Row over power pacts in AP intensifies as new pleas filed against curtailment; HC posts matter to Aug 22

V Rishi Kumar Hyderabad | Updated on August 01, 2019

Taking on record a slew of petitions against the State government’s move to renegotiate the power purchase agreements signed by renewable energy companies and curtailment of power purchase by the State, the Andhra Pradesh High Court has posted the matter to August 22.

These petitions relate to the ongoing dispute between various renewable energy companies and the power distribution companies in Andhra Pradesh and the latter’s alleged effort of to bring down the tariff. A batch of fresh petitions were filed in the High Court raising concerns over curtailment of renewable power. The Government defended the curtailment saying the move is based on the Grid Code. Henceforth, this would be placed on the website, it assured the court.

Noting down the State’s observations, the Court posted the matter for further hearing along with other pleas on August 22.

On Thursday, a few petitioners joined over 40 developers/petitioners seeking the court intervention against the AP Southern Power Distribution Company Limited and its efforts to renegotiate power purchase agreements (PPAs). The High Court had earlier stayed the operation of the Government Order No. 63, which sought to pave way for formation of a high power committee to negotiate PPAs entered into by the renewable energy companies during the previous Chandrababu Naidu Government. After YS Jagan Mohan Reddy took over as the Chief Minister, he had announced the government’s intention was to review the PPAs and bring down the tariff as this would help the State distribution companies which are facing financial stress.

Following his decision, a GO was passed and notices were issued to various developers asking them to come forward and bring down the power supply tariff to ₹2.44 per unit.

Based on these notices, renewable energy companies approached the court seeking a stay. The court granted stay and the matter was posted to August 22.

Published on August 01, 2019

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