Section 127 in Regular Licence under Haryana Electricity Regulatory Reforms Act
127. Commission view.
- The Commission agrees with the need for public participation in the process of developing tariff methodologies. It intends to pursue just such an approach. However, identifying tariff methodology is not part of the licensing process since such methods will undoubtedly change over the term of the licence. This criticism and proposal appear to have misunderstood the nature of the licence and how it fits into the regulatory regime. The licence is, in concept, a contract between a supplier of one of the power sector services (transmission, bulk or retail supply or distribution) and consumers, with the Commission acting as agent of all parties. This agreement normally is in effect for a reasonably long period of time primarily to enable investment in long-lived assents necessary for the power sector. Moreover, the ability to change its terms should be limited since the licence/contract represents a balancing of interests of the parties that would become meaningless if one party could readily change that balance by freely amending the terms. The Act does in fact limit the ability of the Commission to change the terms and conditions of the licences once awarded. The request is rejected.
