Tag: electricity regulatory commission

Supreme Court Clarifies Jurisdiction of Electricity Regulators in Franchisee Disputes
Supreme Court

Supreme Court Clarifies Jurisdiction of Electricity Regulators in Franchisee Disputes

The Supreme Court ruled that Electricity Regulatory Commissions (ERCs) lack jurisdiction to entertain petitions solely based on public interest under the Electricity Act, 2003. It held that franchisees, as agents of distribution licensees, are not directly regulated by ERCs, and investigations under Section 128 must target licensees, not franchisees. The Court emphasized that ERCs cannot micromanage franchisee agreements, as their regulatory oversight is limited to licensees. The judgment clarified that contractual disputes between licensees and franchisees fall outside ERCs' adjudicatory scope under Section 86(1)(f). The appeal was allowed, setting aside APTEL's order. Facts Of The Case: The case involved a dispute between Torrent Power Limited (appellant) and the Uttar Pradesh Elec...
Supreme Court Decides “what It Means for Future Agreements” : Lead Partner Liable for Full Payment in Power Project Dispute
Supreme Court

Supreme Court Decides “what It Means for Future Agreements” : Lead Partner Liable for Full Payment in Power Project Dispute

The Supreme Court upheld the doctrine of privity of contract, ruling that Brua Hydrowatt Pvt. Ltd. (BHP) was solely liable for transmission bay costs under its agreement with HP Power Transmission Corporation (HPPTC), despite internal arrangements with third parties. The Court held that non-signatories (Respondent Nos. 2 & 3) could not be bound by the contract, reversing APTEL’s order. The judgment reaffirmed that contractual obligations apply only to parties to the agreement, unless explicitly extended. Facts Of The Case: The dispute arose between HP Power Transmission Corporation Ltd. (HPPTC) and M/s Brua Hydrowatt Pvt. Ltd. (BHP) over the liability for construction and maintenance costs of a 66kV power transmission bay at Urni, Himachal Pradesh. BHP, along with two other power com...