R NAGARAJA SHETTY Vs. KARNATAKA ELECTRICITY

JUDGEMENT

(1.) The petitioner is the consumer of the second respondent. The petitioner challenged the validity and illegality of the 'Karnataka Electricity Regulatory Commission (Recovery of Expenditure for Supply of Electricity) Regulations 2004 as being violative of Sections 42, 45 & 46 of the Karnataka Electricity Act, 2003. The provisions of Section 42(1), 45& 46 are extracted hereunder for convenient reference:

(2.) With reference to Section 46, it is contended that the licensee should supply electricity and can recover expenses reasonably incurred for providing any electric line or electrical plant used for the purpose of giving that supply. Section 46 applies to a case where a new electric line is drawn or electrical plant is installed for the purpose of giving supply the beneficiaries of that supply alone shall have to be charged. The second respondent under Section 45(3) while collecting fixed charge would collect the capital cost of the infrastructure, maintenance, supply and operational cost. The second respondent is not entitled to collect any amount fixed as one time measure from the consumers who are not given the benefit of any new electric line or new electrical plant and any such collection from any customer would amount to duplicated demand. Therefore, the impugned regulation, which permits the electricity supply companies to collect as one time charges, the capital cost of the electric lines and electrical plant from the consumers in general who apply for fresh connection or for supply of additional power is illegal and contrary to provisions of the Act.

(3.) The counsel for the first respondent strenuously contended that the impugned regulations is perfectly in consonance of the provisions of the Electricity Act. The fixed charges collected under Section 45(3) and the cost of providing electric lines and electrical plant provided under Section 46 are two distinct categories. The fixed charge under Section 45(3) is something in the nature of minimum billing. The said lived charge would include the network, establishment costs and also it includes the distribution and transmission costs. The charges of minimum billing is to see that any consumer even if he does not use shall have to pay minimum charges towards the maintenance of the network of distribution.