Karnataka High Court: Consumer Supervision Charges Cannot Be Increased Without Following KERC's Regulatory Process

The Karnataka High Court has ruled that the Karnataka Power Transmission Corporation Limited (KPTCL) cannot independently increase supervision charges for electricity works carried out by consumers beyond the limit fixed by the Karnataka Electricity Regulatory Commission (KERC). The Court clarified that any such revision must follow the procedure laid down under the Electricity Act and receive proper regulatory approval.

The case was filed by a real estate company after KPTCL sharply increased supervision charges for a residential project. Although the original approval fixed the charges at 10% of the estimated cost, subject to a maximum of ₹15 lakh, KPTCL later demanded more than ₹1 crore under a revised internal policy.

The High Court observed that KPTCL had itself approached KERC seeking permission to revise the charges. This clearly showed that the corporation did not possess independent legal authority to make such changes on its own. The Court further held that KERC's response asking KPTCL to "take a suitable decision" could not be treated as formal approval for increasing consumer charges.

Rejecting KPTCL's argument that the revised charges were only an administrative measure to recover costs, the Court said that any levy imposing financial liability on consumers must strictly follow the statutory framework.

The Court quashed both the revised order and the demand notice. It directed KPTCL and BESCOM to allow the company to continue the electrical works after payment of the original supervision charges. Any excess amount already collected must be refunded within eight weeks, failing which interest at 8% per annum will be payable.