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Wednesday, February 26, 2014

Self financing educational institutions - KSEB bill - conversion of Tariff from LT VI B to commercial tariffs - legality


The question is whether the self financing educational institutions are liable to pay commercial tariff as prescribed by KSERC ?

The judgments of High Court of Kerala in Brother Joseph Antony cases (etc) are under challenge before the Supreme Court of India. The  SLP No. 30968/09 is admitted by the SC and the operation of the order of the Division Bench of High Court of Kerala is stayed.
Pointing out this aspects, the High Court of Kerala again in another Writ Appeal, held that though the tariff can be converted to commercial, but the arrears cannot be claimed by the KSEB, till the final disposal of the Case. [(Writ Appeal 660/2010) Permanant Lok Adalat (Public Utility Services) OP No. 173/2012.)]


 “The question raised in the Writ Appeal is whether self financing educational institutions 
are liable to pay commercial tariff as prescribed by the Electricity Regulatory Commission. 
Even though similar parties succeeded in this Court to get the tariff cancelled, the Hon 
Supreme Court admitted SLP No. 30968/09 and granted stay against operation of the 
Division Bench Judgment of this Court. When the order of the Division Bench is stayed by 
the Hon Supreme Court, tariff revives and the KSEB is free to collect commercial tariff from self-financing educational institutions” and the Court disposed of the Writ Appeal with the following direction. 

“(1) KSEB is authorised to collect tariff in terms of the Regulatory Commission but the 

same will be subject to the result of the judgment of the Supreme Court in the batch of 
SLPs pending before the Supreme Court. 

(2) However, no arrears will be recovered until the Supreme Court decides the matter and 
thereafter recovery of arrears will be based on judgment of the Supreme Court, which will 
be applicable in appellant’s case also.”

Full text -
Order of State Electricity Ombudsman setting aside the commercial tariff for Self Financing Education Institutions.

When this is the present status as on date, the KSEB Assistant Engineers issuing notices, to the consumers for pending arrears are against the directions of  High court of Kerala and against the settled position by the KSE Ombudsman.

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