Hailing the Supreme Court's decision disallowing compensatory tariff to Tata Power and Adani Power, lawyer Prashant Bhushan on 11 April said the apex court's judgement put an end to power companies' attempt to get a backdoor increase in tariff.
"The Supreme Court has put an end to the business of these power companies seeking an increase in tariff even after they had won through competitive bidding by claiming that coal prices have increased. The court has made it clear that no tariffs can be increased on this basis because once you have bid for the tariff at a particular price, then you are obliged to sell electricity at that price. There is no question of compensatory tariff. This issue has been settled for good by this judgment," Bhushan told ANI.
The apex court today set aside tribunal order that granted compensatory tariff to subsidiaries of Tata Power and Adani Power.
The companies had sought tribunal's involvement citing they suffered losses due to high cost of imported coal following which the tribunal allowed Tata and Adani Power to increase power tariffs.
The apex court was hearing pleas filed by the state discoms against the two companies.
Following the apex court ruling the state discoms will not have to pay the compensatory tariff.