Supreme Court Warns Against Political Interference in Power Sector
The Supreme Court has stressed that electricity, being a public good, must be protected from political interference. The observation came during a hearing on disputes related to power supply and tariff issues. The bench highlighted that electricity is essential for daily life and economic growth, and cannot be subjected to undue political posturing that disrupts supply or burdens consumers.
Public Interest Over Political Agendas
The court noted that policy decisions impacting electricity must prioritise public interest over political agendas. It warned against populist measures, such as unrealistic tariff reductions or politically motivated subsidies, which could jeopardise the financial health of power utilities and compromise long-term supply reliability. The judges emphasised that while governments have the authority to regulate tariffs and distribution, such powers must be exercised responsibly to ensure sustainable operations and fair pricing for consumers.
Financial Stability and Regulatory Independence
The case stemmed from disputes in certain states where sudden changes in electricity tariffs and policies had led to financial instability for power providers. The Supreme Court underscored the need for transparent, evidence-based decision-making in the energy sector and urged regulatory commissions to remain independent and insulated from political pressures.
Essential Service for Development
The bench also observed that uninterrupted electricity is critical for hospitals, schools, industries, and homes, and disruptions caused by politically driven policies could have far-reaching negative effects. It reiterated that access to reliable electricity is a right linked to economic development and quality of life. The matter has been posted for further hearing, with the court directing stakeholders to submit detailed reports on the financial and operational impact of current electricity policies.
