APTEL Asks Andhra Pradesh DISCOM to Pay Dues to Vibrant at Lower Rate Than in PPA

Highlights :

  •  The APTEL has asked APSPDCL to compensate the firm at Rs.2.93 per unit of electricity supplied. This, however, is lower than the rate that was stipulated in the PPA at Rs. 4.84 per unit.
  • Additionally, the Commission also noted that the PPA entered into by Vibrant Greentech and APSDCL was not valid in the first place as it had not been approved the Commission, rendering such PPAs not enforceable.

The Appellate Tribunal for Electricity at New Delhi (APTEL) has directed APSPDCL (the southern power DISCOM of Andhra Pradesh- Andhra Pradesh Southern Power Distribution Company Limited) to compensate Vibrant Greentech India Pvt Ltd for the electricity supplied to it by the firm. Further, the APTEL has asked APSPDCL to compensate the firm at Rs.2.93 per unit of electricity supplied. This, however, is lower than the rate that was stipulated in the PPA at Rs. 4.84 per unit.

Additionally, the Commission also noted that the PPA entered into by Vibrant Greentech and APSDCL was not valid in the first place as it had not been approved the Commission, rendering such PPAs not enforceable. Thus, they are not to enjoy the regular benefits that come with PPA approvals from APTEL.

It was noted in the judgement that APSPDCL, despite receiving the electricity generated by Vibrant Greentech for three long years, had not paid the pending dues to them. On the contrary, the electricity received from the firm was supplied to consumers, from whom they must have received the due payment.

The judgement can be accessed here- https://aptel.gov.in/sites/default/files/Jud2023/A11of22&B_130123.pdf

Recently, a similar issue of non-payment of dues came to light, wherein the Central Electricity Regulatory Commission (CERC) directed SECI to compensate TPREL (Tata Power Renewable Energy Limited) irrespective of dues from DISCOMS.

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