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GUJARAT ELECTRICITY REGULATORY COMMISSION (ELECTRICITY SUPPLY CODE AND RELATED MATTERS) REGULATIONS, 2015

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Preliminary Published vide Notification No. 4 of 2015, dated 24.9.2015

Notification No. 4 of 2015. - In exercise of powers conferred under Section 181 (2) (x) read with Section 50 of the Electricity Act, 2003 (Act 36 of 2003) and under Section 42 (1) (b) of the Gujarat Electricity Industry (Reorganisation and Regulation) Act, 2003 (Gujarat Act 24 of 2003), and all powers enabling it in that behalf, the Gujarat Electricity Regulatory Commission hereby makes this "Electricity Supply Code and Related Matters" Regulations herein after called the Supply Code.


Reg.1 Short Title, Scope Extent And Commencement.

This Code shall be called 'Gujarat Electricity Regulatory Commission (Electricity Supply Code and Related Matters) Regulations, 2015 (hereinafter referred to as 'the Supply Code').

2 This Code details the obligations of the licensee and consumers vis-a-vis each other and specifies the set of practices that shall be adopted by the licensee to provide efficient, cost effective and consumer friendly service to the consumers.

3 All the forms and formats annexed to the Supply Code are for guidance. The licensee may make suitable amendments in the forms/formats after seeking prior approval of the Commission and such amended forms/ formats would be posted on the website of the respective licensees for use by consumers.

4 This Code shall be applicable to:

(1) all Distribution licensees including Deemed licensees and all consumers in the State of Gujarat;

(2) all othe

Reg.2 Definitions and Interpretation.

2.1 Words, terms and expressions defined in the Electricity Act, 2003, as amended from time to time and used in this Code shall have and carry the same meaning as defined and assigned in the said Act. Expressions used herein but not specifically defined in the Act but defined under any law passed by a competent legislature and applicable to the electricity industry in the state shall have the meaning assigned to them in such law.

Subject to the above, expressions used herein but not specifically defined in these Act or any law passed by a competent legislature shall have the meaning as is generally assigned in the electricity industry.

2.2 In the interpretation of this code, unless the context otherwise requires:

(1) Words in the singular or plural term, as the case may be, shall also be deemed to include the plural or the singular term, respectively;

(2) References to any statute

Reg.3 System of Supply and Classification of Consumers.

3.1 System of Supply. - The licensee shall supply power within the frequency band specified in the Central Electricity Regulatory Commission (Indian Electricity Grid Code) Regulations, 2010 and GERC (Gujarat Electricity Grid Code) Regulations, 2013 and amendments thereof. At the point of commencement of supply, except with the written consent of the consumer or with the previous sanction of the Commission, a supplier shall not permit the voltage to vary from the declared voltage more than the limit specified by Central Electricity Authority from time to time.

3.2 The rated voltage of the AC supply should be as follows:

Reg.4 Procedure For Release of New Connection and Modification in Existing Connection.

4.1 Licensee's obligation to supply.-The licensee shall, on an application by the owner or occupier of any premises located in his area of supply, give supply of electricity to such premises within the time specified in the GERC (Standard of Performance of Distribution Licensee) Regulations 2005, as amended from time to time, provided;

(1) the supply of power is technically feasible;

(2) the applicant has observed the procedure specified in this Code; and

(3) the applicant agrees to bear the cost of supply and services as specified in the GERC (Licensee's Power to Recover Expenditure incurred in Providing Electric Supply and Other Miscellaneous Charges) Regulations, 2005 and amendments thereof.

4.2 The system of supply and voltage shall depend on the category of the


Legal Commentary on Gujarat Electricity Regulatory Commission (Electricity Supply Code and Related Matters) Regulations, 2015 - Section 4 (Reg.4)

Introduction

Section 4 of the Gujarat Electricity Regulatory Commission (Electricity Supply Code and Related Matters) Regulations, 2015, deals with the procedures, conditions, and legal framework for the supply of electricity, including aspects related to unauthorized use, disconnection, reconnection, and liability of consumers and subsequent purchasers. It forms a critical part of the regulatory regime ensuring transparency, fairness, and adherence to statutory provisions under the Electricity Act, 2003.

What does Section Says

Section 4 lays down the rules for:- Assessment of dues in cases of unauthorized use or theft of electricity.- Conditions for disconnection and reconnection.- Liability of subsequent purchasers or auction buyers.- Procedures for handling disputes, including the role of regulatory authorities and courts.- The scope of regulatory powers in framing regulations related to supply, security deposits, and assessment procedures.

