Andhra HC directs discoms to clear dues owed to green power companies.

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BENGALURU: The Andhra Pradesh high court has directed the state’s power distribution companies to clear all dues owed to renewable energy developers, which oppose the government’s plan to renegotiate wind and solar energy tariffs.

The court’s ruling came after the discoms said they are committed to paying the dues and are seeking loans.

“Payment of dues may be continued and the money due may be released periodically,” the court said in an order dated December 20, which ET reviewed. “The full amount may be paid within the next four weeks.”

Although the court had directed payment of the dues a couple of months ago, only a small portion was cleared. The court ordered the discoms to stick to their commitment.

The discoms said in a fresh affidavit dated December 20 that they are securing loans from the Indian Renewable Energy Development Agency.

“As far as pending bills of wind and solar power developers, as of today an amount of Rs 355 crore has been paid and the balance of Rs 1,095 crore is due,” the discoms said in the affidavit, signed by the chief general manager of the Andhra Pradesh Southern Power Distribution Company Ltd.

The developers had approached the court seeking payment of the dues, which had been unpaid for several months. They claimed the pending amount is higher than Rs 1,095 crore. The court said the amount due should be reconciled through verification.

The YSR Congress-led government in Andhra Pradesh has been trying to renegotiate wind and solar power purchase agreements signed by the previous administration, claiming the rates were higher than those in other states. The developers refused to renegotiate and took the state to court.

The court said the final word on tariffs rests with the state power regulatory commission. Until the matter is decided, the court said solar developers should be paid Rs 2.44 per unit of energy and wind developers Rs 2.43 per unit.