HVPN given licence for power transmission

CHANDIGARH, Feb 22: Haryana Electricity Regulatory Commission HERC has granted a license to Haryana Vidyut Prasaran Nigam HVPN for tr...

CHANDIGARH, Feb 22: Haryana Electricity Regulatory Commission HERC has granted a license to Haryana Vidyut Prasaran Nigam HVPN for transmission and distribution of power in the state. The license was granted to HVPN as a part of the power sector reforms programme undertaken by the state.

Disclosing this here today, HERC chairman V.S. Ailawadi said the commission had laid down guidelines for consumer interface and operating standards. The HVPN will have to function as a licensee required to plan, develop and operate its transmission system in accordance with these standards, he pointed out.

Under the license conditions, the public sector transmission company will have to formulate procedures for consumer protection and consumer services including consumer rights statement, coder of practice on payment of bills and complaint handling procedures. quot;Once the consumer interface procedures have been drafted, HVPN will have to obtain approval from the commission, which will make sure that the rights of the consumer rights are protected,quot; he said.

In its order, the commission has asked HVPN to get approval for operating standards which include grid and distribution codes, plan for implementation of the codes. Under the license conditions, the transmission company will be required to prepare and submit a report of its aggregate revenue and cost of services prepared for the next financial year. Also, it can invest and dispose off assets only on the basis of general guidelines laid down by the commission.

The license conditions make it mandatory for HVPN to seek prior approval from the commission for an alternation in the tariffs for transmission and bulk supply as well as distribution and retail business. The transmission company will also be required to follow the practical guidelines issued by the commission before major investments and all power purchase contracts except short term contracts of less than six months8217; duration.

Ailawadi said the license also provided for penalty or even revocation of license in case of default of payment or in case of breach of conditions by the licensees. Earlier, the commisison had granted a temporary license to HVPN to enable it to transmit and distribute power. The temporary license was to expire on February 28. HERC 8211; an independent statutory body, was constituted under the Haryana Electricity Reforms Act, 1997 to regulate and monitor the power sector in Haryana to encourage investments in this sector.