SC to decide on discoms taking line charges in tariff
The Supreme Court will decide whether power distribution companies can recover through tariff the expenses made in creating infrastructure to carry electricity from transmission lines to electric poles.
By PTI |
NEW DELHI: The Supreme Court will decide whether power distribution companies can recover through tariff the expenses made in creating infrastructure to carry electricity from transmission lines to electric poles.
The apex court today stayed an order of the Appellate Tribunal for Electricity that rejected Maharashtra State Electricity Distribution Company's plea to recover Service Line Charges through tariff.
A bench headed by Justice B N Agarwal also sought a response from Maharashtra Electricity Regulatory Commission on the company's plea that alleged the Tribunal had denied SLC which it was recovering since 1991.
MSEDC counsels Arun Jaitley and Ragvendra Srivastava said the tribunal had refused to allow the utility to recover the expenses incurred by it in providing any electric line or electric plant used for the purpose of providing power supply.
According to them, MSEDC had proposed to recover two charges toward cost incurred in issuing new connections - service connection charges (SCC) and service line charges.
The SLC covers cost of infrastructure required to be installed from points of interconnections of transmission lines and distribution network up to the distributing mains (from transmission lines to electric poles). On the other hand, the SCC is intended to cover cost of electric line connection to the point of supply at consumers' premises (from electric poles to households), the petition stated.
The Tribunal had erred in holding that if SLC was allowed to be recovered through tariff, it would amount to doubling of the recovery of expenses from consumers, it added.
The apex court today stayed an order of the Appellate Tribunal for Electricity that rejected Maharashtra State Electricity Distribution Company's plea to recover Service Line Charges through tariff.
A bench headed by Justice B N Agarwal also sought a response from Maharashtra Electricity Regulatory Commission on the company's plea that alleged the Tribunal had denied SLC which it was recovering since 1991.
MSEDC counsels Arun Jaitley and Ragvendra Srivastava said the tribunal had refused to allow the utility to recover the expenses incurred by it in providing any electric line or electric plant used for the purpose of providing power supply.
According to them, MSEDC had proposed to recover two charges toward cost incurred in issuing new connections - service connection charges (SCC) and service line charges.
The SLC covers cost of infrastructure required to be installed from points of interconnections of transmission lines and distribution network up to the distributing mains (from transmission lines to electric poles). On the other hand, the SCC is intended to cover cost of electric line connection to the point of supply at consumers' premises (from electric poles to households), the petition stated.
ADVERTISEMENT
The Tribunal had erred in holding that if SLC was allowed to be recovered through tariff, it would amount to doubling of the recovery of expenses from consumers, it added.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
