Bare ActsThe ELECTRICITY (SUPPLY) ACT, 1948

Section 1

Subs

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Subs. by Act 101 of 1956, sec. 24 for certain words (w.e.f. 30th December, 1956). PART II PRICE TO BE PAID FOR ELECTRICITY SUPPLIED BY THE BOARD UNDER PART I IX. IX. There shall be agreed between the Board and the licensee in respect of each month of the licensee's year of account- (a) The maximum capacity of the station, that is to say, the maximum capacity (expressed in kilowatts available for supply to feeders) of such plant and works appertaining to the generation of electricity at the station as where available for reliable and regular commercial operation on the first day of the month, including the capacity of such plant and works as were temporarily out of commission; (b) The number and size of units of plant works, forming part of the aforesaid plant and works, which ought properly to be deemed to be stand-by if the station were not a controlled station; (c) The stand-by capacity of the station, that is to say, the number of kilowatts (expressed in kilowatts available for supply feeders) by which the maximum capacity of the station would be reduced if the stand-by plant and works referred to in Cl. (b) were to be left out of account; (d) The actual effective capacity of the station, that is to say, the number of kilowatts by which the maximum capacity exceeds the stand-by capacity. X. (1) The licensee shall be entitled to purchase from the station in each month at a prize determined under para. XIII a number of kilowatts not exceeding the scheduled effective capacity of the station on the first day of that month as determined in sub-para. (2). (2) The scheduled effective capacity of the station shall be agreed between the Board and the licensee in respect of each month of the year of account, and shall be computed in the same manner as the actual effective capacity under para. IX, except that there shall be left out of account such units of plant and works, if any, forming part of the plant and works referred to in Cl. (a) of the said paragraph, as the licensee declares to be surplus to his requirements for the time being: Provided that the licensee shall not declare to be surplus to his requirements any such units of plant or works as were installed or were an order at the date of control or which were included in any previous computation of the scheduled effective capacity: Provided further that if as a result of the licensee declaring as surplus to his requirement any units of plant or works, the scheduled effective capacity is in respect of any month computed to be less than the maximum demand of the licensee on the station for the purposes of his own undertaking, then such units of plant or works and all further additional units of plant or works shall thereafter always be deemed to be surplus to the requirements of the licensee as aforesaid unless the Board decides otherwise. XI. Of the kilowatt-hours purchased by the licensee from the Board in each month, a number of kilowatt-hours not exceeding the number which bears the same proportion to the total number purchased as the scheduled effective capacity for the month bears to the maximum demand of the licensee on the Board in that month shall be purchased at a price determined under para. XIII ; the balance being purchased at a price determined under para. XIV: Provided that if the station is a hydro-electric station or if any unit of a combined station is a hydroelectric unit, the number of kilowatt- hours which the licensee shall be entitled to purchase as aforesaid shall be reduced by such amount, if any, as may be agreed between the Board and the licensee, having regard to the number of 'kilowatt-hours actually supplied in the month from such hydroelectric station or unit. XII. As soon as practicable after the end of a year of account- (a) There shall be ascertained in respect of that year the cost of production at the station in accordance with the provisions of the Eighth Schedule: (b) There shall be deducted from the total sum ascertained, in respect of the year under Cls. (b), (c), ((I). (e) and (f) of para. I of the Eighth Schedule, such proportion of the charges referred to in the said clauses as are wholly attributable to so much of the plant and works, if any, as has been declared by the licensee under Sub-paragraph (2) of para. X to be surplus to his requirements, and the balance remaining after such deduction shall, for the purposes of this schedule. be referred to as the schedule overhead charges: Provided that in assessing the said proportion, regard shall be had to the period during which any such plant or works were declared to be surplus as aforesaid; (c) There shall be allocated between fixed costs and running costs in accordance with the provisions of the Ninth Schedule, the sum ascertained in respect of' that year under Cl. (a) of para. I of the Eighth Schedule, and the amount of- running costs divided by the number of kilowatt-hours supplied from the station in that year shall for the purposes of the Schedule, be referred to as the running charges component: (d) There shall be ascertained in respect of that year an amount (in this Schedule referred to as the scheduled fixed works costs) calculated from the expression, A “A + A X B” where-- 2 2 C A = the amount of fixed cost ascertained in respect of that year under Cl. (c); B = the sum of the scheduled effective capacities for each month of that year; C = the sum of the actual effective capacities for each month of that year. XIII. The licensee shall pay to the Board in respect of each month of the year amount for the electricity purchased under paras. X and XI, - (a) In respect of kilowatts, an amount equal to one-twelfth of the sum of the scheduled over-head charges and the scheduled fixed works costs, (b) In respect of kilowatt-hours, a sum found by multiplying the number of kilowatt-hours supplied by the running charges component: Provided that if in any year of account the station for any reason ceases to generate