Torrent Power Limited vs U.P. Electricity Regulatory Commission & Ors.

Headnote AI-drafted · Editorially reviewed

The appellant, Torrent Power Limited, was appointed as a Distribution Franchisee by Dakshinanchal Vidyut Vitran Nigam Limited (DVVNL) under a Distribution Franchisee Agreement dated 18.05.2009 and a Supplementary Agreement dated 17.03.2010 for distribution of electricity in the urban area of Agra. Respondent No. 4 filed a petition before the Uttar Pradesh Electricity Regulatory Commission (UPERC) challenging the legality and validity of the said agreements, alleging that prior approval of the UPERC had not been sought for the transfer of utility to the appellant, in violation of Section 17 of the Electricity Act, 2003. The appellant raised preliminary objections as to jurisdiction and maintainability, which were dismissed by the UPERC on grounds of public interest. The Appellate Tribunal for Electricity (APTEL) affirmed the UPERC's order, dismissing the appellant's appeal under Section 111 of the Act, 2003.

The Supreme Court, in this statutory appeal under Section 125 of the Electricity Act, 2003, examined three principal questions: (i) whether Electricity Regulatory Commissions (ERCs) have jurisdiction to consider matters in public interest; (ii) whether the petition filed by respondent No. 4 under Section 128 of the Act, 2003 was maintainable in law; and (iii) whether ERCs have jurisdiction to review the functioning of a distribution licensee supplying electricity through a franchisee. The Court undertook a detailed analysis of the relevant provisions of the Electricity Act, 2003, including Sections 14, 17, 111, 125, and 128.

The judgment addresses the scope of regulatory jurisdiction of Electricity Regulatory Commissions under the Electricity Act, 2003, the maintainability of petitions by persons who are not consumers, and the extent of oversight that ERCs may exercise over distribution licensees and their franchisee arrangements in the public interest.

Catchwords: Electricity Act 2003 Distribution Franchisee Agreement UPERC jurisdiction public interest distribution licensee franchisee Section 17 Section 14 Section 111 Section 125 Section 128 APTEL maintainability Agra Torrent Power DVVNL regulatory commission