Tribunal Ruling: Power Tariff May Head South

Electricity tariff for households could come down as a result of the judgment of the Appellate Tribunal for Electricity.

Published: 08th April 2016 04:03 AM  |   Last Updated: 08th April 2016 01:04 PM   |  A+A-


The sun sets behind electric pylons in Allahabad in this February 22, 2006 file photo. REUTERS

NEW DELHI:  Electricity tariff for households could come down as a result of the judgment of the Appellate Tribunal for Electricity on Thursday.

The judgment says that tariff discovered through the competitive bidding route is sacrosanct and that the electricity regulatory commission does not have powers to amend or modify the tariff so discovered. The price charged by generation companies directly converts into tariff paid by consumers. Distribution companies sign contracts with the former after discovering the lowest price through a bidding process. If compensatory tariffs were allowed in addition to such quoted prices, it would result in the increase of tariffs ultimately paid by ordinary consumers.

“There was uncertainty over the last few years on the sanctity of tariff discovered through a competitive bidding process. This judgment puts a quietus on the issue,” Sakya Singha Chaudhuri Partner, HSA Advocates.

Stay up to date on all the latest Business news with The New Indian Express App. Download now


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp