WHAT IS THIS CASE ABOUT
Adani Power Maharashtra Limited (APML) and Maharashtra State Electricity Distribution Company (MSEDCL) had entered into 4 Power Purchase Agreements (PPA). However, the Ministry of Coal introduced the New Coal Distribution Policy in 2013 which brought a change in the law regarding the supply of coal which aggrieved APML. They sought to receive compensation in tariff and filed a petition before the Maharashtra Electricity Regulatory Commission (MERC) which was approved. APML filed an appeal before the Appellate Tribunal for Electricity (APTEL) to challenge the order passed by MERC and subsequently, MSEDCL filed cross-appeals. The present petition was filed by MSEDCL challenging the judgment dated 28th September 2020 passed by the APTEL
CONTENTIONS OF THE PARTIES
The counsel appearing on behalf of the MSEDCL contended that as per the FPA (Fuel Supply Agreement), it was the prime responsibility of the APML to transport the coal and that the APTEL made a mistake by adding transportation costs to the compensation amount. The counsel for respondents submitted that MSEDCL was a part of the Expert Committee in whose meeting it was stated that APML was entitled to compensation and hence they cannot hold that APML is not entitled to compensation
OBSERVATIONS OF THE COURT
The division bench of the supreme court referred various cases such as Jaipur Vidyut Vitaran Nigam v. Adani Power Rajasthan Limited, (2020) SCC OnLine SC 697 and Energy Watchdog v. Central Electricity Regulatory Commission, (2017) 14 SCC 80 and held that the companies will be entitled to receive compensation on account of the 'change in law' to restore their economic position as if such a change had never occurred. The court was of the view that if the change had not occurred, the generating companies would be entitled to a supply of domestic coal as per the FPA.
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