HINDUSTAN ZINC LIMITED; J K LAKSHMI CIMENT LTD; RAJASTHAN TEX MILLS ASSO & ANR; SHREE CEMENT LIMITED; OPEN ACCESS USER ASSOCIATION; RATNAKAR ISPAT INDIA PVT LTD; NIRMA LTD Vs. RAJASTHAN ELECTRICITY REGULATORY COMMISSION, JAIPUR & ORS
LAWS(RAJ)-2016-8-158
HIGH COURT OF RAJASTHAN
Decided on August 29,2016

Hindustan Zinc Limited; J K Lakshmi Ciment Ltd; Rajasthan Tex Mills Asso And Anr; Shree Cement Limited; Open Access User Association; Ratnakar Ispat India Pvt Ltd; Nirma Ltd Appellant
VERSUS
Rajasthan Electricity Regulatory Commission, Jaipur And Ors Respondents

JUDGEMENT

- (1.) These petitions for writ are before us to examine constitutional validity of the regulations 17, 21(1), 25, 26(3), 26(6), 26(7)(i), 26(7)(ii), 26(7)(iii), 26(7)(v) and 26(8) of the Rajasthan Electricity Regulatory Commission (Terms and Conditions for Ope Access) Regulations, 2016 (hereinafter referred to as 'the Regulations of 2016').
(2.) Before coming to the facts and the issues under adjudication, it would be appropriate to mention introductory details about the Indian Electricity Act 2003 and the concept of "open access" incorporated therein. The provisions of the Act of 2003 and the concept of open access enshrined in it is a very ambitious step of the legislature to promote the entire electricity sector with a view to have progressive reforms to benefit industrial consumers, private utilities, power equipment providers etc.
(3.) The parliament enacted the Act of 2003 to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity and generally for taking measures conducive to development of electricity industry, promoting competition therein, protecting interest of consumers and supply of electricity to all areas, rationalisation of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmentally benign policies, constitution of Central Electricity Authority, Regulatory Commissions and establishment of Appellate Tribunal and for matters connected therewith or incidental thereto. The main features of the Act are as follows :- "1. Generation is being de-licensed and captive generation freely permitted, i.e. any generating company may establish, operate and maintain a generating station without obtaining a licence under this Act with the only exception that it should comply with the technical standards relating to connectivity with the grid referred to in clause (b) of section 73. 2. No person shall (a) transmit electricity; or (b) distribute electricity; or (c) undertake trading in electricity, unless he is authorised to do so by a licence issued, exceptions are informed by authorised commissions through notifications. 3. Central Government may, make regionwise demarcation of the country, and, from time to time, make such modifications therein as it may consider necessary for the efficient, economical and integrated transmission and supply of electricity, and in particular to facilitate voluntary interconnections and co-ordination of facilities for the inter-State, regional and inter-regional generation and transmission of electricity. Transmission utility at the central and state level to be a government company with responsibility of planned and coordinated development of transmission network. 4. Open access in transmission with provision for surcharge for taking care of current level of cross-subsidy, with the surcharge being gradually phased out. 5. The state governments are required to unbundle State Electricity Boards, However they may continue with them as distribution licensees and state transmission utilities. 6. Setting up State Electricity Regulatory Commission (SERC) has been made mandatory. 7. An appellate tribunal to hear appeals against the decision of (CERC's) and SERC's. 8. Metering of electricity supplied made mandatory. 9. Provisions related to thefts of electricity made more stringent. 10. Trading as a distinct activity recognised with the safeguard of Regulatory commissions being authorised to fix ceiling on trading margins. 11. For rural and remote areas, stand-alone system for generation and distribution is permitted. 12. Thrust to complete rural electrification and provide for management of rural distribution by panchayat, cooperative societies, NGOs, franchisees etc. 13. Central government to prepare National Electricity Policy and Tariff Policy. 14. Central Electricity Authority (CEA) to prepare National Electricity Plan.;


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