Can’t renegotiate PPAs; clear RE dues in 6 weeks: AP HC on PPA reneging matter – EQ Mag Pro
The Andhra Pradesh excessive courtroom on Tuesday held that executed energy contracts can’t be renegotiated and requested the state to clear dues estimated at Rs 30,000 crore to renewable vitality turbines in six weeks.
The order settles a vital two-year outdated matter that created information inside the nation and worldwide funding neighborhood. Andhra Pradesh’s try to renegotiate Power Purchase Agreements (PPAs), first in India, has been adopted by different states like Gujarat and Punjab.
A division bench consisting chief justice Prashant Kumar Mishra and justice Ninanla Jayasurya put aside an earlier judgment by a single decide asking Andhra discom to make interim cost to the turbines. The division bench directed the discom to make cost of all pending and future payments on the price talked about in the PPAs. “The payment of arrears/pending bills shall be made within a period of six weeks from today,” it mentioned.
The order held that any continuing to revisit tariff after PPAs are signed and executed can’t be sustained.
The division bench rapped the one decide for permitting wriggle out phrases of the contract. “It seems, learned single Judge was swayed by the financial difficulty of the discom and having felt that allowing the writ petitions would require full payment as per PPA rate to the petitioners, went on to fix interim rate for payment of pending and future bills,” the newest order mentioned.
“The High Court has decided the matter conclusively in favour of renewable energy generators. The High Court has affirmed the primacy of contract which should give confidence to entire sector. What is most heartening is that a time bound direction has been issued for payment for generation companies which would ensure that at the end of this long protracted litigation the legitimate dues are finally realised,” mentioned SKV Law Offices advocate Shri Venkatesh, who represented Greenko in the matter.
The Andhra Pradesh authorities had on July 1, 2019 issued an order that directed a high-level committee to renegotiate 41 PPAs with renewable vitality firms and submit report in 45 days. Following this, the Southern Andhra Power Distribution Co on July 12, 2019 had despatched letters to 139 energy vegetation, asking wind vegetation to revise down the tariff to Rs 2.43 per unit and photo voltaic vegetation to cut back the worth to Rs 2.44 per unit retrospectively.
The state excessive courtroom had on September 24 quashed the July 1 authorities order in addition to the July 12 letters issued by the state energy distribution firm. The order was challenged by the state authorities. During course of the litigation, the High Court dismissed a committee that was fashioned to evaluate tariffs for purchasing renewable energy. It additionally set an interim tariff of Rs 2.44 a kilowatt per hour (unit) for wind and Rs 2.43 a unit for solar energy initiatives until the time Andhra Pradesh electrical energy fee takes a call.
Source: PTI
