Case Note & Summary
The case involves appeals under Section 125 of the Electricity Act, 2003, by Gujarat Urja Vikas Nigam Limited and other distribution licensees against orders of the Appellate Tribunal for Electricity (APTEL) dated 06.12.2018 and 24.07.2020. APTEL had rejected appeals and a review petition, affirming the Gujarat Electricity Regulatory Commission's order dated 01.07.2015. The dispute arose from the State Commission's determination of tariff for wind energy generators under the Renewable Energy Certificate (REC) scheme. The Commission reduced the tariff for REC scheme generators, which was challenged by generators like Renew Wind Energy (Rajkot) Pvt Ltd and Wish Wind Infrastructure LLP. The Supreme Court examined the powers of the State Commission under Sections 62, 64, 86, and 181 of the Act. It held that the Commission has the authority to determine tariff for renewable energy sources, and the REC scheme does not override this power. The Court found that APTEL erred in interfering with the Commission's expert determination, which was based on a balanced consideration of interests. Consequently, the Supreme Court allowed the appeals, set aside APTEL's orders, and restored the State Commission's tariff order.
Headnote
A) Electricity Law - Tariff Determination - Renewable Energy Certificate - Sections 62, 64, 86, 181 Electricity Act, 2003 - The Gujarat State Commission's tariff order for wind energy under the REC scheme was challenged by generators. The Supreme Court held that the State Commission has the power to determine tariff for renewable energy sources under Section 62, and the REC scheme does not preclude the Commission from fixing a lower tariff. The Court upheld the Commission's order as a valid exercise of regulatory power, balancing interests of generators and consumers. (Paras 1-5) B) Electricity Law - Appellate Tribunal - Scope of Appeal - Section 125 Electricity Act, 2003 - APTEL's rejection of appeals and review petitions was set aside. The Supreme Court allowed the appeals, restoring the State Commission's tariff order, holding that APTEL erred in interfering with the Commission's expert determination. (Paras 1-5)
Issue of Consideration
Whether the Gujarat Electricity Regulatory Commission's tariff order for wind energy, which reduced the tariff for Renewable Energy Certificate (REC) scheme generators, was valid and whether APTEL erred in upholding it.
Final Decision
The Supreme Court allowed the appeals, set aside APTEL's orders dated 06.12.2018 and 24.07.2020, and restored the Gujarat Electricity Regulatory Commission's order dated 01.07.2015.
Law Points
- Tariff determination under Electricity Act
- 2003
- Renewable Energy Certificate scheme
- State Commission's regulatory powers
- Multi-Year Tariff principles
- Section 86 functions
- Section 62 tariff determination
- Section 64 tariff order
- Section 181 regulation-making power
