Court notice to Delhi power regulator over tariff

New Delhi, April 24 (IANS) The Delhi High Court Tuesday issued notice to power regulator Delhi Electricity Regulatory Commission (DERC) on a plea filed by Tata Power Delhi Distribution Limited (TPDDL) challenging its regulation for fixing tariff for power consumption in the city.

A division bench of Acting Chief Justice A.K. Sikri and Justice Rajiv Sahai Endlaw sought the reply from DERC by July 30 while issuing notice.

TPDDL, a joint venture between Tata Power company and the government of Delhi, has challenged the DERC's regulation for fixing the power tariff in the national capital for the year 2012 to 2015.

The impugned regulation of DERC lay down the principles and methodology for determination of tariff of distribution licenses for wheeling and retailing supply of electricity for the period from 2012 to 2015.

In its petition TDPL said: "Provisions in the impugned regulations being unfair and contrary to the principles of determinations of tariff provided under the electricity act, 2003 read with the national tariff policy, 2006 being ultra vires the parent statute and arbitrary and unreasonable and having the nexus with the object and purpose of the parent statute."

Seeking quashing of the impugned provisions of the DERC regulation, the petitioner said: "In November 2011, the tariff policy were introduced without any commercial or legal rational and were unfair and unreasonable."

"Despite having objections to the impugned regulation on the ground that the impugned regulations are ultra vires, arbitrary and unfair, the petitioner has been constrained to file its tariff application," TDPL said.