AI Overview...
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Disconnection Rights in Case of Default - Suppliers of electricity, including Discoms, have the contractual and statutory right to disconnect or suspend supply in case of default by the consumer or distributor, such as non-payment or breach of contractual obligations. For instance, under the Electricity Act, 2003, Sections 42 and 59, disconnection is permissible if the defaulting party fails to adhere to payment clauses or other contractual terms Southern Power Distribution Company of Andhra Pradesh Ltd. VS Union of India - Andhra Pradesh.
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Default and Payment Failures - Default in payments by State Distribution Companies (Discoms) can lead to supply interruptions. The provisions often specify that if dues are not paid within stipulated periods, the supplier can regulate or stop power supply, as per the terms of Power Purchase Agreements (PPAs) and applicable regulations like the LPS Rules Southern Power Distribution Company of Andhra Pradesh Ltd. VS Union of India - Andhra Pradesh, Maharashtra State Electricity Distribution Company Limited vs Ratnagiri Gas and Power Private Limited - Central Electricity Regulatory Commission.
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Security Deposit and Restrictions - Suppliers may impose conditions such as security deposits or pre-paid meters to ensure uninterrupted supply, especially for high tension (HT) consumers. Defaults in these conditions can justify restrictions or disconnection Sarwottam Ispat Limited Rep. by its Director, Subhash Goenka VS Southern Power Distribution Company of Telangana Limited, rep. by its Chairman and Managing Director - Andhra Pradesh.
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Contractual Provisions for Disconnection - PPAs typically include clauses allowing disconnection upon default, such as non-payment, breach of technical parameters, or violation of contractual terms. For example, RVPN/Discom can disconnect power supply if the Power Producer defaults on technical or contractual obligations Kishangarh Hi-tech Textile Park Ltd (KHTPL). vs Rajasthan Electricity Regulatory Commission & Ors. - Appellate Tribunal for Electricity.
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Regulatory Oversight and Compensation - While disconnection rights exist, regulatory authorities like the CERC oversee disputes and may require compensation or reimbursement in cases of supply disruptions caused by change in law or other unforeseen events. However, in some cases, the petitioner may not be entitled to compensation if the supply was disrupted due to contractual or regulatory provisions Petition under Section 79(1) (b) read with Section 79(1) (f) of the Electricity Act 2003 inter alia seeking reimbursement of the RLDC/ SLDC Charges from the Respondent and compensation on account of Change in Law events namely introduction of Composition User Fee and Jharkhand Mineral Bearing Land Cess Act 2024. Adhunik Power and Natural Resources Limited - Central Electricity Regulatory Commission.
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Supply Shortfalls and Penalties - Coal supply shortfalls, up to a certain percentage (e.g., 75% of the ACQ), are often tolerated without penalty, and disconnection or penalties are only invoked beyond specified thresholds. Discoms and suppliers are bound by FSAs and PPAs that specify such provisions Kishangarh Hi-tech Textile Park Ltd (KHTPL). vs Rajasthan Electricity Regulatory Commission & Ors. - Appellate Tribunal for Electricity, [Jaipur Vidyut Vitran Nigam Ltd & Ors.
Versus Rajasthan Electricity Regulatory Commission & Anr. - Appellate Tribunal For Electricity](https://supremetoday.ai/doc/judgement/IND_APTEL_2371).
- Legal and Regulatory Framework - The Electricity Act, 2003, along with regulations like the LPS Rules, provides the legal basis for regulating disconnection, supply regulation, and disputes related to default. The courts have upheld the supplier's right to disconnect in cases of default, provided contractual and statutory procedures are followed Southern Power Distribution Company of Andhra Pradesh Ltd. VS Union of India - Andhra Pradesh, Maharashtra State Electricity Distribution Company Limited vs Ratnagiri Gas and Power Private Limited - Central Electricity Regulatory Commission.
Analysis and Conclusion:
Electricity suppliers, including Discoms, are empowered under the Electricity Act, 2003, and contractual agreements to suspend or stop supply in cases of default such as non-payment, breach of technical or contractual conditions, or other defaults specified in PPAs. Disconnection is a recognized remedy to enforce compliance, but it is subject to regulatory oversight and must adhere to contractual provisions and legal procedures. Disconnection rights serve as a mechanism to ensure payment and contractual compliance, but must be exercised within the framework of law and regulation to prevent arbitrary supply stoppages.
Search Results for "Supplier of Electricity can Stop Supply in Case Default by Discom"
2021 0 Supreme(AP) 891 • India - Andhra Pradesh
M.VENKATA RAMANA
Electricity Act - Sections 42 and 59 - There was large scale default in payments by State Distribution Companies all over country ... Constitution of India - Article 14 - Electricity Act, 2003 - Section 28(3)(a), 32(2)(a), 29(5), 37, 25, ... of either advance payment or by opening a Letter of Credit as per Power Purchase Agreement, which a licencee distributor under Electricity ... The petitioners further contended that there are certain default clauses in PPAs with reference to payment of bills within ....
