JUDGEMENTS
I. Case Title: Nabha Power Limited v. Punjab State Power Corporation Ltd. & Ors.
Citation: Civil Appeal No. 8694, 8739 of
2017
Court: Supreme Court of India
Decided on: 19.08.2025
Brief Facts:
In the present case, a dispute arose when Nabha Power Limited (Appellant), a Special Purpose Vehicle (SPV) set up to develop thermal power projects had executed Power Purchase Agreement (PPA) with the Punjab State Power Corporation Ltd. (PSPCL) after tariff-based competitive bidding. Later, the Appellant claimed compensation on the ground that the government decisions and clarifications, including press releases on Mega Power Project benefits and the subsequent DGFT notifications qualified as "Change in Law" as they altered the fiscal framework. The APTEL held that neither the FTP benefits not the press releases qualify as "Change in Law". It observed that public notices or press releases lacking a legislative or statutory backing cannot constitute "change in law". Therefore, the Appellants filed an appeal before the Supreme Court.
Issues:
Whether Government Press Releases qualify as "Change in Law" in Power Purchase Agreements?
Judgment:
The Hon'ble Supreme Court observed that a press release is merely an administrative announcement without any legal force, thereby it does not qualify as "change in law". The Court noted that only statutes, rules or notifications published in the Official Gazette qualify as "change in law". It referred to the judgment in Nabha Power Limited v. Punjab State Power Corporation Limited & Another (2018), wherein it was held that only duty promulgated notifications such as custom notifications would constitute "change in law". Therefore, the Court dismissed the plea filed by Appellants seeking compensation on the ground of "change in law", thereby upholding the decision of APTEL.
II. Case Title: BSES Rajdhani Power Limited & Anr. v. Union of India & Ors.
Citation: Writ Petition (C) 104 of 2014
Court: Supreme Court of India
Decided on: 06.08.2025
Brief Facts:
In this case, the power distribution companies (DISCOMs) of Delhi challenged the Delhi Electricity Regulatory Commission's (DERC) practice of repeatedly deferring the liquidation of regulatory assets which were initiated as a temporary measure to shield the consumers form tariff hikes. However, these regulatory assets were left unliquidated since the year 2004, thereby triggering cash crisis and depriving the DISCOMs of cost recovery. Issues:
- What is the legal position and status of regulatory assets and the rights and liabilities of stakeholders involved?
- What are the consequences of regulatory failure in managing the regulatory assets as a reasonable measure?
- What are the appellate and review powers of APTEL and the Court in ensuring accountability and restitution?
Judgment:
The Hon'ble Supreme Court explained that a "regulatory asset" is an intangible asset created by Regulatory Commission in recognition of an uncovered revenue gap/shortfall when a distribution licensee could not fully recover the costs reasonable incurred from tariff. This particular portion of revenue is excluded while determining tariff; and the distribution company is entitled to recover such revenue in the future. The Court noted that the creation of regulatory assets is not a statutory concept but a measure adopted by Regulatory Commissions (statutory bodies).
The Court observed that the power of Electricity Regulatory Commissions (ERCs) to create regulatory assets is a part of the tariff fixation process as long as it is a reasonable measure. In the context of ballooning of regulatory assets amount and the need for timely determination of tariff rates, the Court stated that ERCs have twin obligations: (1) ERC must enable efficient and effective recovery of regulatory asset by the utility; and (2) manage regulatory assets in a manner that does not transgress the principles that govern tariff determination. It further observed that ballooning of regulatory assets amount, year after year, affected the rights of utilities and jeopardized consumer interest.
Furthermore, the Court observed that "creation, management and dissolution of regulatory assets are subject to law and regulation". It stated that APTEL in exercise of its statutory powers under Section 121 can issue orders, directions, and instructions to ERCs when they fail to perform their duties or do not comply with statutory requirements.
Lastly, the Court issues a list of directions to ERCs ensuring that the DISCOMs are not deprived of the costs incurred for years. Also, creation of regulatory assets is permissible only in exceptional circumstances and not in routine manner. It directed the APTEL to monitor compliances of directions of the Court by ERCs.
III. Case Title: Gujarat Urja Vikas Nigam Ltd. v. Green Infra Corporate Wind Pvt. Ltd. & Ors.
Citation: Civil Appeal Nos. 14098-14101 of
2015
Court: Supreme Court of India
Decided on: 04.08.2025
Brief Facts:
In this case, four companies (Respondents) signed PPAs with the Gujarat Urja Vikas Nigam Ltd. (GUVNL – Appellant) for supply of power at fixed rate. Later, they sought project- wise tariff determination claiming that they had not availed accelerated depreciation. GUVNL opposed stating that the companies are bound by the fixed rates specified in the PPAs.
