In Brief
Gujarat Urja Vikas Nigam Ltd. (GUVNL), a state power distributor, appealed against orders upholding the right of four wind energy companies to seek tariff redetermination from the electricity regulator (GERC) despite having signed power purchase agreements (PPAs) at a fixed rate. The companies had not claimed accelerated tax depreciation, a fact the regulator's tariff order said would apply only to projects claiming such benefit. The Court held that statutory tariff-setting authority retains power to review tariffs even after PPA execution, particularly when applying an inapplicable rate. GUVNL could not bind projects to a tariff meant only for depreciation-claiming firms, especially without prior written commitments. State entities must serve public renewable energy policy, not exploit bargaining power. Appeals dismissed.
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