Renewable companies move SC seeking transfer of case against Andhra Pradesh on tariff issue

A Tata Power subsidiary and two other renewable energy producers have moved the Supreme Court, requesting the transfer of their case from Andhra Pradesh High Court, where they are contesting the unilateral tariff reduction and non-payment of dues by the state and its power distribution company.

In July 2019, the YSR Congress-led government in Andhra Pradesh said it will renegotiate wind and solar power purchase agreements signed by the previous administration, citing high tariffs. The developers declined to renegotiate and took the state to court, which led to a logjam and accumulating dues.

On Thursday, the Supreme Court in a batch of transfer petitions filed by various renewable energy companies issued notices to the state of Andhra Pradesh and the distribution companies. The renewable energy companies have sought transfer of the case, stating that the discoms had not paid contractual dues since August 2018 and have not made any payments since April, 2020.

In its transfer petition, Tata Power’s subsidiary Walwhan Renewable Energy said that the matter of reduction of tariff is now pending for almost 15 months before the high court of Andhra Pradesh causing severe “financial prejudice,” and that the Southern Power Distribution Company of Andhra Pradesh is using the pendency of the matter to deprive the company of its legitimate dues.

The company argued there was need for closure as early as possible to ensure that no irretrievable loss was caused to the company or its consumers.

The apex court said that the matter would be listed for hearing when the court resumes after the Christmas-New Year Holidays.

In July 2019, Andhra unilaterally decided to reduce tariffs to Rs 2.44 a unit. This was challenged by the renewable power generators in the high court. The court had subsequently directed payment of the dues but only a small portion was cleared.

Tata Power was led by Harish Salve, former solicited general of India, and senior lawyers Vikas Singh and Sajan Poovayya, who were assisted by SKV Law Offices' Managing Partner Shri Venkatesh, among others.??