DSR STEEL P LTD Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) These appeals under Section 125 of the Electricity Act, 2003 call in question the correctness of an order dated 23 rd November, 2006, passed by the Appellate Tribunal for Electricity whereby a batch of appeals including those filed by the appellants against an order dated 8 th June, 2006 passed by the Rajasthan Electricity Regulatory Commission, have been dismissed.

(2.) Jaipur Vidyut Vitran Nigam Limited ('JVVNL' for short), Jodhpur Vidyut Vitran Nigam Limited ('JDVVNL' for short) and Ajmer Vidyut Vitran Nigam Limited ('AVVNL' for short), submitted separate applications before the Rajasthan Electricity Regulatory Commission (for short 'Commission') at Jaipur in terms of Sections 62 and 64 of the Electricity Act, 2003 for revision of tariff to be effective from December 1, 2004. Each one of these distribution companies ('Discoms' for short) had an existing tariff but in their respective applications they sought an identical tariff revision which requests were taken up by the Commission for consideration together and disposed of in terms of a common order dated 17 th December, 2004, passed after notices regarding filing of the said applications were published in different newspapers having circulation in the State of Rajasthan. Several objections were filed and suggestions made by nearly 100 individuals and organisations in the course of the proceedings before the Commission. All these objections were then considered by the Commission no matter only 38 of those who had filed the same had complied with the requirement laid down by the former. A large number of people and organisations even applied for personal hearing and were heard on different dates at different venues fixed for the purpose. Some of these objections also related to individual problems of the consumers or disputes relating to bills and other matters which were directed to be considered by the Discoms and decision taken on the same under intimation to the persons concerned. Other issues including those questioning the maintainability of the petitions and alleging non-compliance with the regulations and directions of the Commission were also raised. Issues touching reforms in power sector, non-determination of the Rajasthan Vidyut Utpadan Nigam's tariff from whom the Discoms purchase electricity, poor performance of Vidyut Vitran Nigams were also agitated. Similarly objections to the proposed increase in tariff, interest charges, depreciation etc. too were raised and examined by the Commission. Suggestions regarding improvement, objections relating to high T&D losses, inadequacy of staff, continuation of un-metered supply, issue of deemed licensee and tariff for deemed licensee were also examined. Questions relating to high voltage supply, segregation of mixed load, billing demand, demand based tariff for MIP consumers, power factor and shunt capacitor surcharge, vigilance checking of consumers, minimum billing, agriculture, domestic and industrial tariff too were examined by the Commission apart from several other issues that were placed before the Commission to which the Commission has made a reference in its order dated 8 th June, 2006. The Commission eventually directed that the revised tariff determined by it will become effective from 1 st January, 2005 and remain in force till the same is amended by the Commission by a separate order passed by it.

(3.) Aggrieved by the order passed by the Commission, the appellants and a large number of other consumers in that category filed review petitions under Section 94 (1)(f) of the Electricity Act, 2003 seeking review and continuation of the incentive scheme. These review petitions were dismissed by the Commission in terms of its order dated 8 th June, 2006. The Commission noted the contention urged on behalf of the petitioners that they were affected by the withdrawal of the incentive scheme. It was also urged that these consumers had made investments on the basis of the incentive scheme bona fide believing that the same would continue for at least three years. The review petitioners, therefore, sought continuation of the said scheme by suitable review of the Commission's order dated 17 th December, 2004. The Commission also noted the opposition of the Discoms to the said prayer and the contention that the incentive scheme was to be effective upto 31 st March, 2003 or till the Commission issued a tariff order whichever was earlier.