APP seeks clarity on “change of law” provision of Tariff Policy

In a letter to the Ministry of Power, the Association of Power Producers (APP) has sought clarity on the “change of law” provision of the National Tariff Policy (NTP), 2016. The letter follows a recent decision by the CERC to disallow pass-through of certain rates levied by Indian Railways and state governments into the final tariffs. The CERC stated that any increase in cost owing to change in state regulations post bidding should be treated as force majeure. The APP, on the other hand, pointed out that Section 6.2 of the NTP states that such changes should be dealt under “change of law” unless stated in the PPA.