REGTSTERED No.-!4j-19?

L.-7646
9
@0eGp;rr" d Slltttilt
EXTRAORDINARY
PUBLISHED BY AUTHORITY

ISLAMABAD, WEDNESDAY, MAY 2, 2OIt

PART I

Acts, Ordinanccs, Presidenl's Orden and Regolrtiors

cJora^"ro"r,rr ro*,r r*
NATIONAL ASSEMBLY Sf, CRETARIAT

Islunruhad, rhe 3hh Aprl, 2018

No. F, 22(23)/2017-Lcgis.-The following Aar of Mdjlis-e-Shoofti

$e 27th April, 2018 is
(l')arliament) received the assent of the President on
hereby published for Seneral information
-
Ac'rNo. XlloF201t

An .4ct fufiher to umend the Regulution ofOe erution, Trunsmi$ion and

Distibutidt ofElccfi ic Po*et Ad. 1997

\!t[-Rr:As it is expediont fu(hcr lo amcnd the Regulalion oa(]cncrarion,

'lransmissnrn and Distribution of Electric Power Act, 1997(XLofl99?)forrhe
purposes hcreirulier appearirg:

1123)

Price: Rt.30.50

I58ll(l0lE)iEx. Ca7l
124 THE GA;I[I'TE OF PAKIS]'A\, EX'IRA.. MAY :. ]OI8 PART I

It is hereby enected as follows:

l. Shorl litl€ and commencemcnt.---( I ) This Act shall be called the

Regulation of Cencrirtion, Transmission and Distribution of [:lectric Power
(Amendment) Ac! 20 8.

(2) It shall c,)me into force at oncc

2. Am€trdDrent of pre{Eble, Act XL of 1997,-ln the Regulation ot'

Generation, Transmirsion ard Distibution of Elecfic Power Act, 1997
(XL of 1997), hereinafter called as the said Act, in the preamble. after the first
pardSraph, the followirrg paragraphs shall bc added, namely:-

'AND WHERTAS it is expedient to ensure the elimination of ener$r'

poverty in fie country to ensure the highcsl standards oftransparcn! ce(ain and
effective reE:ulation o: the electric power markets of the Islamic Republic of
Pakistan, to provide lhe legal framework within which a conrpctitivc elecEic
power marlet can rlevelop and sustain, to make special l)rovisions for
developmenl of renewable electricity markets in aocordance with the
intemrtional commitrLents of th€ Islamic Republic of Pakislan rs well as the
rcsponsibilily of the lslamic Republic ot Pakistan to support and encourage
measurcs to effectiv€ly mitigrte Adverse climate change and lo elTectively
manage conflict of int,:rest of the State in relation to development ofthe electric
pow€r markets ofthe Irlamic Republic ofPakistan;".

3. Amendnrent of rection l, Act XL of 1997.-ln lhc said Ac! in

section l, for sub-sectiln (3), the followinS lhall be substituted. narrely:-

"(l) lt shall cone into force at once, except s€crions 2.1/\. 238, 23G and
23H whi:h shall come into force within a period oi five years of
cominS into force of thc Rc8ulatior of GeDcralron, TransmEsion
and Distibution of Electric Power (Amendment) Ad. 201E or on
such earlrer date as the Federal Covemhent may. by rotification in
. the ollicirl Gazefte, appoinr ".

4. Amendnrcnt of sectiotr 2, Act XL of 199.-ln the said Act. in

section 2,-
(a) in clausc (ii), for the word )detenrrine", where\e. olcurring, the
word "sp.'ciry" shall be substituted:

(b) after clarse (ii), amended as afbresaid, the following new clause
shall be iJ$erted, namely:
P^RT I] THE GAZETTE OF PAKISTAN, EXTRA,, MAY 2,2OI8 225

''captivc generaliug plant" meens a power plant setup by any

persoD to eenerate elcctricity primarily tbr his own use and
includes a power plant setup by anv co-operative society or
assocration of persons for generating electricity primarily for
use ofme,nbers ofsuch co-operative society or association;";

(c) after clause (iv), the following new clause shall be inserted,
namcl):

"(i!a) consurner category" means such category of consumers as

ma) be preicribcd:".

(d) in clause (v), the expression "or sale" shall be omitted;

(e) for clause (x), the following shall be substituted, namelyi

"(x) "electric power service ' includes the generation, transmission,

distrrbution, supply. sale or trading of electric power and all
other services incidental thereto;",

(f) after clause (x), substituted as aforesaid, the following new clauses
shall be substituted, namely:

"(xa) "electric power suppliei' means a person who has been

granted a licence under this Act to undertake supply of
electricity;

(xb) electric porler trader" means a person who has been g'anted
a Iicence under this Act to unaertake trading in electricity;";

(g) 'n
clause (xvi), the expression "for generation, transmission or
distributioo" shall be omitted;

(h) after clause (xvii), the followmg new clause shall be inserted,
namcly:-

'(xviia) _Dmrket opemtor'' rneaDs a person responsible for

orgarization and administration of trade in electriciry and
payment settlements among generators, licensees and
consumclsl ;

(i) in clause (xviii), after the word "Chairman", the words "or a
member of the Appellate Tribunal where the context so requires"
shallb€ added;
226 THE CA':ETTE OF PAKISI AN. EXTRA . MAY 2,2OI8 [PARII

0) after clause (xix). the following ne*' clauses shall be inserred.

namely:

"(xixa) 'national electricity policy" means a polic]' appro!€d by the

Council ofcommon l terests and made undcr section 144;

(xrxb) "national electricity plan" means rhe plan made under scclion
l4l\;";
(k) after clause (Lx), the tbllowing new clause shall be rnserted,
namely:--

''Pakhtunkhwa Ener$/ Development Organization" or

"P[;DO" means the Pakhtunkhwa Ener$/ Development
Ortianization establrshed under the Pakhtunkhwa En€rgy
De.relopment Organizition Act. 1993 (Kh)ber Pakltunkhwa
Acl No.I of 1993);";

(l) after clruse (xxii), the lbllowing new clause (xxiia) shall be
insert€d, nalnely:-

"(xxiia) "prlvincial grid company" means the pe6on engaged in

transmission of cleclric power and licensed under section
lE/\;";

(m) after clause (xxiv). the following new clauses shall be inserled,
namely:

"(xxiva) "relewable electricity" means electricity derive,l from-

(a) a wind, solar, renewable, biomass, occan (including

tidal, wave, cufienl and thermal), geothermal or
hydroelectric source; or

(b) hydrogen derivcd from renewable bionlass or water

using an energy source descrihed in clause (a);";

(xxivb) "service tenitory"mea.ns the alea specified in a liccncc withil

whichthe licenscc is audorized to conduct businessl":

(n) clause (rxv) shall bc omittcd; and

(o) aner cla,rse (K\, ), omitted as afor€sard, rhe following new clauses
shall be nserted, namely:-
PAl{ II THE GAZETTE OF PAKISTAN. EXTRA. MAY 2,20r8 221

"(xxva) 'tpecificd'' means spccified by regulations made under this

(xxvb) "syslcm operalor, rDeans a person licensed under rhis Act to

administer syslem op€ration and dispatch;'.

5. Amcndment of scction 3, Act XL of 1997.-ln the said Act. in

sectiod 3.-
(a) in sub sec(ion (2), m clausc (ii), for the cxpression 'North-West
lrontier", the expression "Khyber Pakhtunkhwa" shall be
subsriruted;

(b) for su[scctions (3) ard (4). the following shall be substituted,
namclY:-

'(l) The Chairman shall b€ a person known for his rntegrity and
eminencc having experienc€ of not less than twelve years in
any relevant field including law, business, engineering,
finance, accounting or economics prefe.ably in lhe electric
porver services business,

(4) Every mcmbcr shall bc a person known for his inregrity and
emincnce having experience of not less thaa twelve years in
any relevant field including law, business, engtneering,
finance, accounting or economrcs preferably in the elect ic
power services business.";

(c) altcr sub-sections (3) and (4), substituted E\ irForesaid, the following
ncw suLscction (4A) shall be inserred, namcly:-

'(44) The Authority as a whole shall comprise thc requisite mnge of

skills, competence, knowledge and expericnce relevanr to its
functions.";

(d) in sub-section (5), for dre proviso, the following shall be

substituted, narnely:-

"Provided that the Chainnan or a member shall not be

appointed undcr suUsection (l) or conlinue in office if he ha9
attained rhe age olsixty years:

Provided funher thal the ago limit of sixty years shall not
apply to any pcrson appointcd as Chai.man or rnember t!€fore the
r28 ].IIE CAZETTL OF PAKISTAN, EX,I.RA , MAY 2. 20 18 [P^RT I

coming into force of thc R€gulation ol-Cenemtion. Transmissioo

and Dislrihutior of Electric Power(Amendment) Act. 20l8.'.

6. Amendrnetrt o[ section Ll, Act XL of 1997.-lr the said Act, in

scrtion 4, iD sub-secticn (2), after the word "rnisconduct". thc words -or fails to
disclose a conflict of r lterest as provjdcd for undcr this Act" shall be added.

?. Amcndrqcnt of section 5, Act XL of 1997.-lll thc said Act. in

section 5. lbr-sub-sect on (1), the following shall be substituted. namely:-

"(l) Subject to the provisions of this Act, the Authority shall, in

pcrfornance of ils functions and exercise of iLs powe6, conduct its
procecdirrSs in accordance with regulations made under this Acl.".

