BSES LIMITED Vs. TATA POWER COMPANY LIMITED

JUDGEMENT

(1.) Leave granted.

(2.) The Tata Power Company Ltd. (for short 'TPC') is a generating company within the meaning of sub-section (4A) of Section 2 and a bulk licensee within the meaning of sub-section (3) of Section 2 of the Electricity (Supply) Act, 1948. An agreement was arrived at between Maharashtra State Electricity Board (for short 'MSEB') and TPC in or about March, 1985, whereby TPC was provided 300 MVA standby facility from MSEB and it was further agreed that in view of the growing requirement of the city of Bombay, the said standby facility would stand enhanced by a quantum of 50 MVA per year. This standby facility increased to 550 MVA by the year 1990 and payment for the same was to be made irrespective of the fact whether electricity was drawn or not and if electricity was drawn, actual payment for the same was to be made over and above the standby charges. In the year 1990, it was agreed that the annual increase in the standby facility would no longer be operational and henceforth TPC would be entitled to avail of and pay for the standby facility of only 550 MVA. This agreement was reduced in writing by way of letter dated 6-7-1990 addressed by MSEB to TPC.

(3.) The Bombay Suburban Electric Supply Company (for short 'BSES') had been granted a distribution licence in the year 1926 which was amended in the year 1976 to enable it to become a generator of electricity in order to take care of enhanced demand in the city of Bombay. The licence was further amended on 30-5-1992 and it contained a clause requiring BSES to execute suitable interconnection with the system of TPC with the approval of Central Electricity Authority, New Delhi. A meeting was held between TPC and BSES on 29-6-1992 regarding technical/commercial aspect of said interconnection. It was agreed that as TPC already had an arrangement with MSEB whereby standby facility was provided to it, similar standby facility may be provided to BSES from the standby capacity reserved by TPC with MSEB and appropriate sharing of charges could be worked out. The power plant established by BSES at Dahanu became operational in 1995 and with effect from August, 1995 it started supplying power to the city of Bombay as per the conditions of the licence.