Madras High Court
Administrative and Public LawContract Law

Wheeling agreements must incorporate tariff-order surplus-energy compensation provisions notwithstanding a pending appeal.

Citrine Green Power Pvt Ltd., vs TAMIL NADU ELECTRICITY REGULATORY COMMISSION

Madras High CourtJUDGMENT: September 29, 20262 MIN READSOURCE JUDGMENT
Wheeling agreements must incorporate tariff-order surplus-energy compensation provisions notwithstanding a pending appeal.. Citrine Green Power Pvt Ltd., vs TAMIL NADU ELECTRICITY REGULATORY COMMISSION. Madras High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioner sought revision of Clause 9 of its Energy Wheeling Agreement dated 2 May 2026, contending that it was inconsistent with Clause 5.5.8 of the Tamil Nadu Electricity Regulatory Commission’s Solar Tariff Order No. 9 of 2020.

Source reference: p. 1–3

It also sought payment for unutilised surplus solar energy at 75% of the competitively discovered tariff, stated to be ₹3.04 per unit.

Source reference: p. 1–3

The parties informed the Court that the issue was covered by earlier writ orders directing revision of inconsistent agreement clauses and settlement of amounts due under the tariff order.

Source reference: p. 3–7

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

Source reference: p. 7
02

Issues

Whether respondents 2 to 4 should be directed to revise the relevant clause of the petitioner’s Energy Wheeling Agreement to incorporate Clause 5.5.8 of Solar Tariff Order No. 9 of 2020.

Source reference: p. 1–3, 7–8

Whether amounts payable for surplus solar energy should be settled in accordance with the tariff order, notwithstanding the pending APTEL appeal.

Source reference: p. 1–2, 7–8
03

Law Applied

Clause 5.5.8 of Solar Tariff Order No. 9 of 2020, read with the Tamil Nadu Electricity Regulatory Commission’s order in M.P. No. 47 of 2021 dated 11 May 2023, provides that a generator is entitled to payment for energy supplied over and above the sanctioned limit at 75% of the tariff fixed by the Commission or, where no tariff is fixed, 75% of the tariff discovered through competitive bidding.

Source reference: p. 4–5

The Commission also recognised that claims may be denied in specified cases involving injection contrary to SLDC directions or risk to grid security, subject to notice and a fair hearing.

Source reference: p. 4–5

The Court applied its earlier orders in W.P. Nos. 14115 of 2025, 31457 of 2025 and 49777 of 2025, which directed amendment of inconsistent wheeling-agreement clauses.

Source reference: p. 3–7
04

Reasoning

The Court treated the dispute as covered by its earlier decisions directing that wheeling agreements be brought into conformity with Clause 5.5.8.

Source reference: p. 7–8

It therefore directed amendment of the petitioner’s agreement and settlement of any amount payable under the tariff order.

Source reference: p. 7–8

Although the respondents relied on the pending APTEL appeal, the Court held that compliance need not await its outcome; the authorities could proceed in accordance with law after APTEL decided the matter.

Source reference: p. 7–8
05

Holding

The writ petition was disposed of with a direction to respondents 2 to 4 to revise the relevant agreement clause by incorporating Clause 5.5.8 within six weeks from uploading of the web copy.

Any amount payable was to be settled within eight weeks thereafter.

Source reference: p. 7–8

Compliance was not to be deferred pending the APTEL appeal, though the authorities could act in accordance with law following its decision.

Source reference: p. 7–8

No costs were ordered.

Source reference: p. 7–8
Madras High Court

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Citrine Green Power Pvt Ltd.,vsTAMIL NADU ELECTRICITY REGULATORY COMMISSION

Madras High Court · September 29, 2026

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