In Brief
Gujarat Urja Vikas Nigam Limited (GUVNL) and Solar Semiconductor Power Company entered into a Power Purchase Agreement (PPA) based on a tariff order with a control period ending 28 January 2012. When the company delayed commissioning its solar project, it sought extension of the control period through the Gujarat Electricity Regulatory Commission (GERC), invoking the Commission's inherent powers. The GERC initially refused but later allowed the petition. GUVNL appealed to the Supreme Court. The Court held that a regulatory body, being a creature of statute, cannot exercise powers beyond those conferred by law. Inherent powers are limited to procedural matters and cannot alter substantive contractual terms or grant relief affecting the PPA's sanctity. Extension of the control period would prejudice GUVNL and consumers. The Court allowed the appeal and set aside the orders permitting extension, while preserving the respondent's right to seek tariff re-determination under statutory provisions.
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