Power Corps under Central Electricity Act face license cancellation over supply interruptions

Srinagar, Nov 24: Amid a pressing power crisis in Kashmir, the Electricity Regulatory Act 2003 applicable in Jammu and Kashmir emphatically asserts that power distribution companies failing to ensure a consistent electricity supply may face cancellation of their service provider licenses.

In Kashmir, the Kashmir Power Distribution Corporation Limited (KPDCL) is the distribution company of electricity, which is under severe criticism for failing to ensure regular power supply in the Valley.

The power position has gone from bad to worse with KPDCL announcing a curtailment schedule which is not being adhered to, a fact admitted by Divisional Commissioner Kashmir on Wednesday.

Central Electricity Act of 2003 became applicable in Jammu and Kashmir following the enactment of the Jammu and Kashmir Reorganisation Act in 2019, leading to the repeal of the J&K Electricity Act of 2010.

The Central Electricity Act, Section (Suspension of Distribution License and Sale of Utility), explicitly states, “If at any time the Appropriate Commission thinks that a distribution licensee has persistently failed to maintain uninterrupted supply of electricity conforming to standards regarding the quality of electricity to the consumers, the Appropriate Commission may, for reasons to be recorded in writing, suspend, for a period not exceeding one year, the license of the distribution licensee and appoint an administrator to discharge the functions of the distribution licensee following the terms and conditions of the license.”

The act clarifies: “Before suspending a license under this section, the Appropriate Commission will give a reasonable opportunity to the distribution licensee to make representations against the proposed suspension of the license and will consider the representations, if any, of the distribution licensee. Upon suspension of license under sub-section (1) the utilities of the distribution licensee shall vest in the administrator for a period not exceeding one year or up to the date on which such utility is sold following the provisions contained in Section 20, whichever is later. The Appropriate Commission shall, within one year of the appointment of the Administrator under sub-section (1) either revoke the license following the provisions contained in Section 19 or revoke the suspension of the license and restore the utility to the distribution licensee whose license had been suspended, as the case may be.”

“Appropriate Commission” means the Central Regulatory Commission referred to in sub-section (1) of section 76 or the State Regulatory Commission referred to in section 82 or the Joint Commission.

Further, the act mentions: “It shall be the duty of a distribution licensee to develop and maintain an efficient, coordinated, and economical distribution system in his area of supply and to supply electricity following the provisions contained in this Act, section 83, as the case may be.”

The erstwhile J&K State Electricity Regulatory Commission (J&K SERC) constituted under the J&K Electricity Act 2010 carried out regulatory functions in respect of the erstwhile state of Jammu and Kashmir.

J&K Electricity Act 2010 was repealed, and Electricity Act 2003 was made applicable to Jammu and Kashmir and Ladakh under which the Joint Electricity Regulatory Commission for the Union Territories of J&K and Ladakh (hereinafter called the 'JERC J&K and Ladakh' or 'the Commission') was established under Section 83 of the Electricity Act, 2003 by the Government of India.