
notwithstanding that the licensee may be aggrieved by the order of the
Commission and intends to take legal action challenging the orders of the
Commission.

**21. Restrictions on licensees and Generating Companies - (1) No licensee or**
Generating Company shall at any time, without the previous consent in writing
of the Commission, acquire by purchase or otherwise the licence or the
undertaking of, or associate himself with, so far as the business of generating,
transmitting distribution or supply of energy is concerned, any other licensee
or person generating, transmitting, supplying or intending to generate,
transmit or supply electricity:

Provided that before granting the consent the Commission shall hear
such person or authority as the Commission shall consider appropriate.


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(2) The licensee shall not, at any time, assign his licence or transfer his
undertaking, or any part thereof, by sale, mortgage, lease, exchange or
otherwise without the previous consent in writing of the Commission.

(3) The provisions of section 44 of the Electricity (Supply) Act, 1948 shall
apply except that the persons to whom the section applies shall be required to
obtain the sanctions and consents from the Commission, instead of such
sanctions and consents to be obtained from the Board as provided under that
section.

(4) A holder of a supply or transmission licence may, unless expressly,
prohibited by the terms of its licence, enter into arrangements for the purchase
of electricity from,
(a) the holder of a supply licence which permits the holder of such
licence to supply energy to other licensees for distribution by them;
and

(b) any person or Generating Company with the consent of the
Commission.

(5) Any agreement relating to any transaction of the nature described in
sub-sections (1), (2), (3) or (4) unless made with or subject to such consent as
aforesaid, shall be void.

**22. Annual Accounts of licensee - Every licensee shall, unless expressly**
exempted by the licence, prepare and render to the Commission every year on
or before the date specified in the licence, an annual statement or statements
of accounts of its undertaking and of each separate business unit as specified
in the licence made up to such date, in such form and containing such
particulars, as may be set out in the licence. It shall be a term of the licence
that such statements shall be published in manner prescribed in the
regulations.

**PART - VII**
**REORGANISATION OF THE ELECTRICITY INDUSTRY**

**23. Reorganisation of State Electricity Board - (1) With effect from the date**
on which a transfer scheme prepared by the State Government to give effect to
the objects and purposes of this Act is published or such further date as may
be prescribed by the State Government (hereinafter referred to as the effective
date), any property, interest in property, rights and liabilities which
immediately before the effective date belong to the Board shall vest in the State
Government on such terms as may be agreed between the State Government
and the Board.

(2) Any property, interest in property, rights and liabilities vested in the

State Government under sub-section (1) shall be revested by the State
Government in the APTRANSCO and generating company or companies, in
accordance with the transfer scheme so published along with such other
property, interest in property, rights and liabilities of State Government as may
be specified in such scheme, on such terms and conditions as may be agreed
between the State Government and the APTRANSCO or generating company or
companies, as the case may be.

**Explanation:- For the purposes of this Part generating company or companies,**
shall mean the company or companies to be incorporated to implement the
reorganisation of the Electricity Industry in the State.

(3) Such of the rights and powers exercisable by the Board under the
Electricity (Supply) Act, 1948 as the State Government may, by notification
specify, shall be exercisable by the APTRANSCO or generating company or
companies, as the case may be, for the purpose of discharging the functions
and duties with which it is charged.

(4) Notwithstanding anything in this section, where,

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(a) the transfer scheme involves the transfer of any property or rights
to any person or undertaking not wholly owned by the State
Government, the scheme shall give effect to the transfer only for fair
value to be paid by the transferee to the State Government.

(b) a transaction of any description is effected in pursuance of a
transfer scheme, it shall be binding on all persons including third
parties and even if such persons, third parties have not consented to
it.

(5) The State Government may, after consulting the APTRANSCO (the
“transferor licensee”), or generating company or companies, as the case may
be, require them to draw up a transfer, scheme to vest in a further licensee (the
“transferee licensee”) or any generating companies, any of the functions
including distribution function, property, interest in property, rights and
liabilities which have been vested in the transferor licensee or generating
companies, as the case may be, under this section and publish the same as
Statutory Transfer Scheme under this Act. The transfer scheme to be notified
under this sub-section shall have the same effect as the Transfer Scheme
under subsection (2).
(6) A transfer scheme may,(a) provide for the formation of subsidiaries, joint venture companies
or other schemes of division, amalgamation, merger, reconstruction
or arrangements;

(b) define the property, interest in property, rights and liabilities to
be allocated:(i) by specifying or describing the property, rights and
liabilities in question;
(ii) by referring to all the property, interest in property,
rights and liabilities comprised in a specified part of
the transferor’s undertaking; or
(iii) partly in the one way and partly in the other;

(c)  provide that any rights or liabilities specified or described in the
scheme shall be enforceable by or against the transferor or the
transferee;

(d) impose on the licensee an obligation to enter into such written
agreements with or execute such other instruments in favour of, any
other subsequent licensee as may be specified in the scheme;

(e)  make such supplemental, incidental and consequential
provisions as the transferor licensee considers appropriate including
provision specifying the order in which any transfer or transaction is
to be regarded as taking effect; and

(f)  provide that the transfer shall be provisional for a specified
period.

(7) All debts and obligations incurred, all contracts entered into and all
matters and things engaged to be done by the Board, with the Board or for the
Board, or the APTRANSCO or generating company or companies before a
transfer scheme becomes effective shall, to the extent specified in the relevant
transfer scheme, be deemed to have been incurred, entered into or done by the
Board, with the Board or for the State Government or the transferee and all
suits or other legal proceedings instituted by or against the Board or transferor,
as the case may be, may be continued or instituted by or against the State
Government or concerned transferee, as the case may be.

