{"id":213673,"date":"2019-04-18T15:00:55","date_gmt":"2019-04-18T09:30:55","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=213673"},"modified":"2019-04-19T15:50:43","modified_gmt":"2019-04-19T10:20:43","slug":"cerc-electricity-transmission-agreement-successful-bidder-can-claim-relief-only-if-conditions-stipulated-in-agreement-are-followed","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/04\/18\/cerc-electricity-transmission-agreement-successful-bidder-can-claim-relief-only-if-conditions-stipulated-in-agreement-are-followed\/","title":{"rendered":"CERC | Electricity Transmission Agreement \u2013 Successful bidder can claim relief only if conditions stipulated in agreement are followed"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Central Electricity Regulatory Commission (CERC): <\/strong>The coram of P.K Pujari (Chairperson) and Dr M.K. Iyer (Member) allowed a petition filed by a successful bidder seeking an extension of time for implementation of project awarded to him.<\/p>\n<p style=\"text-align: justify;\">In the instant case, a special purpose vehicle (SPV) was created in the name of petitioner company (DMTCL) for the implementation of a scheme for transmission of electricity in the eastern region. Accordingly, a Transmission Service Agreement (TSA) was entered into between the petitioner and Long Term Transmission Customers (LTTCs) who were beneficiaries under the said agreement.<\/p>\n<p style=\"text-align: justify;\">The instant petition was filed under Sections 61, 63 and 79 of the Electricity Act, 2003 seeking an extension of the scheduled date of commercial operation (COD) and increase in transmission charges, due to change in law and certain unforeseen events. Respondent objected to the petition contending that as per the Transmission Service Agreement (TSA), petitioner was required to notify the change in law and force majeure events if it wished to claim any relief for the same. Since no such notice was ever served, no relief could be claimed.<\/p>\n<p style=\"text-align: justify;\">The Commission noted that as per TSA, the affected party was mandatorily required to give notice to the other party of any event of force majeure as soon as reasonably practicable, but not later than seven days of the commencement of force majeure event. Petitioner had issued appropriate intimation to LTTCs under Articles 11 and 12 of TSA qua the \u2018force majeure\u2019 and \u2018change in law\u2019 events as soon as it became aware of the same. The occurrence and impact of these events were also intimated through petitioner\u2019s monthly progress reports.<\/p>\n<p style=\"text-align: justify;\">Petitioner\u2019s claim in respect of unexpected expenditure incurred on account of obtaining forest clearance and an increase in taxes and duties was allowed holding that it was a \u2018change in law\u2019. However, new ROW compensation guidelines did not qualify as \u2018change in law\u2019 because, in a competitive bidding project, such contingent expenditure is expected to be factored in. Further, demonetization was also not a \u2018change in law\u2019 as it did not constitute any enactment, adoption, promulgation, amendment, modification or repeal of any law.<\/p>\n<p style=\"text-align: justify;\">The Commission refrained from making any observations on merits regarding force majuere events such as prohibition on sand mining in Bihar due to NGT order, flooding of Gandak river, kidnapping of project staff, manhandling of officials, delay in railway crossing work due to public agitations, delay due to Assembly Elections in Bihar, delay due to supply of material, etc. However, it was held that the petitioner was prevented from discharging its obligations under TSA on account of delay in grant of forest clearance, and such delay was covered under force majeure.<\/p>\n<p style=\"text-align: justify;\">In view of the above, COD was extended and the petitioner\u2019s claims were partly allowed.[Darbhanga-Motihari Transmission Co. Ltd. v. Bihar State Power Transmission Co. Ltd., <a href=\"http:\/\/scconline.com\/DocumentLink\/PX2Pv35R\"><b>2019 SCC OnLine CERC 21<\/b><\/a>, Order dated 29-03-2019]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Central Electricity Regulatory Commission (CERC): The coram of P.K Pujari (Chairperson) and Dr M.K. Iyer (Member) allowed a petition filed by a <\/p>\n","protected":false},"author":8808,"featured_media":210209,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[34926,30577,14631,34925,34969,34927],"class_list":["post-213673","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-assembly-elections","tag-bidder","tag-electricity-act","tag-electricity-transmission-agreement","tag-force-majuere","tag-transmission"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>CERC | Electricity Transmission Agreement \u2013 Successful bidder can claim relief only if conditions stipulated in agreement are followed | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2019\/04\/18\/cerc-electricity-transmission-agreement-successful-bidder-can-claim-relief-only-if-conditions-stipulated-in-agreement-are-followed\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CERC | Electricity Transmission Agreement \u2013 Successful bidder can claim relief only if conditions stipulated in agreement are followed\" \/>\n<meta property=\"og:description\" content=\"Central Electricity Regulatory Commission (CERC): The coram of P.K Pujari (Chairperson) and Dr M.K. 