Calcutta High Court Strikes Down Law Allowing Penalties on Consumers for Excess Electricity Use

The Calcutta High Court has struck down Regulation 4.4 of the West Bengal Electricity Regulatory Commission’s 2011 Tariff Regulations, which allowed power companies to penalise consumers for exceeding arbitrary usage limits.

The Court held the rule unconstitutional for being vague, arbitrary, and violative of Article 14 and principles of natural justice.

The court criticised the lack of guidelines, stating that it gave unfair discretion to power companies to impose limits without justification or notice, leading to unjust enrichment.

The Court directed WBERC to frame new regulations with clear notice provisions and safeguards to prevent grid overload without violating consumers' rights.