Supreme Court denies compensatory tariffs to Tata Power and Adani Power

The Supreme Court has disallowed Tata Power Company Limited and Adani Power from charging compensatory tariffs on account of the Indonesian coal price hike issue with respect to the companies power plants in Mundra, Gujarat. The Supreme Court has set aside the earlier orders by the Appellate Tribunal for Electricity and the Central Electricity Regulatory Commission (CERC) which allowed compensatory tariffs to the two companies on grounds of force majeure. The Supreme Court has directed the CERC to use a fresh approach to resolve the matter and determine what relief should be granted to those power generators that fall within Clause 13 of the power purchase agreement (PPA), which deals with a change in regulations under Indian conditions.