Judgment : 1. The petitioner is the consumer of the second respondent. The petitioner challenged the validity and illegality of the ‘Karnataka Electricity Regulatory Commission (Recovery of Expenditure for Supply of Electricity) Regulations 2004 as being violative of Sections 42,45 & 46 of the Karnataka Electricity Act, 2003. The provisions of Section 42(1), 45 & 46 are extracted hereunder for convenient reference: 42. Duties of distribution licensees and open access – (1) It shall be the duty of a distribution licensee to develop and maintain an efficient co-ordinated and economical distribution system in his area of supply and to supply electricity in accordance with the provisions contained in this Act. 45. Power to recover charges – (1) Subject to the provisions of this Section, the prices to be charged by a distribution licensee for the supply of electricity by him in pursuance of Section 43 shall be in accordance with such tariffs fixed from time to time and conditions of his licence. (2) The charges of electricity supplied by a distribution licensee shall be - (a) fixed in accordance with the methods and the principles as may be specified by the concerned State Commission; (b) published in such manner so as to give adequate publicity for such charges and prices. (3) The charges for electricity supplied by a distribution licensee may include - (a) a fixed charge in addition to the charge for the actual electricity supplied; (b) a rent or other charges in respect of any electric meter or electrical plant provided by the distribution licensee. (4) Subject to the provisions of Section 62, in fixing charges under this Section a distribution licensee shall not show undue preference to any person or class of persons or discrimination against any person or class of persons. (5) The charges fixed by the distribution licensee shall be in accordance with the provisions of this Act and the regulations made in this behalf by the concerned State Commission. 46. Power to recover expenditure – The State Commission may ,by regulations, authorize a distribution licensee to charge from a person requiring a supply of electricity in pursuance of Section 43 any expenses reasonably incurred in providing any electric line or electrical plant used for the purpose of giving that supply. 2. 46. Power to recover expenditure – The State Commission may ,by regulations, authorize a distribution licensee to charge from a person requiring a supply of electricity in pursuance of Section 43 any expenses reasonably incurred in providing any electric line or electrical plant used for the purpose of giving that supply. 2. Sri Sivappa, Senior Counsel for the petitioners submitted that Section 42(1) mandates that is the duty of the second respondent to develop and maintain an efficient co-ordinated and economical distribution system in his area to supply electricity in accordance with the provisions of the Act. The provisions of Section 45(3) enables the second respondent to collect the fixed charge in addition to the charge of the actual electricity supplied and also entitled to collect rent or other charges in respect of any electric meter or electrical plant provided by the distribution licence. 3. With reference to Section 46, it is contended that the licence should supply electricity and can recover expenses reasonably incurred for providing any electric line or electrical plant used for the purpose of giving that supply. Section 46 applies to a case where a new electric line is drawn or electrical plant is installed for the purpose of giving supply the beneficiaries of that supply alone shall have to be charged. The second respondent under Section 45(3) while collecting fixed charge would collect the capital cost of the infrastructure, maintenance, supply and operational cost. The second respondent is not entitled to collect any amount fixed as one time measure from the consumers who are not given the benefit of any new electric line or new electrical plant and any such collection from any customer would amount to duplicated demand. Therefore, the impugned regulation, which permits the electricity supply companies to collect as one time charges, the capital cost of the electric lines and electrical plant from the consumers in general who apply for fresh connection or for supply of additional power in illegal and contrary to provisions of the Act. 4. The counsel for the first respondent strenuously contended that the impugned regulations is perfectly in consonance of the provisions of the Electricity Act. The fixed charges collected under Section 45(3) and the cost of providing electric lines and electrical plant provided under Section 46 are two distinct categories. The fixed charges under Section 45(3) is something in the nature of minimum billing. The fixed charges collected under Section 45(3) and the cost of providing electric lines and electrical plant provided under Section 46 are two distinct categories. The fixed charges under Section 45(3) is something in the nature of minimum billing. The said fixed charges would include the network, establishment costs and also it includes the distribution and transmission costs. The charges of minimum billing is to see that any consumer even if he does not use shall have to pay minimum charges towards the maintenance of the network of distribution. 5. With regard to Section 46, it is submitted that the new electric lines drawn and new electrical plants are erected. In order to reasonably and equally distribute the cost of such expenditure, minimum charge fixed by the KERC is collected by the electricity supply companies as one time measure from the consumer. If the contention that in respect of electric lines and electrical plants, collection of the cost has to be made only from the person who gets the benefit of such a installation is untenable. 6. On thorough consideration of the arguments made at the bar and on going through the provisions, it becomes explicit that the charges of electricity supplied under Section 45(3) and the charges collected under Section 46 are totally in different situations. The contention that the fixed charge collected under Section 45(3) would include the charges incurred for establishing electric lines and electrical plant in a phased manner is untenable. The condition that any development of electric line and electrical plant in a phased manner in different areas should enable the distribution company to collect only from the people who take the benefit of such particular installation is untenable. 7. The power generation and power distribution is enjoined as a duty on the part of generating and distribution companies and they have no independence in fixing the charges. The distribution companies are obliged to comply with the tariffs fixed by the first respondent, which the Regulatory Authority but while fixing the tariffs, call for public objections and after public hearing, taking into consideration, the economic viabilities fixed, the tariff rates, the power distribution system is being extended to remote rural areas where a fresh power lines have to be drawn to ensure power supply and distribution. 8. 8. It the argument of the counsel for the petitioner has to be accepted, the rural areas which are now to have the benefit of the phased development of power supply have to bear the brunt of price, which is not in the capacity of the poor rural inhabitants. Therefore, in order to equally distribute the cost of installations for power supplies, in a phased manner, some reasonable amount is fixed by the first respondent, which has to be collected from every customer who apply for power supply and also a customer who demands additional power supply in a proportionate manner, the charges are collected. 9. Therefore, the contention that the regulation permitting collection of cost of electric line and electrical plant by way fixed amount is a one time basis for providing power supply under Section 46 for customers in general cannot be called as a duplicated demand and cannot be contended that such collection amounts to contravention of the provisions of the Electricity Act. In that view of the matter, petitions are dismissed.