electricity for one thousand hours or more, then for the purposes of ascertaining the running charges component and the scheduled fixed works costs under Cls, (c) and (d), respectively of para. XII- (i) The said Cl. (c) shall be construed as if there were substituted for the words “that year-” in both places where they occur, the words “the most recent year of account in which the station did not cease to generate electricity for one thousand hours or more” and as if to the said clause the following proviso were added, namely: “Provided that so much of the said sum as is represented by the cost of fuel shall be adjusted to take account of the cost which would have been incurred had that fuel been consumed at the average prices prevailing in the actual year of account.”; (ii) In evaluating the expression contained in the said Cl. (d), the letter C shall be deemed to be equal to the sum of actual effective capacities for each month of the recent year of account in which the station did not cease to generate electricity for one thousand hours or more: Provided further that if in any year of account there exist in the station any units of plant or works which have been declared by the licensee under sub- paragraph (2) of para. X to be surplus to his requirements in that year, there shall be added to the running charges component in respect of that year the amount, if any, by which that part of the said component attributable to the cost of fuel is less than ninety per centum of the corresponding part of the running charges component in respect of the year of account immediately preceding that in which the earliest installed capacity of the said units of plant or works first came into commercial operation in the station and in ascertaining the corresponding part as aforesaid, the fuel consumed shall be deemed to be of the same average quantity and to be consumed at the same average cost per ton as the fuel consumed in the year of account: Provided further that if in respect of any month of the year of account any units of plant or works previously declared by the licensee as aforesaid to be surplus to his requirements are for the first time taken into account in assessing the scheduled effective capacity for that month, then in addition to the payment referred to in Cl. (a) the licensee shall pay to the Board a sum equal to any sums previously paid by the Board to the licensee on revenue account (in respect of any period prior to the date on which the said units of plant or works came into commission) by way of interest depreciation testing and turning-up expenses attributable to the said units of plant or works; and the sum to be paid as aforesaid shall become due in one or more installments and at such time or times as the Board may direct. XIV. The price payable by the licensee to the Board for all electricity supplied by the Board to him in excess of quantities referred to in paras. X and XI and shall be the Grid Tariff. XV. The licensee shall have the right at any time, on giving to the Board prior notice in writing expiring at the end of any year of account, to purchase from the Board at the Grid Tariff the whole of the electricity supplied to him by the Board thereafter:- Provided that the Board in those circumstances may make it a condition that the licensee shall, until the date on which the scheduled effective capacity of the station becomes nil, pay to the Board in respect of each month in addition to the Grid Tariff one- twelfth of such proportion as the Board may fix of the annual charges by way of interest and depreciation which would have been payable to the Board in respect of the year of account had the said notice not been given:- Provided further that in assessing the scheduled effective capacity for the purposes of the first proviso all units of plant or works which may have been under this Schedule declared or deemed to be surplus to the requirements of the licensee at the date of expiration of the said notice and all additional units of plant or works shall after that date always be deemed to be surplus to the requirements of the licensee:- Provided further that after the expiration of the said notice the licensee shall not be entitled any time to purchase electricity from the Board at the price ascertained under Para. XIII. PART III PERMANENT CLOSING DOWN OF A CONTROLLED STATION XVI. The Board may give the licensee not less than six months notice in writing expiring at the end of any year of account that from that first day of the next succeeding year of account it will not again direct the licensee to generate any electricity in the station, and upon that date (hereinafter in this Schedule referred to as the date of closing down) the station shall be permanently closed down. XVII. From the date of closing down paras. 1, IV and VIII shall, be in relation to the station, cease to have effect, and on receipt of the notice under para. XVI the licensee shall have the option (to be exercised by a date not later than three months prior to the date of closing down) either- (a) (i) To sell the station at any time after date of closing down, and (ii) To purchase the electricity supplied to him by the Board at the Grid Tariff, or (b) (i) To require the Board to purchase the station or at the option of the licensee the undertaking of the licensee at the date of closing down at a price determined under the Fourth Schedule, and (ii) (ii) To purchase the electricity supplied to him by the Board in accordance with the provisions of Part 11 as modified by para. XVIII: Provided that where the station cannot be served from the distributing system of the licensee or where the severance of the station from the distributing system of the licensee is likely to affect prejudicially the interests of the licensee, the licensee shall be entitled to demand that the Board shall purchase his entire undertaking and on such demand being made the Board shall purchase the entire undertaking of the licensee. Any question arising under the proviso to this paragraph shall be