E. Amendlrcrt of seclion 7, Act XL of 1997,-lI the said Act. in

section 7.-

(A) in sub-sa)tion (2),-

(i) for rlause (a). thc following shall be substitured, namely:-

'(a) grant licences under this Act;";

(ii) after clause (a), substituted as aforesaid, the f,)llowing new

clau;es shall be inserted, namcly:-

'(aa) specrfy procedures and standards for r(gistration of

per5ons providing electric power srnices;

(ab) aid and advise the Fed€ral Covernm€nt, ill formulation

of national eleclricity plan:";

(ac) ensure efiicient tariff structures and ma*et dcsign for

sufficient liqurdir_," in power rnarkets;

(iii) for c auses (b), (c) and (d). thc tollowing shall bc substituted,
nam€ly:

"(b) rpecili procedurcs and standards for invcstment

programmes by gcncration companies nd persons
licensed or registered under this Act;

(c) jpecify and enforce performance slandards for

qencration companies and p€rsons licensed or registercd
rnder this Act:
PTRI I] THE GAZEI.TE OF PAKISTAN, EXTRA,, MAY 2,2OIE 229

(d) speciry accourting staidards aid cstablish a uniform

stslem oIaucoufll by generation companies and persons
licensed or rcgrstered undcr rhis Acl.':

(iv) in clause (e), for the word "prescribe", the wo.d "specify"
shall be sub$rturedi

(v) clause (f) shall be omitted;

(vi) Ibr clause (h), the following shall be substituted, namely:-

''(h) settle dispr.trcs between licans€€s in accordance with the
specified procedure;";

(vii) rn claus€ (i), the word "a[d", occuring at the end, shall be
omitted:

(viii) after clause (i), amended as aforesaid, the following ncw

!lause (ia) shall be inserled. namely:

"(E) promote development of a markeq including t.adin& in

accordance with the national electsicity pollcy alld the
natronal electriciry plar; and": 8nd

(B) in suEsectron (3),-

(i) in clause (b),-
(a) the words ', transmission and distnbution" shall be
omitted; and

(b) afler the word "companies", the words "ard persons

liccnsed or registered under this Act", shall be inserted;

(ii) in clausc (c),

(a) the expression ", transmission and distribution" shall b€

omitted;and

(b) after the r,vord "companies", the words "a[d p€rcons

licensed or registered under this Act''shallbe inserled;

(iii) in clause (e),-

230 TI lE GA2;ET'I E OF PAKISTAN. EXTRA., MAY 2. l0ls [PARrl

(a) lhe exprcssion '. transmission alld dislrib[lion" shall be

omifled; and

(b) aftor thc wo.d "companies , thc s,ords and persons

liccnsed or registered under this Act ' shall be insened;

(c) in sub-sectio'r (4). after the \yord "Provinrc", occuning

for the third lime. the expreision 'and such lariff shall
not be called ifto queslion by the Authority" shall bc
insert€d: and

(d) tbr sub-section (6), the fouowing shall be substitnted,

namely:-

'(6) In p€rlbrming its firnctions under rhis Acl the

AuthoriD' shall protect interests of consumers and
compaDies providing electric powcr scrvices in
accordance with the principles of transparency and
impartiality.".

9. SubtitutioD of section 8.-ln the said Act, for sc.crion E, rhe

following shall be subs ituted, namely:-

'8. Rcmutreration of Chairman rnd m€mbers.--{l) 'lhe Chairman

and menrbcrs of rhe Authority shall be eligible for such
remunerarion and allowances as the Authority may, rith approval
of the Federal Govemrnert, determine.

(2) The remuncration and allowances of the Chairman ]nd membcrs

shallaccornl for-

(a) fie specialised nature of work to te perfo ned by the

Autloriry;

r.b) the nced to ensure the financial sclf-sufliciency of thc

Charrman and members: aad

ic) the r,alaries paid in the private sector to il]drvidLrals wtlh

equi',alcnt responsibilities. cxpertise and skills.

10. INertion of sections tA and 8B, Act XL of 1997.- In rhc said

Act, after seclion 8, sutsntuted as albresaid, the following new secrions.shall be
'rrerred. namcly:
 .THE
P^RT I CAZDN'E OF PAKISTAN, EXTRA., MAY 2, 2018 2Jt

'-EA Disclosure of itrter€$l by memb.rs of ahe Authority.-{ I ) For the

purpose ofthis and thc followinB section. a pe6on shall be deemcd
ro have an intcresl rn a matter if he has any direct or ilrdirccl
financial interest- or has any coonecrion with any company
connectcd with the provision of electric power services in such
manner which could reasonably be regarded as giving rise to a
conflict between his duty to honestly perform his funclions undcr
lhis Act and such interest, so that his ability to considcr and decide
any question impartially or to give any advice without bias- may
rcasonably he regarded as impaired.

(2) A member ofthe Authority havllrg any interest in any matter ro b€

discussed or decided hy the Authority or any of its commitl€es
shall. prior to any discussion ofthe matter. disclose in writing to thc
Authorit-v, thc lact ofhis interest and the naturc th€reof.

(3) A disclosurc of interest under sub-section (2) shall be recorded in

minutes of the Authoritv prior to any discussion of or decision on
the matte. and aftcr disclosure the member of the Authoritv who
has made the disclosurc.-

(a) shall nol, except as provided in sub-sections (7) (o (10), take

pan or be present in any deliberarion or decision of the
Authority: and

(b) shall be disre8arded for the purposc of constirution o[ a

quorum of the Authorilv.

(4) Thc member of the Authority who fails to disclose his in'terest as
rcquired by this section shall be guilty of a, offence and shall on
conviction be Iiable to imprisonment for a term which may extcnd
to one year, or a fine not exceeding ten million rupees, or with both.

(5) Il shall be a valid defence for a person charged with an offence

und€r sub-section (1), if he proves that he was not a$are of the
l'acts constituting the offence and that he exercised due care and
diligence in discovering lhose facts which he ought reasonably to
have kno\rr in the circumstances.

(6) Upon being appointed, a member ofthe Authority shall give written
nolice to the Federal Govemmenl ofall direct or indirect pecuniary
irrtcrests that he has acquired or acqui.es in a body corporatc
carrying on a business in the lslamic Republic of Pakistan. The
naturc ofsuch interests and the particula.s and aDy changes thereof
232 THE GA:'ET'I'I, OF PAKISIAN, EXI'RA., MAY 2,20]8 [PART I

shall be Cisclosed in the report ofrhe Authority made under claus€

(a) ofsu lscclion ( t) of section 42.

(7) If the Ctairman bctomcs avyare that a member of thc Authoritv has
the inter,:st, he shall-
(a) i[ [ e considers that the mernber of the Authority should not
takj part or continue to take part, as the case rna!' rcquir€, in
det:rmirring thc rnalter. dire.r the member of lhe Authorily
acccrdingly, or

(b) in zny other cas€, cause the member of the Authority s interest
to be disclosed to the persons concimed rn the matter,
inc udirg any perso whose application is pending decisionor
adj,rdicdtion by dle Authoriry.

(8) I'he menrbcr in respect of whom a dircctio has be(n Biven under
clause (a)ofsuUsection (7) shallcomply with the direction-

(9) The Chainnan of the Authorily shall disclose his interest to the
pcrsons concemed ln the matter includin8 any p€$on whose
applicati rn is pending decision or adjudication by the Authoriry.

(10) Subject 10 sub-section (7) the Chainnan or the member \rho has
any inrerest in any Draner rcferrcd to in this section shall not take
part or c( ntinue to take parl as the case may require, in determinint
the mafter !nless everyone concemed iI}it cons€nts to the Chaidurn
or, as thc case ma] be. tirc memb€r so takinS part

tB Notifrc{lior of interest hy otheB.-{l) Where a person who. in

thc cours i of-

(a) perl'orming a lunclion or exercising a power, as a delegatc of

the
^uth()rit);
(b) perlorming functions or scrvic€ as an employe€; or

(c) perlonring a lunction or services in an)'capacily by way of

assi;ting or ad!isiog the Authority or any of its committees or
any delegaE ofthc Authorily,

is required k) consider a matler in rvhich h€ has ar inleresl, such person shall

torthwith gi\,e ro the Aurhority a writren notice slzting that he is required to
corsider the n)atter and has an irlcrcst in it and setting out parliculars ofthe
interest.
PARI I 1'I{E GAZETTE OF PAK]STAN, EXTRA,, MAY 2. 20IE 231

(2) The person referred to in sub-sectiorr (l) shall also declare his
intcrest rn accordance with th€ said sub-scction whenever it is
neccsiarv ro avojd a conflicr of inleresr.

(i) Any pcrson referred to in suu.section (l) who fails ro disclose his
interest as required by this sc'l,tion shall be guilty ofan offence and
shall on convictiofl be liable to imprisonment for a terrn which may
extend to one year, or a fine not exceeding ten million rup€es, or
with both.

(4) It shall bc a valid defence for a person charged with an ollence

undcr sub-scction (3). if he proves that he was not aware of the
facts constituting the olTencc and that he exercised due care and
diliSence in discovering those facts which he ought reasonably lo
have known in the circumstanccs.".

I L Inscrtion of section l0A, A.t XL of 1997.-ln thc said Ac! after

section I0, the lollorving new section l0A shall be ift,erted, namcly:-

'10A. Indcmnity.-No suit, prosecution or other legal proceedings shall

lic against the Chairman, members, omce.s or any employee ofthe
Autho.ily for an).thing done in good fa.th or inrended to b€ done in
pursuance ofthis Act or any rules or relplations made thercunder.".

12. Amendment of s€ction I I, Ac( XL of 1997,-ln the said Act, in

scctior I l, the word 'special" shall be omittcd.

[3. Amendment of seclion 12, Acl XL of 1997.-ln the said Act, in

scclion 12,

(a) in clause (c), after semicolon, the word'?nd" shall be added;

(b) lbr clause (d). the follorving shall be subsr.ituted- ramcly:-

_(d) the power to rccommend rules or Drale or rcp€al regulations
madc under dr is Act.";

(c) clausc (o) shall be omitted; and

(d) after clalsc (e). omiftcd as eforesaid, the following shall b€

inse(cd. namely:-
23,t THE GAZETTE OF PAKISTA\, IlxTRA. ['lAY 2.2018 IP^RI I

.CHAPTER IIA.
APPELLATE TRIBUNAL,,; and

14. Substitrtion of section I2A, Act XL of 1997. In the sard Act, lor
section l2A the follo!/ing shall be substituted, namely:

Establishnent of App€llate Tribunal.-{l) The Federal

Covernnent shall. by notilicalion in the omcial Gazetle. establish
an App(llate Tribunal fo| thc purposes of exercising iurisdiction
under th s Act.

(2) The merobers of the Appellale Tribunrl shall be appointed by thc

Fedeml Cotcrnment and shallcomprise -

(a) a former jud,qe of a High C.urt $'ho shall be the Chaimran, for a
single term of four years on such lerms and ionditions as may be
prescribr:d and shall hc nomirated by the Provinces or Federal
Covemnrent, as the case nray bc, by rotation in the following order,
namely: -

(i) the member rcpresenting the Federal Govemmert;

(ii) the member representin8 the Province oflhe Pu0jab:

(iii) thc member representing the Provirce of Khybcr

Pal htrrnkhrva:

(iv) the member represenlinB lhc Province ofSindh: snd

(v) the member representing dre Province ofthe Balochislan

Prolidcd that the Chairman ol thc Appcllate Tribunal shall not be

appointed if he has attined the age ofsixry-ilvc years.

