Court strikes down DERC tariff slash order

Regulator to determine electricity rates afresh by "staying within it's statutory limit"

deevakar

Deevakar Anand | May 23, 2011



The Delhi high court has disposed of a petition that demanded implementation of the tariff order passed by the Delhi Electricity Regulatory Commission (DERC) last year.

Commission chairman Berjinder Singh had ordered to slash the rates noting that the three power distribution companies (discoms) operating in Delhi – BSES Rajdhani, BSES Yamuna and NDPL - reportedly had a surplus of Rs 3,577 crore. The petitioner, Nand Kishore Garg, alleged that the same was stalled by a Delhi government order asking DERC to follow the National Tariff Policy and withdraw its order.

The division bench of chief justice Dipak Mishra and justice Sanjiv Khanna has asked DERC to proceed afresh by following the due process under the Electricity Act, 2003. The bench came down heavily on the regulator for not keeping within the statutory role ascribed to it. “The commission shall be alive to the role conferred on it by the 2003 Act,” noted the order. "The commission under the 2003 Act is required to deal with the aspect of tariff determination with intellectual integrity, transparent functionalism and normative objectivity and not act in a manner by which its functioning invite doubt with regard to its credibility,” it added.

While showing its displeasure and dissatisfaction on the manner DERC went about determining the slashed tariff, the judges held the Delhi government responsible for such a chaos in the commission by “unjustifiably intruding and encroaching on the functions of the commission by interdicting” as in the case. It pulled up the government for traversing its own powers by restraining the commission in the manner it has done and said it was “not in the fitness of things”.

It also reprimanded the discoms calling it “unwarranted” the manner in which they went to the government asking it to interference at a stage when the regulatory body was proceeding with the determination of the tariff. “The discoms should have been well advised not to curb the determination process by the regulatory commission,“ said the order. “A distribution company is not an illiterate litigant who seeks redressal of his grievances at any stage and before whichever forum. They are guided by their law officers and are expected to know how to conduct themselves,” the bench fumed.

While the regulator has been asked to formulate the tariff order with due diligence, the same can be appealed under section 111 of the 2003 Act.

Comments

 

Other News

Thackeray launches three fast-track DNA units under Nirbhaya scheme

Maharashtra chief minister Uddhav Thackeray has launched three state-of-the-art human DNA units under the Nirbhaya Scheme for efficiency in criminal investigations. A wildlife DNA unit in Nagpur makes Maharashtra the country’s first state to have a forensic testing lab for animals.  

How foreign policy has been Modi’s focus right from the start

The Midway Battle: Modi’s Roller-coaster Second Term By Gautam Chintamani Bloomsbury / 400 pages / Rs 699 Gautam Chintamani, a film historian and author, has penned an in-depth chronicle of prime minister Narendra Modi’s second

Remove unauthorized constructions without pressure: Thackeray to BMC

Maharashtra chief minister Uddhav Thackeray has instructed the Mumbai civic authorities to take immediate action on unauthorized constructions on war footing. In a virtual meeting held on Wednesday, Thackeray said no illegal construction will be tolerated in Mumbai and called upon the BMC to

Covid norms relaxed; Mumbai restaurants, shops to remain open longer

After extending timings of shops and restaurants as well as the reopening of cinema halls and theatres under specified SOPs from October 22, in view of the festive cheer, the Maharashtra government has allowed restaurants and eateries to remain open till 12AM and shops and establishments to function till 1

Global Hunger Index data collection flawed: Arvind Panagariya

Rubbishing the recently released Global Hunger Index 2021, wherein India has slipped to 101 position to be placed below Pakistan, Nepal and Bangladesh, Arvind Panagariya, professor of economics at Columbia University and former vice chairman, NITI Aayog, has said that data collection and methodologies used

‘Blue Zones’ concept of healthy living and its relevance in India

A long life span free from diseases and disability, the so-called healthy aging, has been a matter of prime interest to humanity. It is widely held that the life expectancy is a function of interplay between various genetic and environmental factors. There is scientific evidence to support the fact that on

Visionary Talk with Dr Arvind Panagariya, Professor, Columbia University & Former VC, NITI Aayog



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter