S. S. JHA, J. ( 1 ) THE order in this appeal shall also govern the disposal of Misc. Appeals No. 2501 of 2000 and 2306 of 2000. ( 2 ) THESE appeals have been filed against the order dated 5-10-2000, passed by Madhya Pradesh Electricity Regulatory Commission (hereinafter referred to as the "regulatory Commission") Bhopal. By the circular dated 30-1-1999 the Board has issued directions for external electrification of colonies and provisions of new 33/11 KV sub-station. The Board while reviewing the matter about augmentation of power transformer or installation of new 33/11 KV substation for external electrification of colonies had decided that it shall be at the costs of coloniser in case the total capacity of the distribution transformer exceeds 900 KVA or in case the capacity of exceeding power transformer is inadequate to meet the proposed load. After review the Board has decided that the system strengthening charges of Rs. 2,300/- Per KV shall be payable by all coloniser /developers of the colony having connected load upto 2150 KV and for colonies having connected load beyond 2150 KV the coloniser /developer of the colony will be required to provide a new 33/11kv substation of suitable capacity. The Board has also decided that the work of augmentation/ additional power transformer shall be carried out by the Board at appropriate location for loads upto 2150 KV, wherever necessary, and /or whenever the system so warrants. If the load of the colony is less than 2150 KV and it is not feasible to supply from the existing system even by way of augmentation/ additional power transformer, the colonizer will have to construct a new sub-station of 1. 6 MVA/3. 15 MVA according to load requirement on the land provided by him along with 33 KV line at his costs. This notification was challenged before the Regulatory Commission alleging therein that after constitution of the Commission under the electricity Regulatory Commission Act, 1998 (hereinafter referred to as the 'act of 1998') no tariff can be levied by the Electricity Board. The circular dated 30-1-1999 is without jurisdiction. The Commission has held that the circular issued by the Board is without jurisdiction and against the public interest. The circular dated 30-1-1999 is without jurisdiction. The Commission has held that the circular issued by the Board is without jurisdiction and against the public interest. The Commission has also considered the need of the Board to mobilise resources for the purpose of development of electricity industry and to meet the growing need of large number of electricity consumers in newly established colonies and of multi-storied apartment dwellers. On self consideration by the Commission and having regard to the system strengthening by the Commission and having regard to the system strengthening charges it is necessary to take a holistic view and balance the interest of the Board and consumers. The reasonability of the charges, therefore, needs to be examined by an independent expert agency acceptable to both the parties, which can be entrusted with the task of examining the facts, figures and estimates in this regard and recommend the reasonable amount to protect interests of the potential consumers as also the Board. ( 3 ) ELECTRICITY Board, in its appeal, has submitted that the Commission has exceeded its jurisdiction by Striking out the notification dated 30-1-1999. The charges claimed are not the tariff and the Commission has no jurisdiction to interfere with the charges. The charges fixed by the Board cannot be interfered by the Commission. Sections 22 and 29 of the Act of 1998 do not empower the Commission to interfere with the circulars of the Board issued under S. 49 of the Electricity (Supply) Act, 1948 (hereinafter referred to as the 'supply Act' ). ( 4 ) COUNSEL for the appellant referred to the judgment in the case of M/s Hyderabad Vanaspati Ltd. v. Andhra Pradesh State Electricity Board, reported in AIR 1998 SC 1715 , and submitted that under S. 49 of the Act empowers the Board to prescribe such terms and conditions as it thinks fit for supplying electricity to any person other than a licensee. The section empowers the Board to frame uniform tariffs for such supply. Under S. 79 (j) the Board could have made regulation therefor but admittedly no regulation has so far been made by the Board. The terms and conditions of supply were notified in exercise of the powers conferred by S. 49 of the supply Act. This section in the Supply does not require the Board to enter into a contract with individual consumer. The terms and conditions of supply were notified in exercise of the powers conferred by S. 49 of the supply Act. This section in the Supply does not require the Board to enter into a contract with individual consumer. Even in the absence of an individual contract, the terms and conditions of supply notified by the Board will be applicable to the consumer and he will be bound by them. ( 5 ) COUNSEL for the appellant then referred to the judgment in the case of Graphite India Ltd. v. Durgapur Project Ltd. reported in AIR 1999 SC 3289 . This case relates to revision of tariff by company supplying electricity, a sanction-holder. ( 6 ) ON the other hand, respondent submitted that the Commission has jurisdiction to entertain the dispute, but once the Board has held that the notification is bad, the Board could not direct appointment of expert to determine the costs. In Misc. Appeal No. 2307/2000 Vidyut Upbhokta Association submitted that the order passed by the commission is justified and the appeals filed by the Electricity Board and that by the builder and colonizer should be dismissed. ( 7 ) V Only question involved in the case is whether by this notification dated 30-1-1999, the Board has enhanced the tariff, and the meaning of word "tariff". ( 8 ) FOR understanding the tariff it will be appropriate to go through the provisions of the Act of 1998 and Rules made thereunder. S. 22 and 29 of the Act of 1998 are reproduced below :-state to promote their working in an S. 22. Functions of State Commission- (1) Subject to the provisions of Chapter III the State Commission shall discharge the following functions, namely :- (a) to determine the tariff for electricity wholesale, bulk, grid or retail, as the case may be, in the manner provided in S. 29; (b) to determine the tariff payable for use of transmission facilities in the manner provided in S. 29; (c) to regulate power purchase and procurement process of transmission utilities and distribution utilities including the price at which the power shall be produced from the generating companies, generating stations or from other sources for transmission, sale distribution and supply in the State; (d) to promote competition, efficiency and economy in the activities of the electricity industry to achieve the objects and purposes of this Act. (2) Subject to the provisions of Chapter III and without prejudice to the provisions of sub-section (1) the State Government, may be notification in the Official Gazette confer any of the following functions upon the State Commission, namely :- (a) to regulate the investment approval for generation transmission, distribution and supply of power to the entities operating within the State; (b) to aid and advise the State Government, in matters concerning electricity generation, transmission, distribution and supply in the State; (c) to regulate the operation of the power system within the State; (d) to issue licences for transmission, bulk supply distribution or supply of electricity and determine the conditions to be included in the licences; (e) to regulate the working of the licensees and other persons authorised or permitted to engage in the electricity industry in the State to promote their working in an efficient, economical and equitable manner; (f) to require licensees to formulate perspective plans and schemes in coordination with others for the promotion of generation transmission, devise proper power purchase and procurement process; (g) to set standards for the electricity industry in the State including standards relating to quality, continuity and reliability of service; (h) to promote competitiveness and make avenue for participation of private sector in the electricity industry in the State and also to ensure a fair deal to the customers; (i) to lay down and enforce safety standards : (j) to aid and advise the State Government in the formulation of the State power policy; (k) to collect and record information concerning the generation, transmission, distribution and utilisation of electricity; (l) to collect and publish data and forecasts on the demand for, and use of, electricity in the State and to require the licensees to collect and publish such data; (m) to regulate the assets, properties and interest in properties concerning or related to the electricity industry in the State including the conditions governing entry into, and exit from the electricity industry in such manner as to safeguard the public interest. (n) to adjudicate upon the disputes and differences between the licensees and utilities and to refer the matter for arbitration. (n) to adjudicate upon the disputes and differences between the licensees and utilities and to refer the matter for arbitration. (o) to co-ordinate with environmental regulatory agencies and to evolve policies and procedures for appropriate environmental regulations of the electricity sector and utilities in the state; and (p) to aid and advise the State Government on any other matter referred to the State Commission by such Government; (3) The State Commission shall exercise its function in conformity with the national power plan. Section 29 = Determination of tariff by State Commission - (1 Notwithstanding anything contained in any other law, the tariff for intra-State transmission of electricity and the tariff for supply of electricity grid, wholesale, bulk or retail as the case may be in a State (hereinafter referred as the "tariff"), shall be subject to the provision of this Act and the tariff shall be determined by the State Commission of that State in accordance with the provisions of this Act. (2) The State Commission shall determineby regulations the terms and conditions for the fixation of tariff, and in doing so, shall be guided by the following namely:- (a) the principles and their applications provided in S. 46, 57 and 57-A of the electricity (supply) Act, 1948 (54 of 1948) and the Sixth Schedule thereto. (b) in the case of the Board or its successor entities, the principle under S. 59 of the Electricity (supply) Act, 1948 (54 of 1948); (c) that the tariff progressively reflects the cost of supply of electricity at an adequate and improving level of efficiency; (d) the factors which would encourage efficiency, economical use of the resources, good performance, optimum investments, and other matters which the State Commission considers appropriate for the purposes of this Act; (e) the interest of the consumers are safeguarded and at the same time, the consumers pay for the use of electricity in a reasonable manner based on the average cost of supply of energy (f) the electricity generation, transmission, distribution and supply are conducted on commercial principles ; (g) national power plans formulated by the Central Government. (3) The State Commission, while determining the tariff under this Act, shall not show undue preference to any consumer of electricity, but may differentiate according to the consumer's load factor, power factor, total consumption of energy during any specified period or the time at which the supply is required or the geographical position of any area, the nature of supply and the purpose for which the supply is required. (4) The holder of each licence and other persons including the Board or its successor body authorised to transmit, sell, distribute or supply electricity wholesale, bulk or retail, in the State shall observe the methodologies and procedures specified by the State Commission from time to time in calculating the expected revenue from charges which he is permitted to recover and in determining tariff to collect those revenues. (5) If the State Government requires the grant of any subsidy to any consumer or class of consumers in the tariff determined by the State Commission under this section the State Government shall pay the amount to compensate the person affected by the grant of subsidy in the manner the State Commission may direct, as a condition for the licensee or any other person concerned to implement the subsidy provided for by the State Government. (6) Notwithstanding anything contained in Ss. 57-A and 57-B of the Electricity (Supply) Act, 1948 (54 of 1948) no rating committee shall be constituted after the date of commencement of this Act and the Commission shall secure that the licensees comply with the provisions of their licence regarding the charges for the sale of electricity both wholesale and retail and for connections and use of their assets or systems in accordance with the provisions of this Act. ( 9 ) SECTION 22 in Chapter-V, which relates to powers and functions of State Commission sub-S. 22 (1) (a), provides for determining the tariff for electricity, wholesale, bulk, grid or retail as the case may be in the manner provided in S. 29. The Commission has also been empowered to determine the tariff payable for the use of transmission facilities as provided u/s. 29 and to regulate power purchase and procurement of process of transmission and distribution utilities including the price at which power shall be procured from generating companies, generating station or from other source of transmission, sale, distribution and supply in the State. Under Section 29 of the Act of 1998 in Chapter-VI, under the caption of energy tariff, the tariff is to be determined by the State Commission. On bare reading of S. 29 of the Act of 1998, it is apparent that the tariff would mean the tariff for intra-State transmission of electricity and tariff for supply of electricity grid, wholesale, bulk or retail, as the case may be, in a State. This tariff shall be subject to the provisions of the Act of 1998. Sub-Section (2) relates to determination and fixation of tariff by regulation. Sub-sec. (2) also relates to charges of electricity supply and consumption of the electric units. Section 30 provides that where the Commissions depart from the factors specified in clauses (a) to (d) of S. 28 and clauses (a) to (f) of sub-sec. (2) of S. 29, they shall record the reasons for such departure in writing. Rules have been framed under the Act of 1998, which are known as M. P. Electricity Regulation Commission (Conduct of Business) Regulations 1999. From perusal of Regulation No. 54 it is apparent that the Commission shall involve in determination of tariff for wholesale, bulk, grid or retail supply of electricity and intra-state transmission of electricity. In regulating power purchase and procurement by the transmission utilities and distribution utilities and in determination of price at which power shall be purchased from generating companies, Generating Stations or other sources. This will be governed under provision of S. 22 of the Act of 1998 and as per terms and conditions for fixation of tariff contemplated in S. 29 of the Act of 1998. From the perusal of the Act and Regulation, it is apparent that the Commission is empowered to determine the tariff for purchase of electricity and other charges pertaining to procurement by transmission utilities and distribution utilities. Therefore, the tariff cannot be taken into broad sense as has been taken by Commission by adopting definition from the "oxford Dictionary". System strengthening charges do not relate to tariff of wholesale, bulk, grid or retail supply of electricity and intra-State transmission of electricity. Therefore, the tariff cannot be taken into broad sense as has been taken by Commission by adopting definition from the "oxford Dictionary". System strengthening charges do not relate to tariff of wholesale, bulk, grid or retail supply of electricity and intra-State transmission of electricity. The notification dated 30-1-1999 is issued by the electricity Board wherein charges for installation of power transformer or for installation of new 33/11 KV sub-station for external electrification of the colonies at the costs of colonizer and fee has been fixed where load is after 2150 