ENERGY WATCHDOG vs CENTRAL ELECTRICITY REGULATORY COMMISSION AND ORS. ETC.

The Supreme Court ruled that Section 63 of the Electricity Act, 2003 mandates a transparent competitive bidding process for power procurement and tariff determination, which must be adopted by the appropriate Commission. The Court upheld the validity of the competitive bidding process initiated by Gujarat Urja Vikas Nigam Limited and Haryana Utilities, affirming that bidders can propose escalable or non-escalable tariffs. The judgment emphasized the importance of adhering to the guidelines issued by the Central Government for such processes, thereby reinforcing the statutory framework for electricity procurement.