The Orissa Electricity Regulatory Commission (OERC) is now free to initiate proceedings against the Reliance Energy-owned distribution companies (distcos) in Orissa with the Supreme Court on Monday setting aside the order of the Appellate Tribunal for Electricity dated December 13, 2006.
The OERC, while acting on a petition filed by trade union leader Sarat Chandra Mohanty, had appointed an administrator each for the three distcos–Wesco, Southco and Nesco–observing that “prima facie the distcos have violated the terms and conditions of the distribution licence and it is necessary in the public interest to suspend their licences”.
The tribunal, however, quashed the OERC order and restored the management control to REL. Passing a series of orders in December 2006, the tribunal also directed the OERC to redetermine the bulk supply, retail supply and transmission tariffs in six weeks. Passing separate orders, it also restricted the power trading margins of Gridco and directed the state-owned utility to refund surplus charges.
The OERC and the petitioner moved to the Supreme Court against the tribunal order in March 2007.
The Supreme Court has set aside the tribunal orders and allowed the OERC appeal to initiate proceedings against the distcos. The court has also quashed the OERC order appointing special officers for the distcos.