BULK SUPPLY AGREEMENT
Between
DELHI POWER SUPPLY COMPANY LTD.
and

SOUTH WEST DELHI ELECTRICITY
DISTRIBUTION COMPANY LIMITED

 

THIS BULK SUPPLY AGREEMENT is made on the 27th day of June, 2002, effective 1st day of July 2002 by and between :

 
1)

DELHI POWER SUPPLY COMPANY LIMITED, a company incorporated under the Companies Act, 1956 and having its registered office at Shakti Sadan, Kotla Marg, New Delhi - 110002 (hereinafter referred to as "Transco" which expression shall, unless repugnant to the context or meaning thereof, include its successors and permitted assigns) of the One Part;

   
2) South-West Delhi Electricity Distribution Company Limited, a company incorporated under the Companies Act, 1956 and having its registered office at Shakti Bhawan, Nehru Place, New Delhi - 110019 (hereinafter referred to as "COMPANY" which expression shall, unless repugnant to the context or meaning thereof, include its successors and permitted assigns) of the Other Part.
   
RECITALS
   
A.

Delhi Vidyut Board (hereinafter referred to as the 'Board') is a statutory body constituted under section 5 of the Electricity (Supply) Act, 1948 and has been engaged in the electricity generation, transmission and distribution in the National Capital Territory of Delhi.

B

The Government of National Capital Territory of Delhi (hereinafter referred to as the "GNCTD") by Notification No. F.11(28)/98-EB/341 dated March 3, 1999 issued in exercise of the powers under section 17 of this Electricity Regulatory Commissions Act, 1998 constituted the Delhi Electricity Regulatory Commission Act, 1998 constituted the Delhi Electricity Regulatory Commission (hereinafter referred to as the 'Commission') and vested in the Commissioner various functions as provided in section 22 of the said Act.

C

The Delhi Electricity Reform Act, 2000 (hereinafter referred to as the 'Reform Act') has been enacted by the Legislature of the State of Delhi containing provisions, amongst other, enabling restructuring of the Board and the Reform Act has been in force with effect from November 3, 2000.

D

After the coming into force of the Reform Act, the Commissioner stands recognised under section 3 of the Reform Act and is entitled to exercise all powers and function as set out in the Reform Act.

E

In exercise of power under the Reform Act, GNCTD has on November 22, 2001 published the Delhi Electricity Reform (Transfer Scheme) Rules, 2001 (hereinafter referred to as the 'Transfer Scheme') which Transfer Scheme has been modified and the Transfer Scheme as modified (and as further amended from time to time) will be effective from such date as the Government of National Capital Territory of Delhi may notify for the purpose (hereinafter referred to as "Date of the Transfer"). The GNCTD also issue the policy directions and amendment to the same vide F. 11(118)/2001- Power/2889 dated November 22, 2001 and Notification No. F.11(118)/2001- Power/187 dated May 31, 2002 respectively.

F

In terms of the provisions of the Reform Act and Transfer Scheme the transmission and bulk supply activities of the Board along with sspecified assets, sspecified liabilities, sspecified personnel and sspecified proceedings have been transferred from the Board to Transco and the distribution and retail supply activities of the Board alongwith sspecified assets, sspecified liabilities, sspecified personnel and sspecified proceedings have been transferred to the COMPANY.

G

The COMPANY has been incorporated as a limited company under the Companies Act, 1956 to undertaken the business of distribution and retail supply of electricity the areas listed in part III of Schedule 'H' of the Transfer Scheme (hereinafter called the 'Sspecified Area'); the Certification of Incorporation was granted by the Registrar of Companies, Delhi on July 4th, 2001 and the Certification of Commencement of Business was granted on December 31st, 2001.

H

The Transco will undertaken the business of bulk supply of electricity in the State as per the authorisation contained in the Transfer Scheme and the Licensee to be granted by the Commission;

I

The COMPANY will undertake the business of electricity distribution and retail supply of electricity in the Sspecified area to all consumers as per the authorisation in the Transfer Scheme and the Licence to be granted by the Commission;

J

The transco as a Bulk Supplier of electricity and the COMPANY as a Bulk Purchaser of electricity are under the regulatory control of the Commission and have to act and under the regulatory control of the Commission and have to act undertake their respective functions as per the licenses/directions or orders which the Commission may issue and the regulation which the Commission may frame time to time including in regard to the tariffs and are required to follow the Standards and codes of conduct and operation, which the Commission may from time to time prescribe; and

K

Subject to the regulatory power of the Commission the Parties wish to record the agreement reached between them in regard to the bulk supply of electricity by Transco to the COMPANY, the arrangements for invoicing by Transco and payment by the COMPANY to Transco of the Bulk Supply Tariff and for other matters connected with the bulk supply including the establishment of new supply points, inter-connection. metering and other operating procedures.

