MERC has passed an order in Case
No. 62 of 2009 regarding appointment of Franchisee and has made certain
directions and observations, relevant of which are as follows:
1.
Franchisee
is appointed through competitive bidding or through MOU route
2.
Terms
and Conditions of distribution Franchisee is to be decided by the Distribution
Licensee, MERC has no jurisdiction. However, MERC has suggested to evolve a
common MOU/Agreement for Franchisee Agreement.
3.
Also,
a Distribution Licensee cannot refuse if either the Developer or one of
the Group of consumers comes forward to become a Franchisee.
4.
The
Commission further directs that the dispensation to become a Franchisee of
the Distribution Licensee in the
State will be available to all the following
categories:
a) Residential colonies
b) Commercial buildings
c) Multiplexes and malls
d) Townships
e) Other single point consumers
like Railways, Defence, etc.
5.
The
period of Franchisee Agreement should neither be less than five (5) years
norlonger than the validity of the licence period of the Distribution Licensee.
6.
Notification
dated March 3, 2010, stipulates that the developer of SEZs shall be
deemed to be a distribution licensee under Clause (b) of Section 14 of the EA
2003, Link for the MERC order is