(8) In the event that a licensee is required to vest any part of its
undertaking in another licensee pursuant to sub-section (5), the Commission
shall amend the transferee's licence in accordance with section 19 or revoke its
licence in accordance with section 18.


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(9) The Board shall cease to be charged with, and shall not perform, the
functions and duties specified in sub-section (3) with regard to transfers made
on and after the effective date.

(10) The exercise by a licensee of any of the Board's rights and powers
may be made on such conditions as may be specified in the transfer scheme
including a condition that they shall be exercised by the licensee only with the
approval of the Commission.

**24. Provisions relating to Personnel -** (1) The State Government, may

by a transfer scheme provide for the transfer of the personnel to APTRANSCO,
generating company or companies, distribution or other companies hereinafter
referred to as the transferee company or companies; on the vesting of
properties, rights and liabilities in such transferee companies as provided
under section 23.

(2) Upon such transfer scheme the personnel, shall hold office or service
under the transferee company on terms and conditions that may be determined
in accordance with the transfer scheme:

Provided that such terms and conditions on the transfer shall not in any
way be less favourable than those which would have been applicable to them if
there had been no such vesting:

Provided further that any such scheme under sub-sections (1) and (2)
shall be consistent with the tripartite agreements entered into between the
Government, A.P.S.E.B. and the employees.

**Explanation:- For the purposes of this section as well as the transfer scheme**
the term “personnel” shall mean all persons who on the effective date are the
employees of the Board.

**25. Payment of compensation or damages on transfer - Notwithstanding**
anything contained in the Industrial Disputes Act, 1947 or any other law as is
applicable, and except for the provisions made in this Act, the transfer of the
employment of the personnel referred to in sub-section (1) of section 24 shall
not entitle such employees to any compensation or damages under this Act, or
any other Central or State law or under the general law, save as provided in the
transfer scheme.

**PART - VIII**
**TARIFFS**

**26. Licensee’s revenues and tariff - (1) The holder of each licence granted**
under this Act shall observe the methodologies and procedures specified by the
Commission from time to time in calculating the expected revenue from
charges which it is permitted to recover pursuant to the terms of its licence and
in designing tariffs to collect those revenues.

(2) The Commission shall subject to the provisions of sub-section (3) be
entitled to prescribe the terms and conditions for the determination of the
licensee’s revenue and tariffs by regulations duly published in the Official
Gazette and in such other manner as the Commission considers appropriate:

Provided that in doing so the Commission shall be bound by the following
parameters:
(a) the financial principles and their applications provided in the
Sixth Schedule to the Electricity (Supply) Act, 1948 read with
sections 57 and 57-A of the said Act;

(b) the factors which would encourage efficiency, economic use of the
resources, good performance, optimum investments performance of
licence conditions and other matters which the Commission
considers appropriate keeping in view the salient objects and
purposes of the provisions of this Act; and


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(c)  the interest of the consumers.

(3) Where the Commission, departs from factors specified in the Sixth
Schedule of the Electricity (Supply) Act, 1948 while determining the licensees
revenues and tariffs, it shall record the reasons therefor in writing.

(4) Any methodology or procedure specified by the Commission under
sub-sections (1), (2), and (3) above shall be to ensure that the objectives and
purposes of the Act are duly achieved.

(5) Every licensee shall provide to the Commission in a format as
specified by the Commission at least 3 months before the ensuing financial
year full details of its calculation for that financial year of the expected
aggregate revenue from charges which it believes it is permitted to recover
pursuant to the terms of its licence and thereafter it shall furnish such further
information as the Commission may reasonably require to assess the licensee’s
calculation. Within 90 days of the date on which the licensee has furnished all
the information that the Commission requires, the Commission shall notify the
licensee either-
(a) that it accepts the licensee’s tariff proposals and revenue
calculations, or

(b) that it does not consider the licensee's tariff proposals and
revenue calculations to be in accordance with the methodology or
procedure in its licence, and such notice to the licensee shall,-
(i) specify fully the reasons why the Commission
considers that the license calculation does not comply
with the methodology or procedures specified in its
licence or is in any way incorrect, and

[
(ii) purpose a modification or an alternative calculation of
the expected revenue from charges, which the licensee
shall accept.

(6) Each holder of a supply licence shall publish in the daily newspaper
having circulation in the area of supply and make available to the public on
request the tariff or tariffs for the supply of electricity within its licensed area
and such tariff or tariffs shall take effect only after seven days from the date of
such publication.

(7) Any tariff implemented under this section,
(a) shall not show undue preference to any consumer of electricity,
but may differentiate according to the consumer’s load factor or
power factor, the consumer’s total consumption of energy during any
specified period, or the time at which supply is required; or paying
capacity of category of consumers and need for cross-subsidisation;

(b) shall be just and reasonable and be such as to promote economic
efficiency in the supply and consumption of electricity; and
(c) shall satisfy all other relevant provisions of this Act and the
conditions of the relevant licence.

(8)  The commission also shall endeavour to fix tariff in such a manner
that, as far as possible, similarly placed consumers in different areas pay
similar tariff.

(9) No tariff or part of any tariff required by sub-section (6) may be
amended more frequently than once in any financial year ordinarily except in
respect of any changes expressly permitted under the terms of any fuel
surcharge formula prescribed by regulations. At least three months before the
proposed date for implementation of any tariff or an amendment to a tariff the
licensee shall provide details of the proposed tariff or amendment to a tariff to
the Commission, together with such further information as the Commission
may require to determine whether the tariff or amended tariff would satisfy the


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provisions of sub-section (7). If the Commission considers that the proposed
tariff or amended tariff of a licensee does not satisfy any of the provisions of
sub-section (7), it shall, within 60 days of receipt of all the information which it
required, and after consultation with the Commission Advisory Committee and
the licensee, notify the licensee that the proposed tariff or amended tariff is
unacceptable to the Commission and it shall provide to the licensee an
alternative tariff or amended tariff which shall be implemented by the licensee.
The licensee shall not amend any tariff unless the amendment has been
approved by the Commission.