GUVNL filed an appeal against the orders of the Gujarat Electricity Regulatory Commission (GERC) and the APTEL allowing four wind power producers to seek case- specific tariff determination, despite having signed Power Purchase Agreements (PPAs) with fixed rates. The GERC and APTEL held that they are entitled to case-specific tariff determination.
Issues:
- Whether the Respondent companies can seek project-specific tariff determination despite having signed PPAs with GUVNL having fixed rates?
Judgment:
The Hon'ble Supreme Court referred to the objectives of the Electricity Act, 2003 pertaining to non-conventional and renewable energy sources; and the policies of the Central Government and the State Government which GUVNL being a State instrumentality was bound to follow. The Court observed that GUVNL cannot be guided by its own commercial interests like any private business entity, rather its conduct must be the standard of a model citizen.
The Court noted that as per the Electricity Act, 2003, the Commission has the power to fix tariff and therefore, GUVNL shall not fix its own price contrary to the dictum of GERC. Further, GUVNL did not have an indefeasible right to bind the respondent companies to a tariff which was inapplicable to them. The GERC had clearly specified that the said fixed tariff would only apply to the wind energy projects that availed accelerated depreciation. Therefore, the Court held that the appeal was devoid of merit and the orders passed by GERC and APTEL do not warrant any interference.
IV. Case Title: Chamundeshwari Electricity Supply Company Ltd. v. Saisudhir Energy (Chitradurga) Pvt. Ltd. & Anr.
Citation: Civil Appeal No. 6888 of 2018
Court: Supreme Court of India
Decided on: 25.08.2025
Brief Facts:
In this case, the Appellant challenged the orders of the Karnataka Electricity regulatory Commission (KERC) and APTEL whereby the Appellant was directed to restore to the Respondent No. 1 (Developer), the amount realised from encashment of bank guarantee, extend the timelines for fulfilment of contractual obligations, and to undertake renegotiation of the tariff under the PPA for a solar project.
In its order, the KERC recorded that the Developer's inability to achieve CPs and COD within the contractual timelines was directly linked to the non-completion of evacuation lines by the Respondent No. 2. Hence, the delay was not attributable to the Developer as it was beyond its control, amounting to Force Majeure and thereby justifying extension of timelines. It observed that the delay was solely attributable to the Appellant. It also stated that the Appellant invoked the performance bank guarantee and encashed the security notwithstanding the interim restraint order. Such invocation was impermissible when the non-performance flows from the default of the Appellant or its instrumentalities.
Therefore, the KERC issued the following directions: (1) restoration of the encashed security to the Developer; (2) consideration of an extension of timeline for fulfilment of CPs; and (3) renegotiation of the project tariff considering the revised commissioning schedule. In appeal, the APTEL concurred with the KERC.
Issues:
- Whether the Appellant is entitled to invoke and encash performance bank guarantee?
- Whether the delay falls within the purview of "force majeure"?
- Whether the finding of KERC on force majeure in the absence of contractual notice contemplated in the PPA is valid?
- Whether the PPA can be characterized as a contingent contract?
- Whether the KERC and APTEL were competent to give such directions?
Judgment:
On the issue of delay, the Court observed that the contention of the Developer that the delay being beyond its control can be automatically extended cannot be accepted. It stated that contractual framework does not operate on automaticity and the relief is conditional upon the Developer seeking and obtaining an extension under the PPA. In absence of such recourse, the timelines under PPA remain binding. It stated that "contractual rights and remedies must be asserted within the framework of the agreement, not dehors it".
On the issue of invocation and encashment of performance bank guarantee, the Court observed that the pre-conditions for invocation of performance bank guarantee were satisfied. Also, it noted that the invocation was before the order of KERC and it was refunded thereafter pursuant to the order of APTEL. The Court observed that Appellant's invocation of bank guarantee was in exercise of remedy conferred by the contract, and to deny it would be to disregard the allocation of risk embodies in the PPA.
On the issue of force majeure, the Court observed that the finding of KERC cannot be sustained as the PPA stipulates issuance of Notice, which is not merely directory but is a condition precedent for invoking the clause. Further, it clarified that even if the delay in readiness of evacuation system was attributable to the Appellant, it does not constitute a force majeure event.
