Electricity billing errors and disconnection limits under Section 56(2): supplementary demand allowed, but supply cut-off barred after two years.

Electricity charges become "first due" when the bill is raised and the quantified demand is served on the consumer, not merely when consumption occurs or an error is later found. Section 56(2) permits a supplementary demand for a bona fide billing mistake, but it restricts recovery by disconnection of supply after two years from the date the sum first became due, unless the amount has been continuously shown as arrears. The statutory bar therefore limits coercive disconnection, while leaving other lawful recovery mechanisms available.

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Issues: (i) When electricity charges become "first due" for the purpose of Section 56(2) of the Electricity Act, 2003; (ii) whether a supplementary demand raised after discovery of a billing mistake can be recovered by disconnection of supply after the expiry of two years.

Issue (i): When electricity charges become "first due" for the purpose of Section 56(2) of the Electricity Act, 2003

Analysis: The obligation to pay electricity charges arises when the bill is issued and the amount is quantified for payment. The expression "first due" is linked to the point of time when the demand becomes payable under the bill, not merely when electricity is consumed or when a mistake is later detected.

Conclusion: Electricity charges become "first due" when the bill is raised and the quantified demand is served on the consumer.

Issue (ii): Whether a supplementary demand raised after discovery of a billing mistake can be recovered by disconnection of supply after the expiry of two years

Analysis: Section 56(2) places a two-year restriction on the recovery of dues by disconnection of supply, unless the sum has been continuously shown as recoverable as arrears of charges. That restriction does not bar the licensee from raising a supplementary demand for a bona fide billing mistake, but it does bar recourse to disconnection of supply once the statutory period has expired. The remedy of disconnection cannot be used as a coercive mode of recovery for a supplementary demand raised after the limitation period.

Conclusion: A supplementary demand may be raised after discovery of the mistake, but disconnection of electricity supply for recovery of that demand is barred after the expiry of two years.

Final Conclusion: The statutory power of disconnection is confined by Section 56(2), while the right to raise a supplementary demand for a billing mistake remains available through other lawful recovery mechanisms.

Ratio Decidendi: Section 56(2) of the Electricity Act, 2003 bars disconnection of supply for recovery of a sum not continuously shown as arrears after two years from the date it first became due, but it does not bar the raising of a supplementary demand for a bona fide billing error.

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