SET RULES FOR FIXING TARIFF: SC TO STATE POWER REGULATORY COMMISSIONS
NEW DELHI: Ruling that the National Tariff Policy (NTP) is not binding on the electricity regulatory commissions, the Supreme Court on Wednesday held that tariff determination falls within the exclusive domain of the state regulatory commissions, and directed them to frame pertinent regulations for determination of power tariff within a period of three months.
A bench, headed by Chief Justice of India Dhananjaya Y Chandrachud, noted that although the 2003 Electricity Act aimed at providing the states with sufficient flexibility to regulate the intra-state electricity system and simultaneously empower the regulatory commissions for determining tariffs, the commissions had not framed the relevant regulations.
“The determination of tariff and framing regulations for the determination of tariff fall within the exclusive domain of the appropriate commission...we direct all state regulatory commissions to frame regulations under Section 181 of the Act on the terms and conditions for determination of tariff within three months from the date of this judgment,” directed the bench, which also included justices AS Bopanna and JB Pardiwala.
The order came as the court dismissed the appeal of Tata Power Company Limited Transmission, challenging award of ₹7,000 crore Maharashtra Electricity Regulatory Commission transmission (MERC) contract to Adani Electricity Mumbai Infra Limited (AEMIL).