RECOVERY OF “FIXED CHARGES” ON ELECTRICITY CONNECTIONS BY

JVVNL
In light of the COVID-19, decisions have been taken by various authorities to curtail the
spread of COVID-19 virus such as Lockdown, Imposition of Section 144 of CrPC,
Curfew and many more, that are affecting multiple business & sectors across the
spectrum of industry.
In view of the same, the Chief Minister of State of Rajasthan on April 2, 2020 announced
and deferred the levy of ‘Fixed Charges’ on electricity connections on industries in
proportion to the lockdown period till May 31, 2020, for March and April bills which
will be issued in April and May. In pursuance to the same, one of the DISCOMS, Jaipur
Vidyut Vitaran Nigam Limited (Hereinafter referred as JVVNL) passed an order on
03.04.2020.
These ‘Fixed Charges’ on the electricity connections are leviable in terms of the
provisions of the prescribed Tariff for Supply of Electricity-2020 (Hereinafter referred as
Tariff-2020) which was prescribed by JVVNL in exercise of powers conferred under
Section-62 & 64 of the Electricity Act, 2003 read with RERC (Terms & Conditions of
Determination of Tariff) Regulations,2019. This Tariff-2020 has come into force from
February 01, 2020.
Condition 23 of the General Conditions of Application for Tariff-2020, provide the
provision for Concession in “Fixed Charges” and the same has been made available in
two situations or conditions; firstly when the connection of the consumer has been
lying disconnected. Secondly during the period of Power Cuts/Restrictions in use of
electricity in respect of HT Supply consumers, irrespective of category of consumer, the
pro-rata reduction in Fixed Charges shall be allowed on the basis of average power cuts
& restrictions during the month.
To deal with the ever changing COVID-19 situation in India, the Central and the State
Governments are issuing notifications, order, regulations and advisories on a regular
basis vide which the Industries have been shut down and this has made industrial
operations not just difficult but impossible. It has caused commercial hardship to
industries in performance of their contractual obligations, while rendering others
completely incapable of performance and we can say that an indirect restriction has
been imposed on the Industries in use of electricity. Hence here is a situation where
instead of deferment on the leviability of Fixed Charges on electricity in proportion to
the Lockdown, State Government should go for concession on the leviability of Fixed
Charges on electricity in proportion to the Lockdown.
Further the contract agreement executed has a condition which provides for obligations
on the Industry to pay minimum fixed charges irrespective of the fact that the electricity
has been consumed or not to the extent of contract demand. This clause will not come
for the rescue of the Government as the same cannot be read in isolation and is required
to be read with the provisions of Law. The Law clearly provides that the concession will
be given on Fixed Charges if any restrictions have been imposed in use of electricity
which is there in the current scenario.
Judicial Precedents on similar instances:
In the case of SBCW 1024/1984, D.C.M. Ltd. and another Versus Assistant Engineer
(HMT Sub-Division), Rajasthan State Electricity Board, Kota and another, the Hon’ble
Rajasthan High Court has partly allowed the writ petition and gave direction for
proportionate reduction in the minimum charges claimed by Rajasthan State Electricity
Board to the extent of the power cuts during the relevant billing month; revision of the
bills for payment of minimum charges on this basis; and refund, if any, due to the
petitioners as a result of revision of the bills.
This decision was upheld by Division Bench in Special Appeal Writ No. 274/1986.
What Steps are required to be taken by the Industries?
If the State Government in future does not provide concession to the Industries on the
leviability of Fixed Charges on electricity in proportion to the Lockdown which has
halted Industrial functioning and operations, the industries should challenge the
government’s unlawful actions by way of writ petition before the Hon’ble High Court.

Adv. Sunil Nath (Sr. Partner) assisted by Akash Shrivastava (Sr. Associate)
PKA ADVOCATES