SEB with power to revise power tariff in absence of SERB: SC

New Delhi, Mar 22 (UNI) The Supreme Court has held that State Electricity Board has the power to revise power tariff if the State Electricity Regulatory Commmission has not been constituted. A three-judge bench comprising Justices S B Sinha, Asok Kumar Ganguly and R M Lodha while answering reference by a two-judge bench in its order noted, '' We have, however, no hesitation in finding that the State Electricity Board had the requisite jurisdiction to revise the tariff till such time as the commission was constituted and the purposes of the 1998 Act could be achieved through it. Till the time, the regulatory commission was not constituted by the state of Kerala, the power to determine tariff remained with the Board and the Electricity (Supply) Act 1948 as it was not repealed by the Electricity Regulatory Commission Act 1998. Parliament could not have intended to bring about a situation where no authority would be empowered to determine the tariff between the date of coming into force of the ERC Act 1998 and the constitution of the Commission. It is only after the Regulatory Commission is constituted that it will be the sole authority to determine the tariff.'' Kerala State Electricity Board (KSEB) revised its tariff with effect from May 15, 1999 to cover up the deficit of Rs 160.44 crores per month it was incurring due to heavy subsidy provided for the consumers and tariff was announced increased by 50 paise per unit for all industrial consumers vide government order dated October 11, 2001. State Electricity Regulatory Commission was constituted by the state of Kerala on November 14 ,2002. Appellant ''Binani Zinc Limited'' challenged the increase in power tariff for industrial units on the ground thst only regulatory commisssion is competent to revive tariff and state electricity board cannot do it.

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