The Government of Meghalaya on March 13, 2023, issued the Meghalaya State Electricity Regulatory Commission (Renting/Leasing Out of the Discom assets for Facilitation of Telecommunication Network) Regulations, 2023.
These Regulations will extend to the whole State of Meghalaya and will apply to the Distribution Licensees/Franchisees engaged in the business of distribution and supply of electricity in the State.
The following provisions have been stated:
• Intimation of other business:
The distribution licensee shall inform the Commission regarding the installation of a telecommunication network on its distribution assets and the income derived from such activities on an annual basis through ARR. While giving information in terms of Clause of this Regulation, the licensee shall furnish the following details-
o The nature and extent of (no. of poles, buildings, and other electrical assets) the use of distribution assets of the licensee, which are utilized or proposed to be utilized for the telecommunication business. The Distribution Licensee shall maintain a record of the assets rented out and period of renting etc., for utilization by the Telecom Companies.
o The impact, if any, of such use of assets and facilities on the ability of the licensee to carry out the duties and obligations of the licensed business.
Distribution Licensee shall allocate a certain percentage of R&M works expenditure in the preceding year and fix the rental charges to be collected such as rental charges per pole, rental charges per installation on office building, etc., from the beneficiary (Telecom Company) on a monthly basis and details shall be provided to the Commission.
o Annual revenue income derived or estimated to be derived from the rent of the telecommunication business.
o Any other details required by the Commission.
• Functions of Distribution Licensee:
o Distribution Licensee can rent out its distribution assets and provide related services to telecommunication companies for the installation of telecommunication networks including 5G networks.
o The assignment of distribution assets to telecom companies will be done through a transparent process/mechanism.
o Income from renting & related services of distribution assets shall be projected by the distribution licensee as non-tariff income in the respective ARR/Tariff petition in accordance with the classification given under chapter 2 of MSERC Supply Code Regulations 2018.
• Manner of sharing revenue earned from telecommunication network business
If the distribution licensee rents out its distribution assets for the installation of a telecommunication network including a 5G network, then an amount equal to 30% of the gross rent as received from the telecommunication company in a given financial year shall be retained by the distribution licensee, and the remaining 70% shall be shown as non-tariff income of corresponding ARR.
Separate Accounts are to be maintained for this revenue/expenditure from renting and related services for the use of Distribution assets for the installation of a telecommunication network including a 5G network.
The regulations also include inherent powers of the commission, powers to remove difficulties, and penalties, power to amend, and the Dispute Resolution committee.
These Regulations will come into force on March 13, 2023.
[Notification No. MSERC/FOTN/Regulation/2022/37]