(h) a memb( r finance who shall be a qualilied charlered accountanl or

a qualified cost and managemenl accountanr or a qualrficd
chanere( financial analyst and shall be nominated by thc Provinccs
or Federal Govcrnnrcnl. a\ lho casc may be, by rotatio[ in lhc
followinil order, namel),.

(i) the member rcpresenling the Province ofSindh;

(ii) the member |eprescntflrq lhc Province ofthe Purrab;

(iii) the member reprcscntin,q thc Irederal GovernrneDt;

 T}IE CAZETTE OF PAKISTAN, I]X]'RA,, MAY 2 , 2018 23s

(iv) (hc member representing the Province of Khyber

Pakhturrkhwal and

(v) the rncrnbcr reprcsentilg thc Province ofBalochisraa;

(c) a melrber electricity. \rho shall he a rncmber o[ the Pakistan

Engineering Council, wrth a specializrtion in electrical engineering
and shall be nomrnated by the Provinccs or lhe Federal
Govemmenl, as the case may be, by roulion in the folloutng order.
namely:-

(i) the membcr rcpresenting thc Province ofBalochistan;

(ii) thc membcr rcprcscnlinB thc Province of Khyber

Pakhtunkh\1€;

(iii) the memb€r represmtrng the Fedeml Govemment,

(iv) thc mcmbcr rcprcscntinS lhc Provrnce ofthe Punjab; and

(v) the mcrnber represcnlinS lll€ Provilce ofSindh

(3) The member finance and member eleclncity of the Appellate

Tribunal shall bc appointed for a period of three years on such te.ms and
condilions a5 md) be prercribed

Proyrded that uo person who has artaircd thc a8c of sixty ycars shall be
appointed as member finance and member electriciry:

Provided furlher that no person shall bc eligible to be the member

finance or membcr elcctricity, it in casc ol b€ing a civil scrvanl, they hold a
position which is less than BPS-21 or equivalent.

(4) No person shall be appointed as member ofthe Appellatc 'fribu al

unless he is a citizen of Pakistan and such member shall be e[ployed on full-
time basis-

t28 Qualifications and eligibilily.-No pcrson shall bc appoinLed as

member oflhe Appellate Tribunal unless he-

(a) has al least a maslers or professional degree or qualification

from an accr€dited univcrsity;

(b) has at least fifteen years ofprofessional work experrencel

236 TIIE GA;.ETTE OF PAKISTAN, EXTRA-, MAY 2.2018 IPARTI

(c) has no pasr record ofcriminal conviction. othcr than for minor
otf,xrccs: and

(d) has no past record of any specific activities cr coDduct that

co! Id reasonably oall into queslion his ability 1.l discharge his
duries as a mcmber of the Appcllate Tribunai with honesty,
ink grrry, reliability, competence and objectiviry.

12C Disqualifications--No pcrson shall be appornted rr continue as

melriber or an employee oithe Appellate Tribunal, ifsuch person

(a) has been convicred ofan oflence involving morrl turpilude;

(b) has been or is declfied insolvent; or

(c) is i rcapable ofdischarging his duties by reasous ofphysical or

meltal unfitness and has beeD so dectared by a duly
corstituted rnedical board appointed by the Federal
Go /emment,

l2D Automalic disqualification.-lf a member of the Appellate

Tribunal remains absert lrom his posrtion or othonvise fails to
undertak: his duties for any reason whatsoever fbr a period ofthree
months it shall be a ground for automatic disqualification of such
member,

l2E D€cisiors, dctcrminations and quorum.-{l) I)ecisions and

determinations ofthe Appellate Tribunal shall be takcn by majoritv.

(2) If there ire less than three members ofthe Appellate Tribunal, the
prcsence oftwo members serving shall constitute a quorum:

P.o\,ided rhat in the case of a quomm of two. the decision

shall be laken by consensus-

(3) _ Any dcc sion or deterniflalion kken at a meeting where a quorum

is prcsert shall constilurc a valid and ent'orccablc decision or
dctermination of the Appellate Tribunal.

12F. Vacanct in lhe Appetlate Tribunal.-{ I ) If position of a member

bccomcs vacant, the Fedcral Govemment shall designate a new
rrember and where the lacancy arises in the p,rsition of the
Chainna r. the Federal Govcrnnrent shall appoint one ofthc existing
members to ser1,e as Acting Chainnani
P^R] I] THE CAZETI'

Provlded that no p€rson shall sene as Acting Chairman fbr

more thar a period ofthree months:

Provided fu(her lhal the Fcderal covemmenl shall lill a

vacancy in thc Appellate Tribunal within a period of three months
frorn the date such vacancy o,Dcurs.

(2) The absence of the Chairiran or thE temporary incapacity of the

Chainnan shall not affect the other members' ability ro act as fie
Appellate Tribunal and to exercise its powers and authority under
this Act.

l2C. Appellate procedur€{.--{ I ) Any person aggieved by a decision or

order ol the Authority or a single member thereof or a 'liibunal
established under section I I may, within thirty davs ofthe dccisul
or order, prefer an appeal to thc Appcllate Tribunal in lhe
prescribed manner and the Appellate Tribunal shall decide such
appcal B,ithin three months afler filin8 of the appeal.

(2) In examining an appeal under sub-section (1), the ApPllalc

Tribunal may make such fu(her inquiry as it may considcr
necessary and after givnrg lhc Authority or the Tribunal and an
appellant an opportunity ofbelnS heard, pass such order as it thinks
fit, confirmin& altering or annulling a decision or order appealed
against:

Provided that ia the decision under appeal is a determination

of lariff b) the Authority. then the Appellate Tribunal may in case
of disagreement with the determination of the Authority, remand
the matter back to the Authority with r€levant guidelines, whrch
shall be duly considered by the Authority which shall be bound to
review its d€termination within one month of the receipt of such
guidelines from the Appellate'I.ibunal.

(3) lhe decision ofthe Appellate Tribunal shall be in writing, detailing

the issues raised in the appeal aLnd the arguments adopted by lhe
appellaot and the Aulhorily or Tribunal, as the case may bc. Thc
Appellale Tribunal shall also provide reasons for reaching its
decision u,ith refer€nce to the provisions ofthis Act and the facls of
lhe case.

(4) The App€llare Tribunal shall provide copies of its decision to all lhc
appellants and the re$pondents including the Authority or Tribunal,
' as the case may be, nol later than five days from the dare of
rendering its dccision.
138 THE GA,'ETl'I.:OF PAKISTAN. EXTRA,. MAY ], ]OIII IPARTI

(5) A decision or ordcr ofth€ Authorilv or Tribunal. as the case may

be, shall he Bivcn Iull force arrd effect during thc pendency of any
appeal ol such dcrermination.

(6) The dec sion of the Appellate T.ibunal shall bc appealable before
the High Coua having territorial jurisdiction.

l2H DisclBU re of inlerest.-Thc following shall apply ro members of

the ApF llate Inbunal rncluding the Chairman, namely:-

(a) a nrenrber ofthe Appellare Tribunal shall bc deemcd lo havc

an interest ir) a mafter if he ha-s any intcr€st, pecuniary or
otherwise, in such matter which could reasonably be regarded
as giving rise to a conflict between his duty to honestly
pcrform his functions, so that his abilir) to consider and
decidc any qucstion impa(ially or to give any advice without
biaj. may rcasonably be regarded as irilpaired;

(b) a nember oflhe Appellate Tribunal having any inlercst in any

ma ter to be discussed or decidcd by the ApF-'llate Tribunal
shall disclose in r,,nting to the Secretary to the Appellale
Tri)unal. thc fact ofhis interest and the nature thereot

(c) a nrember of the Appellate Tribunal shall give written notice

to he Secretary to rhe Appcllatc Tribunal ol' all direct or
ind rect pecuniary or other material or personit inter€sts that
he has or acquires in a body corporate involved in a mattcr
bef)re lhc Appellate Tribunalt and

(d) a d sclosure of interest under clause (a) shall be made a part of

thc record oflhe Appellate Tribunal in that particular matter.

t2l Powers of thc App€llale Tribunal.---( l) Th€ Appellate Tribunal

shall, for the purpose ofdeciding an appcal. he dcemod to be a civil
court an(l shall have the sanre powers as are vested in such courl
under th( Code ofcivit Procedure. 1908 (Act V of l90E), including

(a) enfi)rcill8 altcrdancc of any pcrson and exa$inirg htm on

oath;

(b) conrpclling production of documenls; and

(c) issuirrg corrmissions lbr examination of witnesses aud

doL.rmerrtS.
PAR] I T}IF, GAZETTE Of' PAKISTAN. EXTRA,. MAY 2, 20I6 239

(2) Th€ Appellate Tribunal may call lor and examine any record,
inlLrmation or documenls frorn an),p€rson in relation to the matter
under appeal before it for thc purposes of enabling it lo come to a
decision.

l2J. P.n.l of erperts.-Thc Appellate Tribunal may mainrain a panel

of narional and intemalional experts in power seclor lo asrisl il in
performance of its funclions under this Act as and when dcemed fit
by the Appellqle Tribunal.

l2K. Budget.-The Appellate Tribunalshall have an independent budgel

which shall compnse-

(a) an initialS.ant fiom the Federal Govemment; and

(b) fees and costs associated with appellate procedures as may be

Prescrib€d.".

l5Amendment of section 13, A.l XL oI 1997,---ln the said Act, in

section 13, in sub-section (l). in claus€ (b), th€ words "by it as prescribed from
time to (rme- shall be omitted.

16. Itr$rtion of Chapted IIB aod trC, A.r XL of 1997.-ln tfie said
Act after section 14, the following shall b€ inserted, namely:-
.CIIAPTER IIB

NATIONAL ELECTRICITY FOLICY AI{D PLA}I

l44.NstioDrl clectricity policy rd phn.-{l) The FeJeral

(iovemment shall, from time to.time, with approval of the Council of Common
lnterests, prepar€ and prescribe a national electricity policy for development of
pows marlets'

Provided that in developmqrt of policies under this scction, the Federal

Covernnrent ma!'seek such input and assislance from the Authority as may be
rcquired.

