In the absence of a force majeure clause or similar provision in the agreement framed by the Andhra Pradesh State Electricity Board, the petitioner could not claim proportionate charges based on the actual demand reached.

S. PARVATHA RAO, J.

( 1 ) THE petitioner seeks a writ of mandamus declaring the levy of maximum demand charges during the period of non-supply of power as illegal, arbitrary, high handed and void and consequently directing the respondents to refund the entire amount of maximum demand charges collected from the petitioner for non-supply days during the power cut period etc.

( 2 ) THE petitioner is a public limited company. It set up a cement manufacturing unit and received electrical energy from the 1st Respondent Board under high tension with a maximum contracted demand of 15 MVA by 4-12-1987. It is stated that its annual licensing capacity is 5 lakh tonnes of cement per annum, and that it requires roughly about 55 to 60 lakh units for reaching optimum production. Under B. P. Ms. No. 1013, (Commercial) dated 14-11-1987, the respondents imposed power cut with effect from 15-11-1987 and all H. T. consumers were directed to regulate their consumption of power as indicated therein. The petitioner was "required to regulate its consumption by 60% of the average consumption of power during the period 1-4-1986 to 31-3-1987, which was subsequently increased to 90% cut". On behalf of the petitioners, it is also stated that as the supply of electrical energy to the petitioner s unit was released in August, 1986 with 4 MVA maximum demand, gradually increased to 15 MVA by December, 1987, the petitioner s unit came under the category of new industry which came into existence after 1-4-1986 and the quota for demand and energy were to be fixed on the basis of the formula given in Para 2 (i) (a) of B. P. Ms. No. 1013 (Commercial) dated 14-11-1987. On behalf of the petitioner it is stated that it was required to "regulate its power consumption by 40% of its maximum demand and 10% of entitlement of the energy" and due to the cut imposed on the maximum demand the petitioner s unit could work only for six or seven days in a month and it had to be closed down for the remaining part of the month. Thus, according to the petitioner no electrical energy could be availed by the petitioner s unit except for six or seven days in a month in view of the cut in the maximum demand and energy imposed, during the period the said cuts were in operation. Even though no energy could be drawn for the remaining part of the month during the period the said restrictions were in force, the respondents were continuing to collect for the entire month the charges for maximum demand allowed under the cuts. On behalf of the petitioner, it is contended that the respondents were not justified in collecting the maximum demand charges for that part of the month during which power could not be availed by the petitioner due to the restrictions imposed by way of cuts in demand and energy, and that such collection for the period of non-supply days in the month is illegal, arbitrary and void.

( 3 ) IN the counter affidavit filed on behalf of the respondents, it is stated that under para 6 of B. P. Ms. No. 1013, dated 14-11-1987 "where the recorded demand is lower than the quota demand, the quota demand shall be treated as billing demand subject to a maximum of 80% of contracted demand for purposes of billing during this period and minimum charges regulated accordingly", and that the respondents were following this in billing the petitioner. It is not in dispute that in the present case, the petitioner was billed on the basis of the quota demand which was lesser than 80% of the contracted demand throughout the period of the cuts. It is further stated on behalf of the respondents that neither the Terms and Conditions of Supply of electrical energy by the Board nor the tariff conditions provide for charging for maximum demand on the basis of the number of days during which the petitioner chooses to consume energy during a month; if the petitioner chose to consume the quota of energy fixed for entire month in a few days in a month to suit its convenience availing the demand to the maxim

Click Here to Read the rest of this document