APTEL Held That Statutory Regulations Prevail Over Contractual Stipulations To The Extent Of Any Inconsistency

The Appellate Tribunal for Electricity (“APTEL”) through its judgment dated 11.08.2026 in M/s BSL Ltd. v. Managing Director, Ajmer Vidyut Vitran Nigam Ltd. & Ors.¹, held that Rajasthan Electricity Regulatory Commission (Terms and Conditions for Open Access) Regulations, 2016 (“OA Regulations, 2016”) is a complete code in itself and will prevail over the Wheeling and Banking Agreement dated 19.03.2013 executed between BSL and Ajmer Vidyut Vitran Nigam Limited.

The issues before APTEL were whether the WBA preserved the earlier energy-based methodology for levy of wheeling charges notwithstanding the subsequent promulgation of the OA Regulations, 2016 and the RERC (Terms and Conditions for Determination of Tariff) Regulations, 2014 (“Tariff Regulations, 2014”) continued to govern the basis for levy of wheeling charges since the same had not been expressly repealed by the OA Regulations, 2016.

APTEL held that the earlier tariff regulations derived their relevance to open access wheeling charges from the RERC (Terms and Conditions for Open Access) Regulations, 2004 (“OA Regulations, 2004”) which provided that transmission and wheeling charges would be determined as per Tariff Regulations 2009 and 2014. Upon repeal of the RERC (Terms and Conditions for Open Access) Regulations, 2004, OA Regulations, 2016 constitute a subsequent and comprehensive framework governing intra-State open access. Thus, while the Tariff Regulations 2009 and 2014 may not have been expressly repealed by OA Regulations, 2016, they cannot after repeal of OA Regulations, 2004 be relied upon for determining the basis of wheeling charges payable under the open access regime which is governed by OA Regulations, 2016.

Footnote

1. Appeal No. 142 of 2021.

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