The Himachal Pradesh Electricity Regulatory Commission (HPERC) on May 15, 2023, published the Himachal Pradesh Electricity Regulatory Commission (Treatment of Income of Other Businesses of Transmission Licensees and Distribution Licensees) (First Amendment) Regulations, 2023 to further amend the Treatment of Income of Other Businesses of Transmission Licensees and Distribution Licensees Regulations 2005
These Regulations shall come into force on May 15, 2023
The following has been amended namely: -
• In Regulation 3 which states “Intimation of other business”
(i) after Sub-regulation (2), the following Sub-regulations (2A) and (2B) shall be inserted, namely: -
“(2A) The Licensee shall intimate the nature and extent of the use of its transmission /distribution assets, as the case may be, which are utilized or proposed to be utilized, for any business other than the transmission/ distribution business.
(2B) The Licensee shall also intimate the expected annual revenue income from such other business.”
(ii) for Sub-regulation (5), the following shall be substituted, namely: -
“(5) The Licensee shall entirely at its cost and risk, permit the utilization of its assets and shall have the absolute responsibility to ensure that the utilization of the assets and associated facilities of the Licensed Business for the Other Business shall not in any manner adversely affect the performance of the obligations, the safety of the Assets & Personnel, and the quality of service required from the Licensee under the licensed business including compliance of the requirement as specified under the Central Electricity Authority (Measures Relating to Safety and Electric Supply) Regulations, 2010, Himachal Pradesh Electricity Regulatory Commission (Transmission Performance Standards) Regulations, 2023, Himachal Pradesh Electricity Regulatory Commission (Distribution Performance Standards) Regulations, 2010, the Himachal Pradesh Electricity Grid Code, 2008, the Himachal Pradesh Electricity Supply Code, 2009, the Himachal Pradesh Electricity Distribution Code, 2008 and any other Rules / Regulations related to safety, performance, and construction are presently in force applicable to transmission/distribution Licensee, as the case may be.”
• Regulation 4 states “Financial Implications” the following Regulation “(4A)” shall be inserted, namely: -
“4A. Special provisions for facilitating telecommunication activities: -
(1) (a) The Licensee may rent out its distribution or transmission assets as the case may be, within its area of service, to the telecommunication Companies engaged in giving telecommunication services to the public in the State. In such a case the special provision as specified in the regulation shall be applicable.
(b) In case the Licensee intends to rent out its assets as per clause (a)above, it shall sign a rent agreement containing detailed terms and conditions for various aspects such as advanced security, regular payments, interest on delayed payments, compensation for damages, safety and security of assets and personnel, etc. for a mutually agreed period not exceeding 3 years at a time which may be extended on mutually agreed terms and conditions with each term not exceeding 3 years of condition:
Provided that the term of the agreement shall in no case extend beyond the tenure of the license of any of the parties in the agreement:
Provided further that the amount of rent shall also be automatically increased at a mutually fixed rate on an annual basis and shall also be reviewed for its enhancement, at the time of every such extension:
Provided further that such agreement shall also include suitable provisions, under which a party, in case of repeated breach of the agreement by the other party, may issue 30 days’ notice at the first instance of default, and in case the breach continuous, may terminate the agreement by giving a final notice of at least 60 days.
(2) The Licensee shall ensure that not more than 50% of its total distribution or transmission assets, as the case may be, in the area of its circle, are given to a single telecommunication Company or its sister concerns so as to deter the abuse of the dominant position.
(3) The Licensee shall always follow a transparent process/mechanism for letting out distribution/transmission assets to the Telecommunication Company.
[Notification No. HPERC/420]