Furthermore, the Court referred to Venkataraman Krishnamurthy & Anr. v. Lodha Crown Buildmart Pvt. Ltd.; (2024) 4 SCC 230, wherein it was held that the explicit terms of contract are always the final word with regard to the intention of parties. In the instant case, the Court reiterated that "regulatory or adjudicatory fora cannot, under the guise of equity or fairness, rewrite the contractual framework or superimpose obligations alien to the agreement. The PPA, being the product of a competitive bidding process and having received regulatory approval, 11 must be construed and enforced strictly in accordance with its express stipulations."
In conclusion, the Court held that the Appellant's invocation and encashment of performance bank guarantee was in conformity with the contractual framework under the PPA. Hence, the appeal was allowed and the orders passed by KERC and APTEL were set aside.
V. Case Title: KKK Hydro Power Ltd. v. Himachal Pradesh State Electricity Board Ltd. & Ors.
Citation: 2025 SCC OnLine SC 1847
Court: Supreme Court of India
Decided on: 29.08.2025
Brief Facts:
In this case, M/s KKK Hydro Power Limited (Appellant) entered into an Implementation Agreement (IA) and Power Purchase Agreement (PPA) with the Himachal Pradesh State Electricity Board Limited (HPSEB) in the year 2000 to establish a hydroelectric project for a duration of 40 years. This agreement predated the constitution of the Himachal Pradesh Electricity Regulatory Commission (HPERC). Another project commissioned in the year 2004 and subsequently the company sought to augment its capacity. In the year 2007, HPERC notified a Tariff Order fixing the tariff rate for small hydel projects which was subsequently revised in the year 2010.
The Appellant relied on the revision of tariff rate to execute a Supplementary PPA (in 2010) with enhanced tariff rates. However, this enhancement of tariff rate was done without the permission/approval of HPERC. In the meantime, HPSEB paid at the enhanced tariff rates but the arrears were in dispute. Therefore, the Appellant filed a petition before the HPERC seeking arrears and the enforcement of the Supplementary PPA.
The HPERC rejected Appellant's petition for payment of arrears at an enhanced tariff holding that the Supplementary PPA was invalid. On appeal, the APTEL partly allowed the appeal for redetermining tariff for the extension commissioned. The present appeal calls into question the orders passed by HPERC and APTEL.
Issues:
- Whether the Supplementary PPA enhancing tariff without the approval of HPERC is valid?
- Whether the Appellant is entitled to arrears at the enhanced tariff rate?
Judgment:
The Hon'ble Supreme Court observed that the PPA executed prior to the establishment of HPERC was bound by the fixed tariff and it could not be enhanced. It clarified that the law did not apply retrospectively to concluded PPAs. In context of redetermination of tariff rates for the extension unit, the Court emphasized that tariff fixation is a statutory function, not a matter of private negotiation. It referred to Section 86(1)(b) of the Electricity Act, 2003 which mandates that all PPAs and tariff modifications should be reviewed and approved by the State Commission. Therefore, it held that the Supplementary PPA (executed in 2010) enhancing tariff without the approval of HPERC was invalid in law.
Further, the Court stated that APTEL erred in granting partial relief while overlooking the statutory mandate under Section 86 of the Electricity Act. However, the Court refrained from interfering at this stage because HPSEB accepted and acted according to the orders without filing any appeal. Even though the Court refrained from interfering, it clarified the legal position stating that generating companies and distribution licensees cannot privately negotiate tariff changes. Such agreements or tariff modifications mandatorily require the approval of State Commission. In conclusion, the appeal was dismissed holding that the Appellant was not entitled to arrears at an enhanced tariff.
REGULATORY AND SECTORAL UPDATES
1. Consultative Committee for Ministry of Power discussed the Grid Scale Energy Storage Systems
The Hon'ble Union Minister of Power addressed that India is committed to reduce Emissions Intensity of its GDP by 45 percent by 2030, and achieve 50 percent cumulative installed capacity from non-fossil fuel-based energy resources by 2030. It was mentioned that various policy initiatives have been taken to promote Energy Storage Systems laying emphasis on ensuring Resource Adequacy and necessary power generation capacity tie-ups.
The Hon'ble Minister laid emphasis on one of the largest programs on BESS worldwide, 43 GWh Battery Energy Storage Systems (BESS) is supported under Viability Gap Funding Scheme (VGF) of Ministry of Power. Financial support of Rs 9,160 Cr has been earmarked for BESS VGF schemes. The Inter-State Transmission System (ISTS) charges have been fully waived for BESS projects commissioning by June 2028 and PSP projects for which construction awarded by June 2028. The VGF Scheme is important in terms of providing reliability of supply of power, for storing excess energy available from RE sources to be used at other times of the day, power to consumers through execution of distribution infrastructure works.
