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No alteration of electricity tariff decided by bidding process

In a 498 page judgment on appeals filed by the Adani, Tata, GMR and other groups, the Hon'ble Appellate Tribunal For Electricity clarified various issues including :-

a) Definition of "Composite Scheme"
b) Jurisdiction of CERC in "Composite Schemes"
c) Alteration of tariff by the CERC

The Hon'ble Tribunal decided that the supply of power to more than one State from the same generating station of a generating company, ipso facto, qualifies as ‘Composite Scheme’ to attract the jurisdiction of the Central Commission under Section 79 of the said Act. Further the Hon'ble Tribunal quashed the regulatory powers of CERC under Section 79(1)(b) of Act, to alter or modify the tariff which has been determined by way of a competitive bidding process, holding that the CERC may by way of its adjudicatory powers under section 79(1)(f) of the Act, award relief to the power generating companies as per the provisions of the PPA if a case of force majeure is made out.

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