Rajasthan Electricity Regulatory Commission Rules On Payment Dispute Involving Wind Power Firm

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In the case of Petition BG Wind Power Limited sought the Rajasthan Electricity Regulatory Commission’s (RERC) intervention for the non-payment of dues by the respondents, specifically the Rajasthan Urja Vikas & IT Services Ltd. (RUVITL), Rajasthan Renewable Energy Corporation Limited (RRECL), and Jodhpur Vidyut Vitran Nigam Ltd. (JdVVNL) .

The petitioner contended that the respondents had not fulfilled their payment obligations for the electricity generated from 01.04.2019 to 31.05.2023 under the Wind Power Policy, 2012 . BG Wind Power Limited had a Power Purchase Agreement (PPA) with RUVITL on behalf of JdVVNL, which expired on 31.03.2019. Despite the expiration, the petitioner continued to supply power, anticipating the execution of a new PPA .

The respondents argued that without a valid PPA in place after 31.03.2019, there was no legal basis for making payments to the petitioner. They emphasized that any payments could only be made under a subsisting PPA .

BG Wind Power Limited referred to a similar case, J K Lakshmi Cement Limited vs. Rajasthan Urja Vikas Nigam Limited & Ors, where the commission ordered payment for power injected into the grid post-PPA expiration at a specified rate .

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In light of these arguments, the petitioner requested the commission to direct the respondents to execute a short-term PPA for the period from 01.04.2019 to 31.05.2023 and release the due payments along with a late payment surcharge.

Please view the document below for more details.

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