MAHARASHTRA STATE ELECTRICITY DISTRIBUTION COMPANY LTD Vs. MAHARASHTRA ELECTRICITY REGULATORY COMMISSION

JUDGEMENT

(1.) THE Maharashtra Electricity Regulatory Commission has framed Multi Year Tariff Regulations in 2011. THEse are statutory regulations made in exercise of the power conferred inter-alia by Section 181 of the Electricity Act, 2003. THE Petitioner has challenged those regulations on the ground that the Respondent failed to abide by the procedure more particularly contained in the Maharashtra Electricity Regulatory Commission (Conduct of Business) Regulations, 2004.

(2.) COUNSEL appearing on behalf of the Petitioner submits that under Section 61, an appropriate commission shall subject to the provisions of the Act specify the terms and conditions for the determination of tariff and in doing so, shall be guided by the considerations set out in clauses (a) to (i). Section 86(3) mandates that the State Commission shall ensure transparency while exercising its powers and discharging its functions. Section 181(3) imports the requirement of previous publication in respect of all regulations made by the State Commission under the Act. According to the Petitioner, the Respondent is, by the Conduct of Business Regulations, 2004, empowered by Regulation 19 to hold hearings, discussions, proceedings and meetings as it considers appropriate. According to the Petitioner, Regulation 73 further mandates that the Commission shall pass orders in such proceedings and that every order made by the Commission shall be a reasoned order. In sum and substance, the contention of the Petitioner is that the Regulations, framed by the Commission were not observed because (i) The Petitioner was not afforded an opportunity of a personal hearing at which it could state its objections; and (ii) No reasoned order has been passed by the Commission. That is the only ground of challenge set forth at the hearing. No other point has been urged.

(3.) REGULATIONS 3 stipulates the requirement of (i) Publication of a draft of the regulations for the information of persons likely to be affected; (ii) The publication of a notice specifying a date on or after which the draft regulation will be taken into consideration; and (iii) The consideration of objections or suggestions which may be received by the Authority or by the Appropriate Commission from any person. Publication in the Official Gazette of the regulations made in exercise of a power to make regulations after previous publication shall be conclusive proof that the regulations have been duly made.