Determination of tariff
Section 62 of the Electricity Act, 2003 deals with determination of tariff. The Appropriate Commission shall determine the tariff in accordance with the provisions of this Act for-- (a) supply of electricity by a generating company to a distribution licensee: Provided that the Appropriate Commission may, in case of shortage of supply of electricity, fix the minimum and maxi The Act came into force on 10 Jun 2003.
(1) The Appropriate Commission shall determine the tariff in accordance with the provisions of this Act for--
(a) supply of electricity by a generating company to a distribution licensee:
Provided that the Appropriate Commission may, in case of shortage of supply of electricity, fix the minimum and maximum ceiling of tariff for sale or purchase of electricity in pursuance of an agreement, entered into between a generating company and a licensee or between licensees, for a period not exceeding one year to ensure reasonable prices of electricity;
(b) transmission of electricity;
(c) wheeling of electricity;
(d) retail sale of electricity:
Provided that in case of distribution of electricity in the same area by two or more distribution licensees, the Appropriate Commission may, for promoting competition among distribution licensees, fix only maximum ceiling of tariff for retail sale of electricity.
(2) The Appropriate Commission may require a licensee or a generating company to furnish separate details, as may be specified in respect of generation, transmission and distribution for determination of tariff.
(3) The Appropriate Commission shall not, while determining the tariff under this Act, show undue preference to any consumer of electricity but may differentiate according to the consumer's load factor, power factor, voltage, total consumption of electricity during any specified period or the time at which the supply is required or the geographical position of any area, the nature of supply and the purpose for which the supply is required.
(4) No tariff or part of any tariff may ordinarily be amended, more frequently than once in any financial year, except in respect of any changes expressly permitted under the terms of any fuel surcharge formula as may be specified.
(5) The Commission may require a licensee or a generating company to comply with such procedures as may be specified for calculating the expected revenues from the tariff and charges which he or it is permitted to recover.
(6) If any licensee or a generating company recovers a price or charge exceeding the tariff determined under this section, the excess amount shall be recoverable by the person who has paid such price or charge along with interest equivalent to the bank rate without prejudice to any other liability incurred by the licensee.
Section 62, The Electricity Act, 2003 (Act 36 of 2003).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Referred to by 8
- s. 2 Definitions
- s. 45 Power to recover charges
- s. 49 Agreements with respect to supply or purchase of electricity
- s. 63 Determination of tariff by bidding process
- s. 64 Procedure for tariff order
- s. 65 Provision of subsidy by State Government
- s. 178 Powers of Central Commission to make regulations
- s. 181 Powers of State Commissions to make regulations
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
-
J. K. Tyre & Industries LTD vs Rajasthan Electricity Regulatory Commn
Court's Decision & Legal Precedent
The Rajasthan Electricity Regulatory Commission has statutory power under Section 86(1)(e) read with Section 181 of the Electricity Act 2003 to impose renewable energy purchase obligations on captive power plants and open access consumers located in the area of distribution licensee, as the term 'total consumption in the area of distribution licensee' includes consumption from all sources within that geographical area. Such obligations, being designed to achieve constitutional mandates under Articles 21, 48A, and 51A(g) of the Constitution and to promote renewable energy as a matter of public policy, do not violate the de-licensing principle of the Act nor do they infringe fundamental rights under Articles 14 or 19(1)(g) of the Constitution. The surcharge imposed for non-compliance is a valid regulatory measure under Section 86(1)(g) and Sections 142, 147 of the Act, representing a compensatory mechanism based on the polluter-pays principle, not an unauthorized tax under Article 265.
On this section: Court rejected argument that renewable energy obligation is tariff determination; held it is separate regulatory function under Section 86(1)(e)
-
Dsr Steel (p) LTD vs State of Rajasthan
Court's Decision & Legal Precedent
In matters of statutory tariff fixation by regulatory commissions, the doctrine of promissory estoppel does not apply to prevent legitimate modification of incentive schemes when: (1) the scheme itself explicitly limits validity to a specified date or until tariff revision; (2) proper public notice and hearing is provided during tariff revision proceedings; (3) parties fail to demonstrate they made specific investments in reliance on an unequivocal representation of continuation; and (4) the modified scheme serves the larger public interest. The statutory function of regulatory commissions to fix tariffs in the public interest cannot be constrained by promissory estoppel. Additionally, under Section 125 of Electricity Act 2003, the period of limitation commences from the date of communication of the order, not its pronouncement, and when a review petition is dismissed without reversing the original order, the original order remains appealable.
