In Brief
Two distribution licensees—Tata Power Company and BSES/Reliance Energy (later Adani Electricity Mumbai)—disputed the sharing of standby power charges. TPC had a standby arrangement with MSEB and separately provided standby to BSES/REL. The core dispute was whether the cost should be split 50:50 or based on actual usage. The Supreme Court upheld the APTEL's decision that BSES/REL should pay only 23% of the standby charges (with TPC bearing 77%), determined by a regulatory commission based on actual peak load requirements and utilisation. The Court held that tariff determination falls exclusively within the electricity regulator's jurisdiction post-1998, invalidating any unilateral notice by TPC to revise charges."
The lawyer headnote and full judgment text are available to registered users.