Absence of Restitution Clause Cannot Defeat Change in Law Claim: APTEL Applies “Penta-Test”
“Absence of any such clause in the PPA cannot be held to the prejudice of the appellant so as to deny relief to it under Change in Law clause.”
“Absence of any such clause in the PPA cannot be held to the prejudice of the appellant so as to deny relief to it under Change in Law clause.”
Delay attributable to suppliers falling in the category of controllable factors is equally applicable in accordance with Regulations 11 and 12, CERC Tariff Regulations, 2014.
The Court denied the electricity distribution company the depreciation cost for the Plant’s technical useful life, instead of the regulatory recovery period under the tariff framework.
“The DERC has failed to disclose to the DISCOMs the ‘public interest’ in which it was found expedient to entrust audit to CAG and therefore, there was no opportunity for the DISCOMs to represent against such audit.”
“We find it ironical that the Commission has ignored this basic tenet of natural justice by issuing the direction in question without hearing the appellant. Thus, on this count also, the impugned order cannot be sustained.”
Interviewed by Anish Mishra
“It is an established legal principle that any administrative action / order does not absolve a party to a valid and subsisting Power Purchase Agreement from discharging its obligation under the PPA.”
APTEL said that in accordance with the guidelines and the CERC Regulations, the Appropriate Commission, the trading margin shall be decided mutually by the SECI, the trading licensee and the WPPs and in turn by the distribution licensees.
Supreme court was of the opinion that the “casual approach of APTEL, in not reasoning how such findings could be rendered, cannot be countenanced. As a judicial tribunal, dealing with contracts and bargains, which are entered into by parties with equal bargaining power, APTEL is not expected to casually render findings of coercion, or fraud, without proper pleadings or proof, or without probing into evidence.”
The Supreme Court upheld the judgement passed by the APTEL after observing that the generating companies were entitled to compensation so as to restore them to the same economic position, if the Change in Law had not occurred.
APPELLATE TRIBUNAL FOR ELECTRICITY (ATE) Bureau of Energy Efficiency takes suo motu verification test on a sample refrigerator of Whirlpool India and