(2) Thc policies referred to in sub-section (l) shall provide for

(a) devclopment of systems based on optimal utilization of resources

such as coal. natural Bas, nuclear subsrances or matcrials. hydro and
rencwable sources ol'cnergy;
240 THE CAZETTE OF PAKISTAN. EXTRA, MAY 2.20I8 [PAR,I.I

(b) develop nent of emcienr and liquid power market design;

(c) integration of national and provincial transmission s),stems;

(d) special provisions ensuring development of a sustainable

for
renewatle eocrgy market with a dedicated and gradrBlly ircr€asing
shar€ in electricity power sector; and

(e) afly oth':r matler pe(aining to developrhent, reforn, improvemenl

and suslainabiliq of po$€r sector.

(3) The Ferleral Govemment may either on its own motion or on

recommendation of rr Provincial Govemment and subject lo approval of the
Council of Common Interestl, review or r€vise the policies rcfe.red to in sub-
s€ction (l).
(4) The Feleral Govemment in consultation with the Provincial
Covemments, shall p,repare a national electricity plan in accor,lance with the
policies Fepar€d and prEscriM under sub-s€ction ( l) and notiry such plan once
in five years:

Provided that the F'ederal Govemment, while prcparirg or amending lhe

natioral elqrhicity.plan, shall publish the draff national elecEicity plan and invile
suggestions qnd objecdons lhercon within thirty d6ys oflhe nolification:

Provided further thal a Provincial Govemmcnl may, il re(luired, proposc

6n amendment to the national electricity plan, which may b( adopted with the
concurrenc€ offie Provincial Covemments and dle Federal Government.

(5) The Aurhority shall prform its tunctions in accordam€ *ith the
national electricity po icy and the nelronal electricity plan.

C}IAPTER IIC

(;ENERATION OF ELECTRICITY

l4B. Cercrctior.-{ l) Subject.to suLseclion (5). no person shall,

except under authorit/ of a licence issued by the Author'ry undcr this Act and
subj€ct to the conditions specified in this Act and es rnay be irnposed by thc
Authority, aonstruct, (,wr or oferate a generarion facrlity.

(2) An applcation for gmnt of a licence for generation faciliry shall

sp€ciry

(a) the type rffaciliry fbr which the licence is applied;

 THE GAZETTE OF PAKIS]'AN, EXTRA., MAY 2 2018 241

(b) the loc-ation ofthe generation facility; and

(c) thc cxpected life ofthe generation facility

(3) The Authority may, after such enquiry as it may deem appropriate
and subJect to the conditions specified in this Act and as it may impos€, 8i{nt a
licence authorizing the lic€nsee to construct, own or operate a cornocted
8eIeration facility.

(4) In lhe cas€ ofa generation facility connecting dircctly or indirectly

to (hc trBnsmission facilities of the narional grid compafiy, the licensee shall
makc thc Scncradon fucilit_v avarlable to lhe natimal grid company for dlc safc,
reliablc, nonJiscriminatory, economic dispatch end operation of the nationel
lransmission grid and connected facilities, subject to the comFnsation frxed by
the Authority for voltagE support and uneconomic dispatch direrled by rc
national!trid company.

(5) The Federal Govemment may, aller consultation with the Authoriry
and by notification in the oflicial Cazetle, provid€ a mechanisrD for gmdual
ccssation of the genemtion licenc€s for various clssses of generation licencr
holdcrs. which shall not extend beyond a period of five years from the cominS
into effect of the Regulation of Ceneration, Tmnsmission and Distribulion of
Illectric Power (Amendment) Act,20lt and lhereafter, any generation company
may establish, opemte and maintain a Seneration hcilty wrthout obtaining a
licr-ncc under this Act if it complies with the technical standards relating to
connccrivilv wrth the grid as may be specified:

Provided that a gener-ation company intending to set up a gen€rrting

facility shall preparc and submit a det iled scheme covering all financial,
geological, hydrological, lechnical, safety and environmental aspects to the
Aulhority for ils concuarence:

Provided further that, whilc considering th9 scheme submitted by a

gencralion company intending to set up a hydro-generating facility, thc Authority
shall considcr wh€ther or not in its oprnion the proposed river work will
prLjudicc thc prosp€cts for the best ultimate development of the river or its
rriburarics for power generation and are consistent with the requirements of
drinking water, irrigation, flood control and other public purpos€s end shall
satisry itself that necessary approvals have been sought from the concemad
aurhorilies ofthe Federal Govemment and Provinciel Govemments.

l4C. Captive generrtioD.-{ I ) Notwithstanding ar}rhing contained in

this Act. a person may construct, maintain or opemte a captive generatint plart
and dedicated transmission lines:
 THE GAzETTE OF PAKIS'I'NN, EXTRA,, MAY 2.2OIIi [P^RTI

Provided lhal rhc supply of elcctricity from the captive genemting plant
through the grid shall )e regulated in the sarne manner as llle gcn(rating l'acility
of a geneiati g company.

(2) Every pe:son, who has conslruclcd a caplive Scnerarir8 plant and
maintains and operate; such planl, shall havc the flght to open tccess for the
purpo6es of crrrying electricity from his captrve Senerating plant to the
destination ofhis us€:

Provided that such oPen access shall bt subj€ct to svailability of

adequal€ Eansmission facility and such availability of ransmissiol fecilitv shall
b6 detemined by the grid coNpary or the provincial grid company, as
'ratioral
the case may be:

Provided funher that any dispute r€gardin8 the availability of

transmission facility shall be adjudicated upon by the A'rthoriry-.

l4D. Drties ol geDerrting comprrie3.-{l) Subj€ct lo the provisions of

this Act, the duties of a gcnemling company shall hc lo estahlish. op€rate and
maintrin generating slations, tie-lines. sutFstations and dedicated tlansmissioh
lines connected thereu ith and within the Seneration facilitr, in accordance with
the p.ovisions ofthis,A ct or the rules or relulations made thereunder.

(2) In the care ofa genclalion facility connecting dircctly or indtectly

to the transnrission fa.ilities ot lhe nalirnral Srid company or a provincial grid
company. thc Eenerati( n compdny shall make the Seneration faciliw available for
thc safe, reliable, no iiscriminatory, economrc dispatch and operatlon of the
national trarsmission llrid and connected facilities, subject to the compensatioD
fixed by the Authority for voltagc supporl and uneconomic dispatch directed by
the system operator.

(3) A generating company may supply electricity to any transmission,

distribution, supply or market trader licensee in accordance wilh this Act and thc
rules and regulations rnade lhereundcr and may. subject to scclion 238, supply
electricity to any consumer.

(4) Every Seflerating company shall-

(a) submit t(.chnical dctails rcgarding its generating srations to the
Authonq; and

(b) c.-ordinate witi the relevant transmission company. for

. Eansmission ofthe electricity generated by ir.".
P^xr li TIIE GAZETTE OF PAKISTAN. EXTRA,. MAY 2 2018 243

17. Amcrdment of Chrpter UI, Act XL ot 1997.-In thiJ said Acr,

afrcr secrion l4D. insened as aforcsaid, afier the hendir8
*CIIAPTER lll", in thc
sub-heading 'LICENCES", attcr the word 'LICENCES" tllc words -ANt)
RECISTRATION sha|I be added

I E.
Omi*eiotr of section 15, Act XL of 1997.-ln the said Act, scction
l5 \hell hL o,rnred.

Ig Amendment of scction 16, Act XL of 1997.-In the said Acl, in

scction 16.

(a) for sub-sectioo ( l), the fbllowing shall be substituted, nanrelyi-

'(l) Subject to the conditions laid down in this Act. no pe6on
shall en8age in the transmissron oF electric porver without
obtaining a licence issued by the Authority-

(1/1) The eligibility criteria for grant of transmission licence shall

be prescribed by thc Federal Govemment and shall includc.
withoul limitation-

(a) minimum solvency requirements; and

(b) minimum lechnical and human rEsou.ce rcqu[ements. ;

and

(b) in suFsecrion (2).

(r) in clause (i), the word "and" shall be omitted;

(ii) in clause (ii). for the full stop ar the end a s€micolon and the
word "; and' shall b€ substituted and thereafter the following
new clause shall be added, namely:-

"(iii) any other infomation as may be specified.".

20. Ameddmetrr ofsedion 17, Act XL oi 1997.-ln rhe said AcL in

section 17.-
(a) for suEsection (l), the following shallbe subrtituted, namely:-
-(l) The Authority may, subjcct to &e provisions ofthis Act and
after such enquiry es it may de€m appmpriate, gant a licence
authorizrng the licensee to engage in the transmission of
electric power subject lo such conditions as it may imposei
244 'lH,r CA;:E-ITE OF PAKISTAN. EXTRA., MAY 2,2018 [PARI I

Provided that only one such licence shall be g.anted at

(b) in sub-section (2),

(i) aftrr the words "in lhc', the words "s€rvic€" shall b€ inserted;
and

(ii) thc words "excent the tenitory served by KIJSC" shall be

oln ttcd: and

(c) after sub-section (2), arnended as aforesaid, the lbllowing new sub-
section ( ]) shall be addcd, namely:-
"(3) Thr: eligibiliry criteria for Brant of licence as i national grid
corlpany shall be prescribed and shall include, without
limilation,

(a) minimum solvency requirernents; and

(b) minimum techricaland human resource requiremenrs."

21- Amendrnent of section 18, Ac( XL of 1997.-ln the said Act, in

section 18, in sub-section (2),-
(a) in claus', (c). in the proviso. thc word "and" at the end shall be
omitled; and

(b) ir clausj (d), for the firll stop at the end a semicolon and the
*ord "; and' shall be substituled and thereaffer rhc following new
clause st all be added, namely:-

"(c) pcrlbrm funchons ofa system operator."

22. Inscrlion of sectiorB l8A .nd ttB, Act XL of 1997.-ln the said
Act, after section 18. amended as aforesaid, the following ne\y scctions shall be
inserted, namely:-

'18A Provinc rl grid company. {l) The Authority nlay- subjecl to the
provisrons of this Act and after such enquiry as it may deerh
approprirte, gmnt a liccnce authorizing a company owned by a
Provincirl Govemmenr 10 c,)gage in transmission ofclectric power
q,ithin krrilorial limits of such Province, subject to such conditions
as it ma) impose:
PARIll l'tlE CAZETTII OF PAKISTAN, EXTR,,\., MAY 2,2018 245

Provided that only onc such licenc€ shall be ganted for cach
Province at any one time.

