In Brief
Arc furnace industries in Punjab challenged a 17.5% electricity surcharge imposed on units drawing high-load power (above 2500 KVA) at 11 KV supply instead of switching to mandated 66 KV. The industries relied on a 1999 government circular exempting units established before June 1995. The Supreme Court held that after the Electricity Act, 2003 came into force, tariff fixation became a purely statutory function of the Regulatory Commission. Prior administrative concessions cannot estop the Commission's statutory power unless explicitly recognized in subsequent tariff orders. The Commission's consistent levy of the surcharge across multiple orders is a justified compensatory mechanism to recover losses. The Court dismissed all appeals, affirming the High Court's dismissal of writ petitions and the Appellate Tribunal's upheaval of the reduced surcharge rates (7% and 10%).
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