APTEL Remands Tariff Dispute: Tata Power Challenges MERC Ruling Over Expense and Tax Disallowance
Tata Power Company Limited (TPCL) has secured a judgment from the Appellate Tribunal for Electricity (APTEL) concerning a dispute with the Maharashtra Electricity Regulatory Commission (MERC). The APTEL delivered its ruling in an appeal filed by TPCL challenging the Multi-Year Tariff (MYT) Order dated August 8, 2016, issued by MERC.The tribunal addressed several critical points regarding the tariff structure set forth by MERC. Specifically, APTEL held that MERC had incorrectly disallowed Property Tax as an Uncontrollable O&M expense. Furthermore, the ruling found that MERC also improperly disallowed Income Tax for the period covering FY 2007-08 to FY 2013-14.
Following these findings, APTEL has remanded the matters back to MERC. The tribunal directed MERC to expedite the passing of a definitive order regarding these disputed issues.
The financial implications related to compensation or penalties arising from this litigation were reported as Nil. Regarding potential recovery, the quantum of claims is approximately 268 crore. However, TPCL noted that the final amount will only be crystallized upon the completion of the remand proceedings and the issuance of the subsequent order by MERC.
TATAPOWER Stock Price Movement
Tata Power Company Limited shares edged higher on Friday, settling at ₹380.7 after gaining 1.29% in a solid close. The stock witnessed significant activity, with approximately 3.01 million shares traded during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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