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Section 17: Act not to apply in certain cases

The Himachal Pradesh Electricity Distribution Management Responsibility Act, 2014State Act of Himachal Pradesh · Act 5 of 2015

(1) Nothing in this Act shall apply to any Distribution Licensee that is not owned or controlled by the State Government or to a successor entity of the State Distribution Licensee that is not owned or controlled by the State Government.

(2) Notwithstanding sub-section (1), all directives issued by the State Government under this Act shall continue to apply for the period for which such directions were issued by the State Government.

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SCHEDULE (Sections 2(1)(l) and 3) Illustrative Key Performance Indicators (KPIs) The State Electricity Distribution Management Statement as provided in section 3 of this Act shall include but not limited to, the Key Performance Indicators in the following areas:- I. Planning:

(a) power Procurement with accurate Demand Estimation to mitigate Energy and Peak Shortages on long-term, mediumterm and short-term basis-undertake forecasting of demand and estimation of Aggregate Technical and Commercial losses within one year, procurement of power as per forecast from second year onwards and 100% electricity supply to consumers in next three to five years;

(b) payment of dues of electricity by Government Departments and Institutions.- the current dues have to be paid within due date of raising of bills;

(c) distribution loss reduction trajectory.- Aggregate Technical and Commercial losses to be reduced @3% per year for losses above 30% and @ 1.5% per year for losses below 30%;

(d) provisioning of subsidy.- it should be provided upfront by the Government by way of budgetary provision;

THE HIMACHAL PRADESH ELECTRICITY DISTRIBUTION MANAGEMENT 13 RESPONSIBILITY ACT, 2014

(e) energy accounting and energy auditing of all 33 kV feeders, 11 kV feeders anddistribution transformers.- to be achieved within one and two years;

(f) 100% Metering and Consumer Indexing.- to be achieved within three years;

(g) setting up Special Courts for settling theft cases.- to be set up within one year, if not already set up.

II. Financial Restructuring:

(a) improvement in collection efficiency.- to be increased @

1.5% per year if it is between 95 to 99%, @ 3% per year if it is between 90 to 95% and @ 5% per year if it is between 80 to 90%;

(b) recovery of past receivables.- past receivables to be reduced @ 20% per year till the normative level allowed by the Commission in the working capital computation;

(c) liquidation of payables and other liabilities.- 20% reduction every year till normative levels are achieved;

(d) Capital Expenditure alongwith its funding plan.- to get timely approved every year as per the norms specified by the Commission;

(e) quantum and rate of short term power purchase.- not more than 10 to 15% every year;

(f) discharge of Contingent liabilities.- 20% every year; and

(g) discharge of terminal benefit liabilities of the employees.- within one year for the past employees and for currently retiring - on the date of retirement;

III Accounting Measures :

(a) timely preparation and audit of Annual Accounts (Annual Accounts to be prepared within due date of 30 th September and realigned with the current accounting standards); and

(b) provision for bad and doubtful debts/write offs;

IV Corporate Governance:

(a) number of Functional Directors.- as per Guidelines for Corporate Governance for Central Public Sector Undertakings; and

(b) number of Independent Directors.- as per Guidelines for Corporate Governance for Central Public Sector Undertakings;

14 THE HIMACHAL PRADESH ELECTRICITY DISTRIBUTION MANAGEMENT RESPONSIBILITY ACT, 2014 V Regulatory Measures,-

(a) gap between Average Revenue Realization and Average Cost of Supply.- to be eliminated in a period of three to five years; and

(b) liquidation of Regulatory Assets.- to be liquidated in a period of three to five years.

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Where this provision sits

ActThe Himachal Pradesh Electricity Distribution Management Responsibility Act, 2014
Section17
Marginal noteAct not to apply in certain cases
JurisdictionState of Himachal Pradesh
StatusIn force as published by the source

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