MSEDCL Directed to Pay ₹41 Billion in Dues to Wind Power Generators

MERC directed MSEDCL based on a petition filed by Windmill Owners Welfare Association of India

October 22, 2018


The Maharashtra Electricity Regulatory Commission (MERC) has directed the Maharashtra State Electricity Distribution Company Limited (MSEDCL) to pay ₹41.0464 billion (~$0.56 billion) in dues to wind power generators in Maharashtra.

MERC was responding to a petition filed by Windmill Owners Welfare Association of India (WOWAI). The petition was regarding outstanding payments due from MSEDCL for sale of wind energy and interest on delayed payments under various wind energy purchase agreements (WEPAs) entered by the members of WOWAI.

After considering the petition, MERC directed the MSEDCL to release the payments to the petitioners towards the principal amount and towards interest on the principal amount as per the plan submitted to the commission.

MERC believed MSEDCL has released some principal amount to WOWAI, hence it is not a case of complete non-compliance by MSEDCL.

Per MSEDCL’s plan, out of total outstanding amount of ₹22.3503 billion (~$0.30 billion) towards wind generators, it has paid ₹3 billion (~$0.041 billion) by the end of August 2018. Further, an outstanding amount to the tune of ₹15.9196 billion (~$0.22 billion) corresponding to generation up to September 2017 is being planned for payment up to the end of December 2018. Regarding the dues relating to generation up to March 2018 amounting to ₹5.7765 billion (~$0.079 billion), would be released by end of March-2019.

MERC stated that reconciliation must be completed within two weeks from the date of this order and that a reconciled report of outstanding dues be submitted to the commission within two days thereafter.

In its order MERC also stated that if MSEDCL deviated from its commitment given in the plan, penal interest will accrue thereafter (beyond the date committed in the plan) at 1.25% per month on the principal amount. MSEDCL was also directed to submit its compliance report to the Office of the Commission.

Saumy Prateek Saumy is a senior staff reporter with covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.