5 December 2022

New Delhi: In an important judgment on intra – state power transmission, the prime Court on Wednesday ordered all state electricity regulatory commissions ( SERCS ) to frame within three months the norms for the determination of tariffs in sync with the National Electricity Policy and National Tariff Policy

The direction was given by a bench of Chief Justice D Y Chandrachud and Justices A S Bopanna and J B Pardiwala while dismissing an appeal of Tata Power Company Ltd, which had challenged Maharashtra Electricity Regulatory Commission’s March 21, 2021, decision to grant transmission license to Adani Electricity Mumbai Infra Ltd for setting up a 1,000MW high voltage direct current ( HVDC ) link between 400k V MSETCL Kudus and 220kV Adani Electricity Mumbai Ltd Aarey EHV station.

Frame norms for fixing tariff
Frame norms for fixing tariff

In a 93 – page judgment, the bench said, ” We direct all state regulatory commissions to frame regulations under Section 181 of the Electricity Act, 2003, on the terms and conditions for determination of tariff within three months from the date of this judgment. While framing these guidelines on the determination of tariff, shall the commissions be guided by the principles prescribed in Section 61 of the Act, including the NEP and NTP?

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