TATA POWER COMPANY LTD. vs ADANI ELECTRICITY MUMBAI LTD.

The Supreme Court ruled that Tata Power Company (TPC) is entitled to recover standby charges from BSES/Reliance Energy Limited (REL) as part of the tariff, based on the agreement with Maharashtra State Electricity Board (MSEB) under which TPC pays standby charges for a capacity of 550 MVA. The Court held that these charges are legitimate and should be factored into the tariff charged to customers, affirming the contractual obligations between TPC and MSEB. The judgment clarifies the legal standing of standby charges in electricity distribution under the Electricity Act, 2003.