(2) Thc cligibility criteria for grant of license as a provincral Srid

conrpanl shall be prescribed and shall includg without
limitation,

(a) minimum solvcncy rcquirements; ard

(b) minimullr lcchnical and human rcsource rcquirem€nts-

lEB. Rcsponsibilities of provincirl grid competry.-{l )'lhe provincial

gnd companv shall be responsible to opemte and provide safe and
rcliable ransmission services on a non-discriminatory basis,
including to a bulk-power consumet who proposes to become
directly-cgruEted 10 its f8cil ies.

.hout prejudice to the foregoing .esponsibilitics, the provincial

Ld compary shall-

r) provide transmission and inler-connection servic€s (o the

national grid company and to others, wherever necessa4/, al
such rates, charges and terms and conditions as the Autho.ity
may deteamine;

(b) purchase interronncction service fmm the national grid

. compary as may be necessary and to connect its facilities to
the national transmission grid at the rates, charges and terms
afld conditions determined by the Authority;

(c) follow the performance standards laid down by the Aurhority

fortransmission ofelcclric power. includinS Mfety, health and
environmental protection instructions issued by the Aurhoriry
or an! govemmental agency;

(d) make available to general public the tariff specifying the

Authorily's app.oved rates, charges and olher terms and
conditions for transm ission serviccs.

(e) not levy any rate or charge or impos€ any condition for
transmission of electric power which has not be€n approved
by the Authority a-s a t riff;

(1) not cause a division or any associated unde.taking to ongage

in geneBlion and distributioE and
246 TTIE GAZETTE OF PAI{ISTA\I. EXTRA,, MAY 2. 20 IS [PART I

(g) de/elop. marnlain and publicly make alrilablc, wilh prior

ap )roval of the Alrthority. an invcstrnenl program for
salisrying ils service obligations and acquirine and selling its
as!ets,",

23. Amendrnent of s€ction 19, Act XL of 199?.-ln lhe said Act, in

section 19, in clause rf), for the word "prcscrib€d" the
word specified" shall be
substituted.

24. Ametrdment of sec(ion 20, Act XL of 1997.-ln lhe said Act, in

sLrtion 20,-
(a) in sub-sr:ction (1), the words "ir this Act and as may be imposed by
the Autl ority" shall be omifted; and

(b) after sut"scction (l), amendql as aforEsaid, the lollowing new sub-
secoon { lA) \hall b€ inserted, namely:-

''r lA) Th.: eligibilir-'- criteria for g.ant ofdistribution licence shall be
pftscribcd and shall include, withour limitalion.

(a) mininrum solvency requirements; and

(b) minimum technical and human resource ruluir€ments.".

25. Amendrnetrt of secrion 21, Act XL of 197.-ln the sard Ac! in

section 21, -
(A) in suusxtion (l), the woids *rn &rs Act and as i: may impose''
shall be )mitted; and

(B) in sub-s(,ction (2).-

(i) in 0lause (a),-
(a) thc word "exclusive" shall b€ omined;

(b) the expression "and to makc sales of eleclric po\ver to

consumers" shall be omittcd:

(c) for lhe word 't€rritory", occurling twice, the words

' "scrvice te[itory" shall be substituted; and
 PARr I THE GAZETTE OF PAKISTAN, EX'TRA-, MAY 2, 2OIE 247

(d) in thc proviso, the expression "within such terriror). as

the Authority may, subjecl to section 22. for a period of
fifteen years, allow" shall be omined;

( ii) in claus€ (b),-

(a) the expression "and male sales of electic po*er" shall
be omined;

(b) after thc word "its", the word "service" shall be ins€(ed;
and

(c) the proviso shall be omifled;

(iii) in clause (c), the expression "and power sales to consumers''

shall be omined:

(iv) for clause (d), the following shall be substituted, namelyr-

''(d) establish, *ithin thEs monlhs of the issue of irs licence

for distriburion of elec(ric power and make available to
publia, the manner and procedure for obraining its
servicef';

(v) for clause (e). the following shall be substiluted. namely:

"(e) make its transmission facililies available for operation

by any other licensee, aonsistent with appliceble
instructions established by the system operator;"; and

(vi) in clauss (f), after the word "ag€ncy', the words

Provincial Covemment" shall be insened.

26. AmeDdment of s€ction 22, Act XL of 1997,-In the said Acl, in

section 22,

(a) for sub-s€clion (l), the following shall be substituted, namely:

"(l) Notwithstanding anything conEined in section 21, the

Authority may p€rmit sale of elecfic power to bulk powcr
consumers located in service lerritorv of the holder of a
liccnse undcr this Act."; and
2.18 THE G^ZETTE OF PAKISTAN, EXTRA, MAY 2,2018 IPART I

(b) ifl sub-,ectioo (2), for the words 'three years , the words "one
year" sl all be substitutcd, for colon a full stop shall be substituted
and thereafter the proviso shall bc omitted.

2?. Amendm€nt of section 23, Act XL of 1997.-ln lhe said Act, in

section 23, the \yord: "or thc bulk pot\€r consumers within rls service t€rritory
subject to the provisi( ns ofs€ction 22" shall be omitted.

2t. Insertiotr of sc.ctions 23A, 238, 23C, 23D, 238, 23F, 23G ,nd
23H, Act XL of 199''.-ln the said Acl, after section 23, amendcd as atbresaid,
the followirg new scctions shall be inserted, namely:-

'2iA. Mrrk€l operrtor li.eDce.{l) No p€rson shall, unless licensed by

the Aurhorify under lhis Act and subject lo the prescribed
conditro rs. acl ss a marlel operator:

PK'vid6d that any p€rson acting as a markct opeialor on

commenc€menl ofthe Regulation of Ceneration, Tmnsmission and
Distribu ion of Electric Power (Am€ndm€nt) Act, 201t, shall
within a period olone year apply for a licence under this Act:

Pr( vided funher (hat only one market operator I icence shall be
granted ilt one time-

(2) The elig bility criteria for gant of licence as a ma.ket operator shall
be prescribed by the Fedeml Covemment and shall include, without
limitatio r,

(a) mirimum solvency requiremenls;

(b) mir imum technical and human resourEe rEquiremenE; and

(c) put lic service obligations of the licensee inclu(ling quality of

sen,ice, lradsparency of liansactions, timely ,:ollection and
disr.emination of palments. efl'ective collectron and
dis:.emination of any and all taxes and surcharges as may be
imfosed by the Federal Covemment, €tc.

(3) A pcrsor eligible for a Iicence to be licensedas a market operator

may make an application to thc Authority in such form and maoner
and on $ch conditions as may be specificd.

(4) An app,ication for licence under sub-secrion (3) shall be

accomparried by a dmfi commcrcial code govemint the form and
P^Rr Il THE GAZEI-II OF PAKISTAN, Ex rRA, MAY 2,2018 249

manner in which the market operator shall Undertake its licens€d

activitics.

(5) The Authorily may require an applicant under suLsection (3) to

provide such further information as it coNiders necessary in
relation to thc application, in such form or verified in such rianner
as the Authoflty may direct.

23B. DutiB rtrd responsibililiB of r mrrket operrtor.-{l) A market

openftor may, from time to time end subj€ct to epproval by lhe
Authority, make such commcrcial code as may be required to
enable it to p€rform its functions as a markel opemtor.

(2) A markel operator shall regulate its operations, stardards of

practice and business conduct of market participanrs ard their
representatives in accordance with its commercial codc, policies
and proceduEs as appmved by the Authority.

(3) The Authority may; if requirEd in the public interes! direct a

markel operator to make such conunercial code or amend its
exisling retulations a5 it may specify in wriling:

Provided that iflhe market op€mtor does not cornply with the
di.ection of the Autho.ity within a period of thrrty days withour
providinSjust caus€ for such non<omplianoe to the Au6ority, 6e
commcrcial code of the narket operator shall be de€med to have
been made or amended, as the case may be, and shall ta-ke effect
accordingly.

2lC Electric power trader licence.-{l) No person sh6ll, unless

licensed by rhe Authority under this Act, engage in Fading of
electric power.

(2) lhe eligibility criteria for 8.ant of licence for treding of electric
power shall be prescribed and include, amongst others,-

(a) minimum solvency requirements:

(b) minimum technical and human resource requhements; and

(c) public service obligations of the licensee including qualiq of

service. rransparenc) of transactions. timely colleclion and
dissemrnation of payments. eflccliv€ collertion and
dissemination of any and all t&res and surcharges as may b€
imposed by the Federal Covemmen! etc-
250 THE GA.2 ETTE OF PAKISTAN, EXTRA,, MAY 2,2OIII [P^RT I

(3) An applir)ation tora liccnce under sub-section (l)shall specify

(a) the rype ofservice for which the licence is being sought;

(b) the mode and marner in which the service is proposed to be

pro /ided: and

(c) any other informatiou as may be specified

23D. Duties and responsibilitiA of ele.tric power trsder.-{l) The

Authori! may, after such enquiry as rt may deem appropriate and
subject t,) the conditions specified, grant a licence for trading of
electric power.

(2) The licensee shall-

(a) posiess a right to trade in electdc power subject to the
conlitions of licencel

(b) be responsible to carry out fade bilatcrally between the

panies by entering into appropriate coDtracts containing
nec:ssary saleguards with regard to supply of electricity
thr(ugh tradiflg;

(c) ensrrre that appropriate melers are in place lbr rhe purpose of
ene gy accounting and comply with the specifications as
spe,iified by the Authority;

(d) hav: requisite agreenents rvith tmnsmission licensees and

dist-ibution licensees for transmission or wheeling of
electricity, as the cas€ may be;

(e) dec are to the Authority its ma-\imum trading m,rnthly volume
and five-year trading plan;

(f) cor ply with any direction issued by the system ,)perator;

(g) publicly makc available the Authority's appro.,ed applicablc

rater, charges aod other terms and conditions for power sales
to c)nsumers;

(h) mai)rain accounts in accordance with the and

prooedure laid down by the Authorrty; and

(i) any other obligations as may be imposed by the A.uthority

 1

PART I] THE GAZE,I.TE OF PAKISTAN, EXTRA,. MAY 2,2OI8 251

238. Electric power supply liccnce.<l) No person shall, unless

liccnsed h), rhe Authority undcr this Acr, cngage in supply of
electric power to a consumeri

Provided that the holder ofa dislriburion licence on the date of

coming lnto effect of the Regulation of Generation, Tmnsmission
and Distriburion ofElecfic Power (Amendment) Acl, 20lt shall be
deemed to hold a licence for supply of electric power under this
scction for a period offive years fiom such date.

