Andhra Pradesh Electricity Regulatory Commission has ruled that the power purchase agreements (PPA) between the developers and power distribution utilities can be revised, subject to the Commission approving it.
In the case of 41 power purchase agreements entered by the Southern Power Distribution Company of Andhra Pradesh Limited (APSPDCL) with wind power companies during the financial year 2016-2017, the Commission said that they regulate these PPAs.
In its ruling, the Commission has also directed the AP state distribution companies to not enter into any fresh PPAs with any power developers, including thermal power producers, without its permission.
While developers are confused about the applicability of the order, the Commission has ruled, any modification of the PPA shall be of force and effect only when it is in writing and signed by the authorised representatives of the wind power producers and the distribution companies.
Further, any modification of the agreements shall be done only with the prior approval of the Commission.
The distribution companies are at liberty to invoke the enabling articles in the PPA for any modification or amendment to the terms and conditions.
But other parties to the respective PPAs will be given an opportunity by the Commission for appropriate relief and any such requests .