Punjab News Express/Vinod Gupta
NEW DELHI : Supreme Court has set aside an order of the Appellate Tribunal for Electricity (APTEL) that had awarded compensatory tariff to Tata Power and Adani Power.
A bench consisting of P.C Ghose and Rohinton Nariman, JJ set aside the APTEL order awarding compensatory tariff to two companies on the plea that imported coal cost has increased due to policy change by Indonesia government. In consequence, the Central Electricity Regulatory Commission’s (CERC) finding in favor of the power companies in December last year is also set aside.
Haryana is one of the main power purchaser from Adani and gets 1424 MW of power at agreed rates. This decision will give major relief to both power utilities of Haryana.
It began in 2010 when Tata Power and Adani Power claimed they are entitled to charge a tariff due to certain change in regulations in Indonesia made coal export expensive. Both companies used to import coal from Indonesia for their multimillion power projects in Gujarat.
APTEL had said that change in laws was a force majeure event and had asked CERC to fix tariff rate as per the agreements the power companies had with state distribution companies.
However, the apex court ruling says that had the force majeure event been in India, the companies might be entitled to an increased tariff.