(10) Notwithstanding anything contained in sections 57-A and 57-B of
the Electricity (Supply) Act, 1948, no Rating Committee shall be constituted
after the date of this enactment and the Commission shall secure that
licensees comply with the provisions of their licences regarding their charges
for the sale of electricity (both wholesale and retail) and for the connection to
and use of their assets or systems in accordance with the provisions of this
Act.
**Explanation:-**
In this section,
(a) “the expected revenue from charges” means the total revenue
which a licensee is expected to recover from charges for the level of
forecast supply used in the determination under sub-section (5)
above in any financial year in respect of goods or services supplied to
customers pursuant to a licensed activity; and

(b)  “tariff” means a schedule of standard prices or charges for
specified services which are applicable to all such specified services
provided to the type or types of customers specified in the tariff
notification.

**27. Finances of licensees - (1) The State Government may from time to time**
make subventions to any licensee for the purpose of sub-section (3) of section
12 of this Act or the Electricity (Supply) Act, 1948 for such amounts as may be
recommended by the Commission and on such terms and conditions as the
State Government may determine.

(2) The State Government may from time to time advance loans to any
licensee or Generating Company which for the time being is wholly or partly
owned by the State Government on such terms and conditions, not
inconsistent with the provisions of this Act or the Electricity (Supply) Act,
1948, as the State Government may determine.

(3) The State Government may guarantee in such manner as it thinks fit
the re-payment of the principal on the payment of interest (or both) or any loan
proposed to be raised by any licensee or Generating Company which is for the
time being wholly or partly owned by the State Government or the discharge of
any other financial obligation of any such licensee or Generating Company.

(4)  The State Government shall be entitled to inspect and verify the
accounts of every licensee or generating company obtaining the benefits under
sub-sections (1) (2) and (3) of this section.

**PART - IX**
**COMMISSION’S POWER TO PASS ORDERS AND**
**ENFORCE DECISIONS**

**28. Interim orders for securing compliance - (1) Where the Commission is**
satisfied that a licensee is contravening, or is likely to contravene any relevant
condition or requirement of its licence, it shall by final order under section 29
and, if it thinks it appropriate, in accordance with sub-section (2) by interim
order under this section, issue such directions as it deems proper for
securing compliance.


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(2) In determining whether it is appropriate that an interim order be
made, the Commission shall have regard, in particular to,
(a) the extent to which the contravention or likely contravention by
the licensee will affect the achievement of the objects and purposes of
this Act;

(b) the extent to which any person is likely to sustain loss or damage
in consequence of anything which, is likely to be done, or omitted to
be done, in contravention of the relevant condition or requirement,
before a final order can be made; and

(c) the extent to which (having regard to the following provisions of
this section) there is any other available remedy in respect of the
alleged contravention of a relevant condition or requirement.

(3) If the Commission proposes to make an interim order, it shall give
notice to the licensee,
(a) stating that it proposes to make the order;

(b) setting out,
(i) the relevant conditions or requirements which the
proposed order is intended to secure compliance;

(ii) the acts or omissions which, in its opinion constitute
contravention of that condition or requirement;

(iii) the other facts which in its opinion, justify the making
of the proposed order; and

(iv) the effects of the proposed order.

(c)  specifying the period (being not less than 5 days from the date of
notice) within which the licensee may make representations or
objections to the proposed order.

(4) Subject to sub-section (5), having considered any representations or
objections from the licensee pursuant to clause (c) of sub-section (3) the
Commission may make an interim order at any time after expiry of the period
referred to in sub-section (3) (c), if,
(a)  the Commission has reason to believe that the licensee to whom
the order relates has contravened or is contravening or is likely to
contravene any relevant condition or requirement; and

(b)  the provisions made by the order are requisite for the purpose of
securing compliance with that condition or requirement.

(5) The Commission may not make an interim order if it is satisfied that
the licensee has agreed to take and is taking all such steps as the Commission
considers that the licensee should take to secure compliance with the condition
or requirement in question.

(6) an interim order,
(a)  shall require the licensee to whom it relates (according to the
circumstances of the case) to do, or not to do, such things as are
specified in the order or are of a description so specified;

(b) shall take effect from such time, being the earliest practicable
time, as is determined by the order; and

(c) may be revoked, modified or rescinded at any time by the
Commission, but in any event shall cease to have effect at the end of
such period as is stated in the order unless the Commission is at that
time following the procedure set out in section 29 to declare the
interim order to be a final order.


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(7) As soon as practicable after making an interim order, the Commission
shall,(a)  serve a copy of the order on the licensee to whom the order
relates;
(b) publish the order in such manner as it considers appropriate for
the purpose of bringing it to the attention of persons likely to be
affected by it; and
(c)  commence proceedings to declare the interim orders to be a final
order in accordance with section 29.

**29. Final orders for securing Compliance - (1) If the Commission proposes to**
make a final order or to declare an interim order to be a final order, the
Commission shall give notice,
(a) stating that it proposes to make the final order or to declare the
interim order to be a final order;

(b) setting out the information referred to in clause (b) of sub-section
(3) of section 28 in respect of the proposed final order; and

(c) specifying the period (being not less than 60 days from the date of
publication of the notice) within which representations or objections
to the proposed order may be made; and shall consider any
representations or objections that are duly made and not withdrawn.
The Commission shall publish notice of such representations or
objections and specify a period (being not less than 30 days from the
date of publication of the notice) within which further representations
or objections may be made.

