While the state government wanted to go through with its decision, the clean energy producers filed a petition with the AP High Court to challenge the former’s actions.

Andhra Pradesh’s Supreme Court on Tuesday ordered the power distribution companies (Discoms) to honor the electricity purchase agreements with solar and wind generators and make all payments accordingly.

A Supreme Court division bench composed of Chief Justice Prashant Kumar Mishra and Judge N Jaya Surya overturned a single judge’s earlier order setting an interim tariff of Rs 2.44 per unit of solar energy and Rs 2.43 for wind energy.

The bank also rejected two petitions pending with the AP Electricity Regulatory Commission (ERC) on the tariff issue, saying it was “not open to the parties and also to the Commission to review the tariff discovered through a competitive bidding process. pursuant to Article 63 of the Act 2003. (Electricity) Act.” The Supreme Court order effectively pays the YS Jagan Mohan Reddy government’s bid to cancel the PPAs signed during the previous Chandrababu Naidu regime, adopting a rate of Rs 5.99 per kWh for the first year .

A July 1, 2019 government decision to negotiate new tariffs for solar and wind is also quashed.

The move by the Jagan Mohan Reddy government drew criticism from various quarters, even as the government of India strongly objected to undo the already signed PPAs.

The Union’s Department of Energy had in fact warned the state government about the move, saying it would have adverse consequences.

While the state government wanted to go through with its decision, the clean energy producers filed a petition with the AP High Court to challenge the former’s actions.

A single judge had passed an injunction in 2019 ordering the Discoms to pay for the solar and wind generators at an “interim rate” until the dispute was resolved by the ERC.

The division bank hearing the appeals against the solitary judge’s order noted that ERC passed the rate on February 21, 2015, “after setting its sights and being satisfied with the legitimacy of the transparent competitive process being followed.” “The ERC is now trying to reverse the tariff discovered in the trial referred to in Section 63 of the 2003 Act by adopting the procedure prescribed in Section 62 of the Act, which is not allowed at all,” noted the department bank.

The bank also dismissed the subpoenas filed by the State Load Dispatch Center regarding the curtailment of power, and upheld the standalone judge’s injunction in this regard.


This post Adhere to Electricity Purchase Agreements, Supreme Court Tells Andhra Pradesh Power Discoms was original published at “https://www.financialexpress.com/industry/stick-to-power-purchase-agreements-high-court-tells-andhra-pradesh-power-discoms/2462202/”

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