(1) It shall be the duty of the holder of a supply license or a transmission licence in respect of a particular area of supply or transmission, as the case may be, to develop and maintain an efficient, coordinated and economical system of electricity or transmission in the area of supply or area of transmission, as the case may be.
(2) Each licensee and Generating Company in discharge of its duties shall comply with the provisions of the regulations framed from time to time governing the terms and conditions for the operation and maintenance of the power system and electric supply lines.
(3) Subject to Sub-section (4) Sections 12, 13, 14, 15, 16, 17, 18 and 19 of the Indian Electricity Act, 1910 shall have effect in relation to a person authorised by a licence to transmit or supply electricity, as if it were a licensee under the said Act.
(4) Where any of the Sections mentioned in Sub-section (3) is applied to a licence holder by its licence, it shall have effect subject to such restrictions, exceptions and conditions as may be included in the licence.