Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Electricity Act 2003 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Others |
Headnote | Electricity Act, 2003 - ss. 63, 79 - Determination of tariff by bidding process - Supply of power from power project - Power Purchase Agreement (PPA) between State Government Utilities and power generating companies - State Commission adopted tariff u/s. 63 for supply of power to Slate Government Utilities - However, few years later, change in Indonesian law which increased the export price of coal from Indonesia to international market - Petition by power generating companies before Ce171ral Electricity Regulatory Commission seeking relief due to change in Indonesian law - Commission held that the claim of power generating companies on the grounds of force majeure and/or change in law not admissible, however, in exercise of regulatory power u/s. 79 granted . compensatory tariff- Tribunal set aside the order of the Commission - On appeal, held: PPA makes it clear that changes in the cost of fuel, or the agreement becoming onerous to perform, are not treated as force majeure events under the PPA itself-As such force majeure would not apply so as to enable the grant of compensatory tariff - PPA does not state that coal is to be procured only from Indonesia at a particular price - Price payable for the supply of coal is entirely for the person who sets up the power plant to bear - Unexpected rise in the price of coal would not absolve the generating companies from performing their part of the contract since this was a risk they knowingly took - Also, expression 'any law' in Cl.13 of P PA refers to law of India - In view thereof. though change in Indonesian law would not qualify as a change in law under the guidelines read with the PPA, change in Indian law certainly would - CERC to go into the matter afresh and determine the relief to be granted to those power generators who fall within Cl.13 of the PPA. s. 79 - Regulatory powers of Central Commission u/s. 79(l)(b) - Interpretation of - Held: General regulatory power of the Commission u/s. 79(1)(b) is the source of the power to regulate, which includes the power to determine or adopt tariff- In a situation where the guidelines issued by the Central Government u/s. 63 cover the situation. the Central Commission is bound by those guidelines and must exercise its regulatory functions, only in accordance with those guidelines - It is only a situation where there are no guidelines framed at all or where the guidelines do not deal with a given situation that the Commission's general regulatory powers uls. 79(1J(b) call then be used. Power Purchase Agreement - Clause of force majeure - Application of |
Judge | Hon'ble Mr. Justice R.F. Nariman |
Neutral Citation | 2017 INSC 338 |
Petitioner | Energy Watchdog |
Respondent | Central Electricity Regulatory Commission And Ors. Etc. |
SCR | [2017] 3 S.C.R. 153 |
Judgement Date | 2017-04-11 |
Case Number | 5399-5400 |
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