{"id":260935,"date":"2022-02-01T14:00:43","date_gmt":"2022-02-01T08:30:43","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=260935"},"modified":"2022-03-18T22:24:07","modified_gmt":"2022-03-18T16:54:07","slug":"state-commission-disallows-benefit-of-increase-in-the-tariff-based-on-the-change-in-law-provision","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2022\/02\/01\/state-commission-disallows-benefit-of-increase-in-the-tariff-based-on-the-change-in-law-provision\/","title":{"rendered":"APTEL | State commission disallows benefit of increase in the tariff based on the change in law provision; Tribunal directs reconsideration"},"content":{"rendered":"

Appellate Tribunal for Electricity (APTEL):<\/strong> A Coram of R.K. Gauba (Officiating Chairperson) and Sandesh Kumar Sharma (Technical Member) decided on an appeal which was filed by Solar Power Project Developer (\u201cSPD\u201d) assailing order passed by respondent Bihar Electricity Regulatory Commission (\u201cthe State Commission\u201d) disallowing the benefit of increase in the tariff based on the change in law provision with respect to increased Operation and Maintenance (O&M) costs of its 10MW solar power generating system.<\/p>\n

The State Commission while accepting that the GST laws do constitute a change in law event within the meaning of the expression used in the Power Purchase Agreement (PPA) binding the parties, it denied the relief taking exception to the fact that the operation and maintenance work had been outsourced.<\/p>\n

The Tribunal observed that it was fairly conceded by the counsel for the appellant and for the respondent procurers (distribution licensees) through their respective counsel that it would be appropriate that the matter was remitted to the State Commission for revisit of the decision taken denying the relief on the above mentioned reason, in as much as should the State Commission now accept the contention of the appellant that the relief was admissible in terms of ruling in Coastal Gujarat Power Ltd. v. Central Electricity Regulatory Commission<\/em>, 2021 SCC OnLine APTEL 10<\/a>.<\/p>\n

The Tribunal finally set aside the impugned order of the State Commission and remitted the matter to it for fresh consideration, after hearing the parties, in accordance with law.[Azure Power Eris (P) Ltd. v. Bihar Electricity Regulatory Commission, 2022 SCC OnLine APTEL 8<\/b><\/a>, decided on 13-01-2022]<\/p>\n

\n

Suchita Shukla, Editorial Assistant has reported this brief.<\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Appellate Tribunal for Electricity (APTEL): A Coram of R.K. 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Desai, J. (Chairperson) and I. J. Kapoor, Technical Member, inter alia held that the State Commission overstepped its jurisdiction while limiting the liability of PSPCL towards the appellant and exceeded the scope of the order\u2026","rel":"","context":"In "Case Briefs"","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\/2017\/08\/Electricity1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/Electricity1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/Electricity1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/Electricity1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/Electricity1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":355818,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/08\/06\/lps-terms-under-ppa-binding-dehors-tariff-regulations-aptel\/","url_meta":{"origin":260935,"position":3},"title":"LPS terms under PPA remain binding on parties dehors subsequent tariff regulations: APTEL","author":"Editor","date":"August 6, 2025","format":false,"excerpt":"\u201cAny regulations issued by an Electricity Commission in exercise of its delegated legislative power, are applicable to the PPA executed after the date when those regulations come into force and cannot be applied to the PPAs already executed prior to that date, unless the regulations expressly specify so.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"LPS terms under PPA remain binding on parties dehors subsequent tariff regulations: APTEL","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/08\/PPA-prevails-over-Tariff-Regulation.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/08\/PPA-prevails-over-Tariff-Regulation.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/08\/PPA-prevails-over-Tariff-Regulation.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/08\/PPA-prevails-over-Tariff-Regulation.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":290348,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/04\/22\/supreme-court-castigates-aptel-for-virtually-rubber-stamping-state-commissions-findings-on-coercion-vis-vis-power-purchase-agreement-legal-news-legal-research-updates\/","url_meta":{"origin":260935,"position":4},"title":"Supreme Court castigates APTEL for virtually rubber stamping State Commission’s findings on coercion vis-à-vis Power Purchase Agreement","author":"Editor","date":"April 22, 2023","format":false,"excerpt":"Supreme court was of the opinion that the \u201ccasual 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\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"aptel","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/aptel.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/aptel.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/aptel.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/aptel.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":337796,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/12\/23\/revenue-surplus-adjustment-before-re-organisation-subsequent-years-arr-post-re-organisation-s-131-electricity-act-aptel\/","url_meta":{"origin":260935,"position":5},"title":"Adjustment of revenue surplus prior to re-organisation from ARR of subsequent years post reorganisation not aligned with scheme of reforms under S.131 Electricity Act: APTEL","author":"Editor","date":"December 23, 2024","format":false,"excerpt":"\u201cAs per transfer scheme issued under Section 131 of Electricity Act 2003, the Distribution companies cannot be treated as successors in the interest of the Bihar State Electricity Boards in respect of any surplus found in the books of BSEB relating to the period prior to re-organisation.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Section 131 Electricity Act","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/12\/Section-131-Electricity-Act.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/12\/Section-131-Electricity-Act.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/12\/Section-131-Electricity-Act.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/12\/Section-131-Electricity-Act.webp?resize=700%2C400&ssl=1 2x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/260935","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\/67011"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=260935"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/260935\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/152743"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=260935"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=260935"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=260935"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}