New Delhi, March 30 -- The Supreme Court has observed that while electricity tariff determination falls exclusively within the domain of State Electricity Regulatory Commissions, such powers must be exercised in alignment with the purpose of government policy incentives.
A Bench comprising Justices Pamidighantam Sri Narasimha and Atul S. Chandurkar said that regulatory commissions have plenary authority over tariff-setting, including the power to consider grants extended by the government. However, it cautioned that this authority cannot be used in a manner that defeats the objective of such incentives.
No Mechanical Deduction of Incentives
The Court emphasised that while incentives or subsidies may be factored into tariff calculation...