Promissory estoppel in electricity regulation barred withdrawal of consumer relief after reliance on supplier representations.

The statutory tariff power under the electricity reforms framework remained with the Commission, but a supplier that had represented assured power supply could not later withdraw the related surcharge circular where consumers had altered their position in reliance on that representation. Promissory estoppel was treated as applicable in electricity regulation, and the instalment payment arrangement did not amount to waiver of the challenge or render the proceedings infructuous. The earlier consumer-relief ruling was not reopened, and the protection already extended to consumers was upheld, with refund directed.

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Issues: Whether the withdrawal of the circular relating to surcharge on assured power supply could be sustained and whether the earlier decision upholding consumer relief on the basis of promissory estoppel required reconsideration.

Analysis: The tariff framework under the Uttar Pradesh Electricity Reforms Act, 1999 vested exclusive jurisdiction in the Commission to determine and modify tariff in accordance with the statutory scheme. However, the earlier decision was applied on the footing that the Corporation had made representations on which consumers altered their position. The doctrine of promissory estoppel was held applicable in the field of electricity regulation where a consumer acts on a representation made by the supplier. The undertaking given by the appellant for instalment payment did not amount to waiver of its challenge, and the subsequent payment arrangement did not render the writ proceedings infructuous. The Court also held that the earlier decision did not require reconsideration.

Conclusion: The challenge to the withdrawal of the circular failed, the earlier decision was affirmed as applicable, and the appeal succeeded in favour of the appellant with refund directed.

Final Conclusion: The statutory power to regulate tariff remained with the Commission, but the Corporation was bound by its representation to the consumers, and promissory estoppel prevented it from resiling from the benefit already extended.

Ratio Decidendi: Where a statutory authority or licensee makes a representation and the consumer alters its position in reliance on it, promissory estoppel can operate even in a statutory setting, and the beneficiary of its own representation cannot approbate and reprobate to defeat the accrued consumer protection.

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