In Brief
Haryana Power Purchase Centre entered a power purchase agreement with Magnum Power Generation to supply electricity. However, the Haryana Electricity Regulatory Commission interdicted supply in consumer interest, while recognizing that fixed costs must be paid. The generator demanded fixed costs, but these were not paid despite being collected from consumers. The Supreme Court held that fixed costs are payable regardless of actual energy supply when regulatory authorities restrict it. The appeals were partly allowed; fixed costs at Rs. 1.29 per unit must be paid with 3% simple interest, or 6% if delayed beyond three months."
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