On May 7, 2026, the Supreme Court ruled that power distribution companies (discoms) cannot recover tariff charges or depreciation costs from consumers for power plants that have ceased supplying electricity. The landmark judgment protects consumers from bearing the costs of unused services, restoring a 2019 DERC order against [Tata Power Delhi Distribution Ltd .

On May 7, 2026, the Supreme Court ruled that power distribution companies (discoms) cannot recover tariff charges or depreciation costs from consumers for power plants that have ceased supplying electricity. The landmark judgment protects consumers from bearing the costs of unused services, restoring a 2019 DERC order against [Tata Power Delhi Distribution Ltd .
Key Details of the Ruling:
"No Payment For No Service": 
Justices Pamidighantam Sri Narasimha and Alok Aradhe ruled that consumers cannot be forced to pay for electricity services they are no longer receiving.
Rithala Plant Case: -
The ruling stems from a dispute over TPDDL's Rithala gas-based plant, which stopped operations in March 2018 after its 6-year PPA expired.
APTEL Order Set Aside: -
The Supreme Court set aside an earlier Appellate Tribunal for Electricity (APTEL) order that allowed TPDDL to recover capital costs over a 15-year period despite the plant being non-functional.
Regulatory Balance: -
The Court emphasized that tariff determination must balance utility cost recovery with consumer interests, stating that depreciation cannot be recovered indefinitely if the plant isn't serving consumers. 
This decision confirms that consumers cannot be burdened with charges for a service no longer provided. 
Discoms Can't Recover Tariff Charges From Consumers For A Power Plant .
   Discoms Can't Recover Tariff Charges From Consumers For A Power Plant, Rules SC. Discoms Can't Recover Tariff Charges From Consumers For A Power Plant, Rules SC.

MJF Lion ER YK Sharma 

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