Case Note & Summary
The case pertains to appeals filed by Tata Power Delhi Distribution Ltd. against the order of the National Green Tribunal (NGT) dated 08.05.2015, which directed the collection of environmental compensation from every household in NCT Delhi by adding it to electricity bills. The NGT had earlier passed a judgment on 13.01.2015 in Original Applications concerning pollution of river Yamuna, encroachment of drains, and restoration of the river. The Tribunal constituted expert committees and issued directions for phased implementation, including directions 15, 16, and 17 which mandated financing of sewage treatment projects and imposition of environmental compensation on households based on property tax or water bills, to be collected through electricity bills. The appellant, an electricity distribution licensee, challenged the direction to collect compensation via electricity bills. The Delhi Electricity Regulatory Commission (DERC) opposed the use of electricity revenue for such collection, stating it would violate the Electricity Act, 2003 and the Delhi Electricity Reforms Act, 2000. The Supreme Court noted that the NGT had subsequently passed an order on 11.09.2019 directing the introduction of sewerage charges, which modified the earlier direction. The Court held that the direction of 11.09.2019 shall be implemented within two months, and the earlier direction of 08.05.2015 stands modified and need not be implemented. The appeals were disposed of accordingly.
Headnote
A) Environmental Law - River Pollution - Polluter Pays Principle - National Green Tribunal Act, 2010, Sections 14, 15, 18(1) - The National Green Tribunal directed collection of environmental compensation from households through electricity bills for pollution of river Yamuna. The Supreme Court held that the subsequent direction of the Tribunal dated 11.09.2019 to introduce sewerage charges modifies the earlier direction, and the earlier direction need not be implemented. (Paras 7-8) B) Electricity Law - Tariff - Collection of Environmental Compensation - Electricity Act, 2003; Delhi Electricity Reforms Act, 2000 - The Delhi Electricity Regulatory Commission submitted that revenue from electricity sale cannot be used for collection of environmental compensation and costs cannot be passed on to consumers. The Supreme Court did not comment on the correctness of the earlier direction but directed implementation of the later direction for sewerage charges. (Paras 5, 7-8)
Issue of Consideration
Whether the direction of the National Green Tribunal to collect environmental compensation through electricity bills is valid and whether it should be modified in light of subsequent orders.
Final Decision
The Supreme Court disposed of the appeals, holding that the direction of the NGT dated 11.09.2019 for introduction of sewerage charges shall be implemented within two months, and the earlier direction dated 08.05.2015 stands modified and need not be implemented.
Law Points
- Environmental compensation
- Polluter Pays Principle
- Sewerage charges
- Electricity Act 2003
- Delhi Electricity Reforms Act 2000
- National Green Tribunal Act 2010
