In Brief
Transmission Corporation of Andhra Pradesh challenged regulatory decisions on wheeling charges for non-conventional energy producers. The question was whether Government Orders granting incentives to such producers were binding on the Electricity Commission and whether the Doctrine of Promissory Estoppel required continuing these benefits indefinitely. The Court held that Government Orders granting incentives do not override the statutory regulatory framework. While such orders create legitimate expectations, Promissory Estoppel cannot compel continuing benefits without material change in circumstances. Non-conventional energy generators must pay wheeling charges without discrimination unless the Government issues fresh, explicit orders for subsidy with compensation to the licensee. The Court allowed the appeals and restored the Commission's order.
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