(2) The eligibility crileria for grant

of licenco lo suppl]' elect.ic power
shall be prescriH by the tedeml Govemmenl and shall irrclude,
without limiralion,-

(a) minimum solvcncy rrqurrements;

(b) minimum human resource requircmenti:

(c) prov'sions with rcspccl to a supplicr ofthe last reso(, as the

case may be: and

(d) public service obligations of the lic.ns€e including qualiry of

sen,icc, transparency of transactions, timely collection and
dissemination of payments, effective collection and
dissemination of any and all taxes and surcharges as may be
imposed by the Federal Governmenl, etc.

(3) An application for a licence for supply of electric power shall

sp€ciry-'
(a) the type ofservrce for which the licence is being sought;

(b) the mode and manner in which the service is proposed to be

provided;artd

(c) any other information as may be spcified

23F. Dutics end rBponsibilities of aI| clcctric powcr supplier.-fhe

Authority may, aft€r such enquiry as it may deem appropriate and
subject to thc conditions specified, grant a licence for supply of
electric powet.

(2) The licensee shall-

T

252 TI{E GAJ:ETTE OF PAKISTAN. EXTRA , MAY 2, 20I8 PART I

(a) posress a righr tolnakc sales ofelectric porl€r to consumers in

the territory specificd in rhe licence and to frame schemes in
resPect of that tenitory;

(b) be responsible 10 make sales of electric poteer within its

tcnitory on a non-discrirninatory basis to all the consumers
wh,) meet the eligibility criteria laid down by thc Authorityl

Provided thal

(i) the licensee may not be requirEd to make rale ofel€ctric

power to a bulk powcr c6nsumer rl'ho has contra.led for
electric power supply from alother supplieq and

(ii) the licensee may rcquest lhe concemed distrrbuuon

licensee to discon ect the provision ofelecEic powcr to
a consumer for default in payment of power charges or
to a consumer who is involved in fieft ofeleclric power;

(c) publicly make availablc the Authority's applicable rates,

charges and olher terms and conditions for power sales to

(d) estiblish, within three months of the issue of its licence and
ma(e available lo $e public. instructions specirying

(i) procedures for obtaininS servic€; ard

(ii) the manner and procedure for metering, hilling and

. collection of thc licensee's approved charges snd
disconnection rr case of non-paymenr of charges,
electric powcr dreft and use of energy for purposes other
than for which it was supplied and.procedures for rc-
connection and recovery of arrears and other charges;

(e) maLntain accounls in accordance with the manner and

procedure laid do$'rr by the Authorio; and

(0 de\elop, maintain and publicly make availahle, with prior

apF roval of the Authority, an invcstment program for
satisrying its s€rvicc obligations and acquiring and s€lling its
ass lts,

23C. System ,)pc.rtor licence.{l) No penon shall, unlcss liceused by

the Authority undcr thi\ Acl. undertake functions as a system
 TTIE GAZETTE OF PAKISTAN, EXTRA,, MAY 2. 20I8 253

op€rator as may be specified b] the Authority, including but not

limited tc-
(a) generation scheduling, commitment and dispatch;

(b) transmission scheduLng and generation outage coordination;

(c) transmission congestion management;

(d) cross boader transmrssion coordtnaTion;

(e) procurement and scheduling of ancillary services and system

planning for long term capacity; and

(0 such othbr activities as may be required for reliable and

effi cient system operations:

Provided that only one such licence shall be'Eranted at

any one time:

Provided further that the national grid company.shall be

deemed to b€ a system op€rator for a period of tuo years from
commencement of fie Regulation of Generation,
Transmission and Distribution of Electric Power
(Amendment) Act. 2016.

(2) The eligibility criteria for grant oflicence as a system operator shall
bc prescribed by the Federal Govemment and shall include, without
limitation.

(a) minimum technical and human resource requirements; and

(b) public service obligations oF the licensee including quality of

servrce and transparency of transactions.

(3) A person eligible for a licence to b€ licensed

as a system operator
may make an application to the Authority in such form and manner
and on such conditions as may be specitied.

(4) An application for licence under sub-section (3) shall be

accompanied by a draft grid code goveming the fonn and manner
in which the system operator shall undertake its licensed activities.

(5) The Authority may require an applicant under sub-section (3) to

provide such further information as it considers necessary in
254 TIIE GAZETTE OF PAKISTAN. EXTRA,, MAY 2.20I8 [PART I

relalion to lhe application. in such fbnn or verifiod in such manner

as the A rthority may direcl.

2iH. Duties r,od rqponsibilities ofr rystem operrtor.-{l) A system

op€rator shall, from time to time and subject to approval by the
Authority, make such grid rnanaBemcnl code as rnal be required to
enable it lo carry out its lunctions as a syslenr oprjrator.

(2) A system operator slall regulrtc ils opcrations. standards of

practice and business conduct in accordance wdr policies and
procedurcs as approved b) rhe Authori$.

(i) The Aur hority may, if required in the public inter€st, dir€ct rhe
system (rperator to makc such grid code or amend irs exisling grid
code as rt may speciry in wriling:

PK,vidcd that if Ihc system opemtor does not comply with the
directiors of the Authority within s period of thirtv days *,ithout
providingjust cause for such non-comphance to the Authority, $e
g d co<e of the system operator shall be deemed to have been
made or amended, as lhc case may bc, and shall take effect
accordingly.".

29. Am.odrncrt of srction 24, Act XL of 1997.-ln the said Act, in

section 24,-

G) for the v ord "SHYDO", thc word "PEDO" shall b€ substitured; and

(b) the expression "teneratron. rransmission or distributio " shall be

omitted.

30. Amendrnent of section 25, Acl XL of 1997.-ln the said Act, in

section 25,-

(a) in sub-s(ction (l),-

(i) aftr:r rhe words "g.anl licences", the words 'or regisfation
un(ler this Act" shall bc inse(ed;

(ii) the expression 'for Seneration. transmissioh and distribution

of'rectric powe." shall be omitted; and

(ii') aftcr the words "rnorc lic€nsees", the words *or registered
pertons" shall be inserled;
 PART U THE CAZET-I.E OF PAKISTAN EXTRA. MAY 2. 2OIE 255

(b) in sub-section (l), after the words "a licensee", rhe words "or
reSistered person" shall be inse(ed and the cxpression "for
generation, trarsmission and distribution of eleclric power, as the
case may be" shall be omitted.

I L Inserlion ofsectior 25A, Act XL of 1997.-In the said Act, after

section 25, amended as aforcsaid, the followinS n€w section 25A sflall be
inserted, namcly:

'25A Registration. -{ l) Any p€rson providinB electric powcr services,

other than generation under Chapter llA or an clcclric power
sewice r€quiring a liccnce under this Act, shall be registered with
the Aulhority in thc manner and subject lo such conditions as may
beprescribed.

(2) Without prejudice to the Benerality of sub-section (l), a person

registered underthis section shall, at all times,-

(a) maintain the prescribed minimum capital requirEment;

(b) maintain adcquate facilities to ensure efficient provision ofthe

service il is rcgistered lo pmvidel and

(c) comply with the provisions of this Act and the rules and
regulations made hereundea.",

32. Ametrdmenl of scction 26, Act XL of 1997.-In the said Act, in

section 26, aller the word "issued'. the words "or rcgistration granled" shall be
inseiied.

33. Amcndm€nl of section 27, Act XL of 1997.-ln the said Act, in

section 2?,-
(a) for rhe words 'for generalion,
'transmission
snd distribution of
cl!'ctric power". the words "or a rcgistcred Frson, as lhe case may
be" shall be substituted: and

(b) after the word "licc[ce", the words "or re8istration" shall be
inscmed.

14. Inrnion of Ch.pler mA, Acl XL ol lyn.-h the sad Acl,

after sccrior) 27, amended as aforesaid- the followinS nel* Chapter IltA shall be
Ilser1ed. nrmelyt-
256 THE GAZETTE OF PAKISTAN, EXTRA-. MAY 2.20]8 IPART I

.CHAPTER III A

ENFORCEMENT

2T^.Iniestigrtion and proceediogs by the Authodty. ll) The

Authori(y rray appoilt not less than two officers to conduct investigations .in
rcspect of aor', malter that is a violation of this Act, lhe rulcs, regulalions and
codes mad( thcreun(er or lhe conditions of a liccnce issucd or regisu-ation
granted undcr this Acr. as lhe casc may bc.

(2) l he Aul rority, in the not ice of appo intment o f invest iSat ion omcers
under suusection (l), shall stldcify

(a) the reas(,n for initiation of investigation;

(b) the poss ble violations which are lo bc invcsligatcd: and

(c) the time frame within which the i[vestigation is to be completed

Pro\,ided &al a copy of the notic€ of investigarion shall be provided to

the persons under invr)stigation, who shall be bound ro facilitalc the investigation
officers in all aspects,rfthe investigation.

(3) When an investilation has been ordered under sutssection (l), an

invesrigating officer rnay, by nolice in writin& require any pe.son to produce
beIorc him such book;, registers or documents as are in cuslody or under control
ofthat person.

(4) A persor who obstructs or hinders an inyestigating officer while

exercising any of the powers under thrs section or deliberately frils to produce
any such books, regi!.ters or documenls as are rcquired by lhc Authority or an
invesligatinE ofljcer, !hall bc Iiablc ta-
(a) proceedings under sections 278 and 2t, where the Authority is of
the vicx that non-compliance wilh the investigation would
a{\cr5cl, affcat lhe interest of the consumers ol lhc person under
investig:,tion and rvhcrc lhc p€rson undcr invcstigation is a lic4nsee
or a rcgiitered person: and

(b) impositi)n ofpenalty under section 27B, in all other cases

(5) Any person aggricved by the conduct of an invesligating oflicer

may lodge a cornplainl in rcspec( thercofto thc Authoriry.
P^RT I] THE CAZETTE OF PAKISTAN, EXTRA,, MAY 2.20]8 257

(6) fhe Authority shall, within fifteen days of receipt ofthe complaint
under sub-scction (5), commence a hearirg to determine the veracity of such
complaiit in accordance with the specified procedure.

