SAI BHASKAR IRON LTD. versus A.P. ELECTRICITY REGULATORY COMMISSION & ORS.

SAI BHASKAR IRON LTD. versus A.P. ELECTRICITY REGULATORY COMMISSION & ORS.

Regulation 45-B is not ultra vires the provisions of the Acts of 1998 and 2003; its methodology for fuel surcharge calculation is valid, and exclusion of agricultural consumption is permissible due to lack of metering and sectoral conditions. The Regulations of 1999 continue in force via the transitory provisions for tariff determination. Judicial review is limited in price fixation matters reserved for expert bodies. Section 65 regarding subsidy is inapplicable to the determination of fuel surcharge.

Parties
Appellant: Sai Bhaskar Iron Ltd.; Respondents: A.P. Electricity Regulatory Commission & Ors.
Jurisdiction
India
Judgment Date
05 July 2016
Procedural Posture
Civil Appeal / Final Judgment
Outcome
Appeals dismissed
Legal Topics
Fuel Surcharge Adjustment, Tariff Determination, Judicial Review of Regulations
Administrative Law Electricity Law Constitutional Law Fuel Surcharge Adjustment Tariff Determination Judicial Review of Regulations

Case Brief

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Parties

Sai Bhaskar Iron Ltd.

Appellant

A.P. Electricity Regulatory Commission & Ors.

Respondents

Procedural Posture

Civil Appeal / Final Judgment

Legal Issues

  1. 1 Constitutional validity of Regulation 45-B and its compatibility with Electricity Acts
  2. 2 Discriminatory tariffs vis-à-vis agricultural sector
  3. 3 Validity of exclusion of agricultural consumption from fuel surcharge formula

Ratio Decidendi

Regulation 45-B is not ultra vires the provisions of the Acts of 1998 and 2003; its methodology for fuel surcharge calculation is valid, and exclusion of agricultural consumption is permissible due to lack of metering and sectoral conditions. The Regulations of 1999 continue in force via the transitory provisions for tariff determination. Judicial review is limited in price fixation matters reserved for expert bodies. Section 65 regarding subsidy is inapplicable to the determination of fuel surcharge.

Court Disposition

Appeals dismissed

Orders

  • Appellants to make deposit along with interest at the rate of 8 percent per annum and other permissible charges within one month.
  • Respondents at liberty to take coercive steps to recover the amount.