India’s power sector is governed by various regulatory bodies, with CERC (Central Electricity Regulatory Commission) and DERC (Delhi Electricity Regulatory Commission) playing key roles in resolving disputes and enforcing compliance. Whether you’re a power generator, distribution company, or large consumer, facing a regulatory proceeding can be complex. This blog explains how to approach these proceedings strategically and legally to protect your business interests.
1. What Is CERC and DERC?
- CERC: Central Electricity Regulatory Commission – regulates tariff, interstate power transmission, licensing, and dispute resolution at the national level.
- DERC: Delhi Electricity Regulatory Commission – oversees electricity distribution and tariffs within Delhi.
These bodies function as quasi-judicial authorities with powers similar to civil courts.
2. Common Regulatory Issues Handled
- Tariff Petitions (Fixation or revision of electricity tariffs)
- Power Purchase Agreements (PPAs) and contractual disputes
- Deviation or Grid Code Violations
- Penalty for Non-Compliance with Regulatory Orders
- Open Access Disputes
- Licensing & Renewal Challenges
3. Who Can File a Petition?
Entities such as:
- Power generation companies (gencos)
- Transmission utilities (transcos)
- Distribution companies (discoms)
- Captive power users
- Independent consumers and stakeholders
4. Step-by-Step Legal Process in Regulatory Proceedings
🔹 Step 1: Identify the Jurisdiction
- If the issue involves interstate power, approach CERC.
- For matters within Delhi or local regulation, approach DERC.
🔹 Step 2: Legal Consultation
Engage a lawyer with domain expertise in electricity law, especially with prior experience representing clients before CERC/DERC.
🔹 Step 3: Drafting & Filing the Petition
The petition must include:
- Brief facts and background of the dispute
- Grounds for regulatory relief or challenge
- Relevant regulatory provisions (e.g., Electricity Act, 2003)
- Supporting documents (contracts, circulars, notices, etc.)
🔹 Step 4: Notice and Response
Once accepted, the Commission may issue a notice to the opposing party. A written response or counter-affidavit is submitted by the respondent.
🔹 Step 5: Hearing
- Both parties present oral arguments
- Experts may be called for technical clarifications
- Legal counsel plays a crucial role in explaining the commercial and regulatory impact
🔹 Step 6: Order or Direction
The Commission passes a final order, which may:
- Allow the petition
- Impose a penalty
- Grant relief or compensation
- Direct regulatory compliance
5. Appeals and Further Action
Any party aggrieved by a CERC/DERC order can file an appeal before the Appellate Tribunal for Electricity (APTEL) and further to the Supreme Court of India if needed.
6. Importance of a Regulatory Strategy
Regulatory proceedings are not just about legal rights—they involve:
- Commercial interests
- Technical documentation
- Regulatory timelines
- Reputational risks
A strong legal strategy ensures your submissions are compliant, persuasive, and technically sound.
7. Mistakes to Avoid
- Ignoring notices or deadlines
- Filing incomplete documentation
- Using generic legal counsel with no power sector experience
- Failing to challenge unlawful orders on time
Conclusion
Handling CERC or DERC proceedings requires a blend of legal acumen, technical understanding, and strategic foresight. Whether you’re challenging a regulatory penalty or seeking tariff revision, legal representation by a seasoned electricity law expert can make all the difference.
✅ Need Help with a Power Sector Dispute?
Adv. Sumit Panwar has represented top power companies and PSUs in regulatory matters before CERC, DERC, and APTEL. Get strategic guidance tailored to complex legal and technical challenges in the power sector. 📧 Email: adv.sumitpanwar@gmail.com 📍 Supreme Court Chamber D-812, New Delhi
Disclaimer:
The information provided in this blog is for general informational purposes only and does not constitute legal advice. For specific legal concerns, readers are advised to consult a qualified legal professional. Reading or relying on this content does not create a lawyer-client relationship.