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THE ELECTRICITY (SUPPLY) ACT, 1948

Title : THE ELECTRICITY (SUPPLY) ACT, 1948

Year : 1948

Part III


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 the 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 paragraphs I, IV and VIII
shall, in relation to the station, cease to have effect, and on receipt of the notice under paragraph 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 the 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) To purchase the electricity supplied to him by the Board in accordance with the provisions of Part II as modified by paragraph XVIII:

Provided that where the station cannot be severed 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 under-taking of the licensee.

Any question arising under the proviso to this paragraph shall be referred to arbitration under section 76.

XVIII. Where a licensee exercises his option under paragraph XVII
in terms of clause (b) thereof, the Board shall comply with the requirement to purchase the station under 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) Clause (a) of paragraph IX shall be construed as if the following were substituted therefor, 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) Clause (a) of paragraph XII shall be construed as if the following were substituted therefor, 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 clauses (e) and (f) of paragraph I
of the Eighth Schedule had those assets remained in the ownership of the licensee;

(d) Clause (b) of paragraph XII shall be construed as if the reference therein to clauses (b), (c) and (d) of paragraph I of the Eighth Schedule were omitted;

(e) There shall be added to the sum payable by the licensee to the Board under clause (a) of paragraph 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 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 clauses (b), (c) and (d) of paragraph 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.
Last updated on July, 2016

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