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2026 Supreme(Online)(CERC) 243
CENTRAL ELECTRICITY REGULATORY COMMISSION
Jishnu Barua, Chairperson, Ramesh Babu V., Member, Harish Dudani, Member, Ravinder Singh Dhillon, Member
M.P. Power Management Company Limited – Appellant
Versus
NHDC Limited – Respondent
Petition No. 378/MP/2022|Petition No. 220/MP/2022
For the Appellants/Petitioners: Ashish Anand Bernard, Aditya Singh, Paramhans Sahani
For the Respondents: Suparna Srivastava, Sunidhi Singh, Hitakshi Jain, D. K. Kurrey
CEA corrigendum correcting water utilization unit from BM³ to MAFt in TEC operates retrospectively, mandating revision of hydroelectric tariff parameters and refund of excess secondary energy charges without interest.
Headnote:(A) Electricity Act, 2003 - Sections 79(1)(f) & 94 - Central Electricity Regulatory Commission (Conduct of Business) Regulations, 1999 - Regulations 74, 82, 111 & 112 - Tariff determination for hydroelectric projects - Unit of water utilization for irrigation 'Q' erroneously considered as BM³ instead of MAFt in TEC and tariff orders - CEA corrigendum correcting unit to MAFt relates back to original TEC - Commission directed revision of Firm Power (MW) and Design Energy (MUs) from 2010-11 onwards, reclassification of secondary energy, and refund of excess charges in instalments without interest - Retrospective correction permissible as error not attributable to parties and tariff making is continuous process. (Paras 17, 21, 22, 30-33, 42, 47)
(B) Limitation Act, 1963 - Article 113 - Petitions filed within 3 years from CEA corrigendum date not time-barred - Right to sue accrues on corrigendum issuance. (Para 19)
(C) Corrigendum - Nature and effect - Corrects clerical error in original document, operates retrospectively as it rectifies what was erroneously stated, not a prospective amendment. (Paras 29-31)
Facts of the case:
Petitions sought revision of Firm Power and Design Energy in tariff orders for two hydroelectric projects due to incorrect unit of irrigation water utilization 'Q' as BM³ instead of MAFt, leading to excess secondary energy charges recovery. CEA issued corrigendum confirming MAFt unit per NWDT award. Respondent opposed on grounds of finality, limitation, and financial disruption.
Findings of Court:
Firm Power, Design Energy revised considering 'Q' as MAFt from 2010-11 to 2018-19; excess secondary energy charges refunded in 12 interest-free instalments after reconciliation; differential for 2019-24 in pending truing-up petitions; reservoir level claims rejected.
Issues: Maintainability for revising past tariff orders; retrospectivity of CEA corrigendum; consequential relief for excess charges without specific prayer; limitation and forum shopping.
Ratio Decidendi: CEA corrigendum corrects TEC error retrospectively; apparent error in applying wrong unit warrants tariff revision; regulatory power allows reopening for technical accuracy despite finality; refund directed equitably without interest as error not attributable to respondent.
Result: Petitions allowed; directions for revision and refund issued.
| Table of Content |
|---|
| 1. petition details and procedural history (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10) |
| 2. petitioner's claims on water unit correction (Para 11 , 12) |
| 3. respondent's maintainability objections (Para 13 , 14 , 15 , 16) |
| 4. factual background of unit error (Para 17 , 18) |
| 5. ruling on limitation and review (Para 19 , 20) |
| 6. error correction and consequential relief (Para 21 , 22 , 23 , 24 , 25 , 26 , 27) |
| 7. corrigendum retrospective application (Para 28 , 29 , 30 , 31 , 32 , 33) |
| 8. rejection of finality arguments (Para 34 , 35) |
| 9. revised energy computations (Para 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46) |
| 10. refund directions and disposal (Para 47 , 48 , 49 , 50) |
ORDER
M.P. Power Management Company Limited (MPPMCL), a Government-owned company of the State of Madhya Pradesh, has filed Petition No.378/MP/2022 and Petition No.220/MP/2022, under Sections 79(1)(f) and 94 of the Electricity Act, 2003 read with Regulations 74, 82, 111 and 112 of Central Electricity Regulatory Commission (Conduct of Business) Regulations, 1999 for considering unit of water utilisation for irrigation 'Q' from ‘BMQ’ or BM3 (Billion Cubic Meter) to 'MAFt' (Million Acre Feet) in the tariff orders, in respect of Indira Sagar Hydro-electric Project (in short “ISHEP”) and Omkareshwar Hydro-electric Project (in short OSP).
2. NHDC Ltd., Respondent No.1, is a joint venture company of NHPC Ltd. and the Government of Madhya Pradesh (through Narmada Valley Development Authority ‘NVDA’) with equity participation of 51% and 49%, respectively.
3. MPPMCL has filed instant petitions pursuant to the corrigendum issued by Central Electricity Authority (CEA) on 29.3.2022 to the Techno-Economic Clearance (TEC) of the ISHEP (Petition No.378/MP/2022) of NHDC, stating that ‘BMQ’ may be read as ‘MAFt’.
4. The Petitioner has made the following prayers in Petition No. 378/MP/2022:
“a) Admit and allow the instant petition filed by the Petitioner;
b) Revise and compute the Firm power (MW) and Design energy (MUs) from FY 2010-11 to FY 2023-24, as notified by the Commission in tariff orders dated 13.06.2012 in P. no. 154/2010, dated 26.05.2016 in P. no. 461/GT/2014, dated 31.05.2016 in P. no. 265/GT/2014 & dated 06.01.2022 in P.no. 106/GT/2020 in accordance with the corrigendum dated 29.03.2022 issued by CEA, New Delhi; and c) Pass such further or other orders as the Commission may deem just and proper in the circumstances of the case.”
5. The Petitioner has made the following prayers in Petition No. 220/MP/2022:
“a) Admit and allow the instant petition filed by the Petitioner;
b) Revise the Firm power and Design energy in tariff orders dtd 09.05.2013 (P. no. 248/GT/ 2012), dtd 26.05.2016 (P no. 264/GT/2014), dtd 10.05.2016 (P no. 460/GT/2014) & dtd 11.03.2022 (P. no. 107/GT/2020) issued for the tariff period 2009-14, 2014-19 and 2019-24 in respect of Omkareshwar Hydro Electric Project, from the commencement of stage-II of utilizable water for irrigation requirement and reduced Reservoir level i.e., from 2010-11 onwards up to 2019 and for tariff period 2019-24 in consonance with corrigendum issued by CEA in respect of Indira Sagar Hydroelectric Project, TEC of Omkareshwar Hydro Electric Project issued by CEA, NWDT award and NCA certificates & Reservoir level Daily Reports; and c) Pass such further or other orders as the Commission may deem just and proper in the circumstances of the case.”
6. The prayers made, and the relief sought in Petition No. 378/MP/2022 and Petition No. 220/MP/2022 are similar, and the petitions are based on the corrigendum issued by CEA on 29.3.2022 to the TEC of ISHEP. Therefore, both the said petitions are dealt with together in the instant order.
7. After hearing the submissions of the Petitioner, the Commission admitted Petition No. 220/MP/2022 on 11.12.2022 and Petition No. 378/MP/2022 on 11.4.2023 and issued notice to the Respondents and directed the parties to complete the pleadings.
8. In Petition No. 220/MP/2022, NHDC Limited (NHDC) filed repli
