The court ruled that the Regulatory Commission cannot collect FSA charges for the 1st quarter of 2010-11 due to non-compliance with the time limit for filing applications, emphasizing adherence to regulatory provisions.

Headnote:(A) Electricity Act, 2003 - Sections 45, 56, 61, 62 - Andhra Pradesh Electricity Reform Act, 1998 - Regulation 45-B - Fuel Surcharge Adjustment (FSA) charges - The court restrained DISCOMs from collecting FSA charges for the 1st quarter of 2010-11 due to non-compliance with the time limit for filing applications, as established by prior judgments. (Paras 16, 22)

(B) Regulatory Authority - The authority must adhere to the principles of natural justice and the prescribed regulations when determining charges, ensuring proper notice and opportunity for consumers to object. (Paras 12, 20)

Facts of the case:
The writ petitions challenge the orders of the Andhra Pradesh Electricity Regulatory Commission regarding the collection of FSA charges for various quarters, particularly the 1st quarter of 2010-11, based on claims made by DISCOMs.

Findings of Court:
The court found a strong prima facie case against the collection of FSA charges for the 1st quarter of 2010-11, while allowing collection for subsequent quarters.

Issues: The main issues included the authority of the Regulatory Commission to condone delays in filing applications and the compliance with the time limits set by regulations.

Ratio Decidendi: The court ruled that the DISCOMs could not collect FSA charges for the 1st quarter due to failure to file applications within the stipulated time, reaffirming the importance of regulatory compliance.

Result: Respondents are directed not to collect FSA charges for the 1st quarter of 2010-11.

Table of Content
1. main writ petitions are filed (Para 2 , 3 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15)
2. earlier, when an order was passed (Para 4)
3. having heard the learned counsel (Para 16 , 17 , 18 , 19 , 20)
4. for the aforesaid reasons (Para 21 , 22)

COMMON ORDER :

Though arguments are advanced at length by the learned counsel for the parties, as much as some of the questions which fall for consideration are subject matter of reference before the Full Bench in Writ Appeal No.1014 of 2012, and in view of the urgency expressed by the learned counsel for the parties, these miscellaneous petitions are disposed of by this common order.

2. The main writ petitions are filed questioning the orders passed by the Andhra Pradesh Electricity Regulatory Commission, accepting the claim made by the Andhra Pradesh Power Co-ordination Committee on behalf of the four Distributing Companies (DISCOMs) in the State, for collection of Fuel Surcharge Adjustment (FSA) charges for various quarters, starting from the 1 st quarter of the financial year 2010-11. As identical questions fall for consideration in all the writ petitions, they are heard together. When similar questions arose for consideration before a Division Bench of this Court in Writ Appeal No.1014 of 2012, while referring to the earlier judgment of this Court in the case of Jairaj Ispat Ltd., Hyderabad v. A.P.Regulatory Commission, Hyderabad & others, 2012(2) ALD 739 and by observing that certain provisions of the Electricity Act, 2003, viz., Sections 45, 56, 61 and 62 were not brought to its notice, the Division Bench has referred the matter to Full Bench, by order dated 26 th September 2012, by formulating the following two propositions :

“1. Whether the time limit prescribed under Regulation 45-B(4) of the Andhra Pradesh Electricity Regulatory Commission (Business Rules of the Commission) Regulations 1999 is ultra vires the provisions of Sections 56, 45, 61 and 62 of the Electricity Act, 2003 ?

2. Whether the Regulatory Commission is empowered to condone the delay under Regulation 55 read with Regulation 59 of the Regulations 1999 if the claims preferred by the discoms for determination of FSA are beyond the time limit prescribed by Regulation 45-B (4) ?”

3. Prior to the year 1998, law relating to electricity was governed by the Indian Electricity Act, 1910 and the Electricity Supply Act of 1948. In the State of Andhra Pradesh, Act 30 of 1998, namely, the Andhra Pradesh Electricity Reform Act, 1998, is enacted with an avowed object to constitute an Electricity Regulatory Commission for restructuring of electricity industry, rationalisation of generation, transmission, distribution and supply of electricity, avenues for participation of private sector in the electricity industry and also to take measures conducive to the development and management of electricity industry in an efficient, economic and competitive manner. Section 54 of the A.P.Electricity Reform Act, 1998 empowers the Commission to make regulations by notification in the official gazette for the proper performance of its functions under the Act. In exercise of said power, the A.P.Electricity Regulatory Commission (Business Rules of Commission) Regulations of 1999 are framed. The said Regulations are amended in the year 2000 by way of Regulation No.8 and further in the year 2003, by Amendment Regulation No.1 of 2003. As much as the dispute in these matters relates to collection of FSA, as approved by the Electricity Regulatory Commission by impugned orders, the relevant provision is, Regulation 45-B of Amended Regulation No.1 to 2003. As per the amended Regulations, a formula is prescribed for determining the FSA, with certain conditions. As per Condition No.1, the FSA as worked out for a particular quarter, will be distributed among all categories of consumers that existed in such quarter. However, the consumption by agriculture sector will be excluded till the Commission is satisfied that metering of agriculture

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