IN THE HIGH COURT OF ALLAHABAD
G. P. MATHUR, BHAGWAN DIN
L.M.L.LTD. - Appellant
Versus
STATE OF UTTAR PRADESH - Respondents
C. M. W. P. 40692 Of 2000
Decided On : 04/25/2001
15% Surcharge - Electricity Bill - [The Electricity Regulatory Commission Act, 1998, Indian Electricity Act, 1910] - The court dismissed the writ petition filed for quashing the 15% surcharge levied on the energy charge in the electricity bill of the petitioner for August, 2000. The court found that the petitioner, a company engaged in manufacturing two-wheelers, was liable to pay the 15% surcharge as it was receiving power supply from an independent feeder emanating from 132 KV sub-station. The court also highlighted the legal provisions of the Electricity Regulatory Commission Act, 1998 and the Indian Electricity Act, 1910, which empowered the Commission to determine the tariff for electricity and made the approved tariff binding on the licensee and consumers.
Fact of the Case:
The petitioner, a company engaged in manufacturing two-wheelers, filed a writ petition seeking to quash the 15% surcharge levied on the energy charge in its electricity bill for August, 2000. The petitioner claimed that it was running a non-continuous process industry and was observing peak hour restriction, and therefore, should not be liable to pay the surcharge.
Finding of the Court:
The court found that the petitioner was receiving power supply from an independent feeder emanating from 132 KV sub-station and was therefore liable to pay the 15% surcharge. The court also emphasized that the tariff approved by the Commission was binding on the licensee and consumers, and no one else had the authority to alter or vary the approved tariff.
Issues: The main issue was whether the petitioner was liable to pay the 15% surcharge on the energy charge in its electricity bill for August, 2000, despite claiming to be running a non-continuous process industry and observing peak hour restriction.
Ratio Decidendi: The court held that the petitioner was liable to pay the 15% surcharge as it was receiving power supply from an independent feeder emanating from 132 KV sub-station. The court also emphasized the legal provisions that made the approved tariff binding on the licensee and consumers.
Final Decision: The court dismissed the writ petition and awarded costs to the respondents.
( 1 ) THIS writ petition under Art. 226 of the Constitution has been filed for quashing of the 15 per cent surcharge levied on the energy charge in the electricity bill of the petitioner for August, 2000.
( 2 ) THE petitioner is a company registered under the provisions of Companies Act and is engaged in manufacturing two wheelers (scooters and motor cycles ). The petitioner entered into an agreement with U. P. State Electricity Board (hereinafter referred to as UPSEB) on 31-10-1996 for supply of electrical energy in the form of a three phase alternative current at declared pressure of 132 KV and a power not exceeding 800 KV to its factory at A-1, Panki Industrial Area, Site III, Kanpur. The petitioner claims that it is running a non-continuous process industry and has to observe peak hour restirction and, consequently, it does not consume power from 6. 00 p. m. to 11-00 pm. A new tariff was enforced with effect from 9-8-2000 and in the bill dated 5-9-2000 a surcharge of Rs. 6,33,898. 45 was levied on total energy charge of Rs. 42,25,989. 68. The petitioner contends that as it is observing peak hour restriction and is not consuming power during the restricted hours i. e. from 6. 00 pm. to 11. 00 p. m. the levy of surcharge @ 15 per cent is illegal as the same can be levied only on a consumer who is not observing peak hour restriction. The plea taken in the counter affidavit filed by Kanpur Electric Supply Company (herein after referred to as KESCO) is that power is being supplied to the petitioner by an independent feeder emanating from 132 K. V. Navbasta Sub-station and, consequently, under the tarrif approved by U. P. Electricity Regulatory Commission, the petitioner is liable to pay 15 per cent surcharge on energy charge. It further pleaded that this 15 per cent surcharge is not dependent upon observance of peak hour restriction and those who do not observe this restriction and consume power between 6 pm. and 11 pm. have to pay an additional amount of 15 per cent surcharge on energy charge.
( 3 ) A copy of Electricity Retail Tariff of U. P. Power Corporation Limited (hereinafter to be UPPCL) effective from 9-8-2000 has been filed as Annexure 1-A to the writ petition. The petitioner is a consumer of large and heavy power and is governed by Rate Schedule HV-2. Since much argument has been raised by the petitioner on its basis, the relevant part thereof is being reproduced below :rate Schedule HV-2large and Heavy Power1. Applicabilitythis rate schedule shall apply to all consumers who have a contracted load of more than 75 KW (100 BHP) for industrial and/ or processing purposes as well as to Arc/ Induction Furnace, Rolling/rerolling Mills, Mini steel plants and to any other power consumer not covered under any other Rate Schedule. This rate schedule shall also apply to commercial light, fan and powers (LMV 2) and power consumers of Rate Schedule LMV-6 subject to the condition that they opt for this Rate Schedule. The contracted demand shall be expressed in whole number only. 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (Omitted as not relevant ). 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (Omitted as not relevant ). 4. Rate of Charge. Descriptiondemand Charge Energy Charge A. Basic Rage (Applicable to Urban Consumers)Rs. 130/- per KVA/month390 paise /kvh Notes : (a) In respect of consumers who opt for power supply during restricted/peak hours an additional surcharge of 15% on the amount billed at the "rate of Charge" under item 4-A, above i. e. , Demand charge and Energy Charge shall be levied. However, in respect of consumers getting power supply on independent feeders emanating from 400/220/132 KV sub-stations in additional surcharge of 15% on demand and energy charges shall be charged further subject to the condition that these consumers will get an assured supply of minimum 500 hours in a month. In case of short fall in above guaranteed hours of supply a rebate @ 1% for
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