Orders of Hon’ble Central Electricity Regulatory Commission dated 16.05.2019 in Petition No. 8/MP/2014 and 284/MP/2018 titled GMR Warora Energy Limited vs. MSEDCL & Ors.

J. Sagar Associates (“JSA”) represented GMR Warora Energy Limited (Petition No. 8/MP/2014 and Petition No. 284/MP/2018) in proceedings before the Central Electricity Regulatory Commission (“CERC”) wherein CERC has allowed compensation to GWEL for Levy of BSS, DS, carrying cost and shortfall in linkage coal due to changes in NCDP. Importantly, CERC allowed for compensation in shortfall of linkage coal beyond 31.03.2017.

The Order is significant as this is the first such Order where compensation for shortfall in linkage coal has been allowed for a period beyond 31.03.2017 recognizing that shortfall in supply of coal is a continuous cause of action.

On earlier occasions, relief had been limited to 31.03.2017 necessitating generators to again approach regulatory fora seeking relief. In some cases, generating companies are yet to receive compensation beyond 31.03.2017 despite Hon’ble Supreme Court having allowed the same by way of its Judgment in Energy Watchdog vs. CERC & Ors. in April 2017.

JSA Lawyers InvolvedJoint Managing Partner – Amit Kapur, Partner – Vishrov Mukerjee and Associates- Raveena Dhamija and Yashaswi Kant. The matter was argued by Vishrov Mukerjee.