CERC Denies Granting ‘Change Of Law’ Benefits To Adani Green

CERC Allows Adani Subsidiary Compensation For 'Change of Law' Events

The Central Electricity Regulatory Commission (CERC), in its latest judgment, declined to give relief to Adani Green on ‘Change of Law’ events on procedural issues. It came after Adani Green, who was a respondent in a petition filed by the Solar Energy Corporation of India (SECI). The Petition was related to the adoption of tariffs. 

The Petition was originally filed by the SECI seeking the adoption of a tariff for 334 MW of ISTS-connected solar projects. Adani Green and Azure Power were the main bid winners for those projects. As per the agreement, the two solar power producers were set to supply solar power at Rs 2.54/unit to Brihanmumbai Electricity Supply and Transport (BEST) and Tripura State Electricity Corporation. 

Adani Green, in its submission before the Commission, also raked up the issue of increased GST rates and imposition of Basic Custom Duty (BCD) on the imports of inverters and solar trackers. It submitted that in terms of the regulatory framework in place, there is no prohibition upon the Appropriate Commission to adjudicate on a claim of Change in Law in tariff adoption proceedings. 

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The CERC order said that there was no prayer with regard to the adjudication of Change in Law claims by SECI. The adjudication of Change in Law claims has been sought by the AGE26AL (Adani Green) in its reply. Therefore, in light of the APTEL’s judgment quoted above, AGE26AL cannot seek Change in Law relief in the instant Petition filed by SECI,” it said.

The detailed judgment of the CERC said, “As regards submissions made by Respondent No 4. AGE26AL, regarding the exercise of Regulatory Power in terms of the judgment of the Hon’ble Supreme Court in the case of Energy Watchdog to allow Change in Law in the Petition filed by SECI for the adoption of tariff, it is observed that even Article 12.2 requires the aggrieved party to approach the Commission for seeking approval of Change in Law.”

“The Petitioner ought to approach the Commission by filing a substantive Petition for Change in Law and not as a Respondent in a Petition filed by SECI. Needless to add, the AGE26AL (Adani Green) is at liberty to approach the Commission in a separate Petition seeking approval for Change in Law in terms of Article 12.2 of the PPA,” the CERC order read. 

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