(2) A notice under sub-section (1), above shall be given,
(a) by publishing the notice in such manner as the Commission
considers appropriate for the purpose of bringing the matters to
which the notice relates to the attention of persons likely to be
affected by them; and

(b) by serving a copy of the notice, and a copy of the proposed final
order on the licensee to whom the order relates.

(3) The Commission shall not modify the proposed final order as a result
of any representation or objections received following publication of the notice
referred to in sub-section (1), except,
(a) with the consent to the modification of the licensee to whom the
proposed final order relates; and

(b) after complying with the requirements of sub-section (4) below.

(4) The requirements mentioned sub-section (3) above are that the
Commission shall,
(a)serve on the licensee, to whom the proposed final order relates
such notice as appears to the Commission requisite of its proposal to
modify the proposed final order, together with details of such
modifications;

(b) in that notice specify the period (being not less than 30 days from
the date of the service of the notice) within which representations or
objections to the proposed modifications can be made; and

(c)  consider any representations or objections which are duly made
and not withdrawn within 10 days of the receipt thereof.

(5) The provisions of clauses (a) and (b) of sub-section (6) of section 28
shall apply to final orders.


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(6) As soon as practicable after making a final order, the Commission
shall with respect to the final order, follow the procedure set out in clauses (a)
and (b) of sub-section (7) of section 28.

(7) The Commission may revoke a final order at any time, but before
revoking a final order the Commission shall give notice,
(a) stating that it proposes to revoke the order and setting out its
effect; and
(b) specifying the period being not less than 30 days from the date of
delivery of the notice within which representations or objections to
the proposed publication may be made, and shall consider any
representations or objections which are duly made and not
withdrawn within 10 days of the receipt thereof.

(8) If, after giving a notice under sub-section (7) above, the Commission
decides not to revoke the final order to which the notice relates, it shall give
notice of its decision to the concerned persons.

(9) A notice under sub-section (7) or (8) above shall be given by the
procedure set out in clauses (a) and (b) of sub-section (7) of section 28.

**30. Effect and enforcement of Interim and Final Orders and emergency**
**provision - (1) Without prejudice to section 46 of this Act, all orders and**
directions, interim or final, passed by the Commission shall be enforceable in
law as if it were a decree passed by a Civil Court.

(2)  The Commission shall be entitled to take such assistance of the
police and other authorities in the State required to effectively enforce the
orders and directions given by the Commission.

(3) The Commission shall be entitled to give directions for vesting of the
management and control of any undertaking of the licensee with the assets,
interests and rights of the undertaking with any other persons or authority
pending any inquiry and passing of interim or final orders in the matter, if the
Commission considers, taking into account the objects and purposes of this
Act and the need to maintain continued supply of electricity in an efficient and
safe manner to the consumer, it is necessary and expedient to pass such
orders or directions. Such directions or orders shall not be questioned on the
ground that no prior notice of or hearing on the intention to pass the order or
direction was given to the licensee. The Commission shall however give
opportunity to the licensee and hear the licensee before passing further orders
in terms of sections 28 and 29 of this Act.

**31. Fines and Charges - (1) The Commission shall be entitled to impose such**
fines and charges as may be prescribed by the Commission in the regulations
for non compliance or violation on the part of the Generating Companies,
licensees or other persons, of the provisions or requirements of this Act or,
rules and regulations framed thereunder and directions or orders of the
Commission made from time to time. The fines which the Commission shall be
entitled to impose may extend up to Rs.5,00,000 (five lakhs) for an act of noncompliance or violation and a further amount not exceeding Rs.20,000 (twenty
thousand) for every day during which the non-compliance or violation
continues.

(2) The Commission shall, while making an interim or final orders under
this Part, shall be entitled to direct compensation to be paid by the person
guilty of violation or non-compliance as provided in sub-section (1) to the
person or persons affected by such violation or non-compliance.

(3) The fines, charges and compensation which may be imposed by the
Commission under this section shall be in addition to and not in derogation of
any other liability, which the person guilty of violation or non-compliance, may
have incurred.


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**31-A General control of the Commission - The generating company (ies) shall**
comply with the regulations that may be framed by the Commission concerning
the operation and maintenance of the power system and electric supply lines in
an efficient and economical manner.

**PART - X**
**ADVISORY COMMITTEE, CONSUMER CONSULTATION**

**32. Commission Advisory Committee - (1) The Commission shall constitute**
a Committee to be known as the Commission Advisory Committee, in
consultation with the State Government which shall consist of such number of
persons being not less than 15 and not more than 21 as the Commission may
appoint after consultation with such representatives or bodies representative of
the following interests as the Commission thinks fit, that is to say, holders of
supply licences in the State, holders of transmission licences in the State,
generating companies operating in the State, Commerce, Industry, Transport,
Agriculture, Labour employed in the electricity supply industry and consumers
of electricity.

(2) The Chairman and members of the Commission shall be ex-officio
Chairman and Members of the Commission Advisory Committee.

(3) The term of the members of advisory Committee shall be for a period
of three years and one third of the members shall retire annually.

(4) The Commission Advisory Committee shall meet at least once in
every three months.

(5) The functions of the Commission Advisory Committee shall be as
follows:
(a)  to advise the Commission on major questions of policy, relating to
the electricity industry in the State; and

(b) to advise, the Commission on any matters which the Commission
may put before it, including matters relating to the quality,
continuity, and extent of service provided by licensees and
compliance by licensees with the conditions and requirements of their
licences.

**33. Consumer protection; standards of performance - (1) The Commission,**
may, after consultation with (a) holders of supply licences, (b) other persons or
bodies appearing to the Commission to be representative of persons and
categories of persons likely to be affected and the Commission Advisory
Committee, frame regulations prescribing:
(a) the circumstances in which such licensees are to inform
consumers of their rights;

(b) the standards of performance in relation to any duty arising under
sub-section (a) above or otherwise in connection with the electricity
supply to the consumers; and

(c)  the circumstances in which licensees are to be exempted from
any requirements of the regulations or this section and may make
different provision or different licensees.

