In Brief
The Kerala State Electricity Board sought approval for seven Power Supply Agreements (PSAs) executed after a competitive bidding process that deviated from standard guidelines. The Regulatory Commission initially rejected them as non-transparent. After the State Government issued policy directions citing public interest, the Commission approved them via review. The Supreme Court held that State Government policy directions cannot override the independent adjudicatory function of the Regulatory Commission. The Court upheld APTEL's decision setting aside the approval order, clarifying that review requires identifying errors in the original order, not merely relying on subsequent policy directives. The original appeal against the rejection was restored to APTEL for reconsideration on other grounds.
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