In a setback to solar and wind energy developers opposing the renegotiation of tariffs, the Andhra Pradesh High Court has transferred the matter to the state electricity regulator.
However, the court has granted partial relief to the renewable energy firms by asking Andhra power distribution companies to make an interim payment of ₹2.44 per unit to solar power plants and ₹2.43 per unit to wind power plants.
The court also quashed the state government’s order dated July 1 and the letters issued by state power discoms to various green power firms on July 12.
Sources said the court has dismissed the case, asking renewable power companies to raise their objections before the Andhra Pradesh Electricity Regulatory Commission (APERC).
“The court said the preliminary issue of jurisdiction has to be raised and addressed accordingly. A timeline of six months has been set to resolve the issues.”
An industry executive said some of the power plants will become bad assets even with the interim tariffs and the matter being prolonged.
“Now, developers will go to APERC and if they were to lose there, they will have to approach the high court. Then it will finally go to the Supreme Court. While this is a positive judgment, it is far from resolving the crisis.”
This is an Agency News-Feed