Supreme Court disallows Tata Power and Adani Power to charge compensatory tariffs

The Supreme Court has disallowed Tata Power Company Limited and Adani Power to charge compensatory tariffs on account of the Indonesian coal price hike issue pertaining to the companies’ respective power plants in Mundra, Gujarat. The court has set aside earlier orders by the Appellate Tribunal for Electricity and the CERC, which allowed compensatory tariffs to the two companies on grounds of force majeure. The Supreme Court has asked the CERC to use a fresh approach to resolve the matter and determine what relief should be granted to those power generators who fall under clause 13 of the PPA, dealing with change in regulations under Indian conditions.

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