The Andhra Pradesh Government on Tuesday rejected the Andhra Pradesh Electricity Regulatory Commission order which said power purchase agreements entered into between AP Genco and various distribution companies were valid.
The regulator had, on Monday, ordered that the agreements were valid and need to be honoured.
Addressing media persons, Parakala Prabhakar, Media Advisor to Government of Andhra Pradesh, said: “The State Government is rejecting the decision as the regulator has no jurisdiction over the issue.”
According to the provisions of AP Reorganisation Act, the joint regulator has a role to function for six months or till such time a new regulator is formed by the State. Andhra Pradesh created a new regulatory commission on August 1.
Now with this development, any decision taken by the regulator is not binding on Andhra Pradesh as it does not have jurisdiction to decide on issues between the two States.
The AP Government had earlier announced its decision to scrap PPAs that AP Genco entered into with discoms which was objected to by Telangana as it felt it would impact the power supply to the new State.
The matter has since been considered by a central Committee.