M/S. Sesa Sterlite Ltd vs Orissa Electricity Regulatory Comm & ...

The Supreme Court ruled that under Section 125 of the Electricity Act, 2003, a deemed distribution licensee, such as the Appellant operating in a Special Economic Zone (SEZ), is still liable to pay Cross Subsidy Surcharge (CSS) to the local distribution licensee, WESCO, even if it does not draw electricity from them. The Court affirmed the Appellate Tribunal's decision, emphasizing that the Appellant's status as a deemed licensee does not exempt it from CSS obligations. The appeal was dismissed, upholding the orders of the Odisha Electricity Regulatory Commission.