#Tariff Regulation

The Supreme Court ruled that depreciation recovery under electricity tariff regulations is capped by the approved operational period of the asset, even if its technical life extends beyond it. The judgment reinforces consumer protection under Section 61(d) of the Electricity Act, 2003, prioritizing regulatory limits over utility cost recovery demands, impacting tariff determinations for power distribution companies.

The Jharkhand High Court nullified a ₹12.54 crore electricity theft assessment against Jharkhand Ispat because the distributor failed to conduct the mandatory inspection under Section 126 and imposed charges not authorized by the Supply Code. This ruling reinforces that statutory compliance is non-negotiable in quasi-judicial tariff assessments, affecting all industrial consumers subject to DVC and similar utility audits.