Section 46 in The Punjab State Electricity Regulatory Commission (Conduct of Business) Regulations, 2005
46.
(1)In accordance with the provisions of the Act and the licence conditions, every Distribution Licensee shall purchase and procure electricity required for the Licensed Business of the Distribution Licensee in an economical and efficient manner and under a transparent power purchase and procurement process and generally based on the principles of purchase of electricity at the least cost.(2)The power purchase by a Distribution Licensee may be classified by the Commission as short term power purchase and long term power purchase on terms as may be decided by the Commission from time to time.(3)The Commission may, from time to time, issue guidelines, practice directions and orders governing the short term purchases and long term purchases which the Distribution Licensee can undertake for the purpose of the Licensed Business.(4)(a)The Distribution Licensee shall satisfy the Commission as to the need for additional power procurement on a long term basis.(b)The Distribution Licensee shall not enter into a binding or enforceable contractual commitment of such long term power purchase till the Commission by a general or special order approves the procurement of electricity by the Distribution Licensee.(5)Unless otherwise approved by the Commission by a general or special order, a long term power purchase or procurement by the Distribution Licensee shall be done through a competitive procurement process approved by the Commission.(6)(a)The Distribution Licensee shall satisfy the Commission that the electricity procured under long term power purchase otherwise than through a competitive bidding process or any short term power purchase is economical in the prevalent circumstances and that the Distribution Licensee has made prudent and best efforts to minimise the cost of purchase.(b)The Commission may not permit any such long term purchase if the manner or method proposed for such procurement of electricity is not conducive to the objective of least cost purchase or for any other reason the purchase is not economical or efficient.(7)The short term power purchase by the Distribution Licensee may be undertaken in such manner as the Commission may from time to time direct by a general or special order.(8)The Distribution Licensee shall forecast the demand for electricity for his Licensed Business and formulate proposals in coordination with the generating companies, transmission licensees, other distribution licensees, trading licensees, authorities and other concerned persons. The Distribution Licensee shall file with the Commission power procurement plan to meet the demand in such manner as the Commission may direct.(9)The Distribution Licensee shall file with the Commission the details in regard to the distribution system under his control and arrangement available from the transmission licensees and other distribution licensees in the State or outside the State to evacuate the electricity procured and to distribute the same in accordance with the power procurement plans approved by the Commission.(10)The Commission may, from time to time, lay down the details required to be given by the Distribution Licensee in regard to resource planning, power purchase and procurement planning, planning for evacuation through transmission lines and distribution system, the procurement process to be followed and other matters relating to purchase of energy by the distribution licensee and notify the same in the form of guidelines or practice directions.(11)The Commission shall take into consideration, while determining the tariffs of the Distribution Licensees as per these regulations and as per the Tariff Regulations to be framed by the Commission under Section 61 of the Act, the approval granted by the Commission to the Distribution Licensees for the power purchase and procurement process under this Regulation and the actions and inactions on the part of the Distribution Licensees in complying with the terms contained in this Regulation.
