The Appellate Tribunal for Electricity (APTEL) refuses to revoke the nod given to Energy Watchdog, a consumer group, to appeal against Tamil Nadu Electricity Regulatory Commission (TNERC) order extending the control period for solar power tariff of Rs. 7.01 per unit.
On January 2016, the tribunal had allowed Energy Watchdog to appeal.
Energy Watchdog said the TNERC extended the control period of solar power tariff ignoring the revised (downward) “benchmark capital cost” for solar power issued by the Central Electricity Regulatory Commission. As per the said Act, the State Commission was duty-bound to adopt the revised benchmark capital cost, it said.
Energy Watchdog said the Tamil Nadu Generating and Distribution Corporation Ltd., (TANGEDCO) did not challenge the majority judgment and signed at least 31 Energy Purchase Agreements for 25 years with 23 companies on nomination basis at Rs. 7.01 per unit for a total power purchase of 1181 MW.
“These EPAs are estimated at Rs. 34,448 crore. These rates are much higher than prevailing market rates for solar power. The impact of this higher tariff would be borne by the electricity consumers of Tamil Nadu besides the public across the country as TANGEDCO had moved the Centre for a bailout package. TANGEDCO is into massive losses and its debt is over Rs. 70,000 crore,” the consumer group said while seeking permission to appeal.
Energy Watchdog named TNERC, TANGEDCO, and the firms which had signed the power purchase agreements as the respondents to its appeal.
Certain firms like Adani Green Energy (Tamil Nadu) Ltd, TN Solar Power Energy Ltd, Universal Mine Developers and Service Providers Pvt. Ltd, among others sought that the permission given to Energy Watchdog to appeal be recalled. They said the consumer group was not an aggrieved party and since the appeal was based on an anonymous letter, it became a public interest litigation. “Such proceedings cannot be initiated before this tribunal,” they said.
In an order of September 9, APTEL turned down the reasoning by firms and said that it was not possible for it to revoke the permission to Energy Watchdog or dismiss the appeal at this stage.
