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IN THE HIGH COURT OF DELHI
Sanjeev Sachdeva, J.
Tata Power Delhi Distribution Limited - Appellant
Versus
Central Electricity Regulatory Commission - Respondent
W.P.(C) 4167 of 2020 and W.P.(C) 10026 of 2020 & CM Applns. 34096 of 2020 & 28044 of 2021
Decided On : 17-01-2022
| Table of Content |
|---|
| 1. interpretation of cerc regulations on the useful life of thermal power stations. (Para 1 , 2 , 3 , 4 , 5 , 6) |
| 2. contingent tariff arrangements under regulation 17. (Para 7 , 8 , 9 , 10 , 11) |
| 3. procedure for invoking regulation 17 and its implications. (Para 12 , 13 , 14 , 15 , 16) |
| 4. powers and jurisdiction of the central electricity regulatory commission. (Para 17 , 18 , 19) |
| 5. requirement for petitioner's disputes to be resolved through cerc. (Para 20 , 21 , 22 , 23 , 24 , 25) |
| 6. nature of obligations under power purchase agreements. (Para 26 , 27 , 28 , 29 , 30) |
| 7. allocation of power and implications of negotiation on tariffs. (Para 31 , 32 , 33 , 34 , 35) |
| 8. recent regulatory developments affecting ppa continuation. (Para 36 , 37 , 38) |
| 9. acknowledgment of statutory appeal processes and remittance of disputes. (Para 39 , 40 , 41 , 42 , 43) |
| 10. judicial review limitations and the role of the expert bodies in tariff disputes. (Para 44 , 45 , 46 , 47 , 48 , 49 , 50 , 51 , 52 , 53 , 54 , 55) |
| 11. dismissal of petitions without prejudice to merits. (Para 56 , 57 , 58 , 59) |
JUDGMENT
Sanjeev Sachdeva, J. Petitioner in W.P.(C) 4167 of 2020 seek quashing of letter dated 02.05.2020 issued by Respondent No. 2 NTPC Limited, whereby NTPC has opined that the provisions of Regulation 17 of the Central Electricity Regulatory Commission (CERC for short) (Terms & Conditions of Tariff) Regulations, 2019 (hereinafter referred to as the (CERC Regulations) are optional and may be exercised after completion of the useful life of a thermal generating station, if both the beneficiary and the generating company agree and further that presently NTPC was not considering the said provision of Regulation 17 for any of its stations and if any such arrangement was considered in future, same shall be communicated to the beneficiaries including the Petitioner. Petitioner further seeks a mandamus to NTPC to consider the request of the Petitioner to enter into an arrangement under Regulation 17.
2. Petitioner in W.P.(C) 10026 of 2020, seeks quashing of letter dated 30.11.2020 issued by Respondent No. 2 NTPC Limited, whereby NTPC has declined to accept the request of the Petitioner not to schedule any power from Dadri-I power generating station or raise any bills against the Petitioner after 30.11.2020. Petitioner further seeks a declaration that the useful life of 25 years and Power Purchase Agreement validity qua Dadri-I generating station have ended on 30.11.2020 and seeks a restraint on NTPC Limited from scheduling any power from Dadri-I generating station or to raise any bill for the period after 30.11.2020 and further to make a reasoned offer of an arrangement as per Regulation 17 (2) of the CERC Regulations.
3. Petitioner and Respondent No. 2 - NTPC entered into a consolidated Power Purchase Agreement consisting of a Power Purchase Agreement dated 08.05.2008 read with a Supplementary Power Purchase Agreement dated 22.03.2012 (hereinafter collectively referred to as the PPAs) for procuring power from various generating stations of NTPC including the subject generating station called Dadri-I.
4. As per the Petitioner in terms of Clause 13.1 (A) of the PPAs, the validity of the PPAs qua the subject generating station Dadri-I was till the end of life of the said station considered in the tariff orders or Regulations issued by Respondent No. 1 (Central Electricity Regulatory Commissioner) or Government of India allocations, whichever is later.
5. It is the case of the Petitioner that as per the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2009, useful life of a thermal generating station was 25 years and as the Commercial Operation Date of Dadri-I was 01.12.1995, Dadri-I completed its useful life of 25 years on 30.11.2020 and consequently the validity of PPAs qua Dadri-I expired on the said date.
6. As per the Petitioner, Regulation 17 of the CERC Tariff Regulations provides for a special provis
The interpretation of tariff regulations concerning power supply and agreements lies exclusively with the regulatory commission, and disputes must be adjudicated by it rather than the High Court.
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Point of Law : Section 61 of Electricity Act, 2003 deals with tariff regulations and it empowers Regulatory Commission to specify terms and conditions for determination of tariff.
The CERC possesses both regulatory and adjudicatory powers under the Electricity Act, allowing it to impose compensation for delays while retaining the framework under which such determinations are m....
The jurisdiction of CERC is limited to matters covered by clauses (a) to (k) of Sub-Section 1 of Section 79 of the Electricity Act, 2003.
Tariff determination for hydro projects with enhanced capacity, binding nature of prior PPAs on successors, and writ jurisdiction limited; exclusive domain of regulatory commission, not courts, to fi....
The Central Commission has exclusive jurisdiction to adjudicate disputes concerning tariff under inter-state Power Purchase Agreements and can refer non-tariff disputes for arbitration.
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