Change in Law

The Central Electricity Regulatory Commission (CERC), in a suo motu proceeding in Petition No. 10/SM/2025, has issued directions on how generating companies should handle the financial impact of the abolition of the Goods and Services Tax (GST) Compensation Cess and the increase in the GST rate on coal. The Commission held that both developments qualify as separate Change in Law events under Power Purchase Agreements (PPAs) governed by Section 63 of the Electricity Act, 2003,…