Supreme Court To Examine If Tariff Determined Under PPA Can Be Revised

Supreme Court To Examine If Tariff Determined Under PPA Can Be Revised

On Wednesday, the Supreme Court sought Tata Power’s response to an appeal against an order of the Andhra Pradesh High Court that ruled that a State Electricity Regulatory Commission(SERC) could not revise a tariff that was determined under a long-term Power Purchase Agreement.


On the appeal by Andhra Pradesh Southern Power Distribution Company Limited, a bench consisting of Chief Justice D Y Chandrachud & Justice P S Narasimha gave notice to Tata Power Renewable Energy Limited.


“Issue a notice that is returnable by February 10, 2023. The bench suggested that short written notes of submissions (if any) be filed in the interim.


In its plea, the power distribution company stated that the finding of the high court is ex facie (on the face of it) contrary to the specific provisions of the Electricity Act.


“The High Court has erred in not appreciating that a PPA is not a contract simpliciter as envisaged under the Indian Contract Act, 1872 but is a regulated contract under the Electricity Act,” it said.

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In an order dated March 15, 2022, the high court held that under no circumstances can the tariff mentioned in a PPA be amended/revised.

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