278. Penelty for defrult or co[tr{vention.-Any person who acts in

contmvcnlion of this Act or the rul€s and rcgulations made thereunder or fails to
comply wrth the conditions of a licence issued or registration granted to that
person and such person is a party to such contravention shall be punishable in
case of
(a) a company, with a minimum fine of ten million Rupees which may
extcnd to hryo hundred million Rupe€s and, hr the case of a
continuirg default, with an additional fine which may extend to one
hundred thousand Rupees tbr every day during which the
connavention continues; and

(b) an individual, with a minimum fine of one milfion Rupees which

may extend to ten million Rupees and, in the case of a continuing
dcfault, with an additional fine which may extend to ten thousand
Rupees forevery day during which the contravention continues:

P.ovided that a fille shall only be irhposed under rhis section a]ier
providing a reasonable oppoftunify ofbeing heard to the person alleged to be io
contravention:

Provid€d fu(her that $rhere the person is a gen€ration cor pany, a

Iicensec or a person rcgistered under this Act, a penalty imposed urlder this
section shall not be treated Ls a cost for the purposes of tnriff deterrDiDation by
the AuthoriD.

27C. Prohibitiotr order,-{l) The Authoriry may, after-recording

reasons in *ritrug, for continuiDg violations ofthis Act or thc rules or reelulations
made thereunder-

(a) prohibit a generation company, a licensee ot a regislered persoll.

arom providing electric power services; or

(b) in the case ofa generation company, prohibit any or all persons
frorn purchasing electricity from such genemtion company; or

(c) reqnirc a generation company, a licensee or a rcgistcred person, to

improle the prov,sion ol electrrc powcr service\ (o as ro ensurc
compliarce with this Act and the rules and regulations made
thereunder,
258 THE GAZETTE OF PAKIST N, EXTRA,, MAY 2,2OIE IPART I

(2) 'lhe Authority may, either on its own notion or on dle application
of a gencratlon compiury, a licensee ol a registered persofl, against whom a
prohibition or requirerlent has been imposed under sub section (l), rescind or
vary such prohibition cr requlrement if the Authority is satislicd that no violation
ofthis Act or rules or tlre regulations made thereundcr cxists to that extent.".

35. Amcndment of section 28, Act XL of 1997,-ln the said Act in

secrion 28,-
(a) for sub-s€ction (l), thc follo$,ing shall be substihrted, namely:

'(1) Nolvithstanding anything contaired in section 278, the

Autltoriq ma) suspend or revoke any licence issued or
regi lration granted under this Act lor consistent failure ofthe
Iicersee or rcgistered person to comply \\'ith the conditions of
the licence or registration: '

ided that before taking action uDder this section, the

Pro\
Authoriry shall issuc a noticc to sho\r,causc and may provide an
opportunity to rectil'y thc omissioD subject to such conditions as the
Authority may specily ";

(b) in sub-se(tion (2),

(i) aftcr the word "licence". occurring tuice. th€ words 'or
regr;tratior" sllall be inserted; and

(ii) in r lause (a). after the word "licensee", the words "or
regir;tered pelson" shall be inserted;

(c) in sub-se(tion (3),-

(i) after the s,ord "licensee'_, occuning twice, the $,ords "or
regi:itered person shall be ins€rted: and

(ii) aRe' the words whosc licence". the words "or registration''
shal bc inscrlcd.

J6. Omisiiotr of sectior 29, Act XL oI 1997.-ln the said Acr.

section 29 shllb€ omi,red.

37. Amendment to scctiotr 30. Act XL of 1997. ln th,) said Act. in

section 30, for the ex])ression "SHYDO . wherever occurring, the expression
"PEDO" shall be substitutcd.
PAR] tl THE CAZE]"TE OF P KISTAN. EXTRA,, MAY 2, 20I8 259

38 Insertior of Chapter IIIB, Act XI of 197.-ln the said Act,

after section 30. amended as aforcsaid, the following expression shall be inscrled,
namel):

.CHAPTER
IIIB

TARIFF"

i9. Subslitutiotr of scction 31, Ac{ XL of 1997.-ln the said Act, for
section I I, the following shall be substituted, namely:-

'3 1 . Ta ff.-11 ) 'fte Aulhority shall, in the determinstion, modificetion

or revision of rates! charges and terms and condixons for the
provision of clectric pouer services, be guided by the nalional
elertncity policy, thc national clealricity plan 6nd such guidclnes
as may be issued by the Federal Govemment in order to give effect
to the naliooal eleqricit!, policy and nationalelectriciry plan.

(2) The Authority, in the determination, modification or revision of

rates. charSes and tcnns and conditions for the provision ofcleclric
power services shell keeP in view-
(a) thc protection of consumers against monopplistic ard
oligopolistic pric€s;

(b) the res€arch, devclopment and capital investment programrne

cosls oflicensees:

(c) thc cncouragcmenl of efficiency in licc sces, operations and

quality ofservic4;

(d) the encouragement of economic elfrciency in the elecEic

prcwcr industry;

(e) thc cconomic and social policy objectives of the Federal

Govemment;and

(f) thc elimination ofexploilation and minimrzation of economic

distortions.

(3) Without prejudice to thc gene.aLiy ofsub-section (2), the following

general guidelines shall be applicable to the Authoriry in the
determination, modificalion or revision of Etes, charges ard terms
and condilions for provision ofelectric powrr scrvrccs, namely:-
260 THE GAiIE'T]'E OF PAKISTA\, EXTRA,, MAY 2,2OI8 [PART I

(a) taflffs should allo\r, licensces the recovery ofany and all cost
prudently incurrcd to meet the demonstraled needs of their

Provrded that assgssmo[ts oI licensees' prudenc€ may

not be required u'here tariffs are set on other than cosl of
ser/ice basis, such as fonnula based tariffs that arc designed
to l)e in place for rnore than one year:

(b) tariffs should Senerally be calculated by including a

detreciation charge and a rate o[ rctum on the capital
investment of each licensee commensurate to that eamed by
olher irvestments of comparable risk;

(c) tanffs should ellow licensc'es a rate of refum which promotes

continued reasonable investment in equipmcnt and facilities
for improved and efficient s€rvice:

(d) tar ffs should include a mechanism to allow licensees a benefit

fiom snd penalties for failure to achie\,,e the efliciencies in the
co:t ofproviding the servica and the quality of jervice;

(e) tarrffs should reflect marginal cosl pflnciples to the extent

fe,sible. keeping in view the financial slabrlity ofthe sector;

(f) drc Authority shall have a preference for co[lpetition rather

thEn regulation and shall adopt policies and cslablish tariffs
to\vards that cnd;

(g) tarffs may be sct below the level of cost ol providing the
service to consurners categories consuming clectric power
be ow such consumption levels as may be prescribe4 as lont
as such tarilYs are financially sustainahlc:

(h) tariffs should, to thc extcnt feasibte, reflect rhe firll cost ol'
ser'vice to consum€r categories with similar service
requirem€nts;

(i) ta'iffs should serk ro provide stabililv and predictability for

cu itomers; and

(i) tarifi's should be comprehensible, ftee of m isin terpretation and

shrll shte explicitl), each componenl thcreoi
PART I THE CAZETI'E OF PAKISTAN, EXTRA. MAY 2, 20 I8 261

Provided that lhe Authority shall skike a balance to thc

extent possible. among thc gencml Euidclines in onder to
optimize the benetirs ro all pcrsons likely to be atTect€d by the
determination, nlodillcation or revision of rates, charges and
terms and conditions

(4) Subject to sub-sections (?) and (3). the Authority shall, in the public
coirsum€r intcresl, detcnninc a uniform tariff for distribution
licensees whoTly owned aDd controlled by a common shareholder,
on the basls ol lheir consolidated accoun6.

(5) The Authority spccity procedures fo. determination,

modificatio or revision of €tes. charges and terms and conditions
li, ' "rolision of clcctric po$€r services, including without

., .! trame for decisions by lhe Authority on lariff

applications;

J) opportunity for customers and other interested parties to

participate meaningfully.ifl the tariff approval process; and

(c) protection for refund, if aay, to cuslomers while tariff

decisions are pending.

The time frame for detenninalion by the Authorir) on tariffpetition

shall not exceed four monfis aftcr the date ofadmission ofthe l.nff
,rclitioni

Provided lhal this timc frame shall commence after lhc

applicant has complied with all requirements of rules and
regulations and the Authority has admitled the tariffpetition.

(7) Notification of the Aulhority's approved tariff, rates, chargcs snd

other terms and condilions for lhe supply ofelectric power services
by genemtion, transmission and distribution companies shall be
made by the Federal Govcmmcnt in the officral Gazette, within
fifieen days ofintimarion ofthe final tariff by the Authori*-:

Provided that rhe Authority may, on a monthly basis and not

latcr than a period ofscven days, make adjustments in the approvd
taiff on account ofany variations in the fuel charges and policy
guidelines as the F.dcral Govemment may issue and notiry the
tariffso adjusted in the official Cazette.".
262 THE GA ZETIE Of PAKISTAN, EX.I-RA., MAY 2.2018 [P^Rr I

40. Am€ndment of section 32, Aci XL of 1997.-ln lhe said Act, in

section 32.

(a) in sub-r,ection (l), for the word ''prescribe', the *ord "specify''
shall be substitutedi

(b) in suLs.:clion (2),

(i) fb, the word "prescribed", the word "specrEed'' shall be

sul)stituted; and

(ii) after lhe word ''company". tle expression ", the provincial
grid companies" shall be inse(ed.

41. Inserliotr oI Chapter lUC, Act XL ot 1997.-tn the said Ac!

follo\tin8 shall he irrserted, namely:-
after scction 12. amcndql as aforesaid, the

.CHAPTER IIIC

PI]RF ORMANCE AND STANDARDS"

42. Amendrn€n( of se(lion 34, Act XL of 1997.-ln the said Ac(, in

section 34, lbr the wod'prescribc". the word "speciry" shall be substituted.

