The Arunachal Pradesh State Electricity Regulatory Commission (APSERC) has issued new regulations titled “Procedure, Terms and Conditions for Grant of Distribution Licence and other Related Matters Regulations, 2024.” These regulations were officially notified on June 27, 2024, and are now in effect following their publication in the state gazette on July 3, 2024.
The regulations are enacted under the powers conferred by Section 181 of the Electricity Act, 2003, and other relevant provisions. The purpose of these regulations is to establish a comprehensive framework for granting distribution licenses within Arunachal Pradesh. This framework encompasses a wide range of aspects, from application procedures to the conditions and requirements for licensees.
The regulation starts with preliminary definitions and interpretations, ensuring clarity in the terms used throughout the regulations. For instance, terms such as ‘Act’, ‘Annual Accounts’, ‘Applicant’, ‘Distribution’, and ‘Licensee’ are defined to avoid any ambiguity. The regulations also specify what constitutes a ‘Force Majeure’ event, which includes natural disasters and other extraordinary circumstances beyond the control of the licensee.
A significant section of the regulations deals with the procedure for granting distribution licenses. Any person or entity intending to apply for a license must meet specific criteria regarding capital adequacy and creditworthiness as laid out by the Ministry of Power, Government of India. The regulations require applicants to demonstrate their financial capability, including a norm of 30% equity on the cost of investment. Additionally, applicants must prove they have not been found guilty or disqualified under various sections of laws such as the Companies Act, Income Tax Act, and SEBI Act within the last three years.
The application process is detailed, with specific requirements for submitting maps of the proposed service area, a detailed project report, and other supporting documents. Applicants must submit six printed copies and one soft copy of the application, along with three signed copies of maps indicating the proposed service area. These maps must differentiate between existing systems and new facilities required for providing electricity.
The APSERC mandates that applicants must ensure the availability of adequate competent personnel and infrastructure facilities to construct, operate, and maintain the distribution system effectively. They must also provide their financial statements for the previous three years, and, if applicable, a copy of their Memorandum and Articles of Association.
Once the application is submitted, it is scrutinized by the Secretary of the Commission or a designated officer. If the application is found to be incomplete or deficient, it is returned to the applicant with instructions for rectification. Upon finding the application complete, the Commission will certify it as ready for consideration.
The regulations also require the publication of a public notice of the application, unless exempted by applicable laws. This ensures transparency and allows for public scrutiny and input.
The new regulations by APSERC provide a structured and detailed approach for granting distribution licenses in Arunachal Pradesh. They aim to ensure that only qualified and financially sound entities are entrusted with the distribution of electricity, thereby promoting efficiency and reliability in the state’s power supply system. These regulations mark a significant step in the regulatory framework governing electricity distribution in the region.
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