India: Welspun Renewables Energy Private Ltd. v. TNERC & Ors. (Appeal No. 118 of 2016); And National Solar Energy Federation Of India Ltd. v. TNERC & Ors. (Appeal No. 151 of 2016)

The APTEL on November 11, 2019, passed an order directing Tamil Nadu Electricity Regulatory Commission (“TNERC”) to pass a new tariff order for power obtained from renewable sources. The order was passed as a result of petitions, filed by Welspun Renewables Energy Private Ltd. (“WREPL”) and National Solar Energy Federation of India Ltd. (“NSEFI”), contesting Tamil Nadu’s tariff order for solar power projects. The appeal contended that the state commission was in contravention to its own regulations on power procurement from new and renewable sources. Additionally, WREPL and NSEFI also contended that the tariffs were irrational, were set arbitrarily and the capital cost was determined without evaluating the individual components, making the determined aggregate capital cost erroneous. The APTEL observed, that the tariff order was significantly divergent from the states regulation and no justification was provided for the same by TNERC. Further, the APTEL held that the tariff order failed to fulfil fundamental legal principles of transparency and reasoning and was contrary to the states regulation which includes the principles and methodology adopted by CERC and the tariff policy of the Government of India. Hence, the APTEL directed TNERC to redetermine the tariff order in line with principles and methodology adopted by CERC.

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Source: mondaq