Supreme Court of India has delivered a landmark ruling, affirming that Electricity Regulatory Commissions (ERCs) can entertain public interest petitions filed by individuals or entities not directly consuming electricity. This decision, announced today, broadens the scope of regulatory oversight in the power sector.
The Ruling’s Context
The judgment came in response to a case challenging the authority of ERCs to act on petitions from non-consumers, such as advocacy groups or citizens, regarding electricity tariffs, service quality, or policy issues. The court, led by a bench including Chief Justice D.Y. Chandrachud, upheld that ERCs, established under the Electricity Act, 2003, have the jurisdiction to address matters of public interest, even if the petitioner lacks a direct consumer relationship with the utility.
Legal and Practical Implications
The ruling clarifies that ERCs’ mandate extends beyond consumer-specific grievances to include systemic issues affecting the public, such as overcharging, inadequate infrastructure, or environmental concerns. This empowers organizations like environmental NGOs or local communities to seek redressal, enhancing accountability in the power distribution sector. The court emphasized that Section 86 of the Electricity Act provides ERCs with sufficient authority to act suo motu or on public petitions to protect consumer and public interests.
Industry and Public Response
The decision has been hailed by consumer advocates as a step toward greater transparency, with potential to curb monopolistic practices by power utilities. However, industry stakeholders express concerns about increased litigation and regulatory burden. The ruling aligns with recent efforts to strengthen governance, following high-profile cases of tariff disputes and power outages in states like Uttar Pradesh and Maharashtra.
Looking Ahead
As ERCs adapt to this expanded role, the ruling could lead to a surge in public interest litigation, prompting regulators to refine procedures for handling such cases. The Supreme Court’s directive may also encourage state governments to align their policies with this broader mandate, shaping the future of India’s electricity regulation landscape.
