“Who Pays for Delays in Power Projects? : Supreme Court Explains CERC’s Role in Tariff and Compensation”
The Supreme Court held that the Central Electricity Regulatory Commission (CERC) can exercise regulatory powers under Section 79 of the Electricity Act, 2003 to impose compensation for delays, even without specific regulations under Section 178. It clarified that CERC’s orders under Section 79 are appealable to APTEL under Section 111, not through writ petitions unless jurisdictional or constitutional issues arise. The Court emphasized that regulatory gaps can be addressed via Section 79, distinguishing it from legislative rule-making under Section 178. The High Court erred in entertaining the writ petition when an alternative remedy existed.
Facts Of The Case:
The case involved a dispute between Power Grid Corporation of India Ltd. (PGCIL) and Madhya Pradesh Power Transmission Company L...