In Brief
Ratnagiri Gas and Power Private Limited (RGPPL), a gas-based power generator in Maharashtra, filed for fixed capacity charges against Maharashtra State Electricity Distribution Company (MSEDCL). When domestic gas supplies declined, RGPPL switched to imported RLNG without MSEDCL's consent. MSEDCL refused to pay capacity charges, arguing prior approval was mandatory. The Supreme Court upheld the regulator's decision, holding that the Power Purchase Agreement permits RLNG as a primary fuel without requiring MSEDCL's consent. Fixed capacity charges are independent of fuel type or actual energy delivery. Given the nationwide gas shortage beyond RGPPL's control, the appellant remains liable for the full capacity charges based on declared capacity."
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