Torrent Power Limited vs Gujarat Electricity Regulatory Commission & Ors on 22 September 2026

JUDGMENT

PER HON’BLE MR. VIRENDER BHAT, JUDICIAL MEMBER

The Appellant, a distribution licensee in the State of Gujarat, has filed this Appeal against the Tariff Order dated 04.04.2018 passed by the Gujarat Electricity Regulatory Commission (hereinafter referred to as the

“State Commission/Commission”) with regards to the true up for the FY 2016-17 and determination of tariff for FY 2018-19.

The only ground of challenge to the impugned order of the Commission raised in this Appeal is with regards to the methodology adopted by the Commission in respect of the treatment given to Operation and Maintenance (O&M) Expenses of the Appellant. The Commission, in the impugned order, has treated the O&M Expenses as controllable. According to the Appellant, the impugned order on this aspect is contrary to law as well as the applicable regulations and therefore, cannot be sustained.

We have heard the Learned Counsels for the parties and perused the written submissions filed by them. Both, the Appellant and as well as the Respondent No.1- Commission have stated in its written submissions that the instant case is squarely covered by the judgment of this Tribunal dated 09.05.2019 in Appeal No. 256 of 2016 titled “Torrent Power Limited Vs. Gujarat Electricity Regulatory Commission wherein it has been held as under: - “9.1 The variation in O&M expense is normally to be treated as controllable. However, in exception cases as in hand, the amount of Network Augmentation charges incurred by the Appellant as required by State Transmission Utility (STU) for connectivity needs to be treated as uncontrollable.

9.2 The deduction of Rs. 2.48 crores from O & M Expenses are contrary to applicable Statutory Regulations of the State Commission. 9.3 The Commission should take consistent stand in all matters on the same plea whether related to O&M expenses or the variation in technical and commercial losses.”

The State Commission, in its written submission, has further stated that the Commission is bound by the directions passed by this Tribunal in the above noted judgment and has prayed that the matter may be remanded back to the Commission for a fresh decision in terms of the said judgment of this Tribunal.

In view of such admitted legal position enunciated by this Tribunal in Appeal 256 judgment (supra) and considering the consensus between the parties with regards to the applicability of the said judgment to this case, we consider it appropriate not to go into the merits of the case and instead remand the case back to the Commission for a fresh decision in terms of the said judgment.

Accordingly, we hereby set aside the impugned order, allow the Appeal and remand the case back to the Commission for a fresh decision with regards to the treatment to be given to O&M charges in terms of the judgment of this Tribunal dated 09.05.2019 in Appeal No. 256 of 2016

titled “Torrent Power Limited Vs. Gujarat Electricity Regulatory Commission. The Appeal and the IA therein stand disposed of accordingly.

Pronounced in the open court on this 22nd day of September, 2026.

Ajay Talegaonkar Technical Member (Electricity)

Virender Bhat Judicial Member

√ REPORTABLE/NON-REPORTABLE mk