(1) Until otherwise directed by the Commission, the following classes of persons engaged in the supply of electricity in the State of Himachal Pradesh shall be deemed to have applied for and granted the Category II - Licence for the purpose contained herein and subject to the fulfillment of the conditions contained in subregulation (2) -
(a) persons who supply electricity generated by themselves and/or supplied to them by an authorized person, for the purposes of an event or function not exceeding two months, and when the electricity is distributed through a system owned by them;
(b) persons who supply electricity to the residential colonies as a part of their activity of maintaining such colonies for use and occupation of their employees and/or for use and occupation of persons providing facilities and services to the employees, where such person procures electricity from any licensee or from any other source approved by the Commission and distributes the electricity within the residential colonies on no-profit motive basis;
(c) the State Electricity Board performing bundled functions of transmission, distribution and trading in electricity and its successor companies or such other persons as the Commission may from time to time by order notify, subject to such terms and conditions as the Commission may direct.
(2) The licensee under sub-regulation (1) shall -
(a) not directly or indirectly undertake trading in electricity or distribution or supply of electricity outside its area of operation and the distribution or supply of electricity shall be strictly restricted to the purpose mentioned in sub-regulation
(1);
(b) establish the electric line or works only within the area of operation;
(c) if so required furnish to the Commission such information required for the purposes of the discharge of the functions of the Commissions as the Commission may from time to time direct;
(d) comply with the provisions of the Act, the regulations of the Commission, technical codes such as grid code, supply code, standards of performance and overall standards of performance or any other guidelines issued by the Commission;
(e) comply with any directions which the Commission may issue from time to time in regard to the charges which such persons may levy on the consumers taking into account the charges prevailing in the nearly area of supply of electricity supplied by a licensee.
(3) The Commission shall be entitled to issue appropriate directions from time to time as it may consider to be necessary and take appropriate action against a licensee under these regulations in accordance with the provisions of the Act and these regulations for any breach or non-compliance thereof.
(4) The Commission may, at any stage, if it considers to be necessary, direct the licensee under this regulation to apply for Category -I Licence and consider the grant or refusal of licence and may by an interim or final order direct such licensee to cease to transmit or distribute or supply electricity in the area of operation or any part thereof or undertake trading in electricity.
(5) If any difference or dispute arises as to whether the person is entitled to undertake supply of electricity as a licensee under this regulation, the decision thereon of the Commission shall be final.
CHAPTER –V GENERATING COMPANIES AND CAPTIVE GENERATING STATIONS