Power regulator
A powerful precedent has emerged from Appeal No. 418 of 2023, where APTEL overturned penalties on a 1 MW farmer solar project, reshaping expectations from a Power regulator in government-driven schemes. The Tribunal held that when state departments themselves cause uncertainty—here, a 14-month delay in land conversion—developers cannot be punished. A Power regulator must account for such force majeure situations rather than apply the PPA mechanically.
The judgment highlights that multiple government bodies were unsure of which law governed the land parcel, a systemic failure acknowledged through ministerial meetings and circulars. APTEL ruled that a Power regulator cannot ignore this context and cannot treat administrative paralysis as a developer default.
GESCOM’s six-month extension was found valid and binding. APTEL stated that farmers cannot be expected to challenge or revalidate a utility’s written approval before the Power regulator.
On tariff, APTEL stopped short of restoring the Rs 8.40/kWh rate. Instead, it has asked the Power regulator to conduct a focused inquiry into cost crystallisation prior to 1 January 2017. This ensures fairness without expanding the scope of tariff review.Overall, the ruling strengthens protections for small developers and demands that a Power regulator offer policy-sensitive interpretation rather than strict formalism, Power Regulator, APTEL Ruling, Solar Policy Karnataka, Farmer Solar, Energyline India.