GLOBAL Additional levy imposed on coal block allottees is penalty, can't be passed on to end consumers: APTEL Appellate Tribunal for Electricity (APTEL) recently held that the additional levy imposed on coal block allottees pursuant to the arbitrary allocation process was in the nature of penalty and could not be passed on to the end consumers (Jaiprakash Power Ventures Ltd vs MPERC &Ors). M/s Jaiprakash Power Ventures Ltd (Appellant)
24 | CCAI Monthly Newsletter December 2020
had filed an appeal under Section 111 of the Electricity Act, 2003 against an order passed by the Madhya Pradesh Electricity Regulatory Commission. Before the Commission, the Appellant had argued that the additional levy raised by the fuel supply company i.e Madhya Pradesh State Mining Corp. Ltd (MPSPCL) on the Appellant was recoverable as variable (fuel) charges from the procurers of electricity. The additional levy was imposed pursuant to the direction of the Supreme Court cancelling several coal block allocations, and the provisions of
