DEE Development Engineers Limited (DEE) has successfully obtained a stay order from the Punjab & Haryana High Court, halting the implementation of a recent tariff revision order by the Punjab State Electricity Regulatory Commission (PSERC). This development marks a significant turn in the ongoing dispute over electricity pricing for DEE's 8 MW Abohar Plant.

Key Points of the Stay Order

• Date of Order: The High Court issued the stay order on September 23, 2025.
• Current Tariff: DEE will continue supplying electricity to Punjab State Power Corporation Limited (PSPCL) at the existing rate of ₹7.47 per unit.
• Suspension of Recovery: Any claims by PSPCL for recovering tariff differentials are suspended pending final court adjudication.

Background of the Dispute

The dispute stems from PSERC's order dated August 20, 2025, which had revised the tariff for DEE's Abohar Plant. Here's a breakdown of the tariff revision history:

Financial Implications

• The August 20, 2025 order would have entitled PSPCL to a retrospective recovery of ₹13.62 crores from DEE.
• This recovery was to be based on a tariff differential of ₹1.80 per unit, effective from January 1, 2024.

DEE's Position

DEE had initially sought an upward revision of the tariff, citing:

• Rising operational costs
• Changing market conditions
• Terms of its 30-year power purchase agreement with PSPCL

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, DEE has officially disclosed this development to the stock exchanges. The company considers this a material update for all stakeholders.

Looking Ahead

The stay order provides temporary relief for DEE, allowing it to maintain its current pricing structure. However, the final resolution of this tariff dispute remains subject to the High Court's adjudication. Stakeholders will be closely watching the proceedings, as the outcome could have significant implications for DEE's power generation business and its financial performance in the coming years.

As this legal battle unfolds, it highlights the complex regulatory environment in India's power sector, where balancing the interests of power producers and distributors remains a challenging task for regulatory authorities.

DEE Development Engineers Limited (DDEL) has announced a significant regulatory victory for its wholly-owned subsidiary, Malwa Power Private Limited (MPPL). The Punjab State Electricity Regulatory Commission (PSERC) has issued a favorable ruling, confirming the extension of MPPL's Power Purchase Agreement (PPA) with Punjab State Power Corporation Limited (PSPCL) for an additional 10 years beyond its previous expiration date of April 27, 2025.

Key Highlights of the Regulatory Ruling

• The PSERC has established that the PPA between MPPL and PSPCL has been extended for 10 years.
• The commission clarified that PSPCL does not have the authority to unilaterally fix tariffs for the extended period.
• PSERC affirmed its jurisdiction to determine the tariff applicable for the extended 10-year period.
• A hearing is scheduled for November 6, 2025, to determine the new tariff rate.

Current Operations and Future Expectations

MPPL, which generates electricity from biomass (primarily paddy straw or "Parali"), is currently supplying power to PSPCL at ₹3.50 per unit under an interim order issued by PSERC on April 24, 2025. This rate was initially set unilaterally by PSPCL, prompting MPPL to file a petition with PSERC.

The management of DEE Development Engineers Limited expressed optimism about the upcoming tariff determination. They noted that PSERC has historically considered both variable and fixed costs when setting tariffs, which could lead to a more favorable rate for MPPL in the future.

Implications for Sustainable Energy

This ruling is particularly significant for DDEL's renewable energy initiatives. The company's focus on converting agricultural residue into grid-connected green power aligns with sustainable, circular-economy solutions. The extension of the PPA ensures continued support for these environmentally friendly practices in Punjab's energy sector.

Company's Stance

In a press release, DDEL stated, "Since it has now been categorically clarified that PSERC has the jurisdiction to determine the tariff for the extended period, and considering that PSPCL, while fixing the rate of ₹3.50 per unit, had not followed any set procedure or precedence and just decided on ad hoc basis, we remain very hopeful of a favorable outcome in the matter of tariff determination for MPPL during the extended period."

The company emphasized PSERC's consistent practice of considering both variable and fixed costs in tariff determinations, reinforcing their expectation of a balanced approach in the upcoming hearing.

As the renewable energy landscape continues to evolve, this regulatory decision marks a positive step for DEE Development Engineers Limited and its subsidiary in their pursuit of sustainable power generation and supply in Punjab.