Reading Time: 3 minutes
A petition has been filed under Section 86 (1) (e) and (f) of the Electricity Act, 2003, seeking appropriate directions from the Commission regarding unpaid dues for electricity supplied by the Petitioner’s 1.6 MW Wind Power Project. The total dues amount to ₹91,95,255/- for the period from February 2021 to July 2022. The case was heard on July 26, 2024.
During the hearing, the Petitioner, represented explained that the petition was filed due to the non-payment of dues for the electricity supplied to the respondent, Gujarat Urja Vikas Nigam Limited (GUVNL). The Petitioner claimed that the 1.6 MW Wind Power Project was set up with the approval of the Gujarat Energy Development Agency (GEDA), which is the state nodal agency. The Petitioner entered into a Power Purchase Agreement (PPA) with GUVNL on January 18, 2011. The PPA expired on January 24, 2021, but the Petitioner continued supplying power to GUVNL due to a mutual understanding between the parties regarding the extension of the PPA. The Petitioner continued receiving payments for the energy supplied until November 2021.
However, the Respondent GUVNL stopped making payments after clearing the invoice for November 2021 and returned the invoices for the subsequent period without making any payments. Additionally, GUVNL adjusted the amounts for the invoices raised in February 2022 against the Petitioner’s other project, a 24 MW Wind Power Plant at Lalpur. The Petitioner’s counsel argued that this adjustment was incorrect as the two projects had separate PPAs. The Petitioner also highlighted that the Respondent had not raised any objections about the supply after the expiration of the PPA and had continued paying for the power supplied.
The Petitioner emphasized that power supplied by a generator in the absence of a written agreement should not be treated as free, and the Respondent should fulfill its payment obligations. The counsel for the Petitioner also requested additional time to file written submissions and supporting documents, which was granted by the Commission.
On the other hand, the Respondent GUVNL, represented, argued that after the expiration of the PPA on January 24, 2021, the Petitioner continued to inject power into the grid without a formal agreement. GUVNL claimed that payments had been made by mistake under the expired PPA and that the Petitioner was aware of this error. GUVNL also claimed that it had verbally informed the Petitioner about the mistake in December 2021 and had requested a refund for the payments made inadvertently. The Respondent asserted that no oral agreement existed for the continuation of the power supply, and the Petitioner had only raised the issue of payment after several months, in May 2023, seeking a renewal of the PPA.
GUVNL further stated that the adjustments made for the invoices raised by the Petitioner between February 2021 and November 2021 were valid since the payments had been mistakenly made under the expired PPA. The Respondent requested additional time to file their written submissions.
The Commission acknowledged the arguments from both sides and confirmed that it has the jurisdiction to resolve the dispute under Section 86(1)(e) and (f) of the Electricity Act, 2003. It admitted the petition and directed both parties to submit additional documents and written submissions within two weeks. The Petitioner was specifically asked to provide evidence related to the scheduled commercial operation date (SCOD) of the Lalpur Wind Power Project and any relevant PPAs. The matter has been reserved for an order, and the Commission will issue its decision once all the necessary documents and submissions are received.
