Case Note & Summary
The petitioner, Executive Engineer (O&M) of Paschim Gujarat Vij Company Limited, a distribution licensee, filed a petition under Articles 226 and 227 of the Constitution of India challenging two orders of the Electricity Ombudsman, Gujarat State, dated 12.4.2022 and 13.7.2022. The respondent No.1, M/s Patel Cotton Industries, was a high tension (HT) seasonal consumer with consumer no.17516 under HTP-I tariff with a contract demand of 1000 KVA. The dispute arose when the petitioner, from March 2019 onwards, billed demand charges based on contract demand rather than actual utilisation, as per the tariff order issued by the Gujarat Electricity Regulatory Commission (GERC). The respondent No.1 approached the Consumer Grievance Redressal Forum (CGRF) contending that demand charges should be recovered only on actual demand utilised during the seasonal period, as was done prior to March 2019. The CGRF dismissed the complaint. Aggrieved, the respondent No.1 appealed to the Electricity Ombudsman, who allowed the appeal and directed the petitioner to revise energy bills from March 2019 onwards and refund any additional amount collected. The petitioner then filed a review before the Ombudsman, which was also dismissed. The petitioner challenged both orders before the High Court. The High Court examined the tariff provisions, particularly Clause 14.11 regarding seasonal consumers, and noted that the tariff order required demand charges to be recovered on actual demand utilised, not contract demand. The court found that the Ombudsman's orders were without jurisdiction and contrary to the tariff provisions. Consequently, the High Court allowed the petition, quashed the Ombudsman's orders dated 12.4.2022 and 13.7.2022, and directed that the petitioner's billing from March 2019 onwards be in accordance with the tariff order based on actual utilisation. The court also made rule absolute.
Headnote
A) Electricity Law - Seasonal Consumer Tariff - Demand Charges - Clause 14.11 of Tariff - Gujarat Electricity Regulatory Commission (Electricity Supply Code and related matters) Regulations, 2005 - The dispute pertained to billing of demand charges for a seasonal HT consumer. The petitioner, a distribution company, billed based on contract demand after March 2019, while the consumer contended that demand charges should be based on actual utilisation during the seasonal period. The Consumer Grievance Redressal Forum dismissed the consumer's complaint, but the Electricity Ombudsman allowed the appeal and directed revision of bills from March 2019 and refund of excess amounts. The High Court held that the Ombudsman's order was without jurisdiction and contrary to the tariff provisions, as the tariff order required demand charges to be recovered on actual demand utilised, not contract demand. The court quashed the Ombudsman's orders and allowed the petition. (Paras 1-5) B) Electricity Law - Jurisdiction of Electricity Ombudsman - Scope of Review - Gujarat Electricity Regulatory Commission (Electricity Supply Code and related matters) Regulations, 2005 - The Ombudsman passed an initial order on 12.4.2022 and a subsequent review order on 13.7.2022. The High Court found that the Ombudsman exceeded its jurisdiction by directing revision of bills and refund, as the tariff provisions clearly mandated billing based on actual demand. The court held that the Ombudsman's orders were unsustainable and liable to be quashed. (Paras 3-5)
Issue of Consideration
Whether the Electricity Ombudsman could direct the petitioner to revise energy bills for a seasonal consumer from March 2019 onwards and refund additional amounts, and whether the Ombudsman's order was sustainable in law.
Final Decision
The High Court allowed the petition, quashed the orders dated 12.4.2022 and 13.7.2022 passed by the Electricity Ombudsman, and directed that the petitioner's billing from March 2019 onwards be in accordance with the tariff order based on actual utilisation. Rule made absolute.
Law Points
- Seasonal consumer tariff
- demand charges
- actual utilisation
- contract demand
- Electricity Ombudsman jurisdiction
- Gujarat Electricity Regulatory Commission (Electricity Supply Code and related matters) Regulations
- 2005
- Articles 226 and 227 of the Constitution of India
