KPTCL cannot increase supervision charges for self-executed electrical work without KERC approval: Karnataka High Court

The petitioner alleged that the demand of ₹1.02 crore based on KPTCL’s unilateral decision to increase the supervision charges violates the regulatory framework, which limits such charges to ₹15 crore.

The Karnataka High Court has held that the Karnataka Power Transmission Corporation Limited (KPTCL) lacks the statutory authority to increase or revise supervision charges for self-executed electrical works without the statutory approval of the Karnataka Electricity Regulatory Commission (KERC).

Justice Ravi V. Hosmani passed the order while allowing a petition filed by Anushka Realty Inc. challenging KPTCL’s June 2018 demand for payment of ₹ 1.02 million as supervision fees for approval of an 8459 KW power supply project that the petitioner was running on self-execution mode.

The court rejected KPTCL’s defense that the revision was an “administrative measure” and emphasized that a charge affecting consumer liability required statutory support.

“The levying of supervisory fees falling on consumers and prescribing monetary liability cannot be considered a purely administrative act when Section 45 of the Electricity Act, 2003 laid down the procedure for such fixation,” the court pointed out.

Referring to Sections 39 to 46 of the Act, the court said that these provisions of the Act define KPTCL’s role in transmission planning, but do not confer the power to determine or adjust charges for supervising its own performance. Only KERC has the power to make regulations under Section 181 of the Act, the court made it clear.

While setting aside KPTCL’s demand of ₹1.02 million, the court directed it to allow the petitioner to complete the work on self-execution basis by paying charges as per the original regulatory ceiling and refund of overpayment, if any, has to be returned with 8% interest per annum.

Published – 26 Jun 2026 0:27 IST