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State of Haryana - Section

Section 32 in Regular Licence under Haryana Electricity Regulatory Reforms Act

32.

HVPN proposes to modify the definition of "Separate Business" to create designations of business that matches the licences. This would reduce from four to two the number of businesses by combining the related wires/transportation and supply functions into single businesses. We note that this proposal is inconsistent with the draft licence submitted by HVPN itself. The rationale given for this suggestion is that there is no metering between the wires activity and the supply activity which prevents separating the costs and revenues of the joint business. We are at a loss to see the relevance of this statement. Clearly, the licensee must be able to track activities of all of its functions in order to properly manage its operations. Moreover, the erstwhile HSEB previously was able to report such data separately for its generation, transmission and distribution functions. HVPN has control of all of HSEB's management systems and the adjustment required to report on a basis consistent with the definition in the draft appears to us to be quite manageable. We reject this suggestion.