Important for HT Electricity Consumers

Inordinate delay of more than two years by Electricity Board to decide 2001 application of Aluminium Company (HT Consumer) to reduce contracted demand from 23000 KVA to 10000 KVA till 2004 is arbitrary & unreasonable and entitled to refund of high demand bills including amount for unutilized load during the interregnum period.

The appellant – aluminium manufacturing company – had originally the maximum electricity demand was 64000 KV. It was reduced to 23000 KVA as per the agreement dated 3.5.1999.

On 24.12.2001, the appellant made request to reduce the demand to 10000 KVA. However, no action was taken and the company was forced to pay for 23000 KVA and high value demands on the threat of disconnection.

As per the communication dated 11.8.1994, the Board had already taken decision in principle to accept generally the request for reduction of load.

However, in the case of the appellant, the Board took more than two years to take decision and to execute new agreement in July 2004.  In the meanwhile, the Board compelled it to pay high demand bills and amount for unutilised load.

HELD the power to effectuate a purpose must be exercised in reasonable time – no reason has been shown for keeping such application pending –  the appellant has been unjustifiably asked to furnish costs of unutilized electricity which should not have extended beyond six months period and therefore, directed to return the amount with simple interest.

Civil Appeal Nos.7224-7226 of 2009 – The Madras Aluminium Co. Ltd Vs. The Tamil Nadu Electricity Board and another