Andhra Pradesh High Court Directs DISCOMs to File Affidavit on Dues to Renewable Generators

The next hearing will be held on June 28, 2021

April 27, 2021


The Andhra Pradesh High Court has directed distribution companies (DISCOMs) in the state to file a detailed affidavit on the objections raised by the renewable energy generating companies about pending payments before June 28, 2021, when the matter will be listed for hearing.

In March this year, the High Court had directed the Southern Power Distribution Company Limited and Eastern Power Distribution Company Limited to file an affidavit by March 31, 2021, with the details of their dues to individual renewable generators and when they intend to clear them.

According to the advocate general who was representing the DISCOMs at the recent hearing, payments per the court orders had been made up to December 31, 2020.

However, the counsel for the power generation companies claimed that the order was not completely complied with. There were some deductions made without specifying the reason.

The Advocate General submitted that payments were expected to be made for the first quarter of 2021 as per the earlier order by May 21, 2021. He also submitted that he would file a comprehensive affidavit indicating the payment method, including the purpose for which the deductions have been made, to present a clear picture of payments.

In February 2020, the Andhra Pradesh High Court had asked the state’s distribution companies to clear the dues of wind developers within two weeks.

In April this year, Mercom reported that DISCOMs in Andhra Pradesh had informed the High Court that they had sought a loan of ₹30 billion (~$407.95 million) from the Power Finance Corporation and REC to enable them to clear the dues to power generators. They said in an affidavit that they were taking all steps necessary to get the loan approved by the end of May 2021.

The DISCOMs said that the power dues from July 2020 to December 2020, amounting to ₹5.935 billion (~$80.71 million), would be paid as soon as the loan is released.

The High Court had directed the DISCOMs to pay the monthly bills to the generators at the rate of ₹2.44 (~$0.033)/kWh for power procured from solar power generators and ₹2.43 (~$0.033)/kWh for the power procured from wind power generators, pending the resolution of the disputes between the parties by the Andhra Pradesh Electricity Regulatory Commission.