2016 0 Supreme(AP) 224 • India - Andhra Pradesh
DILIP B.BHOSALE, P.NAVEEN RAO
security deposit as condition precedent to provide uninterrupted electrical energy to them and not providing pre-paid meters to supply ... Consumer Protection – Electricity – Constitution of India, 1950 – Article 226 – Electricity Act, 2003 – ... of electricity, they are classified as High Tension (HT) Consumers. ... When supplier agrees to supply electricity, it is permissible for the supplier to impose restrictions subject of course to the various ....
2003 0 Supreme(AP) 573 • India - Andhra Pradesh
B.S.A.SWAMY, G.YETHIRAJULU
since per capital electricity consumption in country happened to be lowest and to bridge gap between demand and supply and entered ... Reforms Act - Constitution of india,1950 - Article 226 - Transmission of energy generated - Demand and supply ... participation in generation distribution renovation and modernization of power projects in its quest for increasing availability of electricity ... TRANSCO filed a combined bulk supply and transmission tariff proposals for the year 2001-2002 for the #HL_START....
2025 Supreme(Online)(CERC) 22 • India - Central Electricity Regulatory Commission
Shri Jishnu Barua, CJ, Shri Ramesh Babu V., J, Shri Harish Dudani, J
(A) Electricity Act, 2003 - Sections 79(1)(b) and 79(1)(f) - Change in law - Petition filed for compensation due to cancellation ... and New Coal Distribution Policy (NCDP) 2013 - The Commission held that the Petitioner is not entitled to compensation for coal supply ... : ... The Petitioner sought compensation for coal supply shortages due to the cancellation of coal blocks by the Supreme Court and ... It will be seen that under clause 13.1.1 if there is a change in any consent, approval or license available or obtained for the project,....
2011 0 Supreme(Kar) 82 • India - Karnataka
S.ABDUL NAZEER
On facts, held, The Bangalore Electricity Supply Company Limited has ignored the essential tender conditions of eligibility such ... Even when the Court may feel that there was no real likelihood of bias in the circumstances of the case, the Court may still quash ... It is further contended that the third respondent had never supplied products of good quality and that there has been gross defects in the meters of the third respondent as supplied to the other Electricity Boards. ... In ....
2025 Supreme(Online)(CERC) 174 • India - Central Electricity Regulatory Commission
Shri Jishnu Barua, Chairperson, Shri Ramesh Babu, Member, Shri Harish Dudani, Member
(A) Electricity Act, 2003 - Section 79(1)(f) - Termination of Power Purchase Agreement (PPA) - Petitioner sought to quash invoices ... In case of the non-payment of dues, by Discom, even after two and half months, after presentation of bill, or in case of default in the payment of instalments as per the LPS Rules, the short-term power supply to the defaulting entity shall be regulated entirely, as per the process set in LPS Rules. ... Continuing default after regulati....
2025 Supreme(Online)(CERC) 216 • India - Central Electricity Regulatory Commission
(A) Electricity Act, 2003 - Sections 79(1)(b) and 79(1)(f) - Change in Law events - Petition seeking reimbursement of RLDC/SLDC Charges ... (Paragraphs 36-47) ... ... Facts of the case: ... The Petitioner filed a petition against the Respondents for reimbursement of RLDC ... If the Petitioner is entitled to payment, it must first supply electricity and raise bills in accordance with the PPA. ... The said calculation is based on the units of electricity/power supplied by the Petition....
2019 Supreme(Online)(APTEL) 5 • India - Appellate Tribunal for Electricity
xvi) RVPN/Discom shall disconnect the interconnection of Power Plant from State Grid/Distribution System in case of default of the Power Producer to comply with any of the provisions of WBA including technical parameters of supply as prescribed in Annexure ‘A’ of the WBA and such ... disconnection will continue till default continues. ... supplied. ... At any stretch of imagination, one cannot understand that this provision i.e., Note (i) applies even in the case of....
2019 Supreme(Online)(APTEL) 34 • India - Appellate Tribunal for Electricity
or stop-gap arrangement to meet any temporary shortfall in supply of domestic coal. ... This is evident from the FSAs executed by Coal India subsidiaries with Adani Rajasthan on 07.02.2018 which mentions that there is no penalty on the coal supplier for any supply shortfall up to 75% of the ACQ. ... Date of signing of PPA with Discom 28.01.2019 9. Effective date of supply of power as per PPA 31.08.2013 10. Actual date of supply of power 31.05.2013(#HL....
• India - Appellate Tribunal For Electricity
This is evident from the FSAs executed by Coal India subsidiaries with Adani Rajasthan on 07.02.2018 which mentions that there is no penalty on the coal supplier for any supply shortfall up to 75% of the ACQ. ... Central Electricity Regulatory Commission and Ors. ... The principle of restitution as applied to defaults etc cannot be applied in the present case. 9. ... Counsel for Rajasthan Discoms submitted that there is no restriction on the use of imported coal for ge....
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