Hindustan Times ST (Jaipur)

Approach regulator: Andhra HC to discoms on new tariffs

- Srinivasa Rao Apparasu letters@hindustant­imes.com

HYDERABAD: The Andhra Pradesh high court on Tuesday dismissed a petition filed by solar and wind power producers opposing the YSR Congress Party government’s decision to review power purchase agreements (PPAS) they signed with the previous Telugu Desam Party (TDP) government, dealing a setback to the alternativ­e energy utilities.

A division bench headed by justice M Ganga Rao, which heard a batch of petitions filed by nearly 40 renewable energy producers, suggested that they approach the AP Electricit­y Regulatory Commission instead. The HC had on September 18 reserved its verdict on the petitions.

“The court cannot decide on the matters that are under the purview of the regulatory commission. The petitioner­s can raise their objections before the commission,” the bench said, and directed that the commission resolve the matter in six months.

Since coming to power in assembly elections, held simultaneo­usly with the April-may Lok Sabha polls, chief minister YS Jagan Mohan Reddy has revisited several projects undertaken by the TDP under former chief minister N Chandrabab­u Naidu, including the Polavaram multipurpo­se irrigation project , and slashed funding to the plan to build a brand new capital city in Amaravati .

The court, however, set aside a government order dated July 1 that called for the appointmen­t of an expert committee to renegotiat­e the PPAS signed by the alternativ­e energy producers with the Telugu Desam Party government that was defeated by the YSR Congress in the April 11 assembly election.that came against the backdrop of a government assurance to the court that it would approach the AP Electricit­y Regulatory Commission instead of directly reviewing the PPAS.

The only relief the solar and wind power producers received was in the form of a court directive to power distributi­on companies in AP to continue purchasing power from them at a tariff of ₹2.44 per unit until the disposal of the matter by the Commission. The PPAS signed by the previous government for wind and solar power had set an average tariff of ₹4.70 per unit and ₹5.8 per unit, respective­ly.

During the course of the hearings, power producers argued that the state government had no say in the contracts which were signed between the distributi­on companies and the developers and that because the PPAS had been approved by the regulatory commission, the agreements could not be renegotiat­ed.

The state government argued that the TDP administra­tion had favoured a few companies by signing high-cost PPAS, causing a loss to the distributo­rs -- the reason for the decision to lower the tariffs. Subsequent­ly, it told the court that it would approach the regulatory commission again.

 ??  ?? Since the May elections, CM YS Jagan Mohan Reddy has revisited several projects undertaken by the previous government. ANI FILE
Since the May elections, CM YS Jagan Mohan Reddy has revisited several projects undertaken by the previous government. ANI FILE

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