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Methodology of wheeling charges of electricity Discussed

Raj Kumar Makkad ,
  08 July 2010       Share Bookmark

Court :
Supreme Court of India
Brief :
Wheeling Charges - Determination of - Controversy between the parties revolved around the Methodology, criteria/formula to be applied in determining the wheeling charges in accordance with the applicable Regulations framed under the Electricity Act 2003 - Appellants claimed that the formula/ methodology/criteria for determining wheeling charges has to be in terms of form 1.27 attached to the Tariff Regulations, 2005 and in spite of the clear and categorical statutory provisions contained in the applicable regulations; the Appellants were wrongly directed by the Tribunal to re-determine the wheeling charges.
Citation :
West Bengal Electricity Regulatory Commission v. Hindalco Industries Ltd. & Ors. (Decided on 22.04. 2010) MANU/SC/0284/2010

Held, A combined reading of all the applicable regulations, according to the appellants, leads to the irresistible conclusion that for determining wheeling charges total distribution cost of the network and not the voltage-wise cost would be the determining factor. The interpretation made by the Tribunal, if accepted, would render the regulation framed by the appellant otiose. The Tribunal incorrectly understood and interpreted the expressions applicable distribution network as the distribution network cost which is to be determined at the relevant voltage level.

The appeals have to be allowed on the short ground that the Tribunal has failed to consider the objection raised by the Appellants with regard to the maintainability of the appeal filed by Respondent No.1, before the Tribunal.

The specific submission made by the Appellant with regard to the maintainability of the appeal was an important issue, which needed consideration by the Tribunal. Numerous issues, which have been raised in these appeals on merits, were also raised before the Tribunal, which seem to have escaped the notice of the Tribunal rendering its decision vulnerable.

It would be in the interest of justice to remand the matter back to the Tribunal for fresh consideration of all the issues after taking into consideration the factual and legal submissions made by the appellant. In view of the above both the appeals succeed and are allowed. The Order passed by the Tribunal is set aside. The appeals are remanded back to the Tribunal to be decided afresh on merits, in accordance with law preferably within a period of three months of the receipt of a certified copy of this Order.

 

 
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