Lagislative Regulation
THE 28TH JULY 1998

No. OERC/ENGG-65/98/3000 In the exercise of powers conferred on it by section 16 and 54 of Orissa Electricity reform Act, 1995 Act 2 of 1996) and all powers enabling it in that behalf and in consonance with Regulation 98 to 101 of the Orissa Electricity regulatory Commission (Conduct of Business) Regulations, 1996, Orissa Electricity Regulatory Commission hereby makes the following Regulations namely:

Short title, commencement and interpretation

1. (1) this regulation may be called the Orissa Electricity Regulatory Commission (Exemption from Licensee) Regulations, 1998.
(2) They shall come into force from the date of their publication in the official Gazette.
(3) They extend to the state of Orissa.
(4) The Orissa General Clauses Act, 1937 shall apply to the interpretation of these Regulations.


2. In these Regulations unless the context otherwise requires, words or expression shall bear the same meaning as in the Orissa electricity Reform Act, 1995 and Orissa Electricity Regulatory Commission (Conduct of Business) regulations, 1996.
Persons requiring exemption
3. All persons in the State of Orissa other than the licensee who intend to engage in the business of transmitting and supplying electricity, except the following categories, shall require exemption from the requirement to have a license.
(i) Persons supplying electricity to their own plant and apparatus from their own generating stations in the same premises.
(ii) Persons receiving electricity from the licensee and supplying electricity to their own employee’s colony including ancillary facilities, provided that no amount towards profit is charged for such supply.
(iii) Person receiving electricity from the licensee at a single point in a residential or commercial; complex and supplying the same to the persons in the
Same premises. Provided that no amount towards profit is charged for such supply.
(iv) Person supplying electricity from the generator, setup jointly by the owners or occupiers of a residential or commercial complex or public institutions as emergency back up.

Illustration I

An industrial unit for which Commission has granted consent u/s 44 of Electricity (Supply) Act, 1948 read with section 21 (3) of Orissa electricity Reform Act, 1995 for setting up a captive power plant shall require an exemption for supply of electricity to any other person.

Illustration II

Any person receiving power supply at a single point in a multistoried building and supplying electricity to the occupants of the same building will not require any exemption, provided that no amount is charged towards profit for such supply.

Procedure to be followed :

4 (1)a person-seeking grant of exemption shall submit an application in the Performa at Appendix ‘A’ supported by the affidavit as required in Regulation 23 of the Orissa Electricity Regulatory Commission (Conduct of Business) regulations, 1996. The application shall be submitted in 5(five) copies together with processing fee of Rs.500/- in shape of Treasury Challan under the Head of Account “0801-power-80-General-800-Other Fees” or Bank Draft in favor of O.E.R.C. payable at Bhubaneswar.
(2) Unless otherwise decided by the commission on a preliminary security of application, the procedure for grant of license, in so far it can be applied, shall be followed while dealing with an application for exemption from requirement to have a licensee.
(3) The applicant shall state in detail, the reasons for which the exemption is considered necessary together with supporting documents, his capability in running the business and eligibility for the exemption sought.
(4) The applicant shall enclose his application consent of the appropriate authority in terms of provision to section 16(1) of Orissa Electricity Reform Act, 1995.

Terms & conditions of Exemption :

5 (1) an exemption granted should be published by the applicant in such manner, as the commission considers appropriate for bringing it to attention of the public.
(2) The exemption holder shall furnish to the commission information as directed by the commission from time to time.
(3) The exemption holder shall establish a procedure for handling complaints of its consumers. The said procedure shall be submitted to the commission within three months from the grant of exemption & shall be subject to any modification that the commission may require in the interest of the consumers.
(4) The exemption holder shall comply with the provisions of the Indian Electricity Act, 1910. Indian electricity rules, 1956, Electricity (Supply) Act, 1948, Grid Code and distribution code approved by the commission, to the extent applicable to his business of supplying electricity.
(5) In the event of disputes with a licensee or any other person on issues relating to the standard of performance, consumer protection and other issues of supply, the exemption holder shall refer such disputes to the Commission for decision.
(6) “In case of an exemption in area falling within the area of supply of a licensee, the tariff for supply by the exemption holder shall not be higher than that for the corresponding consumer categories of the concerned licensee”
(7) The exemption holder shall comply with any other special condition which the Commission may impose having regard to the circumstance of the specific case.
(8) The exemption granted shall be liable for revocation by the Commission at any time for reasons to be recorded in writing, including non-compliance with the conditions specified, without prejudice to the penalties impossible under Section 31, 40 and 41 of the Orissa Electricity Reform Act, 1995.

Miscellaneous :

6(1) Issue of orders and directions.
Subject to the provisions of Orissa Electricity Reform Act, 1995 and Orissa Electricity Regulatory Commission (Conduct of Business) regulations, 1996 and these Regulations the Commission may, from time to time, issue orders and directions in regard to the implementation of these regulations and procedure to be followed and various matters which the Commission has been empowered by the Regulations to specify or direct.
(2) Power to remove Difficulties
If any difficulty arises in giving effect to any of the provisions of these Regulations, the Commission may, by general or special order, do anything not being inconsistent with the provisions of the Orissa Electricity reform Act, 1995 and which appears to it to be necessary or expedient for the purpose of removing the difficulties.

By order of the commission

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