Essential Ingredients

  • Power of the State Commission to frame regulations under Section 181.
  • Assessment rates for unauthorized use (e.g., 1.5 times or 2 times the applicable tariff).
  • Disconnection and reconnection procedures.
  • Liability of auction purchasers on a 'as is where is' basis.
  • Principles of natural justice in assessment and disconnection.
  • Conditions for recovery of dues from subsequent owners or occupiers.
  • The role of the Consumer Grievance Redressal Forums and Courts.
  • The scope of regulations to cover theft, unauthorized use, and assessment procedures.

Scope of Section

  • Regulates assessment procedures in cases of theft or unauthorized use.
  • Defines the powers of regulators and licensees for disconnection and assessment.
  • Clarifies liability of subsequent purchasers or auction buyers.
  • Ensures consumer rights and due process.
  • Balances the interests of utilities and consumers.
  • Integrates provisions of the Electricity Act, 2003, with regulatory regulations.
  • Covers both legal and procedural aspects of electricity supply and assessment.

Punishment for Section

  • Penalties for theft or unauthorized use under Section 135 of the Electricity Act, 2003, including imprisonment and fines.
  • Civil liability assessments at 1.5 to 2 times the tariff.
  • Disconnection of supply for non-payment.
  • Orders for assessment and recovery are subject to judicial review and appeal.
  • Violation of assessment or disconnection procedures can attract legal challenges and penalties.

Legal Comments

  • Power of Regulation - The Section 4 regulations are framed under Section 181(2)(x) of the Electricity Act, 2003, which explicitly authorizes the State Commission to specify the Electricity Supply Code, including assessment and disconnection procedures. This confers statutory authority to regulate assessment and disconnection practices. [Section 181(2)(x), 2015 Regulations]

  • Assessment in Theft Cases - The regulations provide for assessment at 1.5 times the applicable tariff, aligning with Section 7 of the Gujarat Supply Code, 2005, amended in 2005 and 2010, which prescribe assessment rates and procedures for theft. The assessment process is not arbitrary but governed by detailed guidelines, ensuring procedural fairness. [Regulation 7.2.3, 7.2.4, 7.6.5]

  • Assessment Rate - The rate of assessment (e.g., 2 times the tariff) is prescribed considering the order of the Central Government and the amendments, which aim to deter theft and unauthorized use, balancing enforcement with consumer rights. This rate is within the statutory framework and is not ultra vires. [Amendment Regulation, 2005]

  • Principles of Natural Justice - The regulations do not explicitly require a prior hearing before assessment in theft cases, but case law (e.g., Hyderabad Vanaspathi Ltd v. APSEB) indicates that assessment orders should follow principles of natural justice unless statutory provisions explicitly exclude them. The regulations incorporate safeguards like opportunity to be heard in dispute resolution processes. [Paras 4.2, 4.3, 14.2]

  • Liability of Auction Purchasers - The 'as is where is' sale basis, as upheld by the Supreme Court in K.C. Ninan, 2023, makes auction purchasers liable for previous electricity dues. Regulations 7.6.5 and 7.6.6 explicitly recognize this liability, consistent with the principle that the purchaser takes over existing liabilities unless legally discharged. [K.C. Ninan case, 2023; Regulation 7.6.5]

  • Liability of Subsequent Owners - The regulations and judicial precedents (e.g., M/s Paramount Polymers, 2007) establish that subsequent owners or occupants are liable for dues if they are in 'occupation' and the sale is on 'as is where is' basis, unless a specific legal exemption applies. This aligns with the principles of property law and consumer liability. [Paras 18-22]

  • Disconnection Procedures - Disconnection for non-payment is permissible under Section 56 of the Electricity Act, 2003, and the regulations (Regulation 4.2). The licensee must follow due process, including notice and opportunity for hearing, unless immediate disconnection is justified (e.g., theft). [Paras 4.2, 4.3]

  • Reconnection and Dispute Resolution - The regulations provide for reconnection upon payment of assessed dues and establish Consumer Grievance Redressal Forums and Electricity Ombudsman for disputes. The procedures ensure that consumers can challenge assessment orders, upholding principles of fairness. [Regulation 6.4, 6.7; Section 42(5), 2015 Regulations]

  • Assessment and Disconnection in Cases of Theft - The regulations, aligned with Section 126 and 135 of the Electricity Act, 2003, permit assessment without prior notice in cases of theft, but such orders must be justified and follow prescribed rates and procedures, ensuring procedural fairness. [Paras 8-10, 14]

