Retail electricity supply rights under a licence upheld as open access rules did not override the licence entitlement.

A power licensee's licence clauses, read with later amendments and the history of supply, were held to permit direct retail supply to consumers within the overlapping area, not merely bulk supply to other licensees. The SC found that the appellate tribunal misread the licences by restricting the licencee to bulk supply, and that the commission exceeded the dispute by advancing a separate level-playing-field theory and issuing unasked directions. The later open access and wheeling framework did not ate the licencee's entitlement under the licences. The directions of the commission and the appellate tribunal were quashed.

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Issues: Whether Tata Power's licences entitled it to supply electricity directly in retail to consumers within the rival licensee's area of supply, and whether the regulatory directions and restraint order could stand.

Analysis: The licence clauses, read with the later amendments and the historical course of supply, showed that Tata Power had long been supplying electricity directly to consumers, including consumers within the overlapping area, and that the relevant clauses permitted supply for general purposes as well as bulk supply to other licensees. The Court held that the Appellate Tribunal misread the licences by confining Tata Power to bulk supply only, and that the Commission also went beyond the dispute raised by the complainant by introducing a separate theory of a level playing field and issuing directions that were not sought. The Court further held that the open access and wheeling framework under the later Act did not negate Tata Power's entitlement under its licences.

Conclusion: Tata Power was entitled to effect retail supply directly to consumers within its licensed area, subject to the limited restrictions contained in the licences, and the orders of the Commission and the Appellate Tribunal were liable to be quashed.

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