Petition No. 203/2009. Case: In Re: Arunachal Pradesh Power Corporation Private Limited, Itanagar Vs. Central Electricity Regulatory Commission
| Case Number | Petition No. 203/2009 |
| Judges | Dr. Pramod Deo, Chairperson, Shri S Jayaraman, Member, Shri V.S. Verma, Member and Shri M. Deena Dayalan, Member |
| Issue | Electricity Act, 2003 - Sections 142, 15, 15(5) |
| Judgement Date | September 11, 2012 |
| Court | Central Electricity Regulatory Commission |
Order:
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The applicant, Arunachal Pradesh Power Corporation Private Limited has filed this petition under sub-section (1) of section 15 of the Electricity Act, 2003 (the Act) read with the provisions of the Central Electricity Regulatory Commission (Procedure, Terms and Conditions for grant of Trading licence and other related matters) Regulations, 2009 (hereinafter referred to as "Trading Licence Regulations") for grant of licence for inter-State trading in electricity in whole of India except the State of Jammu and Kashmir. The Commission after being prima facie satisfied that the applicant meets the requirements of the Act and Trading Licence Regulations for grant of licence proposed to grant Category III licence for inter-State trading in electricity and vide order dated 18.6.2010 directed for issue of notice under section 15(5) of the Act inviting suggestions/objections to the proposal to grant licence. Notice under section 15(5) of the Act was published on 26.6.2010 in all editions of the Hindustan Times and Times of India. In response to the public notice, one Manav Sewa Sansthan, through its Secretary Shri O.P. Singh, A-8, Amar Nath Monga Block, Tis Hazari Courts, Delhi-110054 (hereinafter referred to as "the objector") filed its objection to the proposal to grant trading licence to the applicant. The applicant has also filed its reply to the objections.
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Clause (9) of Regulation 6 of the Trading Licence Regulations provide as under:
(9) On consideration of further objections or suggestions received and the reply of the applicant thereto, if any, the Commission may grant the licence or reject the application, for reasons to be recorded in writing if the application does not confirm to the provisions of the Act, the rules or regulations or provisions of any other law for the time being in force:
Provided that no application shall be rejected, unless the applicant has been given an opportunity of being heard.
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The objector has submitted that the applicant has undertaken trading in electricity without having a valid trading licence by buying power from the Government of Arunachal Pradesh and selling the same at the power exchange. The applicant in its reply dated 23.7.2010 has submitted that the applicant has been granted an intra-State trading licence by Arunachal Pradesh Electricity Regulatory Commission by order dated 10.8.2009. The applicant has further submitted that it is buying electricity from the Government of Arunachal Pradesh and selling electricity to third parties within the territory of the said State on the authority of the intra-State trading licence. The applicant has also submitted that as a professional member of the Indian Energy Exchange (IEX), it has facilitated the sale of electricity through the exchange from 1.9.2009 to 6.6.2010 in accordance with the rules, regulations, bye-laws of the IEX. The applicant has placed on record a certificate from IEX stating that the Govt. of Arunachal Pradesh has transacted on the exchange as a grid connected client of the applicant. The Commission after hearing the learned counsel for the applicant and the objector issued the following directions by order dated 10.9.2010:
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The Applicant has admitted that it has undertaken trading within the territory of Arunachal Pradesh as an intra-State trader and facilitated transactions on the Indian Energy Exchange as a Professional/Facilitator Member. We intend to satisfy ourselves before granting the licence that these transactions of the Applicant do not have any element of inter-State trading which the Applicant is prohibited under law to carry out such business without a licence from this Commission. Accordingly, we direct:
(a) the Applicant to submit under affidavit (i) tabulated details of all transactions undertaken by...
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