(2) Nothing in this section or other provisions of this Act shall in any
way prejudice or affect the rights and privileges of the Consumers under other
laws including but not limited to the Consumer Protection Act, 1986.

**34. Electricity supply; overall performance standards - (1) The Commission**
may, after consultation with the licensees, the Commission Advisory
Committee, and with persons or bodies appearing to it to be representative of
persons likely affected, from time to time,

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(a) determine such standards of overall performance in connection
with the provision of electricity supply services and in connection
with the promotion of the efficient use of electricity by consumers as,
in its opinion, is economic and ought to be achieved by such
licensees; and

(b) arrange for the publications, in such form and in such manner as
it considers appropriate, of the standards so determined.

(2) Different standards may be determined under this section for
different licensees.

**35. Information with respect to Levels of Performance -** (1) The
Commission shall from time to time collect information with respect to,
(a) the fines or penalties levied on licensees under this Act;

(b)the levels of overall performance achieved by such licensees in
connection with the transmission and provision of electricity supply
services; and

(c) the levels of performance achieved by such licensees in connection
with the promotion of the efficient use of electricity by consumers.

(2) On or before such date in each year as may be specified in a direction
given by the Commission, each licensee shall furnish to the Commission the
following information,
(a) with respect to each standard prescribed the number of cases in
which a penalty was levied and the aggregate amount of value of
those penalties; and

(b) with respect to each standard determined such information with
respect to the level of performance achieved by the licensee as may be
so specified.

(3) The Commission shall, at least once in every year, arrange for the
publication, in such form and in such manner as it considers appropriate, of
such of the information collected by or furnished to it under this section as
may appear to the Commission to be so required.

**36. Restriction on disclosure of information - (1) Subject to the provisions of**
this Act, no information with respect to any particular business which in the
opinion of the Commission is confidential; and

(a) has been obtained by the Commission under or by virtue of any
of the provisions of this Act, and

(b) relates to the affairs of any individual or to any particular
business,

shall during the lifetime of that individual or for so long as that
particular business continues to be carried on, be disclosed by the
Commission without the consent of that individual or the person for
the time being carrying on that business.

(2) The restriction contained in sub-section (1) above shall not apply to
any disclosure of information which is made:
(a) for the purpose of facilitating the carrying out by the State
Government of any of its functions under a statute;

(b) for the purpose of facilitating the carrying out by the Central
Government of any of its duties or functions under this Act or any
Central legislation;

(c)  for the purpose of facilitating the Accountant General, Andhra
Pradesh to carry out his duties and functions under this Act;


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(d) for the purpose of enabling or assisting any competent person to
carryout functions under the enactment relating to insolvency;

(e)  in connection with the investigation of any criminal offence or for
the purposes of any criminal proceedings; or

(f)  for the purposes of any civil proceedings brought under or by
virtue of this Act or any other State or Central legislation to which the
information is directly relevant.
(3) The restrictions contained in sub-section (1) above do not apply to
the disclosure of any information relating to tariff.

**PART XI**
**ARBITRATION AND APPEALS**

**37. Arbitration by the Commission - (1) Notwithstanding anything contained**
in the Arbitration and Conciliation Act, 1996 (Central Act 26 of 1996), any
dispute arising between licensees shall be referred to the Commission. The
Commission may proceed to act as arbitrator or nominate arbitrator or
arbitrators to adjudicate and settle such dispute. The practice or procedure to
be followed in connection with any such adjudication and settlement shall be
such as may be prescribed by regulations.

(2) Where the award is made by the arbitrator appointed by the
Commission it shall be filed before the Commission and the Commission shall
be entitled to pass appropriate orders on the award including orders to,
(a)confirm and enforce the award;

(b)set aside or modify the award; or

(c) remit the award for reconsideration by the arbitrator.

(3) The award given by the Commission under sub-section (1) or the
order passed by the Commission under sub-section (2) shall be a decision or
order of the Commission and shall be appealable as provided in this Act.

(4) An award made or an order passed by the Commission under subsection (2) shall be enforceable as if it were a decree of the Civil Court.

**38. Appeals from decisions of Electrical Inspectors - Notwithstanding the**
provisions of sub-section (2) of section 36 of the Indian Electricity Act, 1910 in
the absence of any express provision to the contrary in the Indian Electricity
Act, 1910 or the Electricity (Supply) Act, 1948, or any rule made thereunder,
an appeal shall lie from the decision of an Electrical Inspector (other than an
Inspector of the Central Government or the Central Electricity Authority) to the
Commission or to an arbitrator to be appointed by the Commission in terms of
section 37.

**39. Appeals against the orders of the Commission - A person aggrieved by**
any decision or order of the Commission passed under this Act may file an
appeal to the High Court of Andhra Pradesh within sixty days from the date of
communication of the decision or order of the Commission to him, on
questions or law arising out of such order:

Provided that the High Court may, if it is satisfied that the appellant was
prevented by sufficient cause from the filing the appeal within the said period,
allow it to be filed within a further period not exceeding thirty days.


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**PART - XII**
**OFFENCES AND PENALTIES**

**40. Penalty for contravention of section 14 - Whoever in contravention of**
the provisions of this Act or the regulations framed under this Act or the
provisions of the Indian Electricity Act, 1910 or the Electricity (Supply) Act,
1948 or the rules framed under the said Acts, engages in the business of
transmission or supply or use of energy, shall be punishable with
imprisonment which may extend to one year or with penalty by way of fine
which may extend to Rs.5,00,000 (five lakhs) or both and further penalty which
may extend to Rs.20,000 (twenty thousands) for each day after the first during
which the offence continues.

