PUNJAB STATE ELECTRICITY BOARD vs M/S. SIEL LTD. .

The Supreme Court upheld the Punjab and Haryana High Court's decision to remit the matter back to the Punjab State Electricity Regulatory Commission under the Electricity Regulatory Commissions Act, 1998, for a fresh determination of tariff issues. The Court emphasized the need for the Commission to address relevant parameters such as agricultural consumption, transmission and distribution losses, and cross-subsidization. The judgment clarified that cross-subsidization is a tariff design issue and not merely a loss of revenue measure, reinforcing the importance of accurately assessing the cost of supply for different consumer classes.