Delhi Electricity Regulatory ... vs Tata Power Delhi Distribution Ltd

The Supreme Court examined the legality of the Appellate Tribunal for Electricity's (APTEL) decision allowing Tata Power Delhi Distribution Limited (TPDDL) to recover the entire capital cost of the Rithala Combined Cycle Power Plant through depreciation over fifteen years, despite the plant ceasing electricity supply from March 2018. The Delhi Electricity Regulatory Commission (DERC) challenged this, arguing that recovery should not be permitted post cessation of supply. The Court upheld APTEL's order, reasoning that the capital cost recovery through depreciation is permissible under the Electricity Act, 2003, even if the plant is no longer operational, ensuring financial stability and regulatory certainty for power distribution entities.