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A Maharashtra steel company has successfully challenged a "reliability charge" imposed by the state's power distribution company. The dispute centred on a scheme to guarantee uninterrupted power supply (Zero Load Shedding - ZLS) in a specific area.

The power company argued that the Electricity Act allows them to implement such schemes and that the higher electricity tariff paid by the steel company (due to continuous supply needs) wasn't enough. They also claimed the company's silence during a public hearing about the ZLS scheme implied consent to the charge.

The steel company countered that their existing, higher tariff already compensated the power company for uninterrupted power. Additionally, they argued that the Act and regulations didn't authorize a separate "reliability charge."

The Appellate Tribunal sided with the steel company. They agreed that the higher tariff already covered the cost of uninterrupted power and found no legal basis for the additional charge. The court upheld this decision, recognizing the company's right to appeal despite not participating in the public hearing.

What this means:

• Companies already paying a premium for uninterrupted power may not be liable for additional "reliability charges."
• Power companies need clear legal backing for imposing new charges.
• Consumers have the right to challenge such charges, even without attending public hearings.