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Supreme Court Affirms CERC’s Quasi-Judicial Authority in Power Grid vs MPPTCL Case

In a landmark judgment dated May 15, 2025, the Supreme Court clarified that the Central Electricity Regulatory Commission (CERC) can exercise not just adjudicatory powers but also regulatory and administrative functions under Section 79 of the Electricity Act, 2003. The ruling came in the case Power Grid Corporation of India Ltd. v. MPPTCL & Ors., affirming that CERC's powers are contextual and extend beyond dispute resolution to regulatory gaps, reinforcing its role as a quasi-judicial authority.

The Court emphasized that Section 79 allows CERC to issue orders that are regulatory in nature, and such orders are appealable before the Appellate Tribunal for Electricity (APTEL) under Section 111. Hence, writ petitions challenging these orders are not maintainable when statutory remedies exist.

The case arose when Power Grid Corporation, having constructed transmission infrastructure under the WRSS-XIV and WRSS-XVI schemes at the request of MPPTCL, faced delays due to the respondent’s failure in commissioning intra-state lines. CERC found MPPTCL liable and allowed Power Grid to claim compensation. However, MPPTCL bypassed the statutory appeal route and filed a writ in the High Court.

The Supreme Court's decision reaffirms the autonomy and comprehensive authority of CERC in regulating the electricity sector, especially in imposing transmission charges and addressing project mismatches due to state utility delays. This ruling strengthens regulatory consistency and reinforces adherence to the statutory dispute resolution framework in India's electricity sector.