Section 137 in Regular Licence under Haryana Electricity Regulatory Reforms Act
137.
The Commission understands that the intervenor is concerned about past interference with the procurement processes of the HSEB and the apparent ill effects that resulted. However, these conditions are designed not to undermine the managerial discretion of the Licensee in carrying out its procurement functions. Rather, these conditions are designed to protect consumers from decisions by the Licensee that are undisciplined by competitive or market forces. Since the Licensee has the reasonable expectation that it will be allowed to earn an adequate return on and return of its investments, procurement decisions will affect tariffs. It will be much more efficient for the Commission to control this activity as prescribed in the draft licence than to be forced to make after-the-fact evaluations and possible disallowances (which could create significant financial difficulties for the licensee). Based on this reasoning, the proposals is rejected.(ii)PHD CCI
