Welcome to the June 2025 edition of our Electricity Law Newsletter, where we bring you an overview of pivotal judicial and regulatory developments shaping India’s electricity landscape. This edition explores three important rulings and several key regulatory updates that carry significant implications for sector participants—ranging from transmission licensees and generating companies to public interest litigants and power exchanges.
In this edition, we cover:
Supreme Court Reaffirms Ad-Hoc Nature of CERC’s Regulatory Powers
A notable judgment reasserts the Central Electricity Regulatory Commission’s broad regulatory authority under Section 79(1) of the Electricity Act, 2003. The Supreme Court held that these powers extend beyond adjudication to include context-specific administrative directions, thereby reinforcing CERC’s role in filling regulatory gaps on a case-by-case basis.
Strict Locus Standi Requirements for Public Interest Groups
The Appellate Tribunal for Electricity (APTEL) has ruled that public interest organizations must meet clear statutory criteria under the Electricity Act to participate in regulatory proceedings. This decision restricts generalized public interest claims and underscores the importance of procedural discipline in electricity litigation.
Tariff Determination Restricted to Grid-Connected Units with Valid PPAs
In a significant interpretation of the Uttar Pradesh ERC’s regulatory framework, APTEL clarified that only grid-connected generating stations operating under enforceable Power Purchase Agreements are eligible for tariff fixation. The ruling draws a clear line between contracted and captive capacities.
Key Regulatory Updates Include:
Amendments to Transmission Bidding Norms
The Ministry of Power has revised substation siting requirements in the Tariff-Based Competitive Bidding framework to offer greater flexibility, enabling faster project execution and easing land acquisition hurdles.
CERC’s New Market Directives for Power Exchanges
From transitioning to uniform price auctions to mandating enhanced transparency, CERC’s latest directions aim to curb price volatility and improve the robustness of the power market architecture.
Expansion of Late Payment Surcharge Rules to Intra-State Licensees
A recent amendment now brings intra-state transmission licensees within the scope of Late Payment Surcharge Rules, impacting the financial obligations of State DISCOMs.
Draft Guidelines for Virtual Power Purchase Agreements (VPPAs)
CERC has released draft norms for long-term green energy contracts involving no physical delivery of electricity but allowing procurement of renewable attributes for RPO compliance.
These developments reflect a maturing regulatory ecosystem that seeks to balance flexibility, accountability, and clarity. Our detailed commentary provides insights into how these rulings and reforms will affect stakeholders navigating India’s dynamic electricity market.
Stay informed with our expert perspectives and timely legal analysis.
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Disclaimer: The content provided in this newsletter is for informational purposes only and does not constitute legal advice.
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