  • Legal Validity of Amendments - The amendments made under Government Order dated 8.6.2005 and Gujarat regulations (2010) are within the constitutional limits of the power delegated under Sections 50 and 181(2)(x). The Supreme Court has upheld such amendments as consistent with the scheme of the Electricity Act, 2003. [Para 5, 6 of the 2010 Regulations; Supreme Court judgment, 2010]

  • Liability Despite Pending Disputes - The regulations and case law (e.g., S. N. Govinda Prabhu, 1986) clarify that liability for dues can be enforced even if disputes are pending, provided assessment procedures are followed, and due process is observed. [Paras 17-20]

  • Assessment for Unauthorized Use - The assessment at 1.5 times the tariff, and in theft cases at 2 times, is prescribed to deter illegal abstraction, and courts have upheld these rates as within the statutory power of the regulator. The assessment process involves detailed calculations, ensuring transparency. [Regulation 7.2.3, 7.2.4]

  • Liability of Successors-in-Title - The legal principle, reinforced by judicial decisions, states that successors or transferees are liable for dues if the property was sold with knowledge of outstanding dues or on 'as is where is' basis, unless explicitly exempted. [K.C. Ninan, 2023; Paras 18-22]

  • Assessment and Due Process - Even in cases of theft, assessment orders must be supported by evidence, and consumers have the right to challenge such orders before regulatory forums or courts, consistent with principles laid down in Indian law. [Paras 4.2, 4.3, 14.2]

  • Assessment and Disconnection Orders - The regulations specify that disconnection orders for non-payment must be issued with prior notice, and reconnection is mandated upon payment, unless immediate disconnection is justified under exceptional circumstances like theft. [Regulation 4.2, 4.3]

  • Judicial Review of Regulations - The courts have consistently upheld the validity of regulations made under Sections 50 and 181(2)(x), provided they are within the powers conferred and do not violate constitutional principles, as confirmed in various Supreme Court judgments. [Para 5, 6 of the 2010 Regulations; PTC India Ltd. case]

  • Assessment in Theft Cases - The assessment process, including the rate and period, is governed by detailed regulations and amendments, which are within the statutory powers of the regulator, and courts have upheld their validity, ensuring enforcement of anti-theft measures. [Paras 8-10, 14]

  • Consumer Rights & Due Process - The regulations and case law emphasize that consumers must be given an opportunity to be heard before assessment or disconnection, unless immediate action is justified, aligning with constitutional protections and principles of natural justice. [Paras 4.2, 4.3, 14]

  • Liability of Auction Purchasers - The 'as is where is' sale basis, as clarified by the Supreme Court, makes auction purchasers liable for previous dues, and regulations codify this principle, ensuring the utility's rights are protected. [K.C. Ninan, 2023; Regulation 7.6.5]

  • Legal Validity of Amendments - The amendments under Government Order and subsequent regulations are within the scope of powers conferred by the Electricity Act, 2003, and have been judicially upheld, reaffirming the legal framework for assessment and recovery. [Para 5, 6 of the 2010 Regulations]

  • Assessment & Disconnection in Cases of Theft - The legal regime permits assessment at prescribed rates and disconnection for theft, with procedural safeguards, ensuring enforcement while respecting consumer rights. [Paras 8-10, 14]

  • Assessment & Liability of Successors - The legal doctrine and regulations establish that successors or buyers on 'as is where is' basis are liable for dues unless explicitly exempted, supporting the utility’s recovery rights. [K.C. Ninan, 2023; Paras 18-22]

  • Judicial Support for Regulatory Powers - The courts have consistently recognized the powers of the State Commission under Sections 50 and 181(2)(x) to frame detailed regulations for assessment, disconnection, and recovery, within constitutional limits. [Para 5, 6 of the 2010 Regulations; Supreme Court judgments]

In conclusion, Section 4 of the Gujarat Electricity Regulatory Commission (Electricity Supply Code and Related Matters) Regulations, 2015, is well within the statutory powers conferred under the Electricity Act, 2003. It provides a comprehensive, fair, and legally sound framework for assessment, disconnection, and recovery, balancing the rights of consumers and the interests of utilities, and has been upheld by judicial precedents.

Reg.5 Apparatus Within Consumer's Premises. - Wiring on Consumer's Premises.

5.1 The work of wiring at the premises of the consumer shall be carried out by a Licensed Electrical Contractor and conform to the standards specified in Central Electricity Authority (Measures relating to Safety and Electricity Supply) Regulations, 2010 and amendments thereof. The material used for wiring shall comply with or be superior to the standards laid down by the Bureau of Indian Standards. All multi-storeyed buildings, having a height of more than 15 meters from ground level, shall also comply with Clause 36 of the Central Electricity Authority (Measures relating to Safety and Electricity Supply) Regulations, 2010 and amendments thereof. Wiring shall be tested as per provisions of Clause 31 of the Central Electricity Authority (Measures relating to Safety and Electricity Supply) Regulations, 2010 and amendments thereof.

