Tamil Nadu Commission Directs State DISCOM to Pay ₹6.7 Million in Wind Energy Dues

The Commission asked the DISCOM to pay interest at 1% per month on the delayed amount

September 4, 2020


The Tamil Nadu State Electricity Regulatory Commission (TNERC) has ordered the Tamil Nadu Generation and Distribution Company (TANGEDCO) to pay wind generators ₹6.69 million (~$91,586) along with interest at 1% per month towards delayed payments for the supply of wind power.

The Commission received petitions from White House, a textile manufacturer, and exporter, and the Tamil Nadu Gears and Shafts Corporation that owns 3.5 MW and 0.5 MW of wind projects in the state, respectively.

They sought the Commission to direct TANGEDCO to pay their dues along with interest payable on account of delays. The details of the dues and the wind projects under each petition are provided below:

Tamil Nadu - Amount Payable to Wind Generators Towards Outstanding Dues

The petitioners stated that they had raised invoices for the power supplied from its wind energy generators every month as per the terms of the power purchase agreements (PPAs) signed with TANGEDCO. Still, some payments have been delayed by more than a year. They also added that TANGEDCO had not made paid any interest on its delayed payments either.

In addition to these amounts, the petitioners also sought the Commission to direct TANGDCO to reimburse the expenses they incurred while filing their petitions. They claimed court fees to the tune of ₹82,317 (~$1,127).

Further, both companies said TANGEDCO did not avail their offer to settle its dues at an interest rate of 6% per annum if they could make the payment within 60 days from the date of the memo. However, they said that they did not receive any payments. The Commission noted that it had directed both parties to file written submissions about this and that neither had done so.

In its analysis, the Commission said that TANGEDCO did not deny its liability for the payment of interest on the delayed amount. It also added that since it failed to take up the offer for a reduced rate of interest, it was liable to pay interest as per the contractual terms or as per the Commission’s current regulations.

In its final order, the TNERC declared that TANGEDCO was liable to pay interest at 1% for payments delayed beyond 30 days from the receipt of the power bill. It also directed the state distribution company to pay its dues to the tune of ₹6.69 million (~$91,586) to the wind generators towards supplied power. It, however, did not pass an order regarding the court fees incurred.

Recently, in a similar order, the TNERC directed the TANGEDCO to pay wind generators ₹24.1 million (~$321,701) along with interest at 10% towards delayed payments for the supply of wind power.

In another case, TNERC had also directed the TANGEDCO to pay ₹74.8 million (~$998,885) to six wind power generators in interest due towards delayed payments for supplied power.

Image credit: William DeHoogh