Time to revisit Arbitrations in the Power Sector: Conflict between Sections 79(1)(f) and 86(1)(f) of Electricity Act, 2003 and Section 11 of Arbitration and Conciliation Act, 1996

By a judgment dated 23-09-2024, the Supreme Court dismissed a civil appeal filed by Damodar Valley Corporation (DVC) challenging a judgment of the Appellate Tribunal for Electricity (APTEL) dated 28-08-20242. Supreme Court effectively upheld the APTEL ruling to the effect that:

  • All disputes which have a bearing on the tariff of a generating company or transmission licensee would constitute tariff disputes (be it change in law or delay in completion of projects or invocation of force majeure) and fall solely within the jurisdiction of the Central Electricity Regulatory Commission3 under Section 79(1)(f) of the Electricity Act, 2003 (“E Act”).
  • Disputes relating to termination or breach of contract, and other disputes which do not impact the tariff, directly or indirectly, are non-tariff related disputes, which must be mandatorily referred to arbitration.

Please click here to read the full article by Amit Kapur and Akshat Jain, published in SCC Online.