REF : Electricity Act

Under Section 62 of the Electricity Act, the Commission has power to  fixe the tariff rate. The word ‘tariff’ has not been defined in the Act. Tariff means a schedule of 55 standard/prices or charges provided to the category or categories for procurement by licensee from generating company, wholesale or bulk or retail/various categories of consumers. After taking into consideration the factors in Section 61(1)(a) to (i), the State Commission determined the tariff rate for various categories including Solar Power PV project and the same is applied uniformly throughout the State.

When the said tariff rate as determined by the Tariff Order (2010) is incorporated in the PPA between the parties, it is a matter of contract between the parties. In my view, respondent No.1 is bound by the terms and conditions of PPA entered into between respondent No.1 and the appellant by mutual consent and that the State Commission was not right in exercising its inherent jurisdiction by extending the first control period beyond its due date and thereby substituting its view in the PPA, which is essentially a matter of contract between the parties.

[Gujarat Urja Vikas Nigam Ltd. Vs. Solar Semiconductor Power Company (India) Pvt. Ltd. and Others[SC 2017]

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