India: Oil, Gas & Electricity

The Supreme Court of India, through its judgment dated 12.08.2026 in Karnataka Power Transmission Corporation Limited v. Rekha and Others , set aside concurrent orders of the High Court of Karnataka which had fastened absolute liability upon the Karnataka Power Transmission Corporation Limited (“KPTCL”) in respect of two electrocution incidents.

The Appellate Tribunal for Electricity through its judgment dated 11.08.2026 in M/s BSL Ltd. v. Managing Director, Ajmer Vidyut Vitran Nigam Ltd. & Ors., held that Rajasthan Electricity Regulatory Commission (Terms and Conditions for Open Access) 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 Central Electricity Regulatory Commission, by its order dated 14.08.2026 in Petition No. 5/SM/2026, has approved the procedure for levy of compensation charges permitting connectivity grantees additional time to achieve the milestones prescribed under the CERC (Connectivity and General Network Access to the inter-State Transmission System) Regulations, 2022.

The Central Board of Indirect Taxes and Customs (“CBIC”), through Notification No. 31/2026-Central Excise dated 15 June 2026, has amended Notification No. 08/2026-Central Excise dated 26 March 2026 to increase the effective rate of Special Additional Excise Duty (“SAED”) applicable on exports of Aviation Turbine Fuel (“ATF”). Effective from 16 June 2026, the duty has been increased from Rs 9.5 per litre to Rs 12.5 per litre.

The Draft Regulations represent a significant regulatory shift towards a capacity-based access model aligned with evolving electricity market structures, increasing renewable energy penetration, growth of green open access transactions and the emergence of energy storage systems.

One of the key issues before the Ld. Madhya Pradesh Electricity Regulatory Commission (“MPERC”) was whether MB Power was entitled to gross-up its Return on Equity (“RoE”) notwithstanding the fact that, at the corporate level, it had not paid income tax during certain years owing to losses and unabsorbed depreciation arising from its other businesses. MPPMCL opposed the claim, inter alia, on the grounds that the claim was barred by limitation and that grossing-up could not be permitted in the absence of actual tax payment by the corporate entity.

Green tech and clean energy innovations are no longer “optional extras” for the Indian economy—they are central to India’s climate commitments, energy security, and long-term industrial growth.

APTEL, vide judgement dated 27.04.2026 in Appeal Nos. 190 of 2019 and 216 of 2019 titled Damodar Valley Corporation v West Bengal Electricity Regulatory Commission & Another, dismissed the appeals filed by Damodar Valley Corporation (“DVC”), upholding the finding of the West Bengal Electricity Regulatory Commission (“WBERC”) that radial mode of supply by a generating company to a distribution licensee cannot be considered as sale to a consumer.

Supreme Court through its judgement dated 07.05.2026 in the matter of Delhi Electricity Regulatory Commission v Tata Power Delhi Distribution Limited has held that consumers cannot be required to pay for depreciation costs for power plants which are no longer supplying electricity.