Long-term power supply contracts: Aptel upholds State Electricity Regulatory Commission’s decision

The Appellate Tribunal for Electricity (Aptel) has upheld a May 10, 2023 decision of the Kerala State Electricity Regulatory Commission not to approve a clutch of long-term power supply agreements entered into by the Kerala State Electricity Board (KSEB).

In a February 13 order, Aptel observed that “viewed from any angle,” the Commission was justified in rejecting the KSEB’s plea for approval for the power supply agreements executed by it since the entire bidding process undertaken by it “was in flagrant violation of, and in significant deviation from, the 2013 Central government guidelines.”

Aptel further observed that the commission’s order does not suffer from “any infirmity warranting interference by this tribunal.” The KSEB had challenged the commission’s order declining approval to the power supply agreements executed with Jhabua Power Ltd and Jindal India Thermal Power Ltd. These agreements are part of the power supply agreements under Design, Build, Finance, Own and Operate (DBFOO) for the supply of 465 MW for which the commission had declined approval in May, 2023.