In Brief
Gujarat Ambuja Cements Ltd. set up a cement manufacturing unit in Himachal Pradesh under the State's industrial incentive scheme and became entitled to a four-year power tariff freeze from commencement of commercial production (26 September 1995). The electricity board later levied Peak Load Exemption Charge (PLEC) for supplying power during peak load hours as a special dispensation. The High Court allowed the company's writ petition, holding PLEC was part of the tariff and thus reimbursable. The Supreme Court reversed this, holding that PLEC was a special surcharge for exceptional supply—not part of normal tariff. The tariff freeze applied only to regular electricity charges. Any PLEC reimbursement already made must be refunded with 6% interest.
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