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Informist, Friday, Jan. 16, 2026

 

NEW DELHI – The Supreme Court on Friday rejected Gujarat Urja Vikas Nigam Ltd. and Punjab State Power Corp. Ltd.'s pleas against an order by the Central Electricity Regulatory Commission asking them to pay an interim tariff to Tata Power Co. Ltd., till determination of suitable methodology for the computation of the compensation payable to the latter by the petitioners is decided.

 

Gujarat Urja Vikas Nigam argued that under the provisional tariff determined by the independent committee appointed by the central government, it had already paid a sum aggregating to INR 104.62 billion of which energy charges were INR 83.17 billion, which was substantially higher than the tariff computed in terms of the power purchase agreement in 2007 between the parties and further constitutes more than 8.39% of the alleged claim made by Tata Power. Therefore, there is no basis to allow any further relief at this stage, without final determination, it said.

 

In October, the Appellate Tribunal for Electricity had upheld the regulatory commission's order, against which the petitioners moved the apex court. The interim order was passed by the central commission in 2025 after nearly two years, when it could have passed the final order determining the adverse financial impact considering all the relevant documents and materials, instead of passing an adhoc interim order granting additional amounts, said the petitioners.

 

In 2007, Tata Power had entered into a power purchase agreement with Gujarat Urja Vikas Nigam, Punjab State Power Corp., and other distribution licensees in the states of Maharashtra, Punjab, Rajasthan, and Haryana. In 2023, in view of the forecasted peak demand for electricity and in the likely scenario of a gap in demand and supply of domestic and essential requirements to maintain coal stock at the generating station, the power ministry had issued a direction requiring imported coal-based power plants to operate and generate power to their full capacity, and supply to the power purchase agreement holders at the first instance. Thereafter, Tata Power filed a petition with the commission seeking determination of suitable methodology for the computation of the compensation payable to it towards supply of power to the respondents in terms of the directions issued by the power ministry.

 

On the National Stock Exchange, shares of Tata Power closed 0.4% lower at INR 366.10.  End

 

Reported by Surya Tripathi

Edited by Ashish Shirke

 

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