referred to the arbitration under Sec. 76. XVIII. Where a licensee exercises his option under para. XVII in terms of Cl. (b) thereof, the Board shall comply with the requirement to purchase the station under the sub-clause (i) of that clause, and in applying the provisions of Part II to the purchase by the licensee of electricity supplied to him by the Board,- (a) The station shall, notwithstanding that it has been permanently closed down, be deemed to remain a controlled station in operation but to be such a station which has ceased to generate electricity for one thousand hours or more during each year of account; (b) Cl. (a) of para. IX shall be construed as if the following were substituted thereof, namely: “(a) The maximum capacity of the station, that is to say, the maximum capacity (expressed in kilowatts available for supply to feeders) of such plant and works appertaining to the generation of electricity at the date of closing down as would have been available for reliable and regular commercial operation on the first day of each month, had the station not been closed down under Part III and had no replacement of any major item of such plant or works been carried out;” (c) Cl. (a) of para. XII shall be construed as if the following were substituted thereof, namely: “(a) There shall be ascertained in respect of the year of account such annual charges by way of interest and depreciation attributable to the assets purchased by the Board under Part III as would have resulted from the application of Cls. (e) and (f)of Para. I of the Eighth Schedule had those assets remained in the ownership of the licensee:”: (d) Cls. (b) of Para. XII shall be construed as if the reference therein to Cls. (b) (c) and (d) of para. 1. of the Eighth Schedule were omitted; (e) There shall be added to the sum payable by the licensee to the Board under Cl. (a) of Para. XIII in each month of 'the year of account a sum equal to one-twelfth of the amount calculated from the expression,- “A*B, where C” A = that part of the scheduled overhead charges payable by the licensee to the Board in respect of the most recent year of account during which the station did not cease to generate electricity for one thousand hours or more, which relates to the items referred to in Cls. (b), (c) and (d) of para. I of the Eighth Schedule; B = the Sum of- the scheduled effective capacities for each month of the year of account; C = the sum of 'the scheduled effective capacities for each month of the most recent year of account as aforesaid. PART IV PURCHASE BY BOARD OF CONTROLLED STATION NOT TO BE CLOSED DOWN XIX. Where in respect of any month notified by the Board (and hereinafter in this Schedule referred to as the relevant month), the scheduled effective capacity of the station is computed under para. X to be less than one-half of the actual effective capacity of the station, the Board may give to the licensee six months' notice in writing that on the first day of the year of the account next following the date of expiration of such notice the station will be purchased by the Board. XX. Notwithstanding anything contained in para. X, in computing the scheduled effective capacity for purposes of para. XIX there shall be left out of account all such units of plant and works as would not reasonably have been required by the licensee for purposes other than supply to the Board had the station not been a controlled station. XXI. Where a notice under para. XIX has been served by the Board on the licensee, the Board shall purchase the station or where a severance of the station from the distributing system of the licensee is not possible or is likely to affect prejudicially the interest of the licensee and the licensee so requires the entire undertaking of the licensee at the date specified in the notice and at a price determined under the Fourth Schedule. XXII. From the date of purchase of the station or at the option of the licensee the undertaking of the licensee under para. XXI the provisions of paras.I, IV and VIII shall, in relation to the station, cease to have effect, and the licensee shall be required to purchase the electricity supplied to him by the Board in accordance with the provisions of Part II as modified by para. XXIII. XXIII. In applying the provisions of Part II of the purchase by a licensee whose station has been purchased under this Part of electricity supplied to him by the Board,- (a) The station shall, notwithstanding that it has been purchased by the Board, be deemed to remain a controlled station; (b) Cl. (a) of para. XII shall be construed as if the reference therein to the provisions of Eighth Schedule excluded a reference to Cls. (b), (c) and (d) of para. I of that Schedule, and as if the following proviso were added to the said Cl. (a), namely:- “Provided that the annual charges to be included in accordance with Cls. (e) and (f) of para. I of the said Schedule shall be such as would have resulted had the assets purchased by the Board under Part IV remained in the ownership of the licensee,” (c) Cl. (b) of para.XII shall be construed as if the reference therein to Cls. (b). (c) and (d) of para. I of the Eighth Schedule were omitted; (d) There shall be added to the sum payable by the licensee to the Board under Cl. (a) of para. XIII in each month of the year of account a sum equal to one-twelfth of the amount calculated from the expression, “A x B Where . C, A = That part of the scheduled overhead charges payable by the licensee to the Board in respect of the last year of account in which the station was in the ownership of the licensee, which relates to the items referred to in Cls. (b), (c), and (d) of para. I of the Eighth Schedule: B = The sum of scheduled effective capacities for each month of the year of account; C, = The sum of 'the scheduled effective capacities for each month of the said last year of account. THE SECOND SCHEDULE (SEE SEC. 35) SUPPLY BY BOARD TO LICENSEES OWNING STATIONS OTHER THAN CONTROLLED STATIONS

Section 1 – The ELECTRICITY (SUPPLY) ACT, 1948 | DailyLaw.ai