Madras High Court
Administrative and Public LawContract Law

Pending appeal, distribution authorities must revise wheeling agreements to conform with the applicable solar tariff order.

M/s.Sri Balaji Eco Park Pvt Ltd vs Tamil Nadu Electricity Regulatory commission

Madras High CourtJUDGMENT: September 25, 20262 MIN READSOURCE JUDGMENT
Pending appeal, distribution authorities must revise wheeling agreements to conform with the applicable solar tariff order.. M/s.Sri Balaji Eco Park Pvt Ltd vs Tamil Nadu Electricity Regulatory commission. Madras High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioner sought revision of the Energy Wheeling Agreement dated 30 March 2026 concerning its solar power generator, SPG No. 059514520012.

Source reference: pp. 1–2

It contended that the agreement’s provision concerning surplus solar energy was inconsistent with Clause 5.5.8 of the Tamil Nadu Electricity Regulatory Commission’s Solar Tariff Order No. 9 of 2020, and sought payment for unutilised surplus energy at 75% of the competitively discovered tariff.

Source reference: pp. 1–2

Both sides submitted that the issue was covered by earlier orders of the High Court.

Source reference: p. 3

The respondents also informed the Court that an appeal against the Commission’s order was pending before APTEL.

Source reference: pp. 6–7
02

Issues

Whether the relevant clause in the petitioner’s Energy Wheeling Agreement should be revised to conform with Clause 5.5.8 of Solar Tariff Order No. 9 of 2020.

Source reference: pp. 2–3, 7

Whether payment of amounts due for surplus energy should be made without awaiting the outcome of the appeal pending before APTEL.

Source reference: pp. 6–7
03

Law Applied

Clause 5.5.8 of the Commission’s Solar Tariff Order No. 9 of 2020, read with the Commission’s order dated 11 May 2023 in M.P. No. 47 of 2021, entitles a generator to payment for energy supplied over and above the sanctioned limit at 75% of the tariff fixed by the Commission or, where no tariff has been fixed, 75% of the tariff discovered through competitive bidding; denial may be considered in specified circumstances involving directions of the SLDC or grid security, subject to notice and a fair hearing.

Source reference: pp. 4–5

The Court also relied on its earlier decisions in W.P. Nos. 31457 of 2025 and 49777 of 2025, which followed the order in W.P. No. 14115 of 2025 and directed revision of inconsistent agreement clauses.

Source reference: pp. 3–6
04

Reasoning

The Court treated the petitioner’s case as governed by its earlier decisions, which had required agreement clauses inconsistent with Clause 5.5.8 to be revised.

Source reference: pp. 3–6

It therefore directed the relevant clause to be brought into conformity with the tariff order.

Source reference: pp. 6–7

Although the respondents requested that compliance await the pending APTEL appeal, the Court held that compliance need not be postponed; the authorities may proceed in accordance with law after APTEL decides the matter.

Source reference: pp. 6–7
05

Holding

The writ petition was disposed of with a direction to respondents 3 and 4 to revise the relevant agreement clause by incorporating Clause 5.5.8 of the tariff order within six weeks from uploading of the web copy.

Any amount found payable to the petitioner is to be settled within eight weeks after the modification.

Source reference: p. 7

Compliance is not to await the APTEL decision, but the authorities may act in accordance with law once that decision is made.

Source reference: p. 7

No costs were ordered.

Source reference: p. 7
06

Acts & Sections Cited

2 provisions across 2 statutes referred to in this judgment. Linked provisions open on LawLens.

Tariff Order No.9/20 dated 16.10.2020 passed in T.A.No.9 of 20201

Section 5

Energy Wheeling Agreement dated 03.03.20211

Section 24
Madras High Court

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M/s.Sri Balaji Eco Park Pvt LtdvsTamil Nadu Electricity Regulatory commission

Madras High Court · September 25, 2026

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