**41. Penalties for contravention of other provisions - If any licensee or other**
person refuses or fails without reasonable excuse to comply with or give effect
to, any direction, order or requirement made under any of the provisions of this
Act he shall be punishable with imprisonment which may extend to six months
or with penalty by way of fine which may extend to Rs.5,00,000 (five lakhs) or
both and a further penalty which may extend to Rs.20,000 (twenty thousand)
for each day after the first during which the offence continues.

**42. Offences by companies - (1) Where an offence under this Act has been**
committed by a company every person who, at the time the offence was
committed, was in charge of, and was responsible to the company for the
conduct of the business of the company, as well as the company, shall be
deemed to be guilty of the offence and shall be liable to be proceeded against
and punished accordingly:

Provided that nothing contained in this sub-section shall render any
such person liable to any punishment if he proves that the offence was
committed without his knowledge or that he had exercised all due diligence to
prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an
offence under this Act, has been committed by a company and it is proved that
the offence has been committed with the consent or connivance of, or is
attributable to any neglect on the part of, any director, manager, secretary or
other officer of the company, such director, manager, secretary or other officer
shall also be deemed to be guilty of that offence and shall be liable to be
proceeded against and punished accordingly.

(3) For the purposes of this section,
(a) “company” means a body corporate and includes a firm or other
association of individuals; and

(b) “director” in relation to a firm, means a partner in the firm.

**43. Power to compound offences - The Commission may for reasons to be**
recorded in writing either before or after the institution of proceedings
compound any offence relating to contravention of any order made by it.

**44. Cognizance of offences - (1) No Court shall take cognizance of any offence**
punishable under this Act except upon a complaint in writing made by an
officer of the Commission, generally or specially authorised in this behalf by
the Commission and no Court other than that of a Metropolitan Magistrate or a
Judicial Magistrate of First Class or a Court superior thereto shall try any such
offence.
(2) Notwithstanding anything in the Code of Criminal Procedure, 1973
(Central Act 2 of 1974), the Court may, if it sees reason so to do, dispense with
the personal attendance of the officer of the Commission filing the complaint.

**45. Penalties and proceedings not to prejudice other actions -** The
proceedings and actions under this Act against a person contravening the
provisions of the Act or orders passed by the Commission shall be in addition
to and without prejudice to actions that may be initiated under other Acts


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including and in particular under the Indian Electricity Act, 1910 and the
Electricity (Supply) Act, 1948.

**PART - XIII**
**MISCELLANEOUS**

**46. Recovery of fees, fines and charges - The Commission shall be entitled to**
recover all sums due to it under this Act, whether by way of licence, fees or
fines and charges, in accordance with the provisions of the Andhra Pradesh
Revenue Recovery Act, 1864 (A.P.Act II of 1864) as if any such sum were a
public demand as defined in that Act and hand over the amount due to the
person or authority concerned.

**47. Application of the and charges - The Commission or Court imposing the**
fine and charges under this Act may direct that the whole or any part thereof
shall be applied in or towards payment of the costs of the proceedings.

**48. No part of the fines or penalties imposed to be passed on - The**
licensee, Generating Companies and others on whom the fines, charges,
penalties are imposed under this Act shall not, directly or indirectly, pass the
same to the consumers in the form of tariff or charges payable.

**49. Protection of action taken in good faith - No suit or legal proceedings**
shall lie against the Commission or the Chairman or other members of the
Commission or the staff or representatives of the Commission in respect of
anything which is in good faith done or intended to be done under this Act or
any rule or regulations or order made thereunder.

**50. Bar of Jurisdiction - No order or proceeding made under this Act or rules**
or regulations framed under the Act shall be appealable except as provided in
the Act and no Civil Court including under the Arbitration and Conciliation
Act, (Central Act 26 of 1996) 1996 shall have jurisdiction in respect of any,
matter which the Commission or the Appellate Authority under the Act is
empowered by or under, this Act.

**51. Power to remove difficulties - (1) If any difficulty arises in giving effect to**
the provisions of this Act, or the rules, regulations, scheme or orders made
thereunder, the State Government may by order published in the Official
Gazette, make such provision, not inconsistent with the provisions of this Act
as appears to it to be necessary or expedient for removing the difficulty.

(2) Every order made under this section shall, as soon as may be after it
is made, be laid before the State Legislative Assembly.

**52. Proceedings before the Commission to be Judicial Proceedings –**

All proceedings before the Commission shall be deemed to be judicial
proceedings within the meaning of sections 193, 219 and 228 of the Indian
Penal Code and the Commission shall be deemed to be a Civil Court for the
purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure,
1973.

**53. Members and staff of Commission to be public servants –**

The Chairman, other members and officers and other employees of the
Commission appointed for carrying out the objects and purposes of this Act
shall be deemed to be public servants within the meaning of section 21 of the
Indian Penal Code.

**54. Power to make regulations - (1) The Commission may make regulations**
by notification in the Official Gazette, for the proper performance of its
functions under this Act.

