The court emphasized that the circulars were issued to encourage consumption of electricity during lean hours and not to confer benefits retrospectively, and that the circular could not be made effective retrospectively, as it would defeat the purpose.

JUDGMENT :

ANIL KSHETARPAL, J.

1. The petitioner-Company, a public sector undertaking, is a distribution licensee in the State of Punjab in terms of the Electricity Act, 2003. It is in the business of supplying electricity to the consumers in the State of Punjab. The petitioner prays for issuance of a writ in the nature of Certiorari to set aside the order dated 16.09.2019 passed by Consumers Grievances Redressal Forum, Ludhiana ordering the refund of an amount of Rs. 2,98,85,000 approximately to respondent no. 1.

2. Before this Court proceeds to adjudicate upon the dispute, a brief background of the scheme of the Act, the scope of power of the Punjab State Electricity Regulatory Commission and the Consumer Grievances Redressal Forum, shall be required to be examined. Section 82 of Electricity Act, 2003 (hereinafter referred to as the ‘2003 Act’) provides for constitution of the State Electricity Commission in each State. The functions of the State Electricity Commission are provided under Section 86 of the 2003 Act. Section 86 (1) enables the State Electricity Commission to determine the tariff. Section 86 is extracted as under:-

“86. Functions of State Commission:

(1) The State Commission shall discharge the following functions, namely:-

(a) determine the tariff for generation, supply, transmission and wheeling of electricity, wholesale, bulk or retail, as the case may be, within the State:

Provided that where open access has been permitted to a category of consumers under Section 42, the State Commission shall determine only the wheeling charges and surcharge thereon, if any, for the said category of consumers.

(b) regulate electricity purchase and procurement process of distribution licensees including the price at which electricity shall be procured from the generating companies or licensees or from other sources through agreements for purchase of power for distribution and supply within the State.

(c) facilitate intra-State transmission and wheeling of electricity.

(d) issue licences to persons seeking to act as transmission licensees, distribution licensees and electricity traders with respect to their operations within the State.

(e) promote cogeneration and generation of electricity from renewable sources of energy by providing suitable measures for connectivity with the grid and sale of electricity to any person and also specify, for purchase of electricity from such sources, a percentage of the total consumption of electricity in the area of a distribution licensee.

(f) adjudicate upon the disputes between the licensees and generating companies and to refer any dispute for arbitration.

(g) levy fee for the purposes of this Act.

(h) specify State Grid Code consistent with the Grid Code specified under clause (h) of sub-section (1) of Section 79.

(i) specify or enforce standards with respect to quality, continuity and reliability of service by licensees.

(j) fix the trading margin in the intra-State trading of electricity, if considered, necessary.

(k) discharge such other functions as may be assigned to it under this Act.

(2) The State Commission shall advise the State Government on all or any of the following matters, namely:

(i) promotion of competition, efficiency and economy in activities of the electricity industry.

(ii) promotion of investment in electricity industry.

(iii) re-organisation and restructuring of electricity industry in the State.

(iv) matters concerning generation, transmission, distribution and trading of electricity or any other matter referred to the State Commission by that Government.

(3) The State Commission shall ensure transparency while exercising its powers and discharging its functions.

(4) In discharge of its functions, the State Commission shall be guided by the National Electricity Policy, National Electricity Plan and tariff policy published under Section 3.”

3. In accordance with the mandate of Section 82 of the 2003 Act, the State of Punjab has constituted the Punjab State Electricity Regulatory Commissi