In Brief
Reliance Infrastructure challenged the Maharashtra Electricity Regulatory Commission's Regulation 44.2(d), which prescribed a more stringent Station Heat Rate norm for its Dahanu thermal power plant compared to other similar units. The appellant claimed this discriminated against it for operating efficiently. The Supreme Court upheld the regulation, holding that regulatory commissions have broad discretion to set operating norms based on complex factors including past performance, efficiency levels, and policy objectives. The Court emphasized that tariff fixation is an expert function, and courts should not interfere absent manifest unreasonableness or procedural breaches. The Court also clarified that regulations can only be challenged via writ petitions under Article 226, not through appellate tribunals, and set aside costs imposed on the appellant for pursuing this remedy.
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