In Brief
This case involved a consolidated appeal by industrial consumers challenging the constitutionality of Regulation 45-B prescribing the fuel surcharge adjustment (FSA) formula used by Andhra Pradesh's electricity regulator. The appellants argued the formula was ultra vires as it included costs beyond fuel alone and violated the statutory embargo on frequent tariff changes. The Supreme Court upheld the regulation, holding that 'fuel surcharge' means a surcharge to meet all increased costs of generation and purchase, not merely fuel costs. The Court emphasized that FSA determination is a legislative function with limited scope for judicial review, and that different consumer classifications (including exclusion of unmetered agricultural consumption) are permissible. The appeals were dismissed."
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