The energy sector is seeking greater certainty over whether disputes should be taken to sectoral regulators or arbitration, with industry participants also calling for faster resolution, stronger enforcement and greater scope for mediation and conciliation, Shryeshth Ramesh Sharma, Senior Partner, SKV Law Offices, said on the sidelines of the 5th Edition of the Commercial Dispute Conclave 2026.
Sharma said General Counsels from the energy sector had highlighted a continuing conflict between sectoral regulation and arbitration, particularly over the classification of disputes involving tariffs.
“The sector wants certainty. There is a conflict, if I may say, that is running in their minds: sectoral regulator versus arbitration,” Sharma said.
He said companies wanted clarity on what qualifies as a tariff-related matter and whether disputes should be taken before the sectoral regulator or resolved through arbitration.
At the same time, Sharma said arbitration could offer a quicker route in disputes that do not require specialised technical expertise.
“Arbitration can be quicker in matters which does not involve any technical expertise,” he said.
According to Sharma, the broader industry demand is for faster decisions, protection of funds and improved enforcement, even if changes to the existing legal framework are required.
“They want now things to be decided faster, their money to be secured, problems relating to enforcement to be addressed, even if it requires some sort of an amendment in the governing legal framework,” he said.
He also raised the possibility of introducing mediation or conciliation within the regulatory framework through statutory amendments.
Sharma said some disputes could potentially be resolved through mediation from an industry perspective, but government institutions may face constraints because settlements can require approvals and involve administrative discretion.
He said greater flexibility around settlement could help parties avoid prolonged disputes where a substantial portion of the claim can be resolved.
“As legal counsel, we also are very comfortable in that space because if out of ₹100, let’s say ₹70 can be settled, then why not? Why fight over ₹100 in place of only that?” Sharma said.
