A bench of Acting Chief Justice A K Sikri and Justice Rajiv Sahai Endlaw issued a notice to DERC and sought its response by July 30.
The bench was hearing the petition of TPDDL challenging Delhi Electricity Regulation Commission (DERC)'s 2011 regulations saying the provisions setting the methodology for determination of retail tariff is contrary to the Delhi Electricity Act, the parent statute.
Seeking quashing of the regulation, the discom (distribution company) said it was contrary to the existing statute and also the national tariff policy.
In its petition, the TPDDL has challenged DERC (Terms and Conditions of Wheeling Tariff and Retail Supply Tariff) Regulation 2011, in which electricity regulator has set out the principles and the methodology for determination of multi-year tariff for wheeling and retail supply.
The discom has also alleged the regulation is unfair and contrary to the principles for determination of tariff as provided under the Act and the national tariff policy.
"Certain provisions in the regulations affected the viability of the business of distribution of electricity and interfered with the rights of the petitioner(discom) to earn reasonable return on its investment," the petition said.(More) PTI AHA PNM