2. India and Japan Strengthen Energy Cooperation through Ministerial Dialogue
India and Japan have strengthened their partnership in the energy sector under the Japan-India Clean Energy Partnership, with a focus on energy security, clean energy transition, and addressing climate change. Both sides have institutionalized this cooperation through the India-Japan Energy Dialogue and sectoral Joint Working Groups (JWGs). The countries reaffirmed their commitment to energy security and inclusive growth. Further, both the sides welcome progress in areas such as energy efficiency; clean hydrogen and ammonia; and renewable energy. Both the countries have also agreed upon expanding cooperation in carbon capture, green chemicals, biofuels and other advanced technologies in the energy sector.
3. Government Strengthens LPG Subsidy Transfers through PAHAL and Aadhar Authentication
The implementation of initiatives like the PAHAL (DBTL) scheme, Aadhaar-based verification, biometric authentication, and the weeding out of ineligible or duplicate connections have significantly strengthened the system of transfer of targeted subsidies. This was implemented with the objective of enhancing consumer empowerment and improving service transparency. Under the IVRS/SMS Refill booking system, consumers receive SMS notifications at key stages — refill booking, cash memo generation, and refill delivery — enabling them to track their transactions and report any cases of wrong or non-delivery.
Furthermore, the Oil & Marketing Companies (OMCs) introduced the Delivery Authentication Code (DAC), which is required to be shared by the consumer with the delivery personnel, thereby ensuring authentication. Moreover, De-duplication through Common LPG Database Platform (CLDP) has been introduced whereby duplicate connections are identified and removed from the LPG database using Aadhaar number, bank account details, AHL TIN number, ration card details, name, and address as key parameters. Also, to regulate the distribution of LPG, the Government has notified the "Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2000." Additionally, OMCs have formulated "Marketing Discipline Guidelines" to be adhered to by LPG distributors which provide for penal action against distributors found indulging in malpractice.
4. Cabinet approves continuation of Targeted Subsidy for Pradhan Mantri Ujjwala Yojana Consumers for 2025-26 at Rs. 12,000 crore
The Union Cabinet as approved the targeted subsidy of Rs.300 per 14.2 kg cylinder for up to 9 refills per year (and proportionately pro-rated for 5 kg cylinder) to the beneficiaries of Pradhan Mantri Ujjwala Yojana (PMUY) during FY 2025-26 at an expenditure of Rs 12,000 crore. This scheme was launched in the year 2016 with the aim to provide deposit-free LPG connection to adult women from poor households across the country. The beneficiaries receive deposit-free LPG connection which includes Security Deposit (SD) of Cylinder, Pressure Regulator, Suraksha Hose, Domestic Gas Consumer Card (DGCC) booklet and installation charges. Also, the first refill and stove is also provided free of cost to all beneficiaries. As India imports 60% of its LPG requirement, this targeted subsidy was introduced to shield the consumers form impact of sharp fluctuations in international prices and to make it more affordable.
5. Government Speeds up Ethanol blending with expanded production and infrastructure
The National Policy on Biofuels 2018, as amended in 2022, has advanced the target of 20% blending of Ethanol in petrol from 2030 to Ethanol Supply Year (ESY) 2025-26. The Government has been promoting blending of ethanol in petrol under the Ethanol Blended Petrol (EBP) Programme wherein Public Sector Oil Marketing Companies (OMCs) sell ethanol blended with petrol. In order to chieve 20% Ethanol blending target by the Ethanol Supply Year (ESY) 2025-26, the Government has taken the following measures: (i) expansion of feedstock for ethanol production; (ii) enhancement of maize production in catchment areas of ethanol industries; (iii) approval by Government for allocation of surplus rice for ethanol production; and (iv) diversion of 40 LMT sugar for ethanol production.
6. Government promotes patent filings under NCMM
In order to achieve self-reliance in critical minerals, the Government of India is actively promoting patent filings under the National Critical Mineral Mission (NCMM). This is initiated with the vision to strengthen India's critical mineral value chain across exploration, mining, beneficiation, processing, and recycling. The mission aims to support and track the filing of 1,000 patents across the critical minerals value chain by FY 2030–31, encouraging innovation and commercialization of indigenous technologies. The filings for patents in the last few months align with the critical mineral value chain and reflect increased momentum in R&D activities focused on exploration, extraction, processing, essential for India's green energy transition and strategic sectors. These patents cover minerals such as Lithium, Nickel, Titanium, Tungsten, Vanadium, Ytterbium, and Tantalum—all of which are crucial to clean energy, electronics, and strategic technologies.
