Section 62 in Regular Licence under Haryana Electricity Regulatory Reforms Act
62.
In this objection, HVPN proposes that the conditions requiring it to obtain Commission approval for sale of assets or major investments be omitted since they invade management's prerogatives. This ignores that HVPN is obliged to provide adequate quality service and is permitted to recover the costs of its investments from consumers in tariffs. Since there is no external pressure for HVPN to keep its quality of service up as it keeps costs down, the power sector reform model anticipates that the Commission must provide that pressure. The only way that can be accomplished is by requiring HVPN to assure the Commission that any sale of assets will not diminish its capability to provide good quality service and that any major investment is necessary and economical before allowing its costs to be recovered from consumers through tariffs. HVPN's suggestions are rejected, since they are inconsistent with the regulatory regime required by the Act and the reform.
