CENTRAL ELECTRICITY REGULATORY COMMISSION NEW DELHI Petition No. 238/MP/2024 Coram:

Shri Jishnu Barua, Chairperson Shri Ramesh Babu V., Member Shri Harish Dudani, Member Shri Ravinder Singh Dhillon, Member Date of Order: 30.01.2026 In the matter of:

Petition under Sections 79(1)(b) and (f) of the Electricity Act, 2003, read with Article 7.2 of the Power Purchase Agreement dated 26.12.2005, seeking adjudication of dispute qua PCKL/ ESCOMs’ illegal unilateral withholding of differential energy charges payable to Adani for the period 1.4.2016 to 31.3.2019.

And in the matter of: Adani Power Limited, Adani Group, National Council of YMCA of India Bharat Yuvak Bhawan, 1, Jai Singh Road Gate No. 5, New Delhi-110001. …Petitioner Versus

1. Power Company of Karnataka Limited, KPTCL Building, Kaveri Bhavan, K.G. Road, Bangalore-560009, State of Karnataka.

2. Bangalore Electricity Supply Corporation Limited, K.R. Circle, Bengaluru-560001, State of Karnataka.

3. Mangalore Electricity Supply Corporation Limited, MESCOM Bhavan, Corporate Office, MESCOM, Kavoor Cross Road, Bejai, Mangalore-575004, State of Karnataka.

4. Gulbarga Electricity Supply Corporation Limited, Corporate Office-Gulbarga Electricity Supply Company, Gulbarga-585102, State of Karnataka.

5. Hubli Electricity Supply Company Limited, Corporate Office, HESCOM, Navanagar, P.B. Road, Hubballi-580025, State of Karnataka.

6. Chamundeshwari Electricity Supply Corporation Limited, CESC Mysore, Corporate Office, 29, Vijayanagara 2nd Stage, Hinkal, Mysuru-570017, Karnataka. … Respondents Parties Present: Shri M. G. Ramachandran, Sr. Advocate, PCKL Shri Amit Kapur, Advocate, APL Shri Saunak Rajguru, Advocate, APL Shri Rajesh Jha, Advocate, APL Ms. Bhabna Das, Advocate, PCKL Ms. Srishti Khindaria, Advocate, PCKL Shri Arpit Mishra, Advocate, PCKL Shri Kumar Gaurav, APL

ORDER

Adani Power Limited has filed the instant petition under Sections 79(1)(b) and (f)

of the Electricity Act, 2003 (“Act”) read with Article 7.2 of the Power Purchase Agreement (“PPA”) dated 26.12.2005 seeking adjudication of dispute qua Power Company of Karnataka Limited (PCKL)/ Electricity Supply Companies in Karnataka (“ESCOM’s”) illegal unilateral withholding of differential energy charges payable to the Petitioner for the period 1.4.2016 to 31.3.2019 and clarification of a finding in order dated 13.1.2023 in Petition No. 155/MP/2019. PCKL, Respondent No. 1, is the nodal agency for power procurement in the State of Karnataka and acts on behalf of Respondent Nos. 2 to 6, the ESCOMs.

2. The Petitioner has made the following prayers:

“(a) Clarify that the benchmark energy charges formula laid down at Para 137 of the Original Order applies to coal procurement through spot purchase from ‘sister companies’ only and is NOT applicable to Adani’s coal procurement through spot purchase from ‘entities other than sister companies’.

(b) Direct PCKL/ Karnataka ESCOMs to pay Adani, the withheld differential energy charges and corresponding Carrying Cost to the tune of Rs. 100 Cr. towards spot procurement of coal during 01.04.2016 to 31.03.2019.

(c) Direct PCKL/Karnataka ESCOMs to pay Adani, the LPS to the tune of Rs. 15.23 Cr. (as of 30.04.2024) and until the date of payment, towards spot procurement of coal during 01.04.2016 to 31.03.2019 for the delay by PCKL/ ESCOMs in payment of withheld differential energy charges and corresponding Carrying Cost to Adani.

(d) Pass such order(s) as this Ld. Commission may deem fit and proper in facts and circumstances of the present case.”

3. The petition was admitted on 7.10.2024, and a notice was issued to the Respondents. In response, PCKL has filed its reply vide affidavit dated 4.1.2025, and the Petitioner has filed its rejoinder vide affidavit dated 10.2.2025. Further, the Petitioner and PCKL filed their written submissions dated 12.8.2025 and 21.8.2025, respectively.

Brief facts

4. The brief facts of the matter are as follows:

a. To meet the coal requirement for operating its imported coal-based power pro