U.P.POWER CORPORATION LTD. vs N.T.P.C.LTD.

The Supreme Court, while interpreting Regulation 2.5 of the CERC (Terms and Conditions for Determination of Tariff) Regulations, 2001, upheld the Appellate Tribunal's decision to allow the capitalisation of additional expenditure incurred by the National Thermal Power Corporation for tariff fixation. The Court found that both the CERC and the Tribunal correctly rejected the appellant's argument that such capitalisation required prior approval from the Central Electricity Authority. The appeal was dismissed, affirming the Tribunal's ruling on the matter.