7. Memorandum of Cooperation on Mineral Resources between India and Japan
The Ministry of Mines, Government of India's Memorandum of Cooperation (MoC) with the Ministry of Economy, Trade and Industry (METI), Japan in the domain of Mineral Resources is a step towards establishing and diversifying the critical minerals supply chains which is essential to not only achieve our energy security, national security and food security objectives but also achieve the net zero emission goals. The countries have agreed to collaborate on information exchange, joint development of projects, mining auctions, sustainable deep-sea mining, and other relevant information. The countries would promote joint investments in exploration, mining and processing for critical minerals in India and other resource-rich countries.
8. Consultancy Contracts by ONGC are as per Due Process and Global Best Practices
The Union Minister emphasized that ONGC partners with specialised global entities for advanced studies in modelling of permeable reservoirs and deep-water exploration. He further emphasised that ONGC's MoU with IFPEN, renewed in 2023, covers joint research in hydrocarbon reserves and implementation of new technologies in renewable energy sector. It was further clarified that ONGC undertakes a large number of exploration and production projects across the country as per its Board-approved guidelines, which are in line with the principles laid out by the General Financial Rules (GFR) and the Central Vigilance Commission (CVC).
9. Government Boosts LNG Use with 100% FDI, New Stations, and Policy Reforms
Our country meets its natural gas demand through both domestic production and import of LNG, with the government actively promoting a gas-based economy by allowing 100% FDI in LNG infrastructure and facilitating imports. Currently, eight regasification terminals with a combined capacity of 52.7 MMTPA are operational. Also, 13 LNG retail stations have been set up by state-owned firms and 16 are owned by private entities. LNG has been recognized as Transport Fuel by Government and the emission standards for LNG vehicles have also been notified in this regard. Government has amended the Static and Mobile Pressure vessels (Unfired) (Amendment) Rules, 2025 to allow LNG fuelled vehicles containing spark ignition engine or compression ignition type internal combustion engine to operate in hazardous areas, LNG mobile dispensing in non-transport sectors such as railways, mining, waterways, testing laboratories etc., among others.
10. Government boosts Energy Sector with new exploration, Green Hydrogen, Biofuel & LNG-Initiatives
The Government has introduced the Hydrocarbon Exploration and Licensing Policy (HELP) in 2016, under which Open Acreage Licensing Policy (OALP) was started. The Petroleum and Natural Gas Regulatory Board (PNGRB) has authorised City Gas Distribution (CGD) networks in 307 areas, covering almost 100% of the country's mainland (excluding islands) and providing 1.5 crore domestic PNG connections. Further, the National Green Hydrogen Mission launched in 2023 aims to make India a global hub by producing 5 MMT of green hydrogen annually by 2030. Additionally, the "Sustainable Alternative Towards Affordable Transportation" (SATAT) initiative launched in 2018 promotes the production of Compressed Bio Gas (CBG) from waste and biomass sources to supplement natural gas use.
11. SECI conducts first-ever auction for procurement of Green Ammonia under National Green Hydrogen Mission
In a landmark development under the National Green Hydrogen Mission, the first- ever auction conducted by SECI for the procurement of Green Ammonia under the SIGHT Scheme (Mode-2A) has achieved a record low price discovery of ₹55.75/kg. This pioneering auction covers the supply of 75,000 metric tonnes per annum of Green Ammonia to Paradeep Phosphates Limited, Odisha. The discovered price marks a substantial drop from the previously discovered price. This 10-year fixed-price bid provides strong economic rationale for off-takers to initiate their clean energy transition journey.
12. India achieves historic milestone of 100GW Solar PV Module Manufacturing Capacity under ALMM
India has achieved a landmark milestone of 100 GW of solar PV module manufacturing capacity enlisted under the Approved List of Models and Manufacturers (ALMM) for Solar PV Modules. This achievement reflects the country's rapid progress in building a robust and self-reliant solar manufacturing ecosystem. There is an expansion in solar module manufacturing capacity, from just 2.3 GW in 2014 to over 100 GW today. This reinforces India's commitment to achieving 500 GW of non-fossil fuel capacity by 2030 and contributes meaningfully to global decarbonization efforts.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
