TN power tariff hike: Madras HC bars TNERC from issuing order

MADURAI: The new electricity tariff expected to be rolled out across the State from next month may be delayed as the Madurai Bench of the Madras High Court has restrained Tamil Nadu Electricity Regulatory Commission (TNERC) from passing orders on petitions filed by Tangedco, Tantransco and State load dispatch centre (SLDC).

TNERC must not pass orders on petitions seeking revision of tariff under various categories till a Member-Legal is appointed to the commission, the court said. Tamil Nadu government sources said the State may file an appeal against the order.

Justice GR Swaminathan passed the order on Tuesday on a batch of petitions filed by Tamil Nadu Spinning Mills Association and two others, seeking a direction to prevent the TNERC from hearing the said tariff petitions until a Member-Legal is appointed.

The previous Member-Legal retired on May 5, 2022. The main objection raised by the petitioners was that the commission cannot hold any sittings on tariff petitions without a legal member. They also referred to a 2018 Supreme Court judgment in which the court held that the presence of a Member-Legal is mandatory.

The petitioners contended that tariff fixation is ‘adjudicatory’ and a member having legal expertise must be there in TNERC. Counsel appearing for the State and TNERC, however, argued that the function of tariff fixation is purely ‘regulatory’ in nature and not adjudicatory and hence the presence of a person with a legal background in the commission is not mandatory for hearing tariff petitions. Justice Swaminathan explained the distinction between ‘adjudicatory’ and ‘quasi-judicial’ and rejected the petitioners’ contention. 

Panel free to hear, finalise matters: Judge

Since it is not an adjudicatory function, there is no bar for the TNERC Bench, comprising the Chairman and technical member, to hear the tariff petitions, the judge held. But the order passed by the Supreme Court mandating the presence of a Member-Legal cannot be ignored, the judge added, and restrained TNERC from passing final order on the tariff petitions till a Member-Legal is appointed.

However, the commission is free to hear the petitions and finalise matters and only the formal declaration of the orders should not be done without the legal member, he clarified, and disposed of the petitions giving one week time to the petitioners to place their objections or suggestions relating to the tariff petitions before the commission.

TNERC consists of three members --- Chairman, technical member and legal member. While the technical member post fell vacant in March this year and was filled in July, no steps were taken by the State to appoint a new legal member.

MADURAI: The new electricity tariff expected to be rolled out across the State from next month may be delayed as the Madurai Bench of the Madras High Court has restrained Tamil Nadu Electricity Regulatory Commission (TNERC) from passing orders on petitions filed by Tangedco, Tantransco and State load dispatch centre (SLDC). TNERC must not pass orders on petitions seeking revision of tariff under various categories till a Member-Legal is appointed to the commission, the court said. Tamil Nadu government sources said the State may file an appeal against the order. Justice GR Swaminathan passed the order on Tuesday on a batch of petitions filed by Tamil Nadu Spinning Mills Association and two others, seeking a direction to prevent the TNERC from hearing the said tariff petitions until a Member-Legal is appointed. The previous Member-Legal retired on May 5, 2022. The main objection raised by the petitioners was that the commission cannot hold any sittings on tariff petitions without a legal member. They also referred to a 2018 Supreme Court judgment in which the court held that the presence of a Member-Legal is mandatory. The petitioners contended that tariff fixation is ‘adjudicatory’ and a member having legal expertise must be there in TNERC. Counsel appearing for the State and TNERC, however, argued that the function of tariff fixation is purely ‘regulatory’ in nature and not adjudicatory and hence the presence of a person with a legal background in the commission is not mandatory for hearing tariff petitions. Justice Swaminathan explained the distinction between ‘adjudicatory’ and ‘quasi-judicial’ and rejected the petitioners’ contention.  Panel free to hear, finalise matters: Judge Since it is not an adjudicatory function, there is no bar for the TNERC Bench, comprising the Chairman and technical member, to hear the tariff petitions, the judge held. But the order passed by the Supreme Court mandating the presence of a Member-Legal cannot be ignored, the judge added, and restrained TNERC from passing final order on the tariff petitions till a Member-Legal is appointed. However, the commission is free to hear the petitions and finalise matters and only the formal declaration of the orders should not be done without the legal member, he clarified, and disposed of the petitions giving one week time to the petitioners to place their objections or suggestions relating to the tariff petitions before the commission. TNERC consists of three members --- Chairman, technical member and legal member. While the technical member post fell vacant in March this year and was filled in July, no steps were taken by the State to appoint a new legal member.