Power tribunal grants relief to Hindalco

In a relieving development for Hindalco, the Appellate Tribunal for Electricity has quashed the West Bengal State Electricity Regulatory Commission's (WBSERC) order asking distribution utilities to disconnect supply to the firm in the event of it being allowed to source power from elsewhere.

Hindalco had challenged WBSERC's decision that allowed the company to source power from its captive plant at  Orissa with the rider that its existing contract with CESC would come to an end. The WBSERC had also ruled CESC was not obliged to supply backup power to the company, which has an aluminium factory  with a capacity of 45,000 tonne/annum.

"There is no provision in Electricity Act which mandates that the existing consumer (like Hindalco) should cease to be a consumer from the area distribution licensee merely because short-term open access is allowed for inter-state transmission from its captive power plant," the tribunal said. E Padmanabhan, judicial member of the bench and H L Bajaj technical member held so long as Hindalco abides by the terms and conditions, CESC was obliged to supply standby power to the company. The tribunal also faulted the WBSERC for applying state regulations in granting open access and appointing State Load Dispatch Centre (SLDC) as the nodal agency.

The regulator should have applied open access regulations framed by the central regulator CERC, the bench held.