New Draft Regulations for Granting Electricity Distribution Licenses in Arunachal Pradesh

Introduction

The Arunachal Pradesh State Electricity Regulatory Commission (APSERC) has introduced a draft notification for new regulations aimed at governing the granting of electricity distribution licenses in Arunachal Pradesh.^[1] These regulations are detailed in the “Arunachal Pradesh State Electricity Regulatory Commission (Procedure, Terms & Conditions for Grant of Distribution Licence and other Related Matters) Regulations, 2024.” The primary goal of these regulations is to streamline the application process for licenses, establish transparent terms and conditions for licensees, and ensure adherence to relevant legal frameworks, thereby improving the overall electricity distribution network in the state.

Explanation (Key Points)

• Scope and Applicability: These regulations are applicable to all entities interested in operating in the electricity distribution business within Arunachal Pradesh. This encompasses both new applicants seeking a distribution license and existing licensees looking to modify their existing licenses.
• Ministry of Power (MoP) Provisions: The draft regulations mandate that applicants must comply with the capital adequacy, creditworthiness, and code of conduct requirements as stipulated by the Ministry of Power. These prerequisites aim to ensure that potential licensees possess the financial and technical capabilities required for the efficient operation and upkeep of an electricity distribution system.
• Application Process: The regulations delineate a comprehensive application procedure, encompassing the necessary forms, fees, supporting documentation, and public notification requirements. The Commission will meticulously review applications, request supplementary information when needed, and organize public hearings or local inquiries if objections are raised.
• License Conditions: A fundamental aspect of the draft regulations is the detailed outline of general and specific conditions that licensees are obligated to adhere to. These conditions cover a broad spectrum of aspects, including the duty to supply electricity, meter installation procedures, provisions for open access, tariff filings, accounts and audit processes, standards of performance, and reporting obligations.
• Other Provisions: The regulations extend beyond the core licensing process to address various additional concerns. These include provisions for exemptions from licenses, revocation or suspension of licenses, deemed licensee status for special economic zones (SEZs), and the establishment of consumer grievance redressal forums to ensure consumer protection.

Conclusion

The new draft regulations for granting electricity distribution licenses in Arunachal Pradesh represent a significant stride towards enhancing the efficiency and effectiveness of the electricity distribution sector in the state. By establishing unambiguous procedures, terms, and conditions, these regulations aspire to foster a more transparent and responsible licensing structure. The anticipated outcome is the attraction of investments in the sector, the elevation of service quality, and the guarantee of reliable electricity provision to consumers throughout Arunachal Pradesh. However, the success of these regulations hinges upon their effective execution and enforcement by the APSERC, along with the cooperation and compliance of the licensees themselves.

^[1] https://apserc.nic.in/pdf/Draft%20Regulations/10-Draft%20APSERC%20%20Distribution%20Licensees_17.05.24.pdf