Regulatory Transition Is Not a Defence: APTEL Draws a Clear Line
APTEL’s latest ruling sends a powerful message to generating utilities: once new regulations come into force, compliance must shift fully to the updated framework. Transition periods may be challenging, but they cannot be used as a defence for procedural lapses.
What RRVUNL Argued
RRVUNL claimed that several units including Kota TPS Unit-7, Suratgarh TPS Unit-6, and Chhabra TPS Units 1 ,2 were conceived under the 2009 regulations but reached COD under the 2014 regime.
The utility said this created a “regulatory twilight zone” where final capital expenditure and closing activities couldn’t neatly match the 2014 cut-off provisions.
Why APTEL Rejected the Argument
APTEL held that once the 2014 Regulations became effective, all tariff petitions — even for ongoing projects — had to align with the new framework.
Key points APTEL highlighted:
No automatic exemption during regulatory transition
Compliance is a continuous responsibility
Documentation must match the prevailing code
Relaxation Clauses Not Automatically Applicable
RRVUNL cited Regulation 2(17), its proviso for extensions, and Regulation 94 (relaxation powers). However, APTEL found that:
RRVUNL never sought an extension formally
No evidence was submitted showing delays beyond control
Relaxation powers must be invoked through a reasoned petition
In short: exceptions cannot be claimed retroactively.
Tribunal’s Core Principle
Regulatory transition does not suspend regulatory compliance.
Once a new tariff regulation is notified:
Cut-off dates must be respected
Documentation must be aligned
Tariff claims must meet updated procedural requirements
Legacy project timelines do not override current obligations.
What This Means for the Power Sector
This ruling strengthens regulatory accountability:
No automatic grandfathering of past projects
No retrospective condonation without evidence
Stricter scrutiny of capital expenditure claims
Greater procedural discipline expected across utilities
It also reflects a consistent trend across regulatory bodies and tribunals in India.
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