SKV Law Offices Secures Substantial Relief for DVC in Tariff Dispute
20.05.2026
In a significant litigation victory for SKV Law Offices, the Appellate Tribunal for Electricity (APTEL), by its judgment dated 18 May 2026, substantially allowed DVC’s appeal in a long-standing tariff dispute arising from true-up proceedings before the Jharkhand State Electricity Regulatory Commission (JSERC).
The Tribunal held that JSERC was obligated to give full effect to the tariff determination already made by CERC, including the allowance of ₹210 crore towards pay revision arrears for FY 2006-07 to FY 2008-09. APTEL also reaffirmed the settled principle that regulatory orders must be read as a whole, and that a summary table cannot override the operative findings set out in the body of an order.
APTEL further set aside JSERC’s mechanical restriction of Transmission & Distribution losses to a normative ceiling of 3% for FY 2012-13 to FY 2014-15, directing instead a fresh prudence check grounded in actual facts, historical performance, and on-ground operational realities. This aspect of the ruling carries particular significance: it recognises that efficiency benchmarks, however important, cannot be applied rigidly or mechanically in true-up proceedings. Meaningful regulatory scrutiny must account for system-specific conditions and the utility’s actual track record.
On one issue, APTEL upheld JSERC’s position, sustaining its approach of linking the recovery of Pension & Gratuity Fund and Sinking Fund contributions to normative plant availability for FY 2009-14.
Taken together, the judgment reinforces that tariff determination must strike a balance between regulatory efficiency and operational reality, and that State Commissions are duty-bound to give full effect to tariff components already determined by CERC. The ruling is expected to have a meaningful financial impact for DVC, particularly in relation to the recovery of employee costs and the reconsideration of power procurement costs linked to T&D losses.
The matter was led by SKV Law Offices, argued by Shri Venkatesh, Founding Partner, and assisted by Nihal Bhardwaj, Counsel, & Surbhi Kapoor, Senior Associate.
