New Draft Regulations For Granting Electricity Distribution Licenses In Arunachal Pradesh

The Arunachal Pradesh State Electricity Regulatory Commission (APSERC) has proposed a new regulatory framework for granting distribution licenses for electricity within the state. This comprehensive framework outlines the procedures, terms, and conditions for entities seeking to distribute electricity. The framework aims to ensure a systematic and transparent process, promoting efficiency and reliability in the electricity distribution sector.

The draft regulations require any entity wishing to obtain a distribution license to submit a detailed application to the APSERC. This application must include various documents and information, such as a business plan, financial statements, technical capability details, and maps of the proposed distribution area. Applicants must also demonstrate their managerial and financial capacity to handle the distribution business effectively.

Upon receiving an application, the APSERC will scrutinize it to ensure all required information and documents are provided. If the application is deemed complete, the APSERC will publish a notice in local newspapers and on its website, inviting objections or suggestions from the public. This step ensures transparency and allows stakeholders to voice their opinions.

The APSERC has specified that the distribution license is not transferable, and any significant changes, such as mergers or acquisitions, require prior approval from the Commission. The licensee is also prohibited from engaging in electricity transmission without proper authorization.

The area of distribution for the licensee will be clearly defined in the license, and the licensee must adhere to this designated area. The framework emphasizes that the distribution license does not grant exclusivity; the APSERC reserves the right to grant additional licenses within the same area if deemed necessary.

The draft regulations also outline the duties of the distribution licensee. The licensee must comply with the standards of performance set by the APSERC, ensuring a reliable supply of electricity to consumers. The installation of meters and adherence to safety standards are mandatory. The licensee is also required to provide open access to its distribution system, promoting competition and efficiency.

The APSERC has also addressed the possibility of engaging in other businesses. The licensee can utilize its assets for other businesses with prior intimation to the Commission. However, the income from such businesses must be accounted for separately and deducted from the licensee’s aggregate revenue requirement.           

In cases where amendments to the license are necessary, the process for requesting changes is similar to the initial application process. This includes publishing notices, inviting public objections, and holding inquiries if needed. The Commission has the authority to amend licenses based on the merits of each case.

Furthermore, the draft regulations cover the responsibilities of the distribution licensee, including the duty to supply electricity upon request, install meters, and provide open access to their distribution system. Licensees are also required to establish consumer grievance redressal forums to handle complaints and issues raised by consumers.

The draft notification by APSERC aims to establish a transparent and systematic process for granting distribution licenses, ensuring that only qualified and capable entities are authorized to distribute electricity in Arunachal Pradesh. The regulations emphasize public participation, financial and technical scrutiny, and adherence to regulatory standards to maintain an efficient and reliable electricity distribution system in the state.

Please view the document here for more details.