Case Law Analysis
|Supreme Court of India
Generation Based Incentive (GBI) Cannot Be Deducted from Tariff If It Undermines Statutory Purpose | SERC’s Tariff Power Under Electricity Act 2003 : SC
The Supreme Court ruled that State Electricity Regulatory Commissions may consider Union-funded Generation Based Incentives when setting tariffs, but cannot reduce consumer tariffs by the GBI amount if doing so defeats the policy’s intent to incentivize renewable generation. This protects renewable developers from regulatory erosion of central incentives and clarifies the hierarchy between executive schemes and state regulatory authority.