As per case facts, APERC initially set tariffs for wind power projects without factoring in the Generation Based Incentive (GBI). Distribution Companies (DISCOMs) sought an amendment, which APERC granted, allowing ... GBI deduction from payments to Generating Companies (GENCOs). GENCOs appealed to APTEL, which ruled that APERC lacked power to amend and that considering GBI was discretionary, not mandatory deduction. The question arose whether the State Electricity Regulatory Commission (SERC) can factor in GBI when determining tariffs, and its duties in doing so. Finally, the Supreme Court held that SERCs have the power to consider GBI but must exercise this collaboratively, respecting the policy intent of the grant. GBI is a generator-focused incentive, meant for GENCOs in addition to the tariff, aligning with national renewable energy goals, and should not be treated as a consumer subsidy.