(1) Subject to the provisions of section 24 of the Act and the regulations framed thereunder, where the circumstances exist which render it necessary for it in the public interest, the Commission may suspend, for a period not exceeding one year, the distribution licence, if in the opinion of the Commission the distribution licensee -
(a) persistently fails to maintain uninterrupted supply of electricity conforming to the standards regarding quality of electricity to the consumers; or
(b) is unable to discharge the functions or perform the duties imposed on it by or under the provisions of the Act;
(c) persistently defaults in complying with the directions given by the Commission under the Act, or
(d) breaches the terms and conditions of the licence.
(2) Before suspending a licence under sub-regulation (1), the Commission shall give the licensee not less than one month notice, in writing, stating the grounds on which it is proposed to suspend the licence, and has considered any cause shown by the licensee within the period of that notice, against the proposed suspension.
(3) While suspending the licence under these regulations, the Commission shall appoint an Administrator to discharge the functions of the distribution licensee in accordance with the terms and conditions of the licence and on such appointment the utilities of the distribution licensee shall vest in the Administrator for a period not exceeding one year or upto the date on which such utility is sold in accordance with the provisions of section 20; or till the licence is revoked under section 19, or the suspension of the licence is revoked, whichever is earlier.