East Central Railway recently filed a petition seeking directions against BSPTCL to grant a No Objection Certificate (NOC) for availing Long Term Open Access. The matter also involves a case filed by South Bihar Power Distribution Company Ltd. (SBPDCL) requesting directions to levy the applicable Open Access Charges, including Cross-Subsidy Surcharge (CSS), along with arrears and interest on East Central Railways.
During a previous hearing on April 25, 2023, the Commission decided to address both petitions together. However, complications arose on June 12, 2023, when it was brought to light that the Appellate Tribunal for Electricity (APTEL) was already examining the issue of Indian Railways’ liability to pay CSS. The interpretation of relevant laws was under consideration, and to avoid conflicting decisions, it was suggested to hold the matter in abeyance.
APTEL issued a decision on February 12, 2024, which was subsequently challenged in the Supreme Court through a civil appeal. The Supreme Court issued an interim order on May 6, 2024. This interim order prompted the petitioner in the current case to request necessary directions from the Commission to ensure compliance.
During the hearing, the petitioner’s advocate requested to separate the case from the one filed by SBPDCL and to issue necessary directions. The Commission took note of the Supreme Court’s order, which stated that the Railways are not required to pay the CSS or additional surcharges to distribution licensees until the final decision. Open access should not be denied to the Railways during this period. The Supreme Court’s decision on the liability of Railways will be binding, depending on the final outcome of the proceedings.
Given this context, the Commission decided to separate the two cases and suspend further hearings on the SBPDCL case until the Supreme Court issues its final order. During today’s hearing, the respondents in the case argued that the Supreme Court’s interim order should be considered specific to the parties involved and not applicable to them, as they are not parties to any of the appeals. They requested additional time to file written submissions.
The Commission granted this request, directing the respondents to submit their written replies by June 6, 2024. The next hearing is scheduled for June 11, 2024.
The outcome of these proceedings is significant as it impacts the operations of the East Central Railway and the financial aspects related to the use of open access in the electricity sector. The legal interpretations and final decisions will set precedents that could influence future cases involving similar disputes between power distribution companies and major consumers like the Railways.
The interim period, during which the Railways are not required to pay the disputed charges, provides a temporary relief but also adds a layer of uncertainty until the Supreme Court’s final verdict. The Commission’s decision to delink the cases reflects a cautious approach, ensuring that the ongoing legal interpretations at higher judicial levels are respected and any potential conflicts are avoided.
Stakeholders and involved parties are now awaiting the next steps, with the hope that the final resolution will clarify the financial responsibilities and operational protocols for open access users, thereby fostering a more predictable and stable regulatory environment. This ongoing legal and regulatory dialogue underscores the complexity of balancing regulatory frameworks with the operational needs of large, essential service providers like the Railways.
Please view the document here for more details.
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