HC stays collection of FSA charge in power bills - The New Indian Express

HC stays collection of FSA charge in power bills

Published: 01st August 2012 10:58 AM

Last Updated: 01st August 2012 10:58 AM

In a major development, justice CV Nagarjuna Reddy of the AP High Court on Tuesday stayed collection of Fuel Surcharge Adjustment (FSA) from power consumers for 2009-10.

The judge passed the order after allowing a batch of writ petitions by various industrial power consumers challenging the APERC (Andhra Pradesh Electricity Regulatory Commission)’s order permitting power distribution companies (Discoms) to collect FSA for the years 2008-09 and 2009-10.

The orders of the APERC are not enforceable till the Supreme Court decides the matter which was pending before it. If the apex court decides in favour of Discoms then they are entitled to recover the arrears from consumers, the judge said.

He directed the power utilities that the amount already collected from consumers should be adjusted in future monthly bills.

The petitioner companies had earlier questioned the orders of the Discoms after the APERC allowed a petition filed by the Discoms condoning delay in seeking permission to collect FSA for 2008-09.

Earlier, a division bench of the AP High Court declared that the APERC had no power to condone such delay and any claim by Discoms after 30 days period of every quarter stands forfeited, the high court said. Then the Discoms approached the Supreme Court and the case is still pending.

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