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Hindalco gets relief in CESC supply issue
Our Bureau
New Delhi
,
Sept. 7
The Appellate Tribunal for Electricity has overturned an earlier ruling by the West Bengal State Electricity Regulatory Commission allowing distribution utility CESC Ltd to disconnect supply to the AV Birla Group firm, Hindalco Industries, in the event of it being allowed to source power from elsewhere.
Hindalco, the country's largest aluminium producer, had challenged the West Bengal regulator's decision allowing the company to source power from its captive plant at Hirakud in Orissa, as it came with the condition that its existing contract with CESC would come to an end.
The WBSERC had also ruled that CESC was not obliged to supply backup power to the company, which has an aluminium factory near Howrah with an annual capacity of 45,000 tonnes.
The tribunal reversed the Commission's orders and said that its views could not be legally sustained.
"There is no provision in the Electricity Act which mandates that the existing consumer 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 bench said in its order that as long as Hindalco abided by the regulations, CESC was obliged to supply standby energy to the company.
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