CERC Orders Andhra And Telangana Discoms To Resolve Outstanding Wind Power Dues With Interest

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The Central Electricity Regulatory Commission (CERC) has issued its final order in the Petition filed by M/s NILE Limited, a wind power generator with a 2 MW wind farm located in Ramagiri, Anantapur district, Andhra Pradesh. The plant, which began commercial operation on August 30, 1995, initially supplied power for captive use but later entered into a Power Purchase Agreement (PPA) with the Andhra Pradesh Central Power Distribution Company Limited (APCPDCL) on May 20, 2002. As per the agreement and tariff orders issued by the Andhra Pradesh Electricity Regulatory Commission (APERC), the fixed tariff was Rs. 3.37 per unit from April 1, 2004.

The case arose due to non-payment and partial payments of monthly energy bills by the Andhra Pradesh State Power Distribution Company Limited (APSPDCL) from July 2011 to December 2012. The petitioner claimed that APSPDCL had paid only 50% of the bills during this period and had not paid the balance despite several communications. The company also sought interest on the delayed payments at the contractual rate of 10% per annum.

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The matter became complicated after the bifurcation of Andhra Pradesh in 2014, which led to a reallocation of assets and liabilities between the newly formed states of Andhra Pradesh and Telangana. The petitioner maintained that the plant was always located in Andhra Pradesh and the power was consumed in that territory; hence, APSPDCL should bear the payment responsibility. Telangana DISCOMs, including TSSPDCL, argued they had no liability as they neither received power from the plant nor benefited under the PPA.

CERC analyzed various government orders and provisions under the Andhra Pradesh Reorganization Act, 2014. The Commission concluded that although the districts of Anantapur and Kurnool were reassigned to APSPDCL after the bifurcation, 17.45% of the liability for the pending dues prior to June 2, 2014, would be borne by APSPDCL and the remaining 82.55% by TSSPDCL. Accordingly, both the DISCOMs were directed to pay the outstanding dues from August 2011 to December 2012, along with 10% interest per annum till the date of payment.

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In a separate claim, the petitioner stated that Rs. 1,09,624 was wrongly deducted by APSPDCL as maintenance charges, despite the amount already being paid to APTRANSCO. The Commission noted that while documentary proof had not been submitted with the petition, the petitioner could present relevant documents and bank confirmation to APSPDCL for reimbursement along with interest at 10% per annum.

The petition was finally disposed of with directions to both DISCOMs to settle dues following the apportionment decided by the Commission and the terms of the PPA.

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