Brakes India Limited, Foundry Division v. Tamil Nadu Generation & Dist Corporation Limited (TANGEDCO)
2012-04-26
R.SUDHAKAR
body2012
DigiLaw.ai
Judgment :- 1. This Writ Petition No.7897 of 2012 is filed praying to issue a Writ of Certiorari, calling records of the second respondent's impugned Memo.No.CE/Comml./EE/R&C/AEE/F.R&C/D 1/12 dated 12.03.2012 culminating in the third respondent's Lr.No.SEV/DFC/RCS/AS/A1/F.R& dated 17.03.2012, quash the same. 2. The prayer sought for in all the writ petitions are identical. Hence, by consent, all the writ p are taken up together for final disposal. 3. Thiruvalargal AR.L.Sundaresan, learned senior counsel for R.S.Pandiyaraj, Krishna Srin M/s. Ramasubramaniam and Associates, N.L.Raja, V.Ramakrishnan, N.Mahendran, D.Ravic C.S.Krishnamoorthy, Satish Parasaran, Gupta, S.Sivanandam, K.Seshadri, P.Elang Ms.P.T.Asha for M/s.Sarvabhauman Associates, appears for the pet Mr.A.Navaneethakrishnan, learned Advocate General appears for the respondents. 4. The batch of writ petitions have been filed by petitioners companies who are consumers Tension Electricity. They also buy power through third party source, like, windmill generato through the Open Access facility provided by the respondents. The open access system as under Section 2(47) of the Electricity Act, 2003 reads as follows:- “(47) Open access means the non- discriminatory provision for the use of transmission distribution system or associated facilities with such lines or system by any licensee or consum person engaged in generation in accordance with the regulations specified by the App Commission;” The first respondent is the Distribution Licensee. Section 42 specifies the duties of Dist Licensee with regard to open access as follows:- “42. (Duties of distribution Licensee and open access):- (1) It shall be the duty of a distribution licensee to develop and maintain an efficient, co-ordina economical distribution system in his area of supply and to supply electricity in accordance w provisions contained in this Act.
Section 42 specifies the duties of Dist Licensee with regard to open access as follows:- “42. (Duties of distribution Licensee and open access):- (1) It shall be the duty of a distribution licensee to develop and maintain an efficient, co-ordina economical distribution system in his area of supply and to supply electricity in accordance w provisions contained in this Act. (2) The State Commission shall introduce open access in such phases and subject t conditions, (including the cross subsidies, and other operational constraints) as may be s within one year of the appointed date by it and in specifying the extent of open access in suc phases and in determining the charges for wheeling, it shall have due regard to all relevant including such cross subsidies, and other operational constraints:” Provided that such open access shall be allowed on payment of a surcharge in addition charges for wheeling as may be determined by the State Commission: Provided further that such surcharge shall be utilised to meet the requirements of current cross subsidy within the area of supply of the distribution licensee : Provided also that such surcharge and cross subsidies shall be progressively reduced in the as may be specified by the State Commission: Provided also that such surcharge shall not be leviable in case open access is provided to a who has established a captive generating plant for carrying the electricity to the destination of use: Provided also that the State Commission shall, not later than five years from the commencement of the Electricity (Amendment) Act, 2003, by regulations, provide such open to all consumers who require a supply of electricity where the maximum power to be made a at any time exceeds one megawatt.” Clause (1) of Section 42 sets out the duties of the Distribution Licensee to develop and main efficient, co-ordinated and economical electricity distribution system in the area of supply supply electricity in accordance with the provisions of the Act. Clause (2) of Section 42 enab Commission to introduce open access in a phased manner and subject to conditions as specified. The provision of open access by the proceeding of the Regulatory Commission i dispute. 5.
