In Brief
Wardha Power Company had agreed to generate and supply power to a Maharashtra electricity distribution company under a Power Purchase Agreement. When the company fell behind schedule, it arranged ad hoc purchases from other sources. The dispute concerned whether these interim supplies should be charged at the actual cost paid by the company or at the contracted PPA rates. Both the Electricity Regulatory Commission and the Appellate Tribunal found that the company could only claim the lower of either the PPA rate or the actual rate paid for purchased power, and could not profit by reselling power at the higher contracted rate. The Supreme Court dismissed the appeal, finding that while 34 questions were raised, none constituted a substantial question of law as required under the Electricity Act, 2003 to challenge the concurrent findings of both lower bodies."
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