- (1.) The Maharashtra Veej Grahak Sangathana (MVGS), Ichalkaranji, Distt. Kolhapur, through its President Shri Pratap Ganpatrao Hogade, has filed a Petition on 3 April, 2014 for clarification of Additional Energy Charges (AEC) and Additional Fuel Adjustment Cost (FAC), as determined by the Commission in its Order dated 5 September, 2013 in Case No. 95 of 2013, charged to those who became Low Tension (LT) and High Tension (HT) Industrial consumers of Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) after January 2013.
(2.) The Petitioner's prayers are as follows: ...[VERNACULAR TEXT OMITTED]...
(3.) The Petition states that: 3.1 The Commission had determined the electricity tariff of MSEDCL in Order dated 16 August, 2012 in Case No. 19 of 2012, effective from 1 August, 2012, along with the Rate Schedule, and has not revised the tariff since then. MSEDCL has charged AEC (AEC -1, AEC -2, AEC -3 and AEC -4) and FAC in pursuance of Orders in Case No.28 of 2013 (dated 3 September, 2013), Case No.44 of 2013 (dated 4 September, 2013) and Case No.95 of 2013 (dated 5 September, 2013). 3.2 MSEDCL issued Commercial Circular No.209 dated 7 September, 2013 accordingly. From September, 2013 to February, 2014, it has recovered Rs 5,342 crore (in six monthly installments) on account of under recovery in truing up of expenses for FY 2008 -09 to 2010 -11 and recovery of fixed cost of Khaparkheda and Bhusawal generating Units of the Maharashtra State Power Generation Co. Ltd. (MSPGCL). 3.3 Since consumers who have been given connections after January or March, 2013 have not used electricity during the period of under recovery, the application of these additional chargers on them is unjustified. These charges need to be refunded along similar lines as the Regulatory Liability Charges (RLC) and Additional Supply Charges (ASC) to new consumers. Thus, MVGS seeks clarification with regard to the applicability of these additional charges to such new consumers. 3.4 The following have been approved for recovery by MSEDCL: Charge Particulars AEC -1 Accumulated under recovery of Rs.2037.78 cr. accrued till August 2013. AEC -2 Monthly fixed expense of Rs 235.39 cr. AEC -3 Impact of Appellate Auth. (ATE) judgments Appeal No.34 of 2012 - Rs 106.44 cr. Appeal No.47 of 2012 - Rs 628.90 cr. AEC -4 Annual Fixed Charges for Khaperkheda Unit #5 - Rs 596.12 cr., and difference in provisional and final Fixed Charges - Rs 46 cr. MSEDCL has made past recovery of Rs 1,922 cr. till March, 2013 and Rs. 3,420 cr. for FY 2013 -14. Since no electricity was being consumed from FY 2008 -09 to 2010 -11 by newly connected consumers, this recovery is unjustified. 3.5 AEC -1 arises from additional amounts determined in final truing up for FY 2010 - 11 and Fixed Charges for FY 2012 -13 for the Khaparkheda Units of MSPGCL, and increased transmission tariff of Maharashtra State Electricity Transmission Co. Ltd. (MSETCL) for the period from April to August, 2013. AEC -2 is a continuing charge, and also includes the additional amounts in respect of the two generating Units and the transmission tariff. AEC -3 is on account of increase in fixed costs, fuel cost and carrying cost from 2008 to 2011. AEC -4 arises from the fixed costs of Khaparkheda and other increases in fixed costs and fuel costs in FY 2013 -14. Clarification is sought from the Commission to the effect that these additional charges and the additional FAC is not to be recovered from those who were not consumers at the relevant times. 3.6 The relevant legal provisions are as follows: Section 2(15) of the Electricity Act (EA), 2003 reads as follows: ""Consumer" means any person who is supplied with electricity for his own use by a licensee or the Government or by any other person engaged in the business of supplying electricity to the public under this Act or any other law for the time being in force and includes any person whose premises are for the time being connected for the purpose of receiving electricity with the works of a licensee, the Government or such other person, as the case may be;" Section 45 provides for power to recover charges: " (1) Subject to the provisions of this section, the prices to be charged by a distribution licensee for the supply of electricity by him in pursuance of section 43 shall be in accordance with such tariffs fixed from time to time and conditions of his licence. (2) The charges for electricity supplied by a distribution licensee shall be - (a) fixed in accordance with the methods and the principles as may be specified by the concerned State Commission; (b) published in such manner so as to give adequate publicity for such charges and prices. (3) The charges for electricity supplied by a distribution licensee may include - (a) a fixed charge in addition to the charge for the actual electricity supplied; (b) a rent or other charges in respect of any electric meter or electrical plant provided by the distribution licensee. (4) Subject to the provisions of section 62, in fixing charges under this section a distribution licensee shall not show undue preference to any person or class of persons or discrimination against any person or class of persons. (5) The charges fixed by the distribution licensee shall be in accordance with the provisions of this Act and the regulations made in this behalf by the concerned State Commission." Thus, unless and until electricity is supplied to a person, he does not become a consumer and the licensee cannot recover any charges from him. The obligation to pay remains in force only for the period during which a person is a consumer of the licensee. Section 69 of the Indian Contract Act, 1872 reads as follows: "A person who is interested in the payment of money which another is bound by law to pay, and who therefore pays it, is entitled to be reimbursed by the other." Under Section 31 of the Partnership Act, " (2) A person who is introduced as a partner into a firm does not thereby become liable for any act of the firm done before he becomes a partner. " ;