Officials from five states to meet Piyush Goyal

Sep 02 2014, 01:47 IST
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SummaryThe power ministry is trying to build a consensus on the course of the case, which is currently before the Appellate Tribunal of Electricity (Aptel).

Power minister Piyush Goyal will, on Tuesday, meet officials from five states that buy power from Mundra-based projects of Tata Power and Adani Power to discuss issues related to compensatory tariff. The power ministry is trying to build a consensus on the course of the case, which is currently before the Appellate Tribunal of Electricity (Aptel).

The aim is to see that both procurer and sellers do not contest or press before the Aptel legal issues related to jurisdiction of electricity regulator CERC to redetermine, revise or re-open power purchase agreements concluded under Section 63 of the Electricity Act, 2003.

The agenda note for the meeting, however, says both parties are free to contest on issues related to quantification of compensatory tariff, including recovery of past losses.

Since the losing party often challenges the ruling of the tribunal before the Supreme Court, the meeting will try to evolve a consensus that the Aptel ruling be seen as final and an appeal is not filed by either of the parties.

The compensatory tariff issue has escalated in the last few days with Adani Power cutting off 1,424 MW supply to Haryana, citing non-payment of dues. Haryana, Maharashtra, Gujarat, Punjab and Rajasthan have signed long term power purchase agreements with Coastal Gujarat and Adani Power.

The two power firms have also urged the ministry to move an ordinance for amending

competitive bidding guidelines in the Electricity Act, 2003, to give legal sanctity to electricity regulator to make changes to PPAs, even under circumstances that are not covered under force majeure clause. The other conditions for CERC to revise PPAs can be shortage of linkage coal or other commercial reasons, the agenda note said.

By Sumit Jha

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