Category: Electricity Act

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.

(2024) INSC 439 SUPREME COURT OF INDIA DIVISION BENCH M/S SUNDEW PROPERTIES LIMITED — Appellant Vs. TELANGANA STATE ELECTRICITY REGULATORY COMMISSION AND ANOTHER — Respondent ( Before : Sanjiv Khanna…

Electricity Act, 2003 – Sections 62(3) and 111 – Levy of reliability charge – Maharashtra State Electricity Distribution Co. Ltd. imposed a reliability charge for uninterrupted power supply, which was challenged by JSW Steel Ltd – The appellant argued that non-participation in the public hearing by JSW Steel Ltd. amounted to consent to pay the charge – JSW Steel Ltd. argued that they were already paying a higher tariff and should not be subjected to the charge – The Tribunal set aside the Commission’s order imposing the charge, and the Supreme Court dismissed the appeal – The Court found no statutory basis for the charge and noted that JSW Steel Ltd. had already paid a higher tariff for continuous supply – The Supreme Court concluded that the appellant was not entitled to impose a reliability charge on customers like JSW Steel Ltd. and found no merit in the appeal.

(2024) INSC 442 SUPREME COURT OF INDIA DIVISION BENCH MAHARASHTRA STATE ELECTRICITY DISTRIBUTION CO. LTD. — Appellant Vs. M/S JSW STEEL LTD. AND ANOTHER — Respondent ( Before : Abhay…

Electricity Act, 2003 – Section 86(1)(a) read with Section 62 – Recovery of deductions of monthly tariff – Dispute inter se the parties is in the nature of a contractual dispute – Normally, costs must go with the succeeding party in case of a contractual dispute – This is more so where one party repeatedly seeks to evade the rigors of the orders

SUPREME COURT OF INDIA FULL BENCH NABHA POWER LIMITED — Appellant Vs. PUNJAB STATE POWER CORPORATION LIMITED — Respondent ( Before : Sanjay Kishan Kaul, Sudhanshu Dhulia and Aravind Kumar,…

Revised agreement – Reduction to 10000 KVA from 23000 KVA – Appellant neither sought for nor consumed the electricity more than the maximum demand of 10000 KVA – This Court directs the Respondent to return the amount as may be calculated and verified, paid by the Appellant to it for 13000 KVA, in excess to its request of maximum sanctioned demand of 10000 KVA (23000-10000 = 13000 KVA)

SUPREME COURT OF INDIA FULL BENCH THE MADRAS ALUMINIUM CO. LTD. — Appellant Vs. THE TAMIL NADU ELECTRICITY BOARD AND ANOTHER — Respondent ( Before : B.R. Gavai, Sanjay Karol…

Power Project Agreement – Railway transportation cost – Change in Law – Cost of saving in the railway transportation on account of ‘Change in Law’ needs to be worked out and passed on to the appropriate DISCOMS, which can further be passed on to the consumers – CERC, which is a body of experts, is best suited to do so –

SUPREME COURT OF INDIA DIVISION BENCH UTTAR HARYANA BIJLI VITRAN NIGAM LIMITED AND ANOTHER — Appellant Vs. ADANI POWER (MUNDRA) LIMITED AND ANOTHER — Respondent ( Before : B.R. Gavai…

Power Purchase Agreement – Adani Power Mundra Limited – the finding of the CERC and the learned APTEL is to the effect that AP(M)L would not be entitled to any benefit of Change in Law beyond 70% of the installed capacity i.e. 1386 MW – Findings cannot be said to not be based on the material on record, or based on extraneous considerations.

SUPREME COURT OF INDIA DIVISION BENCH UTTAR HARYANA BIJLI VITRAN NIGAM LTD. AND ANOTHER — Appellant Vs. ADANI POWER (MUNDRA) LIMITED AND OTHERS — Respondent ( Before : B.R. Gavai…

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