APTEL Holds That Radial Mode Of Supply By A Generating Company To A Distribution Licensee Cannot Be Considered As Sale To A Consumer.

APTEL, vide judgement dated 27.04.2026 in Appeal Nos. 190 of 2019 and 216 of 2019¹ titled Damodar Valley Corporation v West Bengal Electricity Regulatory Commission & Another, dismissed the appeals filed by Damodar Valley Corporation (“DVC”), upholding the finding of the West Bengal Electricity Regulatory Commission (“WBERC”) that radial mode of supply by a generating company to a distribution licensee cannot be considered as sale to a consumer.

APTEL while dismissing the appeal adjudicated and decided two key issues i.e., (i) whether a distribution licensees can be classified as ’consumers’ under Section 2(15) of the Electricity Act on the basis of the radial mode of supply by DVC; and (ii) whether retail supply tariff as determined for end-consumers can be made applicable to such distribution licensees.

APTEL while deciding the aforesaid issues noted that the fundamental distinction between a ‘consumer’ and ‘distribution licensee’ is that the former obtains supply of electricity for his own use whereas the latter procures electricity for supply to consumers in its area of supply. APTEL held that distribution licensees cannot be classified as ‘consumers’ under Section 2(15) of the Electricity Act solely based on the technical mode of supply of power to them by DVC, i.e., radial mode.

Further, in view of the observations above, APTEL held that since retail supply tariff is applicable only on consumers, the same cannot be made applicable to the distribution licensees as they do not qualify as a ‘consumer’ in

Footnotes

^{1 Appeal Nos. 190 of 2019 and 216 of 2019}

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