In Brief
NTPC Limited appealed against an APTEL judgment that disallowed its claims for additional tariff revision at Farakka Super Power Thermal Power Station, including costs for communication network augmentation and capitalization of new wagons. The Supreme Court held that APTEL failed to properly apply the regulatory framework under Regulation 18(2)(iv) of the CERC Tariff Regulations, which permits additional capitalization when works become necessary for efficient station operation. The Court found that APTEL had not considered all grounds and evidence submitted, particularly regarding whether the communication system was necessary and whether wagons were genuinely required. The Court set aside the APTEL judgment and remitted the matter for fresh determination, noting that retrospective tariff revision may unduly burden consumers.
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