Section 126 in The U.P. Electricity Regulatory Commission (Conduct of Business) Regulations, 2004
126. Regulation of purchase of power.
(1)The licensee shall file with the Commission in complete form copies of all Power Purchase Agreements already entered into by the licensee. Provided that for purchase agreements signed with generating companies (not extending beyond a year), the licensee shall procure power in terms of the Guidelines for Load Forecast, Resources, Plans and Power Procurement issued by the Commission and the minimum and maximum ceiling of tariff for sale and purchase of electricity fixed by the Commission.(2)The Commission shall be entitled to direct that the licensee shall establish to the satisfaction of the Commission that the purchase of power by the licensees is under a transparent power purchase procurement process and is economical and the power is necessary for the licensee to meet its service obligation.(3)The licensee shall apply to the Commission to approve the draft Power Purchase Agreement that the Licensee proposes to enter into. The Commission may pass orders-(a)approving the agreement; or(b)approving the agreement with modifications proposed to the terms of the agreement including modifying the terms of tariff and power purchase; or(c)rejecting the agreement.(4)The provisions of clauses (2) and (3) above or any action taken therein shall not, in any manner, prejudice the exercise of functions and powers of the Commission under the applicable legal framework and the regulations and orders to be issued from time to time.(5)The Commission shall regulate the supply of electricity by generating companies to any licensee or any consumer or any group of consumers from time to time in line with the provisions of the applicable legal framework.
