On 22.06.2020, Central Electricity Regulatory Commission (CERC) allowed additional capital cost and recurring operational cost to be incurred by Tata Power on account of retrofitting of FGD, to meet the revised emission norms prescribed by Ministry of Environment, Forests and Climate Change, Government of India. While CERC allowed the capital cost and operating cost, it denied capital cost to the tune of over Rs. 100 Crores and recurring operation cost by approx. 3.75%.
Tata Power challenged CERC’s Order before APTEL. APTEL vide its Judgment dated 14.05.2024 held that CERC’s deduction is illegal and bereft of any reasoning, despite furnishing of relevant documents and submissions being advanced by Tata Power. Consequently, CERC’s Order was set aside with directions to CERC to consider this issue afresh and pass necessary orders within 3 months.
APTEL’s Judgment dissuades Regulatory Commissions from passing orders without considering relevant material and promotes principles of restitutive relief in Change in Law matters.
Our Litigation Team Comprised Joint Managing Partner – Amit Kapur, Partner – Abhishek Munot, Partner – Kunal Kaul and Senior Associate – Samikrith Rao Puskuri.
Abhishek is a part of Disputes group of JSA and anchors the Regulatory Practice of JSA in Western India. Abhishek handles sector specific commercial litigation, arbitration constitutional & administrative law litigation and regulatory proceedings before statutory authorities, tribunals and courts.