The Joint Electricity Regulatory Commission (JERC) on February 28, 2024, published the Joint Electricity Regulatory Commission for the UT of Jammu & Kashmir and the UT of Ladakh (Treatment of Income from Other Business of Transmission Licensees and Distribution Licensees) Regulations, 2024
These regulations shall come into force on February 28, 2024
The following has been stated namely: -
• It states that these Regulations shall be applicable to all the licensees engaged in the Transmission of electricity and Distribution of electricity in the UT of Jammu & Kashmir and the UT of Ladakh.
• It states that the licensee/deemed licensee proposing to undertake Other Business for optimum utilization of its assets shall give prior intimation, in writing, to the Commission of its intention to undertake such other business. While giving intimation as aforesaid, the licensee shall furnish, duly supported by an affidavit, the following details: -
o the nature of the Other Business;
othe proposed capital investment in the other business and the proposed Capital Investment in the Licensed Business for supporting the other business.
o the impact of the use of assets and facilities of the Licensed Business for the Other Business;
o a proposal for sharing the revenue derived from the Other Business with the Licensed Business, in the manner envisaged in regulation 5(3); the proposal should include the methodology used for arriving at the proposed sharing, supported by the business plan of the Other Business (including expected annual revenues for the next five years)
• it states that the Licensee shall not in any manner utilize the assets and facilities of the Licensed Business or otherwise directly or indirectly allow the Other Business to be undertaken in a manner that the Licensed Business results in subsidizing the Other Business.
[Notification No. JERC-JKL/Reg/2024/03]
