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Informist, Monday, Jul. 14, 2025

 

NEW DELHI – The Supreme Court on Monday rejected the Uttar Pradesh Electricity Regulatory Commission's order to probe Torrent Power's role as a distribution franchisee in Agra. The top court said that the commission made a "serious error" in entertaining the petition filed by an individual and passing an order constituting an expert committee. The court set aside the Appellate Tribunal for Electricity, New Delhi's order that upheld the order by the commission.

 

The case has its genesis in Rama Shanker Awasthi Awasthi filing a petition before the commission questioning the legality, validity and propriety of the 2009 distribution franchisee agreement and the 2010 supplementary agreement entered into between Torrent Power and Dakshinanchal Vidyut Vitran Nigam Ltd., a distribution licensee. Awasthi had alleged that the price of supply as mutually decided between the parties was contrary to the Electricity Act, 2003, the terms of the franchisee agreement were not as per the license terms and conditions, and the input price of electricity had been decided without the audited accounts and was undervalued. The state regulatory commission, which ordered a probe, formed a committee to give its recommendations on the aspects of the yearly reduction in loss levels by Torrent Power, as well as the improvement in collection efficiency, with information as to how such benefits have been passed on to the consumers.

 

The apex court said that it was "dismayed to find" that Awasthi, though, had levelled serious allegations against the respondents and Torrent Power, had not provided any reasons or documentation in respect of how the latter violated tariff orders. Even the expert committee's report has not shed any light on how tariff orders were being contravened by Torrent Power, the court said. 

 

The court said the electricity commissions were required to consider matters of public interest, including matters relating to tariff determination, procurement of power processes, and utility management, which requires safeguarding of consumer interest alongside commercial principles. "We are, therefore, of the considered view that in the present case, the petition of the respondent no. 4 (Awasthi) filed under Section 128 (of the 2003 Act) does not fulfil the parameters of satisfaction required under the said Section," said the top court.

 

Although the Appellate Tribunal for Electricity, in its order, upholds the right of Dakshinanchal Vidyut as a distribution licensee, to appoint Torrent Power as a franchisee for Agra, yet it seeks to review the progress of the petitioner without there being any specific provision in the 2003 Act, allowing for such review, said the court. The electricity commission, as well as the tribunal, should have been mindful of the fact that it cannot micromanage a distribution franchisee transaction obliquely and question various aspects of the functioning of such franchisee, including its collection, efficiency and the manner or quantum of reduction of distribution losses, said the top court.

 

On Monday, shares of Torrent Power ended 0.3% lower at INR 1403.50 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Saji George Titus

 

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