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point of connection transmission charges","author":"Bhumika Indulia","date":"August 6, 2019","format":false,"excerpt":"Central Electricity Regulatory Commission (CERC): The Bench of P.K. Pujari (Chairperson), Dr M.K. Iyer (Member) and I.S. Jha (Member) determined the transmission charges for the two 400 kV lines, namely, Seoni (MP)-Sarni (MP) and Seoni (MP)-Bhilai (Chhattisgarh) Transmission lines for the period from 2011-12 to 2013-14, for inclusion in computation\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":223751,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/01\/02\/cerc-electricity-act-read-with-trading-margin-regulations-gives-contracting-parties-the-freedom-to-mutually-agree-on-trading-margin-for-any-trading-transaction\/","url_meta":{"origin":213673,"position":1},"title":"CERC | Electricity Act read with Trading Margin Regulations gives contracting parties freedom to mutually agree on Trading Margin for any trading transaction","author":"Bhumika Indulia","date":"January 2, 2020","format":false,"excerpt":"Central Electricity Regulatory Commission (CERC): A coram of Justice P.K. Pujari (Chairperson), M.K. Iyer (Member) and I.S. Jha (Member) disposed of a petition filed under Section 63 of the Electricity Act, 2003 seeking adoption of tariff for 1000 MW (Tranche-II) Wind Power Projects connected to the Inter-State Transmission System (ISTS)\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":210208,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/02\/18\/cerc-central-electricity-regulatory-commission-terms-and-conditions-of-tariff-second-amendment-regulations-2019\/","url_meta":{"origin":213673,"position":2},"title":"CERC | Central Electricity Regulatory Commission (Terms and Conditions of Tariff) (Second Amendment) Regulations, 2019","author":"Bhumika Indulia","date":"February 18, 2019","format":false,"excerpt":"No. L-1\/144\/2013-CERC\u2014 In exercise of powers conferred under Section 178 of the Electricity Act, 2003 and all other powers enabling it in this behalf, and after previous publication, the Central Electricity Regulatory Commission hereby makes the following regulations, to amend Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations,\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":223682,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/12\/30\/cerc-plea-of-rehearing-rejected-where-an-error-could-not-be-established-on-the-face-of-the-record\/","url_meta":{"origin":213673,"position":3},"title":"CERC | Plea of rehearing rejected where an error could not be established on the face of the record","author":"Bhumika Indulia","date":"December 30, 2019","format":false,"excerpt":"Central Electricity Regulatory Commission (CERC): The Coram of P.K. Pujari (Chairperson), Dr M.K. Iyer (Member) and I.S. Jha (Member) dismissed a petition filed for the review of an order dated 09-08-2019. The Review Petitioners stated that the Power Grid Corporation of India Limited (PGCIL) had filed a petition seeking regulatory\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":224214,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/01\/14\/aptel-%e2%94%82-bonafide-delay-can-be-condoned-tribunal-condones-delay-of-148-days-while-allowing-the-appeal\/","url_meta":{"origin":213673,"position":4},"title":"APTEL | Bonafide delay can be condoned; Tribunal condones delay of 148 days while allowing the appeal","author":"Bhumika Indulia","date":"January 14, 2020","format":false,"excerpt":"Appellate Tribunal for Electricity (APTEL): A Coram of Justice Manjula Chellur (Chairperson) and S.D. Dubey, (Technical Member) allowed an appeal filed against an impugned order passed by the Central Electricity Regulatory Commission. The counsel for the appellant Anand K. Ganesan, Swapna Seshadri,\u00a0 Ashwin Ramanathan and Utkarsh Singh had submitted that\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":296446,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/07\/10\/state-commissions-cannot-decide-trade-margins-ists-power-projects-legal-news\/","url_meta":{"origin":213673,"position":5},"title":"State Commissions cannot modify tariff adopted by Central Commission and adopt trade margin for ISTS power projects: APTEL","author":"Apoorva","date":"July 10, 2023","format":false,"excerpt":"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.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"appellate tribunal for electricity","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/07\/appellate-tribunal-for-electricity.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/07\/appellate-tribunal-for-electricity.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/07\/appellate-tribunal-for-electricity.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/07\/appellate-tribunal-for-electricity.webp?resize=700%2C400&ssl=1 2x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/213673","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/8808"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=213673"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/213673\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/210209"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=213673"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=213673"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=213673"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}