(1) The Appropriate Commission shall determine the tariff in accordance with the provisions of this Act for—
(a) supply of electricity by a generating company to a distribution licensee;
(b) transmission of electricity;
(c) wheeling of electricity;
(d) retail sale of electricity:
Provided that in case of distribution of electricity in the same area by two or more distribution licensees, the Appropriate Commission may, for promoting competition among distribution licensees, fix only maximum ceiling of tariff for retail sale of electricity.
(2) The Appropriate Commission may, in case of shortage of supply of electricity, fix the minimum and maximum ceiling of tariff for sale or purchase of electricity in pursuance of an agreement, entered into between a generating company and a licensee or between licensees, for a period not exceeding one year to ensure reasonable prices of electricity.
(3) The Appropriate Commission may specify different tariffs for different classes of consumers and for different purposes.
(4) No tariff or part of any tariff may ordinarily be amended, more frequently than once in any financial year, except in respect of any changes expressly permitted under the terms of any fuel surcharge formula as may be specified.
(5) The Commission may require a licensee or a generating company to comply with such procedures as may be specified for calculating the expected revenue from the tariff and charges which he or it is permitted to recover.
(6) If any licensee or a generating company recovers a price or charge exceeding the tariff determined under this section, the excess amount shall be recoverable by the person who has paid such price or charge along with interest equivalent to the bank rate without prejudice to any other liability incurred by the licensee.
Legal Commentary & Landmark Judgments: Section 62
Section 62 of the Act empowers the Appropriate Commission to determine electricity tariffs for the supply of electricity by a generating company, transmission of electricity, wheeling of electricity, and retail sale of electricity.
In Section 62 tariff filings, ensure that capital expenditure claims are backed by audited EPC completion certificates and prudent financing costs; unapproved cost overruns will be disallowed by the Commission under the prudency check mandate.