SC upholds CERC order enforcing ABT rates

New Delhi, Aug 19 (UNI) The Supreme Court has upheld the order of the Central Electricity Regulatory Commission (CERC) enforcing Availability Based Tariff (ABT) rates to impose grid discipline on state electricity boards drawing power beyond their allotted quota.

A bench, comprising Justices H K Sema and Lokeshwar Singh Panta, dismissed the appeal of the Central Power Distribution Company, earlier known as Andhra Pradesh Electricity Board.

The CERC, through its impugned order dated July 4, 2005, had implemented the new scheme of imposing ABT scheme charges replacing the earlier scheme of charging fixed rates from the state electricity boards drawing power from Simhadri SPTS Thermal Station of the National Thermal Power Corporation(NTPC).

The decision to implement the ABT scheme was taken after consulting all the state electricity boards and the scheme also includes the levy of Unsheduled Interchange of power (UI charges).

These charges are imposed according to deviation from the allotted quota.

According to CERC, unchecked withdrawal of power was causing wide fluctuations, which some time led to the dripping of the entire grid leading to blackout in large area and was also harmful to the interests of consumers whose electrical appliances were damaged due to wide and sudden fluctuations.

While dismissing the appeal the apex court noted, ''As already noticed the central commission has the power and function to evolve commercial mechanism such as imposition of UI charges to regulate and discipline. It is well settled that a power to regulate includes within it the power to inforce.

''In the facts and circumstances as alluded and as per the scheme of the Eletricity Act of 2003 mentioned above, the central commission has the plenary power to regulate the grid particularly in the context of the grid being integreted and connected across the region comprising of more than one state.

''The state grid cannot be isolated and can be seen as independent from the region.

''There is no merit in this appeal and is accordingly dismissed.'' The apex court upheld the judgement of appellate tribunal for electricity holding that CERC has the power to regulate not only the inter-state generation supply and distribution of power but can also control intra-state generation and distribution of power.

UNI