Bihar State Eelectricity Board vs M/S.Pulak Enterprises & Ors

The Supreme Court upheld the validity of the fuel surcharge levied by the Bihar State Electricity Board under Section 49 of the Electricity (Supply) Act, 1948, affirming that it is a necessary component of the tariff to address increased costs of electricity generation and purchase. The Court reiterated that the formula for calculating the fuel surcharge, as established in previous judgments, remains valid and enforceable. The judgment confirmed the High Court's decision regarding the method of calculation of the surcharge while striking down the arbitrary provisions related to 'other operational surcharge'.