The Appellate Tribunal for Electricity (APTEL) has delivered a judgment in an appeal filed by The Tata Power Company Limited (TPCL) against the MERC Multi-Year Tariff (MYT) Order. APTEL found that MERC had incorrectly disallowed property tax as an uncontrollable O&M expense and disallowed income tax for FY 2007-08 to FY 2013-14. The tribunal has remanded these matters back to MERC for expeditious resolution. The final financial impact is estimated at approximately ₹268 crore.
APTEL Overturns MERC Tariff Disallowances
The Appellate Tribunal for Electricity (APTEL) has ruled in favor of The Tata Power Company Limited (TPCL) concerning specific disallowances made by the Maharashtra Electricity Regulatory Commission (MERC) in its Multi-Year Tariff (MYT) Order dated August 8, 2016. The tribunal found that MERC had incorrectly disallowed property tax as an uncontrollable O&M expense and also disallowed income tax for the period spanning FY 2007-08 to FY 2013-14.
Remand to MERC and Financial Implications
Consequently, APTEL has remanded these specific issues back to MERC, directing the commission to pass orders on the matters expeditiously. While the exact financial implications are yet to be determined and will crystallize upon the completion of the remand proceedings and the issuance of MERC’s final order, the estimated amount currently stands at approximately ₹268 crore.
Company Status
The company has declared that there are no expected financial implications in terms of compensation or penalties, and there are no quantum of claims filed against the company in this specific matter. This disclosure is made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Source: BSE
