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

Citation: [2016] 6 S.C.R. 995 · Decided: 05-07-2016 · Supreme Court of India · Bench: V. GOPALA GOWDA · Disposal: Dismissed
Open in Lexace · Ask the AI about this case
Judgment (excerpt)

[2016] 6 S.C.R. 995 
SAi BHASKAR IRON LTD. 
v. 
A.P. ELECTRICITY REGULATORY COMMISSION & ORS. 
(Civil Appeal No. 5542of2016) 
JULY 05, 2016. 
[V..GOPALA GOWDA AND ARUN MISHRA, JJ.] 
Andhra Pradesh Electricity Regulatory Commission (Conduct 
of Business) Regulations, 1999: 
Regn. 45-B - Constitutional validity of - Whether Regn. 45-B 
is ultra vires the provisions of s.26(9) of the Act of 1998 or ss.61 
and 62(4) of the Act of 2003 - Held: Regn. 45-B deals with 
determination of fuel surcharge ..:. The provisions of s. 61 contain 
principles 011 which the Commission has to act- Since fuel surcharge 
is not defined in the Act, as such the Commission has specified in its 
wisdomformulafor its calculation in Regn. 45-B-Thefuel surcharge 
fOrmula in Regn. 45-B is in consonance with the factors provided 
under ss.61 and 62 of the Act of 2003 and also the provisions 
contained in s.26 of the Act of 1998 - Andhra Pradesh Electricity 
Reform Act, 1998 - s.26 - Electricity Act, 2003 - ss.55, 61, 62. 
Regn. 45-B, condition (1) - FSA formula - Exclusion of 
consumption by agricultural sector till completion of metering of 
agricultural services whether bad in law and contrary to the mandate 
of s.55(1) of the Act of 2003 - Held: The provision made in condition 
No.I of Regn.45-B cannot be said to be repugnant to s.55(1) as it 
deals with the licensees obligation to supply electricity after two 
years only on the basis of metered supply - In the prevailing 
conditions. in particular plight of agricultural sector and purpose 
of enactment, it is open to the Commission to make such a wholesome 
_,_~provision carved out in condition No. I - Thus, there is no violation 
of the provisions contained in s.55(1) of the Act of 2003 - The 
consequence of s. 55 of the Act of 2003 cannot be that if metering is 
not achieved within two years the consumption in agricultural sector 
cannot be provided within the purview of FSA formula ~ Andhra 
Pradesh Electricity Regulatory Commission (Transitory Provisions 
for Determination of Tariff) Regulations, 2004. 
995 
A 
B 
c 
D 
E 
F 
G 
H 
996 
A 
B 
c 
D 
E 
F 
,\ 
G 
H 
SUPREME COURT REPORTS 
[2016] 6 S.C.R. 
Regn. 45-B - FSA has been determined under Regn.45-B as 
amended in 2003 for more than a decade - Regulations of 2005 do 
not deal with determination of fuel surcharge - Submission that 
FSA can be realised in terms of Regulations of 2005' cannot be 
accepted since Regulations of 2005 do not deal with FSA and there 
is a saving clause as provided in Regn.24 - Andhra Pradesh 
Electricity Regulatory Commission (Terms and Conditions for 
Determination of Tariff for Wheeling and Retail Sale of Electricity), 
Regulation, 2005. 
Electricity Act, 2003: 
s. 65 - Exclusion of farmers from meeting the fuel surcharge 
adjustment charges - Whether amounts to violation of s.65 - Held: 
s.65 enables the State Government to make a provision for subsidy 
to any consumer or class of consumers - State Government has to 
pay in advance in such manner the amount to compensate the person 
affected by the grant of subsidy - Considering the pathetic condition 
of farmers and inability to face the burden, the State Government, 
gave them certain concessions in the form of subsidy -
However, 
the Commission had excluded them from meeting the fuel surcharge 
adjustment charges - Provision of s.65 relating to subsidy by the 
State Government is not at all attracted - The matter involved in the 
present case is not of subsidy but determination of fuel surcharge 
formula - Thus, the submission based upon the violation of the 
provision of s.65 is wholly unwarranted and is liable to be rejected 
as subsidy has not been included in the determination of fuel 
surcharge. 
Lapse of Regulations of 1999 - Held: Regn. 2 of Regulations 
of 2004 provides that Regulations of 1999 as amended from time to 
time under the Act of 1998 shall apply as regulation under the 
Electricity Act, 2003 and shall remain in force or till new regulations 
are notified by the Commission under the Act of 2003 - Thus 
submission that the Regulations of 1999 as amended in 2003 being 
the tariff regulation under the Act of 1998, ceased to have effect on 
10. 6.2004 after one year from the date of coming into force of the 
said Act, by reason of proviso to s.61 of the Act of 2003 is untenable 
- Andhra Pradesh Electricity Regulatory Commission (Conduct of 
· Business) Regulations, 1999 - Andhra Pradesh Electricity 
Regulatory Commission (Transitory Prov
Excerpt shown. Read the full judgment & AI analysis in Lexace.