Appeal No. 29 of 2016. Case: Tata Steel Limited Vs Jharkhand State Electricity Regulatory Commission. Uttarakhand High Court

Case NumberAppeal No. 29 of 2016
CounselFor Appellant: Mr. M.G. Ramachandran, Mr. Ankit Parhar and Mr. Ankit Jain, Advs. and For Respondents: Mr. Farrukh Rasheed, Adv.
JudgesMrs.Ranjana P. Desai, Chairperson and Mr. I.J. Kapoor, Technical Member
IssueElectricity Act, 2003 - Section 172
Judgement DateSeptember 07, 2016
CourtUttarakhand High Court


Mr. I.J. Kapoor, Technical Member

  1. The present A ppeal is filed by M/s. Tata Steel Limited (hereinafter referred to as "Appellant") under Section 111 of the Electricity Act, 2003, against the Impugned Order dated 31.05.201 5 passed in the Case No. 23 of 2014 by the Jharkhand State Electricity Regulatory Commission (hereinafter referred to as "State Commission") whereby the State Commission has decided

    (i) True up for the FY 2013- 14

    (ii) Annual Performance Review ("APR") for FY 2014- 15; and

    (iii) Revised Annual Revenue R equirements ("A RR") and tariff for FY 2015- 16

  2. The Appellant is an integrated steel manufacturing company registered under the provisions of the Companies Act, 1956 having its premises at Jamshedpur in the State of Jharkhand and has a largest integrated steel manufacturing plant at Jamshedpur having a capacity of over 9.7 million ton nes of hot and cold rolled flat and long products.

  3. The Respondent in the present Appeal is the State Commission for the State of Jharkhand exercising powers and discharging functions under the provisions o f the Electricity Act, 2003.

  4. The Appellant has been managing the power distribution system in Jamshedpur area since 1923 in accordance with the then prevailing Electricity Act, 1910 which was repealed after the enactment of Electricity Act, 2003.

  5. The State Commission by its order dated 24.03.200 4 permitted the Appellant to continue to operate in Jamshedpur area in compliance of Section 14 read with Section 172 of the Electricity Act, 2003.

  6. Pursuant to notification of the State Commission''s Regulati ons, 2003, the Appellant again initiated the process for grant of distribution license which was granted on 12.01.2006 w.e.f. 24.03.2004.

  7. The Appellant provides and maintains basic civil amenities in the city of Jamshedpur primarily through its 100% sub sidiary JUSCO, including the maintenance of electricity distribution services in its licensed area.

  8. The Appellant had earlier filed Appeal No. 203 of 2014 before this Tribunal against the Tariff Order dated 04.06.2014 passed by the State Commission. The Appellant had raised the following three specific issues on the Tariff Order dated 04.06.2014 passed by the State Commission

    (a) Distribution losses to be allowed:

    (b) Carrying cost to be allowed:

    (c) Tax pass through to be considered: As regards the fi rst issue in respect of distribution loss level, this Tribunal vide its judgment dated 19.02.2016 in Appeal No. 203 of 2014 decided the distribution loss level to be considered should be the normative one and the actual one and should be strictly in accordance with...

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