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By sclaw

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Andhra Pradesh Electricity Regulatory Commission (Distribution Licence) Regulations, 2013 – Special Economic Zones Act, 2005 – Sections 3 and 4 – Electricity Act – Section 14(b) – Whether a Special Economic Zone (SEZ) developer, deemed to be a distribution licensee under the Electricity Act, is required to make an application for a distribution license and comply with the conditions set out in the Electricity Rules and Regulations. – The appeal challenges the Appellate Tribunal for Electricity’s decision to require an appellant to infuse additional capital as a condition for being identified as a deemed distribution licensee – The court questioned whether a SEZ developer is ipso facto a deemed distribution licensee, obviating the need for an application under section 14 of the Electricity Act – The appellant argued that they are automatically a deemed distribution licensee by virtue of the 2010 Notification and that the conditions imposed by TSERC were in excess of jurisdiction – The respondents argued that the appellant must comply with the 2005 and 2013 Regulations and that TSERC is empowered to impose conditions to assess credit-worthiness – The Supreme Court partially allowed the appeal, setting aside the condition of additional capital infusion imposed by TSERC – The court reasoned that the appellant must apply to be recognized as a deemed licensee but is not subject to the additional capital requirements of regulation 12 and rule 3(2) – The court concluded that the appellant is required to make an application as per the 2013 Regulations, and the condition to infuse additional capital is not justified.