or above 2150 KV. The charges so levied cannot be said to be tariff for consumption of electricity or being load of electric supply the word 'tariff' has to be construed in terms of the Act and Regulation framed thereunder. ( 10 ) THE Regulatory Commission is empowered to determine the tariff under Ss. 22 and 30 of the Act of 1998. Section 22 relates to determination of tariff for electricity, wholesale, bulk, grid or retail, as the case may be, in the manner provided in S. 29 of the Act of 1998. The Commission is also empowered to determine the tariff payable for the use of the transmission facilities in the manner provided in Section 29 and to regulate power purchase and procurement process of the transmission utilities and distribution utilities including the price at which the power shall be procured from the generating companies, generating stations or from other sources for transmission, sale, distribution and supply in the State. On reading of Sections 22 and 29 of the Act of 1998 and the provisions of Sections 46, 57 and 57-A of the Supply Act and Sixth Schedule thereto, and Section 59 of the Supply Act, it is apparent that the word "tariff" used in the Act would mean tariff for the supply of the electricity whether wholesale, bulk, grid or retail or tariff for regulating power purchase and procurement process of transmission. Therefore, power of the Regulatory Commission for determining the tariff is limited to the provisions mentioned in Sections 22 and 29 of the Act of 1998. The Commission cannot interfere with the matter of fixation of charges by the Electricity Board for external electrification of colonies and charges for installation of new 33/11 KV sub-station or for augmentation of power transformer. The Commission cannot interfere with the matter of fixation of charges by the Electricity Board for external electrification of colonies and charges for installation of new 33/11 KV sub-station or for augmentation of power transformer. The Board has reviewed the policy and decided that the system strengthening charges at the rate of Rs. 2,300/- perKV shall be payable by all the colonizers and developers of the colony having connected load up to 2150 KV and if the colony is having connected load beyond 2150 KV then the developer of the colony will be required to provide new 33/11 KV sub-station of suitable capacity at his costs and also provide land for sub-station. Thus charges for construction of sub-station or power transformer will not fall within the definition of "electricity tariff". The wide definition of word "tariff" cannot be enforced as the Regulatory Commission has limited jurisdiction in relation to supply of electricity and determination of tariff mentioned in Section 22 and 29 of the Act of 1998 and the relevant provisions of the Act. The notification also provides that the system strengthening charges shall not be levied in such cases where colonizers are required to construct new 33/11 KV sub-station at their costs. Thus, the charges for construction of sub-station will not fall within the definition of "electricity tariff". Therefore, the Regulatory Commission has exceeded in its jurisdiction by setting aside the order dated 30-1-1999 passed by the Board. The Commission has jurisdiction to enquire into the tariff regarding rate of supply of electricity and no other charges on consolidated reading of Sections 22 and 29 of the Act of 1998 and Regn. 54 of Regulations. ( 11 ) IN the result, Misc. Appeals No. 2306 and 2307 of 2000 succeed and are allowed and Misc. Appeal No. 2501/2000 is dismissed. ( 12 ) IT is open for respondents to approach the Board if they feel that the charges are excessive or otherwise. ( 13 ) THE respondents have further submitted that by subsequent notification Board has changed the condition and thereby respondents are not liable to pay the charges. The respondents further submitted that by way of subsequent notification the Board has recognised unauthorised colonies without asking for strengthening charges. The Board has no jurisdiction to discriminate with the colonizers, who have constructed the colonies or multi-storied buildings according to law. The respondents further submitted that by way of subsequent notification the Board has recognised unauthorised colonies without asking for strengthening charges. The Board has no jurisdiction to discriminate with the colonizers, who have constructed the colonies or multi-storied buildings according to law. The respondents are in better footing than unauthorised colonizers. It will be open for the respondents to approach the Board for modification or change in strengthening charges on the basis of subsequent notification. The Board shall take into consideration that if some concessions are given to unauthorised colonizers then the Board should give similar facility to the colonizers who have constructed the colonies or multi-storied buildings after following due process of law. On account of following due process of law no colonizers should be punished or should not be discriminated with unauthorised colonizers. There should not be any feelings amongst the people that the person acting according to law is punished whereas unauthorised activity is pardoned by the appellant-Board. The appellant-Board shall consider all the aspects and decide the dispute if objection is raised by the respondents before the Board. ( 14 ) IN the circumstances of the case, there shall be no order as to costs. Order accordingly. .