(2) In particular and without prejudice to the generality of the foregoing
provisions and matters specifically provided for in this Act, such regulations
may provide for all or any of the following matters, namely,

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(a) the administration of the affairs of the Commission including the
exercise of its administrative, quasi-judicial and judicial powers
including arbitration and procedure for summoning and holding of
the meetings of the Commission, the times and places at which such
meetings shall be held the conduct of the business thereof;

(b) the duties of the Secretary, officers and employees of the
Commission, their salaries, allowances and conditions of service;

(c)  determination of the functions to be assigned to licensees and
others involved in the generation, purchase, transmission,
distribution and supply of electricity, the manner in which such
functions shall be discharged and the procedure and code to be
adopted in regard to power system and electric supply lines;

(d) the procedure for licensing of transmission and supply, the
conditions for the grant of licenses and particulars, details and
documents to be made available by the persons applying for the
licence, the standard and general conditions subject to which the
licence shall be granted, the exemption from grant of licence,
revocation and amendment and effect thereof, of the licence and all
matters related to the above;

(e) the duties, powers, rights and obligations of the licensee;

(f) the particulars to be furnished, the collection of information,
details, particulars, documents, accounts, books and other records
from or of the persons involved in the generation, transmission
distribution, supply and use of electricity the form and manner in
which the same are to be furnished and enforcing and compelling the
production of the same;
(g) method and manner of determination of licensee’s revenues, tariff
fixation, the matters to be considered in such determination and
fixation;

(h) the constitution of the Commission Advisory Committee;

(i) the determination of the standard of performance of the persons
involved in the generation, transmission, distribution and supply of
electricity in the State;

(j) the amount of fines and penalties to be imposed for violation of
provisions of this Act including the method and manner of imposition
of fines and penalties and collection of the same;

(k) the regulation of the properties, assets and interest in the
properties used for or in connection with the electricity industry in
the State;

(l) any other matter which is required to be or may be prescribed by
regulations.

**55. Power to make Rules - (1) The State Government may by notification**
make rules to carry out its functions under the provisions of the Act.

(2) In particular and without prejudice to the generality of the foregoing
power and matters specifically provided for in this Act, such rules may provide
for all or any of the following matters, namely,
(a) the procedure to be adopted by the selection committee for
discharge of functions under the Act;

(b) the preparation and implementation of the transfer scheme, the
transfer of assets, liabilities and personnel to Generating Companies
licensees and others in the State;


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(c) the financing, funding, giving of guarantee to the persons involved
in the generation, transmission, distribution and supply of electricity
in the state; and

(d) any other matter required to be or may be prescribed by rules.

(3) Every rule made under this section shall immediately after it is made
be laid before the Legislative Assembly of the State if it is in session and if it is
not in session in the session immediately following for a total period of fourteen
days which may be comprised in one session or in two successive sessions and
if before the expiration of the session in which it is so laid or the session
immediately following, the Legislative Assembly agrees in making any
modification in the rule or in the annulment of the rule the rule shall from the
date on which the modification or annulment is notified have effect only in
such modified form or shall stand annulled as the case may be so however that
any such modification or annulment shall be without prejudice to the validity
of anything previously done under that rule.

**PART - XIV**
**EFFECT ON EXISTING CENTRAL LEGISLATION**

**56. Effect of the Act on the Indian Electricity Act, 1910 and the**
**Electricity (Supply) Act, 1948 - (1) Except as provided in section 57 of this**
Act, the provisions of this Act, notwithstanding on that the same are
inconsistent with or contrary to the provisions of the Indian Electricity Act,
1910 or the Electricity (Supply) Act, 1948 shall prevail in the manner and to
the extent provided in sub-section (3).

(2) Subject to sub-section (1) in respect of all matters in the Indian
Electricity Act, 1910 and the Electricity (Supply) Act, 1948 with which Andhra
Pradesh State Electricity Board has been concerned or dealing with, upon the
constitution of the Commission, the functions of the Board shall be discharged
by the Commission and the APTRANSCO:

Provided that,
(a) the State Government shall be entitled to issue all policy
directives and undertake overall planning and coordination as
specified in section 12 of this Act and to this extent the powers and
functions of the Andhra Pradesh State Electricity Board as per the
provisions of the Indian Electricity Act, 1910 and the Electricity
(Supply) Act, 1948 or rules thereunder shall vest in the state
Government and the State Government shall co-ordinate and deal
with the Central Government and the Central Electricity Authority;

(b) in respect of such matters which the Commission directs in terms
of a general or special order or in the regulations or in the licence as
the case may be the Generating Company or Companies, the
licensees or other body corporate as may be designated by the
Commission shall discharge the functions of the Board under the
Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948 to
the extent directed by the Commission or specified in licences.

(3) Subject to sub-section (1) and (2) of this section upon the
establishment of the Commission the provisions of the Indian Electricity Act,
1910 and the Electricity (Supply) Act, 1948 shall in so far as the State is
concerned, shall be read subject to the following modifications and
reservations.


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**INDIAN ELECTRICITY ACT, 1910**

(i) All references to State Electricity Board in the Indian Electricity Act,
1910 in so far as the State is concerned shall be read as references to the
Andhra Pradesh Electricity Regulatory Commission or APTRANSCO or other
licensees or wherever it relates to general policy matters to the State
Government;

(ii) In respect of matters provided in sections 3 to 11, 28, 36 (2), 49-A
and 50 & 51 of the Indian Electricity Act, 1910, to the extent this Act has made
specific provisions, the provisions of the Indian Electricity Act, 1910 shall not
apply in the State;

(iii) The provisions of all other sections of the Indian Electricity Act, 1910
shall apply except that,
(a) the term “licence” “licensee”, “license holder” shall have the
meaning as defined under this Act and the licences shall be
construed as having been issued under this Act;

(b) the reference to the sections of the Indian Electricity Act, 1910
and the Electricity (Supply) Act, 1948 in the provisions of the Indian
Electricity Act, 1910 shall be taken as reference to the corresponding
provisions of this Act to the extent modified by the said Act;

(c) the reference to arbitration in these provisions except where it is
by the Central Electricity Authority shall be taken as reference to the
proceedings under section 37 of this Act and the arbitration
procedure prescribed under the Indian Electricity Act, 1910 shall not
apply.

