In Brief
Gujarat Urja Vikas Nigam Limited challenged orders by an electricity tribunal that allowed wind generators to seek re-negotiation of Power Purchase Agreements (PPAs) to increase tariffs from ₹2.64 per kWh to a dynamic rate tied to pooled power costs. The Supreme Court held that PPAs voluntarily entered into by parties within existing regulatory frameworks cannot be reopened by the State Commission merely because regulations were later amended. The Court found that amendments to the REC Regulations in 2013 applied only prospectively and did not affect pre-existing contracts. The Court also rejected allegations of coercion as unsupported by particularized pleadings or evidence. The appeals were allowed and the impugned orders set aside.
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