In Brief
Energy Watchdog challenged compensatory tariff granted by regulators to Adani Power for increased coal costs due to changes in Indonesian export policy. The Supreme Court held that the Central Electricity Regulatory Commission has jurisdiction over inter-State power generation (composite scheme). It rejected force majeure and foreign change-in-law claims: contract rise in coal prices does not frustrate obligations when alternatives exist, and 'change in law' in the Power Purchase Agreements means Indian law only, not Indonesian law. However, the Court recognized that reductions in India's domestic coal allocation (2013 policy) may entitle generators to tariff adjustment. The appeals were disposed, remitting the matter for fresh determination by the Commission on limited grounds.
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