Case Note & Summary
The dispute arose from a notification issued by the Andhra Pradesh State Electricity Board on July 21, 1981, which unilaterally altered the conditions of electricity supply for high tension consumers. The notification mandated that industries with contracted demands between 1501 KVA to 5000 KVA would receive power at 33 KV, while those above 5000 KVA would receive it at 132 KV or 220 KV. Consumers were required to make modifications to their equipment within six months or face additional surcharges. The appellants challenged this notification in the High Court, where a Single Judge ruled in their favor, stating the Board lacked authority to unilaterally change supply conditions. However, the Division Bench overturned this decision, asserting that the Board had the statutory authority under Section 49 of the Electricity Supply Act, 1948. The Supreme Court dismissed the appeals, affirming the Board's power to set conditions of supply and fix tariffs. The court noted that the Board's decision aimed to minimize transmission losses by supplying electricity at higher voltages, which was scientifically justified. The court also indicated that the imposition of higher tariffs for non-compliance with the new supply conditions could be reconsidered by the Board based on individual circumstances. Ultimately, the court upheld the Board's authority and dismissed the appeals, directing parties to bear their own costs.
Headnote
A) Electricity Law - Unilateral Alteration of Supply Conditions - Authority of Electricity Board - Electricity Supply Act, 1948, Section 49 - The Board has the authority to unilaterally alter conditions of supply under Section 49, which allows it to lay down conditions and frame uniform tariffs. The court held that the Board's notification altering supply conditions was valid and within its statutory powers (Paras 168-172).
Issue of Consideration
Whether the Electricity Board had the power to unilaterally alter the conditions of supply of electricity.
Final Decision
The Supreme Court dismissed the appeals, affirming the Electricity Board's authority to unilaterally alter supply conditions under Section 49 of the Electricity Supply Act, 1948. The court held that the Board's actions were within its statutory powers and justified by the need to minimize transmission losses.
Law Points
- Electricity Supply Act
- unilateral alteration of supply conditions
- statutory authority of Electricity Board
- imposition of tariffs
- transmission losses
