Railways staring at higher electricity costs after Supreme Court rules it qualifies as ‘consumer’
NEW DELHI: Indian Railways is staring at higher electricity costs after the Supreme Court last week ruled that the national transporter qualifies as a “consumer” under the Electricity Act. As a result, it will remain liable to pay cross-subsidy surcharge (CSS) and additional surcharge while buying electricity through open access for its own consumption, impacting railways’ operating ratio.
This is likely to increase railways’ power procurement expenses. It had argued that railways should not be treated as a conventional consumer because it distributes electricity across its vast operational network.