Clause (2) of Section 42 enab Commission to introduce open access in a phased manner and subject to conditions as specified. The provision of open access by the proceeding of the Regulatory Commission i dispute. 5. In the present cases, the Chief Engineer in exercise of his power under the Tamil Nadu El Distribution Code and by invoking Regulation 38 has issued certain directions to the HT Con consuming electricity under open access system stating that they will be permitted to draw under open access system only after they comply with the various directions contained in the dated 12.3.2012. The memo, inter alia, states that the HT Consumers/petitioners will have t Availability Base Tariff Meters (in short ABT Meters) as a pre-condition for availing the open facility. The ABT Meters so installed should also be as per CEA regulations. The memo specifies that an undertaking as per format should also be submitted for drawing electric powe open access system. According to the petitioners, among other clauses, the clauses IX and XI memo is unreasonable and arbitrary. It is objected to by the petitioners saying that respondent does not have the power to impose these conditions including the direction to fur undertaking, without getting appropriate orders from the Tamil Nadu Electricity Reg Commission, viz., TNERC. This primarily appears to be the serious contention raised on beha petitioners. 6. The respondents while refuting the above, have filed a counter-affidavit and supported the by stating that the first respondent has power under Regulation 38 of the Tamil Nadu El Distribution Code, 2004 to impose conditions as contained in the memo dated 12.3.2012. 7. Learned Advocate General relying upon the Tamil Nadu Electricity Regulatory Com Notification No.TNERC/DC/8-15 dated 17.2.2012, referred to the amendment made to th Nadu Electricity Distribution Code. He drew the attention of the Court to the amendment of Re 32 and it reads as follows:- “3. Amendment of Regulation 32:- In regulation 32 of the Principal Code, after sub-regulation (1) and the entries relating ther following sub-regulation and the entries shall be inserted, namely:- “(1A) In case of open access consumer, ABT compliant meter with facilities to record exp import of energy shall be provided both at the generator and consumer ends in accordance w Central Electricity Authority (Installation and Operation of Meters) Regulations, 2006” Therefore, it is contended that the Memo directing the installation of ABT Meter is in order.
8. Learned Advocate General brought to the attention of this Court the Notification dated 17 issued by the Central Electricity Authority in exercise of power under sub-section (1) of Sec and clause (e) of section 73 read with sub-section (2) of section 177 of Electricity Act, 20 stated that the specification of Meters including ABT Meter is as per the standards prescribed Central Electricity Authority. He therefore, justified the memo stating that it is only on the basi TNERC's Order that the memo has been issued directing the petitioners/HT Consumers to in ABT Meters as a condition precedent to avail the open access facility. He stated that the unde is in consonance with the order of the TNERC. 9. Thiruvalargal AR.L.Sundaresan, appearing for R.S.Pandiyaraj, Krishna Srinivas fo Ramasubramaniam and Associates, N.L.Raja, V.Ramakrishnan, N.Mahendran, D.Ravic C.S.Krishnamoorthy, Satish Parasaran, Gupta, S.Sivanandam, K.Seshadri, P.Elang Ms.P.T.Asha for M/s.Sarvabhauman Associates, appearing for the petitioners stated that they disputing or objecting to the installation of ABT Meters as per the order of the TNERC and s by the Central Electricity Authority as per Notification dated 17.3.2006. TNERC should, h pass an order as to the location of meters as per the Notification dated 17.3.2006. Clause 6 a of the Notification reads as follows:- “6. Ownership of meters:- (1) Interface meters (a) All interface meters installed at the points of interconnection with Inter-State Transmission (ISTS) for the purpose of electricity accounting and billing shall be owned by CTU. (b) All interface meters installed at the points of interconnection with Intra-State Transmission excluding the system covered under sub-clause (a) above for the purpose of electricity acc and billing shall be owned by STU. (c) All interface meters installed at the points of inter connection between the two licensees ex those covered under sub-clauses (a) and (b) above for the purpose of electricity account billing shall be owned by respective licensee of each end. (d) All interface meters installed at the points of inter connection for the purpose of el accounting and billing not covered under sub-clauses (a), (b) and (c) above shall be ow supplier of electricity. (2) Consumer meters (a) Consumer meters shall generally be owned by the licensee. (b) If any consumer elects to purchase a meter, the same may be purchased by him purchased by the consumer shall be tested, installed and sealed by the licensee.
(2) Consumer meters (a) Consumer meters shall generally be owned by the licensee. (b) If any consumer elects to purchase a meter, the same may be purchased by him purchased by the consumer shall be tested, installed and sealed by the licensee. The consum claim the meter purchased by him as his asset only after it is permanently removed from the of the licensee. (c) All consumer meters shall bear BIS mark, meet the requirements of these regulations an additional features as approved by the Appropriate Commission or pursuant to the programme of the Appropriate Government. To facilitate this, the licensee shall provide a makes and models of the meters. (3) Energy accounting and audit meters Energy accounting and audit meters shall be owned by the generating company or licensee case may be. 7. Locations of meters:- (1) The location of interface meters, consumer meters and energy accounting and audit mete be as per the Table given below: Provided that the generating companies or licensees may install meters at additional locations systems depending upon the requirement. Table (i) Consumers who have interconnection with the Inter-State Transmission System or Int Transmission System and have been permitted open access by the Appropriate Commission provided with interface meters. (ii) For consumers connected to distribution system and permitted open access, provision of in meters may be made as per the Regulations or directions of the Appropriate Commission. (iii) The scheme for location of interface meters shall be submitted to the CTU or the STU or t or the STU or the licensee by owner of the meter in advance, before the installation of the sche (emphasis supplied) Therefore, if the respondents want to implement the directions of the Central Electricity Auth that of the State Commission in terms of the Amendment Notification dated 17.2.2012 with re installation of ABT compliant meters, they have to get an appropriate order from the TNERC. 10. On a reading of the CEA Notification dated 17.3.2006 it is clear that different types of mete been specified by the Central Electricity Authority and it is also specified that the meters shou BIS mark, meet the requirements of regulations and should have additional features as appro the Appropriate Commission or the Appropriate Government.
