Supreme Court to examine if tariff determined under PPA can be revised

The Supreme Court has sought the response of Tata Power to an appeal filed against the Andhra Pradesh High Court order which held that tariff determined under the long-term power purchase agreement (PPA) cannot be revised by a state electricity regulatory commission.

The Supreme Court issued notice to Tata Power Renewable Energy Limited on the appeal filed by Andhra Pradesh Southern Power Distribution Company Limited. In its plea, the power distribution company has said the finding of the high court is ex facie contrary to the specific provisions of the Electricity Act. The high court in its order dated March 15, 2022 held that under no circumstances can the tariff mentioned in a PPA be amended/revised subsequently by the Commission.