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IN THE HIGH COURT OF DELHI
Yashwant Varma, J.
BSES Rajdhani Power Ltd. - Appellant
Versus
Northern Regional Power Committee - Respondent
W.P.(C) 5340 of 2022, CM Appl. 15969 of 2022(Interim Direction), CM Appl. 15970 of 2022(Permission) and W.P.(C) 6735 of 2022, CM Appl. 20433 of 2022(Direction)
Decided On : 01-06-2022




The Union Government has exclusive authority to allocate power from Central Generating Stations, and such allocation is not subject to state regulatory control under the Electricity Act.

Headnote:(A) Electricity Act, 2003 - Section 86 - Jurisdiction over allocation of power from Central Generating Stations resides with the Union Government under Article 73 of the Constitution. The petitioners challenged the Ministry of Power's order reallocating power from the Dadri-II Thermal Power Station from Delhi to Haryana, arguing it was without jurisdiction and interfered with existing Power Purchase Agreements. The court noted the historical context of power allocation, emphasizing that the Union's reallocation aligns with the surrender of power by GNCTD dating back to 2015. The court also highlighted the urgency of Haryana's power needs and ultimately requested the Ministry to evaluate all parties' claims before making a final allocation decision. (Paras 3-62)

Findings of Court:
The Ministry of Power's allocation was valid, but further examination of the claims was mandated. (Paras 61-62)

Issues: Whether the Ministry's allocation of power was valid given the existing agreements, and whether GNCTD's prior surrender impacted its current claims.

Ratio Decidendi: The court found no illegality in the Ministry's actions thus far, noting the Union's power in allocation is pronounced and not controlled by the State's Regulatory Commission.

Result: The interim order was continued pending further evaluation by the Ministry.

Table of Content
1. stay of impugned power allocation. (Para 1 , 2)
2. impact of allocation on power supply. (Para 3 , 4)
3. union's exclusive power to allocate electricity. (Para 5 , 6)
4. request to mop for re-evaluation of power allocation. (Para 12 , 62)
5. allocation of power is a policy decision. (Para 30 , 31)

ORDER

1. By this order, the Court proceeds to deal with the prayer for vacation of the interim order of 30 March 2022 as addressed on behalf of the respondents. These two writ petitions preferred by the DISCOMS of Delhi lay challenge to an order of 29 March 2022 passed by the Ministry of Power [MoP] allocating the share of the Government of NCT of Delhi [GNCTD] in the power generated by the National Thermal Power Corporation Limited [NTPC] Thermal Power Station named "Dadri-II" to the State of Haryana.

2. The writ petition by BSES came up before the Court on 30 March 2022. On the said date, the Court took note of the submissions addressed on behalf of the petitioners in challenge to the order of 29 March 2022 and proceeded to pass the following interim order:

    "1. Notice shall issue to the respondents. Since respondent Nos. 1 to 5 and 7 are duly represented by learned counsel, formal notice stands waived. Let learned counsels obtain instructions and address submissions on the date fixed. Dasti notice shall issue to respondent Nos. 6 and 8. Mr. Singh appearing on advance notice and representing the Union respondents prays for the matter being put up on 1 April 2022 in order to enable him to obtain instructions.

    2. BSES Rajdhani Power Limited, a DISCOM, has petitioned this Court challenging the order of 29 March 2022 passed by the Ministry of Power which alluding to a purported surrender of power generated by the Dadri-II Thermal Power Station by GNCTD has transferred the same to the State of Haryana.

    3. Mr. Sethi, learned senior counsel appearing for the petitioners, has submitted that the aforesaid order is wholly without jurisdiction since no power inheres in the respondents to reallocate power that forms part of the allocation made in favour of the petitioner and duly approved by the Delhi Electricity Regulatory Commission. The recital in the impugned order of GNCTD having surrendered power is also disputed with learned counsel drawing the attention of the Court to its communication noticed in the order of 07 October 2021. The surrender which was contemplated in terms of that communication was with respect to the Dadri-I Thermal Power Plant alone. The attention of the Court is also drawn to the order of the Delhi Electricity Regulatory Commission of 30 March 2022 which categorically records that the Commission had not communicated any request to the Ministry of Power to either re-allocate or surrender the share of NCT from Dadri-II to other States. That order also takes note of the Power Purchase Agreement executed between the petitioning DISCOMS with NTPC which are valid up to 30 July 2035. The Court additionally takes note of the changed statutory regime ushered in by virtue of the Electricity Act, 2003 and the jurisdictional and pivotal function assigned to the respective Electricity Regulatory Commissions and more particularly Section 86 of that Act.

    4. Mr. Sethi submits that if the order impugned here were to be implemented, 23% of the populace of the National Capital would be deprived of power in the next 24 hours. The Court also takes notes of the averments made in paragraph 5 of the writ petition where the petitioners aver that the impugned order would, if permitted to operate, come into effect from 00:00 hours on Friday 1 April 2022. The resultant deficiency would have to be arranged before 10:00 A.M. on Thursday i.e. 31 March 2022. Matter requires consideration.

    Till the next date of listing, there shall be stay of the impugned order of 29 March 2022. "

3. As is evident from the order passed on that date, the Court essentially took into consideration the submission that the allocation of power in favor

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