SAi BHASKAR IRON LTD v. A.P. ELECTRICITY REGULATORY COMMISSION & Ors.

In Re : Disrimination vis-a-vis Agriculture Sector :.. F

#4. A challenge has been made to Regulation 45-B submitting that it casts additional burden without authority of law inasmuch as the letter "Q" in the formula is subject to condition 1 and therefore excludes the consumption by agricultural sector and does not permit distribution of additional charge among all consumers for the actual energy sold to them. It makes all the- G . consumers not only to pay for the energy consumed by them but also for the electricity consumed in the agricultural sector which is arbitrary and contrary to the scheme of the Act and in particular sections 61 and 62. The submission cannot be accepted as differential treatment is permissible within the ken of the provisions of section 26. As provided in section 26(8) in case H SAi BHASKAR IRON LTD. v. A.P. ELECTRICITY REGULATORY COMMISSION & ORS. 1001 consumers are similarly placed same tariff has to be applied. Agriculturists and consumers like appellants cannot be said to be similarly placed. It is also provided in section 26(7) that the tariff implemented may differentiate according to the consumer's load factor or power factor, consumer's total consumption of energy during any specified period from the time at which supply is required or paying capacity of category of consumers and need for gross subsidization. Thus paying capacity inter alift is one of the factors which can be used for protective discrimination under discriminatory tariffs as provided in section 26(7)(a). [Para 27)(1041-D-G] . ' Real Food Products Ltd. & Ors. v. A.P. State Electricity Board & Ors. 1995 (3) SCC 295 : 1995 (2) SCR 396 - relied on.