APTEL by its judgment dated 10.07.2025 in a batch of appeals in the matter of Punjab Energy Development Agency v. Punjab State Electricity Regulatory Commission & Ors.1, held that State Electricity Regulatory Commission ("SECs") are empowered to issue directions to State Nodal Agencies such as the Punjab Energy Development Agency ("PEDA") under Electricity Act, 2003.
APTEL held that PEDA, despite not being a generating company or licensee, can be impleaded as a party in regulatory proceedings before the Punjab State Electricity Regulatory Commission ("PSERC") where PEDA plays a direct and substantial role in the renewable energy procurement process. This includes activities such as issuing Letters of Intent, securing performance guarantees, and executing implementation agreements with project developers.
APTEL further clarified that in many renewable energy projects, the functions of nodal agency such as PEDA and the distribution licensee are closely intertwined, and the disputes often involve overlapping obligations under both the implementation agreement and power purchase agreement. It held that in such circumstances, it would be artificial to exclude the nodal agency from regulatory proceedings simply because it is not a signatory to the power purchase agreement.
The APTEL accordingly upheld the directions issued by PSERC to PEDA while confirming that where a nodal agency is functionally involved in the implementation and procurement process, it is subject to regulatory oversight and bound by directions issued by the SECs.
Footnote
1 Appeal Nos. 286 of 2015, 328 of 2016, 280 of 2017, 371 of 2017, 398 of 2017, 329 of 2017, and 214 of 2020.
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