IN THE APPELLATE TRIBUNAL FOR ELECTRICITY (Appellate Jurisdiction)

APPEAL No. 149 of 2018 Dated : 24^th March, 2025 Present: Hon’ble Mr. Sandesh Kumar Sharma, Technical Member Hon’ble Mr. Virender Bhat, Judicial Member In the matter of:

Hindustan Petroleum Corporation Limited Through its Manger

171-172, SIDCO Industrial Estate, Kappalur Post, Madurai - 625008 … Appellant Versus

1. Tamil Nadu Electricity Regulatory Commission Through its Secretary No. 19-A, Rukmini Lakshmipathy Salai, Marshalls Road, Egmore, Chennai, Tamil Nadu – 600 008

2. Tamil Nadu Generation and Distribution Corporation Ltd.

Through its Managing Director No. 144, Anna Salai, Chennai – 600 002 … Respondent Counsel for the Appellant(s) : Harsha V. Rao Anand K. Ganesan Swapna Seshadri Rhea Luthra for App.1 Counsel for the Respondent(s) : Sethu Ramalingam for Res. 1 Anusha Nagarajan for Res. 2

J U D G M E N T

PER HON’BLE MR. VIRENDER BHAT, JUDICIAL MEMBER

1. In this appeal the tariff order dated 11^th August, 2017 passed by the 1^st Respondent, Tamil Nadu Electricity Regulatory Commission (hereinafter referred to as “Commission”) in Tariff Petition No. 1 of 2017, has been assailed to the limited extent in so far as the bottling plant of Appellant has been re-categorised from HT I (Industrial Category) to HT III (Commercial Category) along with other commercial establishments such as malls and multiplexes, hotels etc. 2. The Appellant, Hindustan Petroleum Corporation Limited (in short HPCL) is a Government of India Enterprise and comes under the administrative control of the Ministry of Petroleum and Natural Gas. It is operating Liquified Petroleum Gas (LPG) bottling plants across the country including the one at Plot No. 171-172 SIDCO Industrial Estate, Kappalur, Madurai, Tamil Nadu. The Appellant is engaged in bottling and supplying of filled LPG cylinders across the state of Tamil Nadu.

3. The 1^st Respondent is the Electricity Regulatory Commission constituted for the State of Tamil Nadu.

4. The 2^nd Respondent Tamil Nadu Generation and Distribution Company (TANGEDCO) is the Distribution Licensee engaged in supply of electricity to the consumers in the State of Tamil Nadu.

5. It appears that in pursuance to the order dated 2^nd April, 2008, passed by the Commission in Appellant’s petition bearing MP No. 15 of 2007, the Appellant’s bottling bottling plant was categorized at HT IA (Industrial) and continued to be treated as industrial consumer till passing of the impugned tariff order dated 11^th August, 2017 whereby it was re-categorised to HT III (Commercial).

6. We may note that vide the impugned tariff order dated 11^th August, 2017, the Commission has determined the retail supply tariff for generation and distribution of electricity in the State of Tamil Nadu for the year 2017-18. Paragraph No. 6.1.2 and 6.1.2.1 of the order are relevant for the purposes of instant appeal and are extracted herein below :-

“6.1.2 High Tension Tariff I A:

“6.1.2 High Tension Tariff I A:

“6.1.2 High Tension Tariff I A:

“6.1.2 High Tension Tariff I A:

“6.1.2 High Tension Tariff I A:

“6.1.2 High Tension Tariff I A:

“6.1.2 High Tension Tariff I A:

“6.1.2 High Tension Tariff I A:

“6.1.2 High Tension Tariff I A:

6.1.2.1 This Tariff is applicable to:

1. All manufacturing and industrial establishments and registered factories including Tea Estates, Textiles, Fertilizer Plants, Steel Plants, Heavy Water Plants, Chemical plants. However, registered factories such as LPG bottling Units which are of non-manufacturing nature are not to be included in this tariff category.

2.

Common effluent treatment plants, Industrial estate’s water treatment/supply works, 3. Cold storage units”

7. What led the Commission to change the tariff category applicable to LPG bottling plants has been explained in paragraph nos. 5.2.2.14 & 5.2.2.15 of the impugned tariff order which are reproduced herein below :-

5.2.2.14 TANGEDCO submitted that according to provisions of the SMT Order dated December 11, 2014, HT IA Tariff is applicable to all