SC's compensatory tariff order strengthens CERC powers

Sector expects many other entities to benefit from upholding of CERC authority

The Supreme Court (SC) recently ruled against any compensatory rates for suppliers of electricity (using imported coal) due to any change in international regulations. What the order also did is to uphold the Central Electricity Regulatory Commission (CERC)'s power.

This latter aspect has also raised hopes for the two companies directly affected by the ruling, Adani Power and Tata Power, for seeking compensation. Also, many other private entities -- CLP, Reliance, GMR, GVK -- stand to benefit.

"In a situation where there are no guidelines framed at all or where the guidelines do not deal with a given situation, the Commission's general