Section 42. (Duties of distribution licensee and open access)

Section 42. (Duties of distribution licensee and open access): — 

(1) It shall be the duty of a distribution licensee to develop and maintain an efficient,

co-ordinated and economical distribution system in his area of supply and to

supply electricity in accordance with the provisions contained in this Act.

(2) The State Commission shall introduce open access in such phases and

subject to such conditions, (including the cross subsidies, and other operational

constraints) as may be specified within one year of the appointed date by it and

in specifying the extent of open access in successive phases and in determining

the charges for wheeling, it shall have due regard to all relevant factors including

such cross subsidies, and other operational constraints:

Provided that 1[such open access shall be allowed on payment of a

surcharge] in addition to the charges for wheeling as may be determined by the

State Commission:

Provided further that such surcharge shall be utilised to meet the

requirements of current level of cross subsidy within the area of supply of the

distribution licensee :

Provided also that such surcharge and cross subsidies shall be

progressively reduced 2[***] in the manner as may be specified by the State

Commission:

Provided also that such surcharge shall not be leviable in case open access

is provided to a person who has established a captive generating plant for

carrying the electricity to the destination of his own use:

3[Provided also that the State Commission shall, not later than five years

from the date of commencement of the Electricity (Amendment) Act, 2003, by

regulations, provide such open access to all consumers who require a supply of

electricity where the maximum power to be made available at any time exceeds

one megawatt.]

(3) Where any person, whose premises are situated within the area of supply

of a distribution licensee, (not being a local authority engaged in the business of

distribution of electricity before the appointed date) requires a supply of

electricity from a generating company or any licensee other than such

distribution licensee, such person may, by notice, require the distribution

licensee for wheeling such electricity in accordance with regulations made by the

State Commission and the duties of the distribution licensee with respect to such

supply shall be of a common carrier providing non-discriminatory open access .

(4) Where the State Commission permits a consumer or class of consumers to

receive supply of electricity from a person other than the distribution licensee of

his area of supply, such consumer shall be liable to pay an additional surcharge

on the charges of wheeling, as may be specified by the State Commission, to meet

the fixed cost of such distribution licensee arising out of his obligation to supply.

(5) Every distribution licensee shall, within six months from the appointed date

or date of grant of licence, whichever is earlier, establish a forum for redressal of

grievances of the consumers in accordance with the guidelines as may be

specified by the State Commission.

(6) Any consumer, who is aggrieved by non-redressal of his grievances under

sub-section (5), may make a representation for the redressal of his grievance to

an authority to be known as Ombudsman to be appointed or designated by the

State Commission.

(7) The Ombudsman shall settle the grievance of the consumer within such

time and in such manner as may be specified by the State Commission.

(8) The provisions of sub-sections (5),(6) and (7) shall be without prejudice to

right which the consumer may have apart from the rights conferred upon him by

those sub-sections.