Appeal against the tariff orders of Regulatory Commission to High Court maintainable.

P. SHANMUGAM, J.

All the above appeals are filed under Section 27 of the Electricity Regulatory Commissions Act, 1998 (Act 14 of 1998).

2. The appellants, as consumers of electricity, have preferred the appeals aggrieved by the Tariff Order of the Tamil Nadu Electricity Regulatory Commission dated 15.3.2003, fixing fresh tariff in respect of Commercial and High Tension consumers of electricity.

3. The Electricity Regulatory Commissions Act 1998 (Act 14 of 1998), hereinafter referred to as the 'Act', has been enacted by the Parliament providing for the establishment of State Electricity Regulatory Commissions to rationalize electricity tariff, framing of transparent policies regarding subsidies, promotion of efficient and environmentally benign policies and for matters connected therewith or incidental thereto. The Government of Tamil Nadu constituted the Tamil Nadu Electricity Regulatory Commission (hereinafter referred to as 'TNERC') in G.O. Ms. No.58, Energy (A.1) Department dated 17.3.1999. The Tamil Nadu Electricity Board (hereinafter referred to as 'TNEB') submitted a Tariff Petition before TNERC on 25.9.2002 for revision of tariff with effect from 1.12.2002, which was registered as T.P. No.1 of 2002. After issuing a public notice, TNERC invited response from all the stake holders. Some of the appellants herein have submitted their representations/objections during the public hearing. After considering their response as well as the written submissions made on behalf of the Government, TNERC issued the Tariff Order dated 15.3.2003 in exercise of the power vested under Section 29 of the Act. The order was given effect from 16.3.2003. The appeals are against this order fixing fresh tariff.

4. Learned senior counsel Mr. Sriram Panchu appearing on behalf of the appellants made his submissions under the following heads :

(1) The Tariff Order and its implementation is in direct disobedience of the judgment, the directives and the law laid down by the Supreme Court in West Bengal Electricity Regulatory Commission vs. C.E.S.C. Limited [2002 (8) S.C.C. 715].

(2) The Tariff Order is beyond the power and scope of Section 29 of the Act and is, therefore, illegal.

(3) TNERC has exceeded its authority in making excessive cross subsidy.

The learned senior counsel, while elaborating these submissions, submitted that the appellants have made detailed representations/objections in their representations dated 29.10.2002, 11.11.2002, 15.2.2003 and 12.3.2003, wherein they have, inter alia, drawn the specific attention of TNERC to the law laid down by the Supreme Court on "Cross Subsidy". The main grievance of the learned senior counsel is that TNERC has not only failed to follow the law so laid down, but has not even bothered to refer to the judgment of the Supreme Court and therefore, on this sole ground alone, the order is vitiated.

5. On the other grounds, it is submitted that though TNERC is alive to their functions and powers as set out under Sections 22 and 29 of the Act, viz. that the tariff for all consumer categories should approach towards the cost of supply, that the level of cross subsidization is quite high and that the subsidizing consumers are finding it difficult to bear the cross subsidy burden, has decided to fix the tariff charges at 50% more or less than the cost of supply and to achieve that goal in a period of three years. In other words, according to the learned senior counsel, TNERC has committed a grave error in choosing to charge 50% more or less than the cost and that too, in a period of three years and this, obviously, is beyond the power conferred upon TNERC. According to him, TNERC has failed to apply the mandate contained in Section 29(3) of the Act, but has taken its role as one under Section 29(5) of the Act for the purpose of providing cross subsidy.

6. In this context, learned senior counsel has referred to the replies of TNEB and the State Government, wherein it was pointed out that the rationalizati