Case Note & Summary
The Supreme Court addressed two appeals concerning the determination of wheeling charges under the Electricity Act, 2003. The appellants, West Bengal Electricity Regulatory Commission and Calcutta Electricity Supply Company Limited, challenged the Tribunal's order regarding the methodology for calculating wheeling charges for Hindalco Industries Limited. The controversy centered on the criteria for determining these charges, as Hindalco sought permission for open access to wheel surplus captive power from its plant in Orissa to its factory in West Bengal. The Commission had initially set the wheeling charges at 83.54 paise per kWh, which was later challenged by Hindalco, leading to a remand by the Tribunal for a fresh determination. The Supreme Court found that the Tribunal had not adequately considered the maintainability of Hindalco's appeal, as no energy was wheeled during the relevant period, rendering the appeal academic. The Court emphasized that the Tribunal must reassess the case, taking into account the factual and legal submissions made by the appellants. Consequently, the Supreme Court allowed the appeals, set aside the Tribunal's order, and remanded the matter for fresh consideration within three months.
Headnote
A) Electricity Law - Wheeling Charges - Determination Methodology - Electricity Act, 2003, Sections 9, 42 - The Tribunal failed to consider the maintainability of the appeal regarding wheeling charges for the year 2005-06, which were not applicable as no energy was wheeled. The Supreme Court remanded the matter back to the Tribunal for fresh consideration of all issues raised, emphasizing the need for a detailed examination of the objections regarding the appeal's maintainability (Paras 10-12).
Issue of Consideration
Whether the Tribunal correctly determined the wheeling charges and considered the maintainability of the appeal filed by respondent No.1.
Final Decision
The Supreme Court allowed both appeals, set aside the Tribunal's order, and remanded the matter back to the Tribunal for fresh consideration of all issues raised, preferably within three months.
Law Points
- Electricity Act
- 2003
- wheeling charges
- open access
- maintainability of appeal
- regulatory compliance
