The Appellate Tribunal was hearing an appeal against the tariff order of the Andhra Pradesh Electricity Regulatory Commission, excluding the ferro alloys industries from availing open access. This was for reasons that substantial benefits were given to the said industries by way of reduced tariff, and therefore the refusal of open access was justified.
The Appellate Tribunal has rendered a split verdict on the issue. The Learned Technical Member has held that open access as a statutory right can be refused only for technical constraints of the system. It has further been held that a consumer is free to take electricity from a source of its own choice, and the State Commission cannot make this commercial decision for the consumer, merely because the State Commission feels that the tariff fixed for such category of consumers is low and competitive. Forcing the consumer to procure only from the distribution licensee is anti-competitive and against the very spirit of the Electricity Act. The expression ‘non-discriminatory’ in Section 2(47) prohibits the exclusion of one category of consumers from availing open access.
The Learned Judicial Member has held that the right of a consumer for open access is subject to all relevant factors that may be considered by the State Commission. The expression ‘all relevant factors’ in Section 42(2) is of wide amplitude and can include factors in the overarching consideration being the larger public interest. The justification given by the State Commission that since the ferro alloys industries have been granted a tariff lower than the cost of supply and further demand charges not being imposed, allowing open access to such consumers would result in the loss of tariff being imposed on the other consumers in the State has been accepted.
The matter has been referred to the Learned Chairperson in terms of Section 123 of the Electricity Act for arrive at the majority decision
Read the two opinions of the Learned Technical Member and Learned Judicial Member at:
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