Powers of State Government to give direction to a licensee in regard to the supply of energy to certain class of consumers.
The State Government may, if in its opinion it is necessary in the public interest so to do, direct any licensee to supply, in preference to any other consumer, energy required by any establishment which being in the opinion of the State Government an establishment used or intended to be used for maintaining supplies and services essential to the community, is notified by that Government in the Official Gazette in this behalf.
Where any direction is issued under sub-section 1 requiring a licensee to supply energy to any establishment and any difference or dispute arises as to the price or other terms and conditions relating to the supply of energy, the licensee shall not by reason only of such difference or dispute be entitled to refuse to supply energy but such difference or dispute shall be determined by arbitration.
Where any agreement by a licensee, whether made before or after the commencement of the Indian Electricity Amendment Act, 1959, for the supply of energy with any establishment referred to in sub-section 1 expires, the licensee shall continue to supply energy to such establishment on the same terms and conditions as are specified in the agreement until he receives a notice in writing from the establishment requiring him to discontinue the supply.
Notwithstanding anything contained in this Act, or in the Electricity Supply Act, 1948 54 of 1948 , or in his license or in any agreement entered into by him for the supply of energy, a licensee shall be bound to comply with any direction given to him under sub-section 1 and any action taken by him in pursuance of any such direction shall not be deemed to be a contravention of section 23.