JUDGMENT - SHAH A.P., J.:---These appeals under section 27 of the Electricity Regulatory Commission Act, 1998, hereinafter called the "E.R.C. Act", raise common issues of law and are being disposed of by this common judgment. The common issues relate to the jurisdiction of the Maharashtra Electricity Regulatory Commission (M.E.R.C.) to issue directions relating to the terms and conditions for supply of electricity energy fixed by the Maharashtra State Electricity Board (M.S.E.B.) and to the M.S.E.Bs right to claim transit loss of coal.

Appeal No. 1 of 2001

2.This appeal is directed against the principal tariff order dated 5th May, 2000 passed by M.E.R.C. determining the tariff applicable to various categories of consumers of M.S.E.B. for the period 2000-2001. The brief facts leading to this appeal are that on 4th May, 1999. M.S.E.B. submitted a proposal to the Government of Maharashtra for revision of its retail distribution tariff with effect from 1st June, 1999 under section 49 read with section 59 of the Electricity (Supply) Act, 1948, hereinafter called the "Supply Act". No decision was taken by the State Government on the said proposal. On 5th August, 1999, M.E.R.C. was constituted by a notification of the State Government issued under section 17 of the E.R.C. Act. With the constitution of the M.E.R.C., M.S.E.B. was advised by the State Government to submit its tariff proposal to M.E.R.C. On 15th October, 1999, M.S.E.B submitted its Tariff Revision Proposal to M.E.R.C. This tariff proposal came to be numbered as Case No. 1 of 1999. M.E.R.C. issued public notice inviting objections and suggestions from interested parties and held public hearings at various locations in the State. In the course of hearing M.E.R.C. felt that since the financial year 1999-2001 (in respect of which tariff hike was proposed) was almost over, M.S.E.B. should submit revised proposal for the period 2000-2001. Accordingly on 6th March, 2000 M.S.E.B. submitted a revised proposal to M.E.R.C. for the period 2000-2001. M.E.R.C. issued a public notice inviting objections to the revised proposals and held public hearings in the matter. M.E.R.C. considered the objections submitted by 468 parties. On 5th May, 2000, M.E.R.C. issued principal tariff order in Case No. 1 of 1999. On 16th June, 2000, M.E.R.C. issued further clarifications in exercise of power under Regulation 68(3) of the M.E.R.C. (Conduct of Business) Regulations, 1999, hereinafter called the "Regulations". On 9th August, 2000, M.S.E.B. filed an application under Regulation 87 of the said Regulations for review of the order dated 5th May, 2000. M.E.R.C. was pleased to admit the Boards review application and also issued directions with regard to the procedure to be followed in the review. Public hearing was conducted on the points raised in the review application before M.E.R.C. By order dated 13th December, 2000. M.E.R.C. decided the review application in Case No. 1 of 1999. By this order, M.E.R.C. amended and modified in part the principal tariff order dated 5th May, 2000.

Appeal No. 2 of 2001

3.This appeal is directed against the common order dated 5th May, 2000 in M.E.R.C. Case Nos. 10 and 11 of 2001. This order was passed by M.E.R.C. on applications made by respondent No. 2 Maharashtra Chambers of Commerce and Industries and respondent No. 3 Akhil Bharatiya Grahak Panchayat seeking review and revision of conditions of supply framed by M.S.E.B. vide its commercial circular dated 6th August, 1994. M.S.E.B. opposed the applications mainly on the ground that terms and conditions of supply are fixed by the Board under section 49 of the 1948 Act and M.E.R.C. has no jurisdiction in respect of terms and conditions of supply. By an order dated 14th February, 2001, M.E.R.C. directed M.S.E.B. to secure approval of all commercial circulars as prescribed in the tariff order dated 5th May, 2000 and to submit a proposal for conditions and miscellaneous charges for supply of electrical energy to the commissio

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