On this section: Power of Regulatory Commission to fix tariff for distribution licensee
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
-
… 62 of the Electricity Act, the Commission is under an obligation to determine the tariff for the supply of electricity by a generating company to a distribution licensee, tariff for transmission of electricity, tariff for wheeling of electricity and tariff for retail sale of electricity. For exercising powers under Section 62 of the Electricity Act, the Commission is required to pass orders determining the annual revenue requirements (ARR) of various licensees. In fact, under Section 26(4) of the Orissa State Electricity Reforms Act, 1995, every licensee is required to provide to the Commission, full details of calculations of aggregate …
-
… 62 of the Electricity Act, the Commission is under an obligation to determine the tariff for the supply of electricity by a generating company to a distribution licensee, tariff for transmission of electricity, tariff for wheeling of electricity and tariff for retail sale of electricity. For exercising powers under Section 62 of the Electricity Act, the Commission is required to pass orders determining the annual revenue requirements (ARR) of various licensees. In fact, under Section 26(4) of the Orissa State Electricity Reforms Act, 1995, every licensee is required to provide to the Commission, full details of calculations of aggregate …
-
… 62 of the Electricity Act, the Commission is under an obligation to determine the tariff for the supply of electricity by a generating company to a distribution licensee, tariff for transmission of electricity, tariff for wheeling of electricity and tariff for retail sale of electricity. For exercising powers under Section 62 of the Electricity Act, the Commission is required to pass orders determining the annual revenue requirements (ARR) of various licensees. In fact, under Section 26(4) of the Orissa State Electricity Reforms Act, 1995, every licensee is required to provide to the Commission, full details of calculations of aggregate …
Made under this section, and citing it
8 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
- UPERC (MYT for Transmission) Regulations 2025Regulation 2025
- Uttar Pradesh Electricity Regulatory Commission Multi Year Tariff for Distribution Regulations, 2025Regulation 2025
- Uttar Pradesh Electricity Regulatory Commission (Modalities of Tariff Determination) Regulations, 2023Regulation 2023
- The Himachal Pradesh Electricity Regulatory Commission (Terms and Conditions for Sharing of Cost of Terminal Benefits of Personnel of the Erstwhile Himachal Pradesh State Electricity Board and Successor Entities) Regulations, 2015Regulation 2015
- The Himachal Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Hydro Generation Tariff) Regulations, 2011Regulation 2011
- The Himachal Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Transmission Tariff) Regulations, 2011Regulation 2011
- The Himachal Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Wheeling Tariff and Retail Supply Tariff) Regulations, 2011Regulation 2011
- Chhattigarh State Electricity Regulatory Commission (Details to be furnished by licensee or generating company for determination of tariff and manner of making application) Regulations, 2004.Regulation 2005
Another 4 instruments name this provision in its title or its text without being made under it.
- The Himachal Pradesh Electricity Regulatory Commission (Authorized Consumer Representative) Regulations, 2016Regulation 2016
- The Himachal Pradesh Electricity Regulatory Commission (Grant of Connectivity, Long-term and Medium-term Intra-State Open Access and Related Matters) Regulations, 2010Regulation 2010
- Chhattisgarh State Electricity Regulatory Commission (Licence) Regulations, 2004. Dt. 07.12.2004Regulation 2004
- UP Electricity Regulatory Commission (General Conditions of Distribution Licence) RegulationRegulation 2004
Questions about Section 62
What have the courts held on Section 62 of the Electricity Act?
J. K. Tyre & Industries LTD vs Rajasthan Electricity Regulatory Commn (13 May 2015) is the leading judgment on this section among those set out below: Court rejected argument that renewable energy obligation is tariff determination; held it is separate regulatory function under Section 86(1)(e). Another 1 judgment on this section is set out below, all of them from the Supreme Court. They run from 2012 to 2015.
How do I find court cases under Section 62 of the Electricity Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Electricity Act 2003 62, section 62 Electricity Act 2003, section 62 of the Electricity Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with J. K. Tyre & Industries LTD vs Rajasthan Electricity Regulatory Commn (13 May 2015).
What should I read with Section 62 of the Electricity Act, and has it changed?
8 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there are 8: most recently UPERC (MYT for Transmission) Regulations 2025 (2025), then Uttar Pradesh Electricity Regulatory Commission Multi Year Tariff for Distribution Regulations, 2025 (2025), and 6 more.
When did Section 62 of the Electricity Act come into force?
Section 62 of the Electricity Act, cited as Electricity Act 2003 62, came into force on 10 Jun 2003, having been enacted on 26 May 2003. It is in force as at the date shown on this page.
Other sections of this Act
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.