- within Energy and Natural Resources topic(s)
- in United States
- with readers working within the Law Firm industries
- within Environment, Intellectual Property and Criminal Law topic(s)
TNERC through its order dated 06.03.2026 in the matter of Tamil Nadu Power Distribution Corporation Limited v. Tata Power Company Limited1 applied the methodology clarified in R.P. No. 2 of 2024 for comparing the Average Pooled Power Purchase Cost (“APPC”) with the preferential tariff applicable to renewable energy generators.
The petition was filed seeking modification of the TNERC’s earlier order dated 09.07.2024 passed in D.R.P. No. 12 of 2022, wherein TNERC had directed payment to TPCL based on comparison of APPC with the preferential tariff prevailing during the control period in which the renewable energy plant was commissioned. TNPDCL submitted that subsequent to the said order, TNERC in R.P. No. 2 of 2024, following the interpretation of the judgment of the APTEL in Appeal No. 232 of 2017 had clarified that APPC should be compared with the preferential tariff determined for the same year or corresponding year as the case may be, rather than the tariff applicable during the control period in which the renewable energy plant was commissioned and therefore the same principle ought to be applied to the determination made in D.R.P. No. 12 of 2022.
Accordingly, TNERC held that the earlier order dated 09.07.2024 in D.R.P. No. 12 of 2022 stands modified to give effect to the principles laid down in R.P. No. 2 of 2024. TNERC further clarified that interest on the differential amount payable to the generator would arise only from 28.01.2025 when APPC comparison was clarified by TNERC in R.P. No. 2 of 2024 and not from the earlier invoice dates, since the issue had been the subject of prolonged litigation. TNERC also observed that the clarification issued in the present order shall apply to all similarly placed renewable energy generators.
Footnote
1. M.P. No. 42 of 2025.
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.
