SUPREME COURT RULING AGAINST COMPENSATORY TARIFFS FOR POWER PROJECTS

Earlier this month, the Supreme Court of India in Energy Watchdog & Ors. v/s. Central Electricity Regulatory Commission set aside the orders passed by the Appellate Tribunal for Electricity ("APTEL") dated 7 April 2016 (the "APTEL Order") and the Central Electricity Regulatory Commission ("CERC") dated 6 December 2016 (the "CERC Order") relating to compensatory tariff awards granted to certain power generating companies, mitigating an increase in costs incurred by such companies where tariffs have been determined through a process of competitive bidding.