Dispute Over Electricity Rates Settled: BSNL Wins Classification Battle.


Bharat Sanchar Nigam Ltd (BSNL), a telecom service provider, has won a dispute against Maharashtra State Electricity Distribution Co. Ltd (MSEDCL) regarding electricity rates. The crux of the matter was the classification of BSNL's electricity consumption category.

MSEDCL argued that BSNL should be classified as an HT-II commercial consumer, subjecting them to a higher rate. The electricity regulator, MERC, had established the HT-II category specifically for commercial entities using high voltage electricity.

 

 

BSNL, however, contested this classification. They argued that their operations qualify them as an HT-I industrial consumer, which would entail a lower electricity rate.

The court, after examining the case, ruled in favor of BSNL. The court's decision hinged on the applicability of the definition of "industry" under the Electricity Act, rather than the definition under the Industrial Disputes Act, as argued by MSEDCL.

This verdict is likely to translate into significant cost savings for BSNL in terms of their electricity bills.

  ELECTRICITY ACT, 2003