Regulator can’t revise power tariff payable to discom in the guise of prudence check: SC – EQ Mag Pro
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New Delhi : The Supreme Court said on Tuesday the electricity regulator, DERC, cannot revise or re-determine the already fixed power tariff for discoms in the guise of “prudence check and truing up” as it would amount to amending the rates to be levied from consumers.
Prudence check relates to scrutiny of reasonableness of capital expenditure incurred or proposed to be incurred, while a true up claim is the expenditure incurred by a utility over and above the annual revenue.
A bench comprising justices S A Nazeer and Krishna Murari allowed the appeal of private discom BSES Yamuna Power Ltd challenging certain findings of the Appellate Tribunal for Electricity (APTEL) in a 2014 judgment by which the downward revision of electricity tariff by Delhi Electricity Regulatory Commission (DERC) was upheld.
