Compensatory Tariff

In 2011 and 2012 Indonesia barred the export of its coal below a benchmark price. Adani Power, with a plant at Mundra in Gujarat, and Coastal Gujarat Power, a subsidiary of Tata Power, then “filed petitions before the CERC seeking compensatory tariff,” a higher price than their power purchase agreements set. On April 11, 2017, the Supreme Court ruled on the matter in Energy Watchdog v. CERC.

The matter did not end there. In 2018 the Gujarat government formed a high-power committee, which recommended changes to the tariffs. “The Gujarat government has approached the Supreme Court seeking to amend the PPAs,” the trade journal Power Line reported in October 2018.

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