IN THE APPELLATE TRIBUNAL FOR ELECTRICITY (Appellate Jurisdiction)

APPEAL No.288 OF 2017 Dated: 29.05.2025 Present: Hon’ble Mr. Sandesh Kumar Sharma, Technical Member Hon’ble Mr. Virender Bhat, Judicial Member In the matter of:

M/s Biological E. Ltd.

VPO Nihal Garh, Rajban Road, Ponta Sahib, Distt. Sirmaur (HP) 173025 Kehar Singh Chauhan S/o Sh. D.S. Chauhan, DGM / Authorized signatory of the Appellant Company. …Appellant Versus

1. Himachal Pradesh Electricity Regulatory Commission Through its Secretary SDA Complex, Kusumpti, Shimla– 171009 Email: secy-perc-hp@nic.in

2. The HP State Electricity Board Ltd. Through its Executive Director (personal), Kumar House, Shimla – 171 004 Email: mdhpseblshimla@gmail.com … Respondent (s)

Counsel on record for the Appellant(s) : Ajay Vaidya Counsel on record for the Respondent(s): Pradeep Mishra for Res. 1 Anand K. Ganesan Swapna Seshadri Parichita Chowdhury for Res. 2

J U D G M E N T

PER HON’BLE MR. VIRENDER BHAT, JUDICIAL MEMBER

1. This appeal arises out of the order dated 05.10.2016 passed by 1^st respondent Himachal Pradesh Electricity Regulatory Commission (hereinafter referred to as “the Commission”) thereby providing the mechanism for adjustment of charges paid by the consumers under clause 3.2.2 of Himachal Pradesh Electricity Supply Code 2009 against the other charges payable by the consumers and refund of the balance, if any, to the consumers.

2. Brief facts giving rise to the appeal are enumerated hereunder.

3. The Appellant is a large supply consumer of electricity in the State of Himachal Pradesh.

4. The Commission had notified Himachal Pradesh Electricity Supply Code 2009 (hereinafter referred to as “2009 Supply Code”) on 29.05.2009. Clause 3.2.2 of the 2009 Supply Code provides that consumer shall apply for the grant of Power Availability Certificate (PAC) on payment of Advanced Cost Share (ACS) towards Infrastructure Development Charges (IDC) calculated at the rate of Rs.1000/KVA of the contract demand applied for.

5. It appears that vide letter dated 08.04.2011, the 2^nd respondent Himachal Pradesh State Electricity Board (in short “HPSEB”) sought clarification regarding the mechanism for adjustment of Advanced Cost Share towards Infrastructure Development Charges paid by consumers as per clause 3.2.2 read with clause 3.2.5 of the 2009 Supply Code stating that there was no specific provision for adjustment/recovery of IDC under the HPERC (Recovery of Expenditure for Supply of Electricity) Regulations, 2005 (hereinafter referred to as “Recovery of Expenditure Regulations, 2005”), then in force.

6. Accordingly, the Commission issued a detailed clarification on this aspect vide order dated 02.05.2011. Thereafter, Recovery of Expenditure Regulations, 2005, were replaced by HPERC (Recovery of Expenditure for Supply of Electricity) Regulations, 2012 (hereinafter referred to as “Recovery of Expenditure Regulations, 2012”).

7. The clarificatory order dated 02.05.2011 was set aside by this tribunal vide judgment dated 18.12.2015 in appeal nos.188 of 2014, 189 of 2014, 190 of 2014, 191 of 2014, 192 of 2014, 194 of 2014 and 195 of 2014 with the direction to the Commission to issue notices to the appellants in these appeals as well as other industrial consumers in the State of Himachal Pradesh and also to issue public notice seeking objections/comments and to pass a fresh order after giving reasonable opportunity of been heard to such consumers.

8. In pursuance to the order dated 18.12.2015 of this Tribunal, the Commission issued a letter dated 05.04.2016 to HPSEB asking it to submit a formal self-contained reference indicating the points on which clarification is sought along with the views of the Board thereon. Accordingly, on such reference having been made by HPSEB, the Commission registered suo motu case number 25/2016 and by invoking the provisions contained in clause 9.5 and 9.6 of 2009 Supply Code proposed a mechanism for adjustment of amount received from prospective consumers as per clause