 

IT IS AGREED BETWEEN THE PARTIES as follows :

 

1

Definitions and Interpretation

 

In this Agreement (including the recitals), unless the context otherwise requires, the following terms shall have the meaning given to them below:

a

"Annual Schedule" has the meaning given to it in Clause 3.1;

b

"Area of Supply" means the area of supply listed in Part III of Schedule 'H' of the Transfer Scheme issued by GNCTD and the geographic area sspecified in the licence;

c

"Bulk Electricity" means electricity energy provided at the Points of Supply by Transco to the COMPANY;

d

"Bulk Supply Tariff" means the Tariff and the terms and conditions thereof in respect of the supply of Bulk Electricity, approved or determined by the Commission and in effect from time to time (as further detailed in Schedule 'B') in accordance with the applicable laws;

e

"Commission" means the Delhi Electricity Regulatory Commission constituted under section 3 of the Delhi Electricity Reform Act, 2000.

f

"Consumer" means an end or final user of electricity and includes :-

 

(i)

any person Whose premises are connected, for the purposes of receiving a supply of electrical energy, to a Distribution System, and

(ii)

any person whose premises are connected to the Transmission System for the purpose of receiving a supply of electrical energy but shall exclude any licensee;

g

"Distribution System" means the system owned and operated by COMPANY, consisting mainly of transformers, shunt capacitors, cables, service lines and overhead lines, electrical equipments and meters having design voltage of 66KV or less and used for the transportation of electrical energy from the Points of supply to the point of delivery to Consumers, and includes any electrical plant and meters for use in connection with the distribution of electrical energy;

h

"Emergency" means the circumstances requiring immediate action to be taken to protect the health and/or safety of persons and/or to prevent damage to property and/or to preserve or protect the Distribution System and/or the Transmission System, as the case may be;

i

"Escrow Account" means the account maintained with the bank to be designated in accordance with the terms of the Escrow Agreement.

j

"Escrow Agreement" means the Agreement dated June 27, 2002 signed between Transco and COMPANY and executed concurrently with this Bulk Supply Agreement];

k

"Forece Majeure" has the meaning given to it Article 7;

l

"Grid Code" means the code from time to time approved by the Central or State Commission and in force covering aspects relating to connections to, and the operation and use of, the Transmission System and is so far as relevant to the operation and use of the Transmission System the operation of electric lines and electrical plant connected to the Transmission System;

m

"Monthly Invoice" means any invoice prepared and delivered by Transco to COMPANY pursuant to Article 5;

n

"Operating Procedures" means the operating procedures agreed form time to time in accordance with the provisions of Article 6 and includes the procedures contained in Schedule C;

o

"Parties" means Transco and COMPANY collectively;

p

"Point of Supply" means the point of interconnection between the Transmission System and the Distribution System, more specifically the 66 kv/33kv line isolators on each of the feeders emanating from any of the 400 kv/ 220 kv sub-stations and also indicated on the indicative systemic maps in Schedule D at which electrical energy is supplied by Transco to COMPANY and at which supplies of electrical energy are measured in accordance with the Operating Procedures;

q

"Power Supply Requirements" means, in respect of any period, the projected demand of Consumers for electrical energy within the Area of Supply during such period;

r

"Regional Grid" means the integrated transmission system in the Northern Region Comprising the States of Delhi, Punjab, Haryana, Himachal Pradesh, Rajasthan and Jammu & Kashmir, Uttar Pradesh and the Union Territory of Chandigarh;

s

"Regulations" means any regulations, orders, codes and/or instructions issued by the Commission from the time to time governing and/or regulating the functions of any distribution and retail supply licensee or transmission licensee under the applicable laws including but not limited to Grid Code, distribution code and supply code;

t

"Retail Supply" means supply of electricity to Consumers;

u

"Right of Access" means the right and liberty during the terms of this Agreement to enter upon and through and remain upon any part of the land and/or building over which the Grantor (as defines in Clause 8.1) is entitled to grant such rights;

v

"Supply Shortage" means any circumstance whatsoever by reason of which Transco's supplies of available electrical energy are at any time insufficient to enable Transco to meet COMPANY's actual demand at such time for Bulk Electricity and/or the actual demand at such time for electricity of any Retail Supply Licensee or others in the State;

w

"Transmission System" means the system consisting of extra high tension electric lines having design voltage of above 66 KV owned and/or operated by Transco and used for the purpose of the transmission of electricity from any power station to a substation or to another power station or between substations or to or from any external interconnection up to the Points of Supply, and any plant land apparatus and meters owned or used in connection with the transmission of electricity and such building or part thereof as may be required to accommodate such plant and apparatus and other works, but shall not include any part of the Distribution System;

x

"Year" means any twelve month period during the terms of his Agreement which begin on 1st April in one calendar year and ends on 31st March in the following calendar year, provided that the period from the date of this Agreement to March 31, 2003 shall be deemed to be the first year;

1.2

Reference to clause and schedule shall be to clauses of and schedule to this Agreement.

1.3

References to persons shall include companies, bidies corporate, unincorporated associations and partnerships.

1.4

Words importing the singular shall include the plural and vice versa.

 

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