JSW Energy Subsidiary Secures APTEL Relief In Tariff Case

APTEL set aside the CERC order dated March 17, 2022

Matter remanded for prudence check of the IDC claim

Reader Takeaway: Legal outcome supports tariff recovery prospects; final financial impact depends on CERC's review.

What just happened

JSW Energy Ltd informed the stock exchanges that its material step-down subsidiary, JSW Hydro Energy Limited, has received a favorable order from the Appellate Tribunal for Electricity (APTEL) dated September 18, 2026.

The tribunal has set aside the Central Electricity Regulatory Commission (CERC) order issued on March 17, 2022.

The dispute related to the regulator's decision to disallow notional Interest During Construction (IDC) on equity infused beyond 30% during the construction phase.

Why this matters

APTEL has allowed the subsidiary's IDC claim and held that carrying cost on the allowed amount should be calculated from the date the true-up petition was filed until the eventual adjustment.

The decision could support future tariff-related recoveries, although the actual amount has not yet been determined.

What changes now

The tribunal has remanded the matter to the CERC.

The regulator will now undertake a prudence check of the data submitted in support of the additional IDC claim before determining the final admissible amount and consequential tariff impact.

The filing does not quantify the potential financial benefit.

Risks to watch

Investors should monitor:

• The outcome of the CERC prudence check.
• Any subsequent tariff revision or recovery recognized by the company.
• Future regulatory filings disclosing the financial impact, if any.

Until the CERC completes its review, the eventual monetary benefit remains uncertain despite the favorable appellate ruling.