The Appellate Tribunal for Electricity (APTEL) has upheld the decision of the Tamil Nadu Electricity Regulatory Commission in a case relating to a dispute between Tamil Nadu’s electricity distribution company, Tangedco, and a private power generator, PPN Power Company. The dispute involves payment by Tangedco to PPN an amount of Rs 190 crore plus running interest charges.
Tangedco had argued in vain before the State regulatory commission, TNERC, that it was entitled to prompt payment rebates even if it settled only a part of its dues within the stipulated time. Upholding the Commission’s verdict, the Appellate Tribunal has observed in its recent judgment that “there is no substance in the argument of the Appellant (Tangedco).”
PPN has been operating a 330 MW gas-based power station in Tamil Nadu since 2001. In its order, TNERC had observed that there had been “from the beginning” continued failure on the part of the Electricity Board (part of which later became Tangedco) in paying its dues.
TNERC observed that “in spite of receipt of more than 100 letters” from PPN there was no response. Later, when the company said it would file a petition with the regulator, the electricity board “sent a short reply saying that the matter was under scrutiny and examination.”
From a reading of TNERC’s and APTEL’s verdicts, it is evident that Tangedco made some payments on ad-hoc basis and claimed prompt-payment rebate and refused to pay interest on late payment dues.
APTEL has said that it did not “any substance in the claim of the Appellant for the non-payment of interest for late payment of the monthly invoices.” PPN, it said, “is entitled to interest on late payments of dues as per the provisions of the PPA.”
Incidentally, two other “payment” cases are coming up for hearing before TNERC. Two other private sector power producers, Samalpatti Power Company and Madurai Power Corporation have petitioned the Commission praying for directing Tangedco to pay up their dues, amounting to Rs 240 crore and Rs 232 crore respectively.
ramesh.m@thehindu.co.in