Setting the stage for meeting the cost of mitigating pollution by passing it on to tariff, the Appellate Tribunal for Electricity (APTEL) has asked the Punjab government to treat investment made by Vedanta promoted-Talwandi Sabo Power Ltd and Larsen & Toubro’s Nabha Power Ltd as “change in law relief”. This will allow the companies to recover costs for setting up FGD (flue-gas desulfurization) mandated under the ministry of environment norms from tariff to be paid by the state owned power distributor.
APTEL, simultaneously, rejected an appeal filed by the Maharashtra State Electricity Distribution Co. Ltd. against a state regulator’s order allowing Adani Power’s 3300 Tiroda plant to load on the increased cost on to tariffs.
