CERC Dismisses Change In Law Petition, Rejects Compensation Claims Over Ministry Of Power Order

The Central Electricity Regulatory Commission (CERC) has disposed of Petition No. 26/MP/2024 filed by Scatec India Renewables One Private Limited (SIROPL) against Solar Energy Corporation of India Limited (SECI), GRIDCO Limited, and the Ministry of New and Renewable Energy (MNRE). The petition, heard by a Coram including Chairperson Shri Jishnu Barua, sought a declaration of a ‘Change in Law’ (CIL) under the Power Purchase Agreement (PPA) and subsequent entitlement to compensation.

SIROPL argued that an Order issued by the Ministry of Power (MoP) on June 9, 2023, fundamentally altered the terms of its PPA, constituting a Change in Law event. The petitioner specifically sought clarification and relief regarding the liability for Inter-State Transmission System (ISTS) charges, which represent a significant financial component for solar power projects.

However, in its Order dated November 28, 2025, the CERC declined to accept the MoP’s June 9, 2023, Order as a CIL event at the current stage. As a result, the Commission rejected SIROPL’s primary request for a Change in Law declaration and any entitlement to compensation. The CERC also noted that the petitioner’s request for clarification on the liability of ISTS charges was premature and could not be entertained at this point.

The petition included an additional request, filed as IA No. 64/2024, asking the CERC to direct GRIDCO, Respondent No. 2, to approach the Odisha Electricity Regulatory Commission (OERC) to modify an OERC order dated June 3, 2023. This order had approved a related Power Sale Agreement (PSA). SIROPL argued that the MoP’s subsequent order had fundamentally changed the terms of the PPA and therefore required modification of the earlier OERC approval.

The CERC dismissed this request as unwarranted and “preposterous,” stating that it lacked the jurisdiction and appropriate provisions to issue such a directive to GRIDCO. Since the MoP order was not recognized as a Change in Law event, the Commission found no basis to intervene in the OERC’s earlier order.

The CERC further observed that the petitioner itself was seeking to exit the project, which influenced the disposal of the petition. With this order, the immediate dispute over the classification of the MoP order as a Change in Law under the PPA has been resolved. The decision clarifies that, at this stage, the June 9, 2023, MoP order does not qualify as a Change in Law, and SIROPL’s claims for compensation and modifications to related agreements cannot be entertained.

This resolution marks a significant step in addressing regulatory clarity around Change in Law claims for solar power projects in India and sets a precedent for similar disputes in the sector.