SC: Appellate tribunal cannot determine electricity tariffs

The Supreme Court has held that the Electricity Appellate Tribunal cannot determine the electricity tariffs for trading.

A bench comprising Justices Arijit Pasayat and Asok Kumar Ganguly, while allowing the appeal of CESC Limited against the judgment of the Appellate Tribunal for Electricity, New Delhi noted, ‘The appellate Tribunal was wrong in interfering with the conclusion of Central Electricity Regulatory Commission (CERC) that the petition of respondent number one was not entertainable/maintainable.’ ‘The Order passed by the Tribunal cannot be maintained in view of what is stated in Grid Corporation case and is set aside,’ the Court observed.

The main controversy was whether the Tribunal was empowered to determine tariff in exercise of its revisional supervisory power under Section 121 of the Electricity Act.

According to the appellant only Electricity Regulatory Commission has the power to determine tariff under Section 60 upon arriving at a finding that a particular licensee or generator of power had conducted oneself in the specified manner which has an adverse effect on competition in the electricity industry.