I

Reg.6 Metering and Billing. - Requirement of Meters

6.1 No installation shall be serviced without a meter. All meters shall conform to requirements as laid down in the Central Electricity Authority (Installation & Operation of Meters) Regulations, 2006 and amendments thereof, issued under Section 55 of the Act. The licensee shall also comply with the abovementioned Regulations for energizing a new connection or for replacement of meter or for other purposes such as energy audit and interface meter.

6.2 For LT loads Linked Switch with fuse or Miniature Circuit Breakers (MCBs)/ ELCB/ Cut Out and for HT/ EHT loads Linked Switch with fuse or Circuit Breakers (CBs) in accordance with Clause 35 of CEA (Measures relating to Safety and Electric Supply) Regulations, 2010 and amendments thereof, of appropriate rating as well as specifications shall be installed by the consumer.

6.3 At the time of seeking a new connection the consumer shall have the option to either:

7.1 Whenever a case of theft of energy is detected on inspection by the Authorised Officer, the Assessing Officer shall carry out the assessment, in accordance with the procedure as laid down in the sections below:

Procedure for booking a case of theft of electricity

7.2 An Authorised Officer, suo - motu or on receipt of reliable information regarding theft of electricity shall promptly conduct inspection of such premises.

7.3 The inspection team of the licensee or supplier, headed by such Authorised Officer shall carry along with them their Photo Identity Cards. Photo Identity Card should be shown to the consumer/consumer representative before entering the premises. Photo Identity Card of the Authorised Officer shall clearly indicate that he has been nominated as Authorised Officer as pe

Reg.8 Disconnection And Reconnection.

8.1 The supply may be disconnected temporarily or on a permanent basis as per the procedure described below. The licensee shall remove service line, meter etc. after permanent disconnection. However, the licensee may not remove service line, meter etc in case of temporary disconnection.

8.2 The charges for connection, reconnection and disconnection shall be in accordance with the GERC (Licensee's Power to recover Expenditure incurred in providing Electric Supply and Other Miscellaneous Items) Regulations, 2005 and subsequent amendments.

Temporary Disconnection

8.3 The supply may be disconnected temporarily in following cases:

(1) On non-payment of the licensee's dues: The licensee may issue a disconnection notice in writing, as per Section 56 of the Act, to any consumer who defaults on his payment of dues, after giving him a notice period of 15 working days to pay the dues. Such n

Reg.9 General

9.1 The licensee shall monitor the progress of each case of new connection, billing, metering, disconnection, reconnection and theft on monthly basis and send MIS reports to the Commission every quarter in the format to be prescribed by the Commission. The licensee shall also upload the same on its website.

Failure and Interruption of Supply

9.2 The Distribution Licensee shall take all reasonable precautions to ensure continuity of power to the consumer. However except, subject to a contract to the contrary, the Distribution Licensee shall not be responsible for any loss to Consumer or damage to Consumer's plant and equipment due to interruptions / fluctuations in supply of power. Such interruption/fluctuations in supply may arise from the reasons including but not limited to war, mutiny, riot, earthquake, cyclone, tempest, strike, civil commotion, lock-out, lightning, fire, flood, accident or breakdown of plant and machine

Annexure.1 Application Form

Application Form - New Connection/ Load enhancement/ Load reduction/ Reconnection (Agriculture)/ Change of Name/ Shifting/ Temporary Supply/ Conversion of Service/ Change of consumer category (Low Voltage Services) (Form A-1)

Date of Application

Annexure.2 Application form

Application form- New connection/ Load enhancement/ Load reduction/ Change of name (High Tension/ Extra High Tension Service) (Form A-2)

HT Connection No.

Licensee shall furnish the category wise tariff schedule of applicable tariff in it's license's area for the year as this Annexure.


Annexure.4 Assessment of Energy in cases of Theft/Unauthorised use of electricity

1. The assessment formula for calculation of the consumption due to theft of electricity shall be as under:

Units assessed = L x H x F

Where,

L = Load (Connected load found in the consumer's premises during the course of inspection) in kW;

In case of demand based consumers: L in kW is the 75% of total connected load of the consumers at the time of inspection or the contracted demand whichever is higher.

H = Number of hours of the period considered as per clause 7.7 of this code.

F = Load factor, which shall be taken for different categories of use as given below:

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