CERC rejects Tangedco’s plea to recall previous direction on payment of dues

CHENNAI

Central Electricity Regulatory Commission (CERC) has rejected a plea by Tangedco to recall or modify an earlier order directing the Atate utility to pay 75% of its undisputed dues to private power producer D.B. Power Limited.

In an order dated May 26, 2022, the CERC had directed the Tangedco to pay ₹417.19 crore out of the undisputed outstanding amount of ₹556.25 crore to the company on or before June 9, 2022.

D.B. Power had entered a power purchase agreement with Tangedco in 2013 and has been supplying 208 MW power to Tangedco from 1.8.2015.

In its plea, Tangedco sought for recall of the order citing the Late Payment Surcharge and related matters Rules, (LPS) 2022 notified by the Union Ministry of Power on June 3, 2002, to enable distribution companies to settle past dues.

As per the scheme, distribution companies are given one-time relaxation wherein the outstanding amount, including the principal and late payment surcharge, will be frozen without further imposition of further surcharge. The discoms are given the flexibility to pay the outstanding amount in up to 48 instalments.

These rules will be applicable to outstanding dues of generating companies, inter-state transmission licensees, and electricity trading licensees (suppliers).

The CERC noted that the Union Ministry of Power via a letter dated August 4, 2022 has clarified on the issue stating that if there is Court order prior to the date of notification of the LPS rule, the orders of the court of competent jurisdiction will prevail. The clarification has come while addressing the references received from Chairman and Managing Director of Tangedco and from the Madhya Pradesh government, it added.