STAR WIRE (INDIA) VIDYUT PVT. LTD. Vs. HARYANA ELECTRICITY REGULATORY COMMISSION
LAWS(SC)-2019-7-17
SUPREME COURT OF INDIA
Decided on July 02,2019

Star Wire (India) Vidyut Pvt. Ltd. Appellant
VERSUS
Haryana Electricity Regulatory Commission Respondents

JUDGEMENT

A.M.KHANWILKAR,J. - (1.) Leave granted.
(2.) This appeal takes exception to the judgment and order of the High Court of Punjab and Haryana at Chandigarh passed in C.W.P. No.25337 of 2015 (O & M) dated 23 rd November, 2016. The appellants had challenged the fourth amendment to Haryana Electricity Regulatory Commission (Terms and Conditions for determination of Tariff from Renewable Energy Sources, Renewable Purchase Obligation and Renewable Energy Certificate) Regulations, 2010 (for short, "principal Regulations") published vide notification dated 12th August, 2015 (for short, "impugned Amended Regulations") which sought to amend the principal Regulations. The appellants had also challenged the order passed by the respondentCommission dated 4th August, 2015, in furtherance whereof, the impugned Amended Regulations were framed by the appropriate authority for revision of norms for determination of generic tariff for the second control period beginning from 1st April, 2013.
(3.) The appellants had set up a 9.90 MW independent Biomass Power Plant, which was declared commercially operational on 3 rd May, 2013. The principal Regulations were notified on 3 rd February, 2011, providing for the norms and parameters for determination of tariff for various renewal energy project developers. As per Regulation 4 of the principal Regulations, the first control period of three years was to end on 31st March, 2013. The third proviso of Regulation 4 posits that in case, the regulations for the next control period were not notified after the expiry of the first control period, the tariff norms as per these regulations (principal Regulations) would continue to apply until notification of the revised regulations, subject to adjustments as per the revised regulations. As the first control period had already ended, the appropriate authority initiated suo motu proceedings for revision of tariff and issued draft fourth amendment to the principal Regulations, seeking to amend Regulation 4 and including Regulation 5 of the principal Regulations. This draft amendment was issued on 29 th December, 2014. Pursuant thereto, the concerned parties submitted their response. After giving opportunity to all concerned, the Commission proceeded to pass an order dated 4th August, 2015, which attempts to analyse and adjudicate all the issues raised by the concerned parties. On the basis of the said order, the impugned Amended Regulations came to be notified. The effect whereof was to deny the applicability of tariff norms adjustments to the appellant No.1, which had commenced its commercial operations on 3rd May, 2013. The said amendment has been given prospective effect qua the appellants. It has made classification between the projects commissioned/to be commissioned in financial years 201314 on the one hand and 201415, 201516 and 201617 on the other, without any intelligible differentia or any rational basis therefor. Neither the principal Regulations nor the impugned Amended Regulations envisage classification on the basis of commissioning of renewable energy projects in a particular financial year during the same control period. Similarly, the regulations do not envisage determination of separate tariff on such differentiation. Indeed, the authority has been invested with power to determine project specific tariff under Regulation 6. In the present case, however, the power exercised by the Commission is indisputably with reference to Regulation 4 namely, to determine a generic tariff for the control period commencing from 1st April, 2013 and ending with financial year 201617 i.e. 31st March, 2017, for a period of 4 years.;


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