HIMACHAL PRADESH STATE ELECTRICITY REGULATORY COMMISSION Vs. HIMACHAL PRADESH STATE ELECTRICITY BOARD
LAWS(SC)-2013-10-6
SUPREME COURT OF INDIA
Decided on October 03,2013

Himachal Pradesh State Electricity Regulatory Commission Appellant
VERSUS
HIMACHAL PRADESH STATE ELECTRICITY BOARD Respondents

JUDGEMENT

- (1.) These appeals, by special leave, are directed against the common Judgment and order dated 21.11.2007 passed by the High Court of Himachal Pradesh in FAOs (Ord.) Nos. 489, 490, 491, 492, 493 & 494 of 2002 whereby the learned Single Judge overturned the decision dated 17.08.2002 rendered by the Himachal Pradesh State Electricity Regulatory Commission (for short, "the Commission") constituted under the provisions of Chapter IV of Electricity Regulatory Commission Act, 1998 (hereinafter referred to as "the 1998 Act").
(2.) The controversy that has emerged for consideration being common to all the appeals, we shall adumbrate the facts from Civil Appeal No. 6128 of 2009 for the sake of convenience.
(3.) The facts requisite to be stated are that the Commission was established for rationalization of electricity tariff, transparent policies regarding subsidies, promotions of efficient and environmentally benign policies and for matters connected therewith or incidental thereto. In exercise of the power conferred on it under Sections 22 and 29 of the 1998 Act the Commission vide order dated 29.10.2001 determined the tariff applicable for electricity in the State of Himachal Pradesh. While determining the tariff it also issued certain directions which are as follows:- a) "Furnishing of information and also periodical reports with respect to the value of the assets and capital projects of the Board. b) Replacement of all dead and defective meters by electronic meters from 31st March, 2002 onwards and reporting the status, as on 31st December, 2001 by 31st March, 2002. c) To develop and implement a comprehensive public interaction programme through Consultative Committees, preparation, publication and advertisement of material helpful to various consumer interest groups and general public on various activities of the utility, dispute settlement mechanism, accidents, rights and obligations of the consumers etc. Accordingly, the Board was directed on September 22, 2001, to submit its plan for approval of the commission and implement the same by 31st March, 2002. d) Submission of plans, short term and long term, by 31st March, 2002, for rationalization of existing manpower for improvements in efficiency through scientific engineering resources management, improving and updating the organization strategies and systems and skills of human resources for increased productivity. The Board in its affidavit of 3rd October, 2001 has agreed to comply and submit the above study by the above-mentioned date. e) Submission of a plan by 31st March, 2002, for reducing loss, both technical and non-technical, together with relevant load flow studies and details of investment requirement to achieve the planned reductions. The Commission also observed in its interim order of 20th September, 2001 passed in the course of public hearing that investments must aim at reducing the T & D losses and better quality of supply and service to the consumers as it happened in the case of Palampur area which has mixed domestic and commercial loading. The strategy can be considered for adoption elsewhere also to produce similar results. The Board has confirmed and undertaken to complete this study by 31st March, 2002 f) To do a comparison of the capital costs of Malana Plant with the capital costs of HPSEB Plants and submit a report on this by 31st March, 2002.";


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