In a setback to the Andhra Pradesh government, the Appellate Tribunal for Electricity (APTEL), has asked the electricity distribution companies (discoms) owned by the Andhra Pradesh government and its electricity regulatory commission not to initiate any precipitative or coercive action against a group of firms including Ayana Kadapa Renewable Power, Sprng Soura Kiran Vidyut, Sprng Agnitra, SB Energy Seven and SB Energy Solar.
By coercive action, it means cancellation, termination or deemed termination of power purchase agreements signed with these firms.
The controversy relates to a scheme for procurement of solar power of 750 MW each by NTPC and Solar Energy Corporation India on a long-term basis.
It may be recalled that Andhra Pradesh discoms terminated 21 PPAs, involving 776 MW of wind power capacity, signed between Axis Energy, a wind power company, and the discoms on the ground that they could do so since tariffs are yet to be determined.
In view of the precarious financial position of AP discoms and the consequent inability to bear the additional financial burden involved in purchasing power from 21 wind developers, discoms had decided to withdraw the PPAs,” APSPDCL said in its memo.
This is an Agency News-Feed