In Brief
The Supreme Court resolved disputes between a power generation company and Haryana's electricity distributor regarding recovery of fixed costs under a 1998 Power Purchase Agreement. Although the electricity regulator had disallowed the expensive power in consumer interest, it explicitly stated fixed costs must be paid regardless of supply. The Court held the purchaser liable to pay the agreed fixed cost (Rs. 1.29 per unit), finding that collecting these charges from consumers but refusing to pay the generator would result in unjust enrichment. Interest at 3% per annum was imposed, increasing to 6% if payment delayed beyond three months.
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