10. On a reading of the CEA Notification dated 17.3.2006 it is clear that different types of mete been specified by the Central Electricity Authority and it is also specified that the meters shou BIS mark, meet the requirements of regulations and should have additional features as appro the Appropriate Commission or the Appropriate Government. To facilitate this, the resp licensee has to provide the list of makes and models of the meters for the benefit of the cons Insofar as location of meter, in respect of consumer directly connected to the Int Transmission System who are to be covered under ABT and have been permitted open ac the Appropriate Commission, it should be in accordance with clause 7(D). A decision on this w to be taken by the Appropriate Commission, namely, TNERC. The CEA Notification dated 17 clearly speaks about a decision by the Appropriate Commission, viz., TNERC. In this ca installation of the ABT Meters insofar as the consumers under the open access system, the plea of all the petitioners is that the respondent board has not given specifications, like mak ABT meters, name of the manufacturer, type of the meter, technical specification, the ca method, calibration agency, etc. This plea appears to be bona fide, as admittedly, responden not indicated all these parameters before issuing the memo under challenge. In fact, all these were produced before this Court after a specific direction was issued. This Court, however, d to go into the technical aspects as it is not for this court to delve on those issues for the presen 11. The grievance expressed by the petitioners as above appear to be justified in view of the nature of the undertaking, more particularly, paragraph 1, which speaks of ABT compliant energy meters as a pre-condition. It speaks about compliance of the guidelines issued Superintending Engineer concerned. In the absence of specification, like the model number, m the meter, name of manufacturer and other technical parameters, it may not be appropriate respondents to insist on the petitioners to comply with the memo.
It speaks about compliance of the guidelines issued Superintending Engineer concerned. In the absence of specification, like the model number, m the meter, name of manufacturer and other technical parameters, it may not be appropriate respondents to insist on the petitioners to comply with the memo. Unless the respondents ap the State Commission for a decision and the respondent board gives the details requ implementation pursuant to the direction of the State Commission, the respondent cannot d petitioners the open access system on the ground that ABT Meters have not been insta therefore, becomes necessary for the respondent distribution licensee to approach the Commission for appropriate orders with regard to the installation of ABT Meters and proceed as per the directions issued by the Commission. The Advocate General appearing for the resp distribution licensee on instruction agreed to approach the State Commission for appropriate stating that they will place their stand which will be on the basis of the Memo and undertaking. 12. Insofar as the issues that are not covered by the Order of the Central Electricity Authority now raised by the first respondent in memo, it can be addressed before the State Commis obtaining appropriate orders. To this course of action the respondents licensee is agreeable a that the memo and the undertaking will be placed before the Commission within a period o days from the date of receipt of a copy of this order for appropriate orders by the Commissi installation of ABT Meters by HT Consumers through open access system will proceed thereo on the direction of the Commission. 13. The Commission while considering the claim of the respondents shall ensure that app notice is issued to all the writ petitioners and hear such other person, who may approa Commission as per procedure. The Commission may consider taking necessary steps to noti others as may be necessary so as to avoid allegation of violation of principles of natural justice 14. Till such time, the Commission passes the final order in this issue, the respondents shall n on the installation of the ABT Meters as a pre-condition for availing open access facili respondent shall not insist that the HT Consumers/petitioners should give an undertaking purpose of issuing NOC for availing the open access facility. It is desirable that the Com decides the issue expeditiously considering the larger interest of both the HT Consumers respondents Distribution Licensee. 15.
It is desirable that the Com decides the issue expeditiously considering the larger interest of both the HT Consumers respondents Distribution Licensee. 15. All the Writ Petitions are ordered as above. No costs. Consequently, connected miscel petitions are closed.