Andhra Pradesh high court asks renewable cos to move APERC against renegotiation

Source: economictimes.indiatimes.com

NEW DELHI: The Andhra Pradesh high court has directed solar and wind energy companies opposing renegotiation of tariffs by the state to approach state electricity regulator. Industry sources were disappointed by the order.

The high court has dismissed the case asking the renewable power companies to raise their objections before Andhra Pradesh Electricity Regulatory Commission (APERC). A timeline of six months has been set to resolve the issues, sources said.

In another case pertaining to Renew Power, the high court has directed Andhra discoms to pay immediately tariff at Rs 2.44 per unit till the disposal of the matter by APERC. It has also directed the state to avoid curtailing generation from Renew Power plants without issuing any prior notice.

The Andhra Pradesh government had on Sep 18 reserved judgment in the cases filed by renewable energy companies against renegotiation bid of the state government.

During the hearings, the companies sought the Andhra Pradesh government order dated July 1 to be quashed. The companies argued that the state government had no say in the contracts which were signed between the distribution companies and the developers.

The Andhra Pradesh government argued that the high cost PPAs were difficult to be honoured and the tariffs had to be revised downwards.

Andhra Pradesh government had in a previous hearing told the high court it has realised that renewable power contracts with developers cannot be terminated and was embarrassed by its move towards this, but said power purchase agreements need to be renegotiated.

The Andhra Pradesh order, issued on July 1, had directed a high-level committee to renegotiate agreements and submit report to the state in 45 days. Later on July 12, the Southern Andhra Power Distribution Company sent letters to 139 power plants asking wind plant to revise tariff to Rs 2.43 per unit and solar plants to reduce the price to Rs 2.44 per unit retrospectively.

The Andhra Pradesh high court had on July 25 stayed the state government’s July 1 order in a case filed by renewable energy companies against renegotiation of all power supply contracts.