43. A-Eendrnent of section 35, Act XL of 1997.-ln the said Act, in

s€ction J5,

(a) for the rvords 'encourage thc development ol", thc word "spccify"
shall be iubstituted:

(b) after clause (6), the following new clauses \hall be inserted,
narnely:.-

"(aa) lec lnical standards for construction of el€ctrical plants,

elc.:tric lines and connectivity 1o lhe grid;

(ab) Sriil standards for operation and maintenancc ol'transmissioo

lin( s:".

:14. Insertion of scction 3SA, Act XL of 1997.-ln rhe said Act. aiier
section 35, amended as afor€said, the following new section 35A shall bc
inserted, namely:-

35A. Omces of complrints rcglrding ovcr-billing elc.--{l)

Nolwilhstanding aDythine.onlail|ed ir section 38 or seclion 39, the
P^RT ll THE CAZETI E OIr PAXIST EXTRA,. MAY 2. 2OI8 263

Autho.ity may establish dist.ict level complaint ollices to hear and

decide complaints regarding ove6illing, non-compliaflce of
instructions rrsp€cting metering and collection of approved
cha.ges, disconnection in cEse of non-payment of charges, elecl.ic
power thcft and usc of enerry for purposes othcr than for which il
was supPlied.

(2) The manner and procedure wheretry consum€rs ?rnd licensees may
make complaints under this section shall be sp€cified:

Provided thst the ofTice of complsints shall, on receipt of a

complairt and bcfore t ling any oction thcreon, give notice to the
licensee or any other peBon against whom such complaint has b€en
made to show causc and provide such licensee or such other person
an opportunity ofb€in8 heard.

(l) If. on inspection by an offic€ ofcomplaints, a willful conEalention

against a licens€€ or any olher person is establishe4 a licensea
person and any such anyother person that is party to thc
conFavention shall be punishable in casc of-
(a) a licens.c, with a fine under s.ction 2?B;

(b) an enployee of a licensee who is found to be party to thc

contravention complained ol to imprisoflment for a term
which may cxtend to thrEe yeals or to a fin€ which may
extrnd to tcn million Rup.rs o. to Mr;

(c) a consumer thst is a compeny, with a finc undcr s€ction 278;

and

(d) any oficr individual who is found to be party to tie

contravention complained o[, to imp.isonment fo. a term
which may extend (o thre€ ye$s or b a fine which may
extend to ten million Rup€€s o.to hlh.

45. AEendmcDa of rcctior 36 A.r XL of 1997.-ln the said Act, in.

scction 16. for dle words "pacscrib€" and 'prEscribed", the words "specifu" and
"specified" shall resp€€lively bt substituted.

ADctrdlnetrt of lcctiotr 3t, Act XI- of 199.-ln (he said Act, in

46.
section 38, in sub-section (3), for the word "prcscriM", the word "specified"
shall be su bstituted.
l6l fI II] C 7 LTTE OF PAKISTAN, EXTRA,, MAY 2.20IS

47. Inscrliotl oI Chapter M, Act XL ol 1991.-ln thc said Act

afier sectron i9. lhe fo lowing shall be inserte4 namely:

.C}IAPTER
TVA

MISCELId\IEOUS'

48. AEcnd[rcnt of scction ,14, Act XL of 1997.-ln lhc said Act, in

seclion 44,-
(a) thc rvord "prescribed", occurring for the first time. sh ll be omitted;

. (b) the wordr, -fine or other" shall be omitted; and

(c) for the expression'as prescribed fiom time to time", lhe words
''under this Act" shall be substiruted.

49. Substilurion ofsectioN,16 and 47, A.l XL of 1997.-ln the said

Act, for scctioDs 46 an,l 47, the following shall be substituted, nam( ly
-
"46. Rulcs,- l) The Federal Govemment may, erlhq or ils o$,n
morion o'on recommendation of the Authority and l)y notification
in the omcral Cazette, make rules for matteB rLqurred to be
prescribcl undcr dis Act:

Pro ,ided that the po*er to make rules conldncd by rhis

section slrall be subject to consultalion with the Authority and the
Provincial Govemments and be subject to previous publrcation for
cliciting public opinion thereon within a period of nol less than
fourlcnn rlays ttom th€ date o[publication:

Pro',ided firrtfie|lhet in case of a disaSreement betwcen the

Fcdcrdl (;ovommcnt and the Provincial Covemmeflts, such rules
shall be r:fcrred to the Council ofCommon lntercsts for a dc'cision
rhcrcon-

(2) Without )rejudice to e generality ofthe foregoing powers, such

nrlcs ma1 prot idc fr-rr

(a) pro(cdurc for seeking nominations of nenrbers of the

Aut rority aod rhe AppellaG Tribunal from the Provincial
Co\emments;

(h) pub icarion ofrar€s and cha.rges ofelectricity consumplion;

P^RT I] THE CAZETTE OF PAKIS,I.AN, EXTRA,. MAY 2,2OI8 265

(c) procedure for submission ofvarious reports to lhe Council of

Common Interests or 10 th€ Federal Government and the
manner of preparation ofsuch reports;

(d) proccdure for inquiry and investigation into affairs of an

applicant for a lic€nce and for any contravention of any
provision ofthis Acr;

(e) sceking ofinformation; and

(0 any olher matter incidental or consequential

.{7. Rcgul.rions.-{1) The Authorilv may, for performance of its

functions undfi this Acl and by notification in the official Gazette, make
regulations not rnconsistenr wilh the provisions of this Act and the rules.

(2) Without prejudice to the foregoing powers, such regulations may

provide for-

(a) appointment of olficers, mcnrhcrs of slaff and such olher persoDs

and thc tcrms and conditrons oftheir service;

(b) Jhe form and maflner of applications to be made for e licence foa
generation, transmission or distribution facilities;

(c) the fces and documents to be accompanied with the applications for
licencesl

(d) procedure for metering, billing and collection of elecEic po$'er

charges by the license€s;

(c) proccdurc for resolving disputes gmongst the licensees and

consut'ners;

(0 manner and procedure of sbo\t cause notic€s; and

(c) any othcr maner incidenhl or consequential

(3) The power to mal€ regulations conferred by ll|is seclion shall be

subjcct to the condition of previor.rs publication and before making any
regulations the drali thereof shall be published in two rewspapers of wide
circulation for eliciting public opinion thereon within a p€riod of nol less than
rhirty days trom the date ofits publicalion.".
266 THE GAiIET.TE O[.PAKISTAN, EXTRA, MAY 2,2O]8 [PART I

50. Additior of sections {E, 49, 50 ond 51, Act XL of 1997.-ln the
said Act, after sectior 47, substituted as aforesaid, dre following new sections
shall be addcd. name\:-

"48. Power of the Authority to issue directiv€s, circulors, guidelinesr

etc.-The Authority shall have the power to issue such directives,
codes. glridelines. circulars or nolificalions as are neressar) to carry
out the l)urposes of this Acl and the rules and regulations made
hereundtr,

49. Cognizrnce of offcnces.-Notwithstanding an,,thing contained in

the Codr of Criminal Procedure, lEgE (Act V of lt98), no court
other than the court ofsessions shall take cognizance ofan offence
u der this Act except on a complaint by an officer authorized in this
behalf$ the Authoriry.

50. Savings.{l) Notwithstanding anything contained in the

Regulati,)n of Generation, 'I mnsmission and Distriburion ofElectric
Power (.tmendment) Act, 20lt or any repeal eftbcted thereby,
nothing ihall affect or be deemed to afrect an]'thing done or any
action taken or purported to have been taken, including any rule,
regulation, notification, determination, order or lotic€ made or
issued, rny approvd, appointment or declaration made, any
operatiorL undertakcn or di.ection giveo, any p.oceedings taken or
any pena lty, punishment or fine imposed under this Act b€fore the
commen,:ement of the ReBulation of Generation, Transmission and
Dishibution ofElectric Power (Amendment) Act, 201E.

(2) Subject to sub-section (l), any order, rule, notification, regulation,

appointn ent, conveyance, deed, document or direqion made, fee
dire.ted, determination given, proceedings taken, instrument
executed o. issued or thing done undq or in pu.ruance of any
provisior of the Regolation of Generation, Tmnsmission and
Distribution of Electric Power (Amendment) Act, 20lt shall, if rn
[o.ce be]bre the commencement of the Regulation of Generation,
Trarsmi!sion and Dishibution of Electric Power (Amendmeno Ac!
2018, ccntinue to be in force and shall hav€ effart.as if made,
directed, passed, given, taken, executed, issued or done under or in
pursuance ofthis Act:

Provided $at, pursuiurt to the coming into effec! of the

Regulatir)n of Generation, Trarsmission and Distribution of Electric
Power (/\mendment) Act,20lE, the rules and regulations issued
under thls Act shall be brought into confomity with the amended
provisior s of this Act, wherever required, within a period of one
PART ll THE GAZETTE OF PAKISTAN, EXTRA,, MAY 2, 2OI8 261

yesr fiom the date of coming into effect of the ReSulation of

Ceneration, Transmission and Distriburion of Electric Power
(Amendment) Acq 2018.

(3) Any pe6on appointed to any office prior lo the comlng into force of
the Regulation of Generation, Tmnsmission and DisEibution of
Electsic Power (Amendment) Acl 20lE shall be deemed to have
been appointed to that ollice under and by virtue of this Act and
any condition or term of servicc or employment modified th.ough
the Regulation of Generation, Ttansmission and Distibution of
Eleclric Power (Amendment) Act, 201E shall not have retrospective
applicatioD or effect."

51. Validrtion.-AnFhing done, actions Eken, orders Passe4

instruments made, notifications issued, agreements made, proc€edings initiate4
processes or conmunications issued, powers conferred, assumed or exercised by
the Federal Covemment in rerms ofsub_s€ction (5) of section 31 on m 6Jler the
fiIst day ofJuly, 2OOt till lhe comin8 into force ofthe Regulation ofGeneration,
Tra[smission and Distribution of Electric Power (Amendnent) Act, 2018 shall
be deemed to have been validly done, made, issued, taken, initiate4 confened,
assumed and exercised and shall be de€med to have effect accordingly ''

TAHIR HUSSAIN.
Secrelory.

PiINTED BY TI IE MAN CER. IRNNNG COTPOR TION OF P^KSTAN PRISS, ISLAMAB^')

PUBL,ISHED BY NtE DEPUIYCONTiOLLER, SI^fiONIf,Y AND Foru{S, LNIVIJRSITY TO^D, X]\XACHI