(iv) The Schedule to the Indian Electricity Act, 1910 shall be applicable
only with reference to the provisions in this Act wherein the applications
of the Schedule are specified and not otherwise;

**ELECTRICITY (SUPPLY) ACT, 1948**

(i) All references to State Electricity Board in the Electricity (Supply)
Act, 1948 in so far as the State of Andhra Pradesh is concerned shall be
read as reference to the Andhra Pradesh Electricity Regulatory
Commission or APTRANSCO or other licensees or where it relates to
general policy matters the State Government;

(ii) In respect of matters provided in sections 5 to 18, 19, 20, 23 to 27,
37, 40 to 45, 46 to 54, 56 to 69, 72 and 75 to 83 of the Electricity
(Supply) Act, 1948, to the extent this Act has made specific provisions,
the provisions of the Electricity (Supply) Act, 1948 shall not apply in the
State;

(iii) The provisions of all other sections of the Electricity (Supply) Act;
1948 shall apply except that
(a)the term “licence”, “licensee”, “license holder” shall have the
meaning as defined under this Act and the licences shall be
construed as having been issued under this Act;

(b)the reference to the sections of the Indian Electricity Act, 1910 and
the Electricity (Supply) Act, 1948 in the provisions of the Electricity
(Supply) Act, 1948 shall be taken as reference to the corresponding
provisions of this Act to the extent modified by this Act;

(c) the reference to arbitration in these provisions except where it is by
the Central Electricity Authority shall be taken as reference to the
proceedings under section 37 of this Act and the arbitration
procedure prescribed under the Electricity (Supply) Act, 1948 shall
not apply;


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(viii) The provisions of sections 72, 73 of the Electricity (Supply) Act,
1948 shall be restricted to Generating, Companies and reference to the
State Electricity Board in these sections shall stand deleted;

(ix) The Schedules to the Electricity (Supply) Act, 1948 shall be
applicable only with reference to the provisions in this Act wherein the
applications of the Schedules are specified and not otherwise.

**57.** **Savings -** (1) Notwithstanding anything contained in this Act, the
powers, rights and functions of Regional Electricity Authority, the Central
Electricity Authority, the Central Government and authorities other than the
State Electricity Board and the State Government under the Indian Electricity
Act, 1910 or the Electricity (Supply) Act, 1948 or rules framed thereunder shall
remain unaffected and shall continue to be in force.

(2) Nothing contained in this Act shall apply to the Power Grid
Corporation of India Limited or other bodies or licensees in relation to the
interstate transmission of the electricity or generating companies owned or
controlled by Central Government or undertaking owned by the Central
Government.

**SCHEDULE**
**THE ANDHRA PRADESH ELECTRICITY REGULATORY**
**COMMISSION**

**PART – I**
**The Commission's Finance,**

**Accounts and Audit**

**I. Annual Financial Statement - (1) In December of each year the Commission**
shall submit to State Government a statement of its estimated expenditure for
the ensuing financial year.

(2) The State Government shall as soon as possible after the receipt of
the said statement cause it to be laid on the Table of the State Legislative
Assembly.

(3) The Commission may at any time during the year in respect of which
a statement under sub-paragraph (1) has been submitted, submit to the State
Government a supplementary statement, and all the provisions of this section
shall apply to such statement as they apply to the statement under the said
sub-section.

**II. Accounts and Audit - (1) The Commission shall cause proper accounts and**
other records in relation thereto to be kept, including a proper system of
internal check and shall prepare an annual statement of accounts, in such
form as may be prescribed by regulations made by the Commission in
consultation with the Accountant-General, Andhra Pradesh.

(2) The accounts of the Commission shall be audited by the Accountant
General, Andhra Pradesh or by such person as he may authorise on his behalf
and any expenditure incurred by him in connection with such audit shall be
payable by the State Government.

(3) The Accountant-General, Andhra Pradesh or any person authorised
by him in connection with the audit of the accounts of the Commission shall
have the right to demand the production of books, accounts, connected
vouchers and other documents and papers of the Commission.

(4) The accounts of the commission as certified by the Accountant
General, Andhra Pradesh or any other person authorised by him on his behalf
together with the audit report thereon shall be forwarded to the State
Government within six months of the close of the year to which the accounts
audit report relates and the Commission shall cause the said accounts of the
Commission to be published and make available copies thereof on sale at a
reasonable price. The audit report shall contain full details of any discrepancies


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or irregularities in the accounts of the Commission. At the same time, the
Commission shall publish an annual statement of its activities in relation to
the functions carried out by it under this Act during the year to which the said
accounts relate and make available copies thereof on sale at a reasonable price.

(5) The State Government shall cause the accounts of the Commission,
together with the audit report thereof forwarded to it under sub-paragraph (4)
to be laid annually before the State Legislative Assembly.

**PART – II**
**GENERAL**

**III. Remuneration etc - (1) The Chairman and the Members of the Commission**
shall be paid from the funds of the Commission such remuneration and such
travelling and other expenses and allowances, as the State Government may
determine provided that the same shall at no time be inferior to pay and
allowances paid to the Judges of Andhra Pradesh High Court.
(2) The State Government may cause to be paid as an expense of the
Commission to or in respect of any person holding, the office of Chairman or a
Member of the Commission such pension, allowance or gratuity of such
contributions or payments towards provision of such a pension, allowance or
gratuity.
**IV. Official Seal - The Commission shall have an official seal for the**
authentication of documents required for the purposes of its functions.

**V.** **Performance of Functions - Anything authorised or required by or under**
this Act or any other enactment to be done by the Commission may be done by
any member of the staff of the Commission who is authorised generally or
specially in that behalf by the Commission.

G. BHAVANI PRASAD,

Secretary to Government,


Legislative Affairs & Justice,
Law Department.


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