In this batch of writ petitions, the petitioners, who are High Tension (HT) electricity consumers, have called in question, the proceedings dated 05.06.2010, issued by A.P. Electricity Regulatory Commission, determining and approving the Fuel Surcharge Adjustment (FSA) for the financial year 2008, as illegal and arbitrary, contrary to the provisions of Regulation No.1 of 2003, Electricity Act, 2003, violative of principles of natural justice and the rights guaranteed under Articles 14, 19(1)(g) and 300-A of the Constitution of India.

FACTUAL BACKGROUND

2. The undisputed facts that are necessary for disposal of this batch• of cases may be noted, and they run thus:

The petitioners being HT' electricity consumers entered into agreements with A.P. Transmission Corporation Ltd. (AP TRANSCO), for supply of electricity continuously. Pursuant to the said agreements, and the laws governing the supply of power, AP TRANSCO has been supplying power to the petitioners continuously, for meeting their requirements.

3. The State of Andhra Pradesh, in the process of electricity reforms, enacted A.P. Electricity Reform Act, 1998, for constitution of Electricity Regulatory Commission, restructuring the electricity industry, rationalization of generation, transmission, distribution of supply of electricity and for taking measures conducive to the development and management of the electricity industry in an efficient, economic and competitive manner. Pursuant to the said Act, the A.P. Electricity Regulatory Commission was established. (hereinafter referred to as 'the Commission'). The said Commission was vested with various powers and functions, including granting licenses and determination of and tariffs.

4. Subsequently, the Union of India enacted Electricity Act, 2003, in order to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity and for taking measures conducive to the development of electricity industry, protecting interest of consumers, rationalization of tariff, ensuring transparent policy regarding subsidies and constitution of regulatory bodies. The Electricity Act, 2003 repealed, the Indian Electricity Act, 1910, the Electricity (Supply) Act, 1948 and the Electricity Regulatory Commission Act, 1998 and, the provisions of the A.P. Electricity Reform Act, 1998, to the extent not inconsistent with the provisions of the Electricity Act, 2003, including the constitution of A.P. Electricity Regulatory Commission, were saved (Section 185(3))

5. While the matters stood thus, the Government of Andhra Pradesh, vide G.O. Ms. No. 58, Energy (Power-III), dated 07.06.2005, divided AP TRANSCO into four Distribution Companies (DISCOMs), namely AP NPDCL, AP SPDCL, AP EPDCL and AP CPDCL, and transferred and vested the rights and obligations and contracts relating to procurement and bulk supply of electricity or trading of electricity to which AP TRANSCO is a party, in the said four DISCOMs, with effect from 09.06.2005. The DISCOMs are State Government undertakings, incorporated under the provisions of the Indian Companies Act, 1956, for doing business of distribution of electricity.

6. The four DISCOMs being independent licence holders engaged in distribution business and retail supply business of electricity in their respective areas, submitted separate applications on 30.11.2007 before the Commission, for determination of tariff, for the year 2008-09. The Commission in exercise of its power of determination of tariff, under Section 62 of the Electricity Act, 2003, passed Tariff Order on 20.03.2008. The said Tariff Order determined the tariff and also stated that Fuel Surcharge Adjustment (FSA) will be extra as applicable.

7. The Government of Andhra Pradesh, for the convenient transaction of business and to ensure co-ordination among the four DISCOMs, constituted a Committee in the name of Andhra Pradesh Power Coordination Committee (hereinafter referred to as 'the Power Co-ordination Committee), was co