In Brief
Jayasawals Neco Ltd, a power-intensive industrial consumer, challenged the Chhattisgarh Electricity Regulatory Commission's tariff order that imposed a minimum monthly charge equivalent to 10% of load factor for 2005-2006. The Supreme Court held that abolition of minimum charges is not an abstract legal principle but depends on factual analysis of consumption patterns and satisfaction of conditions precedent. The Court found that the appellate tribunal had failed to properly address the Commission's prior decision abolishing minimum charges for similar consumers. The appeal was allowed and the matter remitted to the Commission for fresh determination based on comprehensive factual analysis within four months.
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