In Brief
In a landmark electricity regulatory judgment, the Supreme Court addressed the jurisdictional scope of the Central Electricity Regulatory Commission and the legal entitlements of power generators under competitive bidding agreements. The Court held that the Central Commission has jurisdiction over inter-state generation and sale of electricity (a 'composite scheme'), that regulatory powers under Section 79 remain intact even after competitive bidding under Section 63, and that force majeure (merely due to rising coal prices) was not established. Crucially, the Court rejected claims based on changes in Indonesian law but acknowledged that changes in Indian coal distribution policy could entitle generators to compensatory tariff relief, thereby balancing generator viability with consumer protection.
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