APTEL slams APERC’s “cryptic” order in Green Infra wind dispute
The Appellate Tribunal for Electricity (APTEL) has raised concerns over the manner in which the Andhra Pradesh Electricity Regulatory Commission (APERC) disposed of a petition filed by Green Infra Wind Solutions Limited, observing that the order under challenge was “cryptic and sans any reasons” and did not deal with the competing arguments advanced by the parties.
Rather than deciding an interim application filed in the matter, APTEL has opted to take up the main appeal for final disposal and has directed the parties to explain at the next hearing why the case should not be remanded to APERC for fresh consideration.
The dispute
The matter relates to a Power Purchase Agreement (PPA) executed on February 18, 2017, between Green Infra Wind Solutions Limited and Andhra Pradesh Southern Power Distribution Company Limited (APSPDCL).
Green Infra had approached APERC through O.P. No. 60 of 2019 seeking payment of pending monthly bills amounting to around Rs 59.93 crore at the contracted tariff of Rs 4.84 per unit. The petition also sought carrying cost, late payment surcharge, and directions to establish a payment security mechanism through a letter of credit.
The company further sought adjudication on deductions made towards Generation Based Incentive from the tariff payable under the PPA.
APERC’s findings
In its order dated July 7, 2021, APERC disposed of the petition on the grounds that the payment-related prayers had become infructuous. The Commission noted that payments had been made at the interim tariff of Rs 2.43 per unit fixed by the Andhra Pradesh High Court in connected proceedings relating to the review of renewable PPAs in the state.
APERC also declined to examine the prayer relating to the establishment of a letter of credit and other consequential reliefs. It observed that the broader issue concerning review of PPAs was pending before a Division Bench of the Andhra Pradesh High Court in a batch of writ appeals and that adjudication had been stayed.
Appeal before APTEL
Challenging APERC’s order, Green Infra argued that the Commission failed to consider that dues remained outstanding even at the interim tariff of Rs 2.43 per unit. It also contended that the requirement to establish a letter of credit was independent of the tariff dispute and flowed directly from the PPA and the National Tariff Policy, 2016.
The company further submitted that APERC had not addressed its claims regarding the alleged wrongful deduction of Generation Based Incentive from payments made under the PPA.
During the proceedings, Green Infra sought interim directions for payment of outstanding dues and for establishment of the letter of credit mechanism.
Tribunal observations
The Tribunal, comprising Judicial Member Virender Bhat and Officiating Chairperson Seema Gupta, observed that granting directions for establishing a letter of credit at the interim stage would effectively amount to granting the final relief sought in the appeal.
At the same time, APTEL took note of the manner in which APERC had disposed of the original petition, stating that the impugned order did not discuss the rival submissions of the parties and lacked reasons for its conclusions.
The Tribunal’s observations indicate that it may consider remanding the matter to APERC for fresh adjudication. The parties have been directed to address this issue at the next hearing.
The matter is scheduled to be heard on August 5, 2026.
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