Electricity Act, 2003 - Enactment of - Object- Payment  of Cross Subsidy Surcharge (CSS) to Distribution company - Rationale - Discussed- Held: CSS is the charge payable by a consumer who opts to avail power supply through open access from someone other than Distribution licensee in whose area it is situated - Such surcharge is meant to compensate such Distribution licensee from the loss of cross subsidy that such Distribution licensee would suffer by reason of the consumer taking supply from someone other than such Distribution licensee. 

Electricity Act, 2003- s. 14 -Appellant, a Developer in the SEZ area having its unit in the SEZ, not drawing or utilizing any electricity from the Distribution Licensee viz. WESCO for its unit- State Electricity Regulatory Commission rejected the Power Purchase Agreement (PPA) entered into by the appellant with M/s. Sterlite Energy and directed the appellant to pay Cross Subsidy Surcharge (CSS) to WESCO holding the appellant to be a 'consumer' - Validity - Whether developer of a notified SEZ, who has been deemed by law to be a licensee for distribution of electricity, is required to, once again, apply to the Electricity Regulatory Commission for grant of a licence or the deeming fiction carved out in s. 14 of the Electricity Act automatically dispenses with this requirement and ipso facto makes such SEZ developer a distribution licensee - Held: No doubt by virtue of the status of a developer in the SEZ area, the appellant was also treated as deemed Distribution Licensee- However with this, it only got exemption from specifically applying for licence uls.14 of the Electricity Act- In order to avail further benefits under the Act, the appellant was also required to show that it was in fact having distribution system and had number of consumers to whom it was supplying the electricity - That was not the case here- Notification dated 03.03.2010 issued u/s.49(1) of the SEZ Act providing for the "Developer" of SEZ being deemed as a "Distribution Licensee" was issued keeping in view the concept of Multi Unit SEZs and did not apply to a Developer like appellant who had established the SEZ only for itself-Appellant to make payment of CSS to WESCO - Special Economic Zone Act, 2005- s. 2(g)(j)(za)(zc), ss. 3, 4, 11; 12, 13, 15 and 49.