Rule 23 - The Legal Chamber

The Supreme Court ruled that Regulatory Assets, while a valid regulatory tool, must be created only in exceptional circumstances and liquidated in a time-bound manner. It upheld the legal framework under the Electricity Act, 2003, and directed strict adherence to the newly inserted Rule 23 of the Electricity Rules, which mandates a maximum 3% gap in revenue and a 7-year liquidation period for existing assets. The judgment emphasizes the duty of Regulatory Commissions to ensure cost-reflective tariffs and affirms APTEL's power under Section 121 to issue directions against regulatory failure. Facts Of The Case: The case originated from petitions and appeals filed by three private power distribution companies (Discoms) in Delhi—BSES Rajdhani, BSES Yamuna, and Tata Power Delhi—agains...

The Supreme Court modified the contributory negligence apportionment to 20% on the claimant, 50% on the car driver, and 30% on the bus driver. It enhanced compensation by revising the notional income calculation for an engineering student and reinstated attendant charges, emphasizing just compensation for 100% disability. Facts Of The Case: On January 7, 2017, the appellant, a 20-year-old engineering student, was riding a motorcycle with a friend on the pillion. A car ahead, driven by respondent no. 2, suddenly applied its brakes on the highway because the driver's pregnant wife felt a vomiting sensation. This caused the appellant to collide with the rear of the car and fall onto the road. Subsequently, a bus, insured by respondent no. 1, which was coming from behind, ran over the appell...

Tag: Rule 23

Who Pays for Unpaid Power Bills? Supreme Court Explains ‘Regulatory Asset’ Mess and Orders a Fix

Supreme Court’s Key Ruling :Notional Income of an Engineering Student Should Be Higher