U.P.Power Corporation Ltd vs N.T.P.C.Ltd.& Ors

The Supreme Court examined the interpretation of Regulation 2.5 of the CERC (Terms and Conditions for Determination of Tariff) Regulations, 2001, in the context of capitalisation of additional expenditure for tariff fixation under Section 125 of the Electricity Act, 2003. The Court upheld the decisions of the CERC and the Appellate Tribunal, affirming that the additional capital expenditure incurred by the respondent-Corporation was permissible for tariff determination despite the appellant's objections regarding prior approval from the Central Electricity Authority. The appeal was dismissed, confirming the entitlement of the respondent to return on equity and interest on the approved capitalisation amount.