Appellate Tribunal for Electricity Rejects Stay Plea Over ₹4.97/kWh Tariff for Karnataka 20 MW Solar Project

The Appellate Tribunal for Electricity (APTEL) has rejected an interim relief application filed by Bangalore Electricity Supply Company Limited and another appellant in a dispute against Aavanti Renewable Energy Pvt. Ltd. over the tariff applicable to a 20 MW solar power project in Karnataka. The Tribunal passed the order on May 20, 2026, while hearing an appeal challenging an earlier order issued by the Karnataka Electricity Regulatory Commission on December 30, 2021.

The original order of the Commission had condoned a delay of 119 days in commissioning the solar project developed by Aavanti Renewable Energy Pvt. Ltd. As a result, the company became eligible to receive the tariff under its Power Purchase Agreement (PPA) at ₹4.97 per kWh instead of the lower generic tariff of ₹4.36 per unit.

The Appellants sought an interim stay on the operation of the Commission’s order during the pendency of the appeal. However, the Tribunal refused to grant relief after closely examining the conduct of the Appellants over the past several years. The Tribunal observed that the Appellants had shown a “lackadaisical” approach in pursuing the matter and had failed to demonstrate urgency.

According to the order, after the Commission passed its decision in December 2021, the Appellants did not immediately challenge it and appeared to accept the ruling for more than one year and seven months. During this period, they also paid Rs. 9.60 crore to the power generator on November 28, 2022, towards the differential tariff amount covering the period from February 2018 to September 2022.

The matter later moved to the Karnataka High Court through a writ petition filed in June 2023. The High Court granted a stay on the Commission’s order. However, the petition was withdrawn on April 15, 2024, with the High Court extending the interim protection for another ten weeks to allow the Appellants to approach the appropriate forum. The extended stay remained valid until June 24, 2024.

The Tribunal noted that despite receiving this opportunity, the Appellants allowed the stay to lapse and filed the present appeal before APTEL only on July 22, 2024, nearly a month later. It further observed that the case remained pending for almost two years because of repeated adjournments sought mainly by the Appellants.

Referring to the legal principle “Vigilantibus non dormientibus jura subveniunt,” meaning the law assists those who are vigilant and not those who sleep over their rights, the Tribunal stated that interim relief is an equitable remedy granted only in cases showing genuine urgency and irreparable harm.

Although the Tribunal acknowledged that the Appellants had raised a prima facie case on legal grounds, it clarified that this alone was insufficient for granting interim relief. The Tribunal held that the balance of convenience and the possibility of irretrievable loss were not in favour of the Appellants.

The Tribunal also pointed out that the PPA remains valid until 2041 and the Respondent is obligated to supply electricity to the Appellants throughout the contract period. Therefore, if the Appellants succeed in the final appeal, they would still have sufficient opportunity to recover any excess tariff payments in the future. On this basis, the Tribunal rejected the interim stay application.