Supreme Court: Consumers Not Liable for Power Plant Depreciation Without Electricity Supply

The Supreme Court has ruled that electricity consumers cannot be burdened with the depreciation costs of a power plant that has ceased supplying electricity to them.

The Bench set aside an APTEL order that allowed Tata Power Delhi Distribution Limited to recover costs for the full 15-year technical life of a gas-based plant.

The Court emphasized that since the plant only served Delhi consumers for six years (2012-2018), TPDDL cannot claim depreciation for the remaining period.

The judgment clarified that a plant's technical life does not grant an absolute right to tariff recovery if no service is rendered.

[Delhi Electricity Regulatory Commission v. Tata Power Delhi Distribution Ltd.]