CERC Affirms That 'Non-tariff' Disputes Have To Be Mandatorily Referred To Arbitration

The Central Electricity Regulatory Commission ("CERC"), through its order dated 19.11.2025 in GUVNL v. TPCL & Ors.¹ affirmed and held that non-tariff disputes between the parties must mandatorily be referred to arbitration.

CERC, in its judgment placed reliance on the judgment of the Appellate Tribunal for Electricity's ("APTEL") judgement dated 28.04.2024 in MPPMCL vs. DVC ("DVC Judgement")² and the Supreme Court's order dated 23.09.2024 in Damodar Valley Corporation v. Madhya Pradesh Power Management Company Limited & Anr³. wherein it was held that non-tariff disputes must be referred to arbitration.

CERC noted that the main dispute between the procurers and generating company pertains to breach of contractual obligations. Further, it was observed that while there is no doubt that tariff would have a nexus with the obligations of the generating company under the PPA, the same alone may not be sufficient to claim that breach of each of the obligation has a