Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Electricity Regulatory Commission Act s. 22(2)(n) and 29(3) Quantum of Standby charges 1998 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Electricity Regulatory Commission Act, 1998 (14 of 1998) |
Case(s) Referred | Referred Case 0 Referred Case 1 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Electricity Regulatory Commission Act, 1998: s. 22(2)(n) and 29(3) – Standby charges – Quantum of – Appellant-TPC, distribution licensee supplying electricity to entire Mumbai and BSES/REL, distribution licensee supplying electricity only in suburbs of Mumbai – From 1998 to 2006, BSES/REL used to purchase electricity from TPC between 29% to 37% – Tariff payable by BSES to TPC included a component of standby charge – Standby charges paid by TPC to Maharashtra State Electricity Board-MSEB were being recovered by TPC from its customers through its tariff – Order of Government of Maharashtra stipulating a sum of Rs.3.5 crores per month to be paid by BSES/REL to TPC by way of standby charges – Issue as regards quantum of standby charges required to be paid by BSES/ REL to TPC – Order by MERC directing BSES/REL to bear approximately 23% of the total standby charges incurred by TPC qua MSEB – Appeal before APTEL – Case of the TPC that standby charges should be borne in ratio of 50:50 – Chairman held that liability to be in proportion of 2:1 tariff, whereas Judicial Member and Technical Member differed – Decisions of MERC, as well as the Technical and Judicial Members, working out the percentage of standby charges as 23:77 with respect to BSES/REL and TPC respectively for the period – On appeal, held: Electricity used to be purchased by BSES/REL from TPC and the standby charges used to be realised which were factored in the tariff, which liability was ultimately passed on to the retail consumers – Ratio had been appropriately worked out in the most equitable manner by applying the level playing field – Considering the standby charges of Rs.24.75 crores recovered by MSEB from TPC with effect from 1.10.1996 and as per the Government order and Principles of Agreement Rs.3.5 crores was additionally being available and a difference of standby which was made to increase the liability Rs.24.75 crore per month to Rs.30.25 crores per month – Thus, the decision of the Technical and Judicial Members is appropriate and reasonable while working out the percentage of the standby charges to be paid by BSES/REL to TPC for the said period – Majority opinion that standby facility provided by TPC was out of its own generating capacity and 90% of the times energy has been drawn by BSES/REL from TPC, is accepted – Thus, there is no justification for TPC to claim 50:50% sharing of the standby charges –Implementation of the order of the APTEL would mean that the determination made by it has been acted upon and corresponding liability factored into tariff has been passed on the customers and actual consumers and realised from them since there was no such interim stay on implementation of the order – Submission that order of APTEL has already been worked out even otherwise it is found to be just and equitable is accepted – Order passed by Technical and Judicial Members of APTEL upheld. |
Judge | Hon'ble Mr. Justice Arun Mishra |
Neutral Citation | 2019 INSC 616 |
Petitioner | Tata Power Company Ltd. |
Respondent | Adani Electricity Mumbai Ltd. & Ors. |
SCR | [2019] 6 S.C.R. 845 |
Judgement Date | 2019-05-02 |
Case Number | 415 |
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