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2025 Supreme(Online)(CERC) 133
CENTRAL ELECTRICITY REGULATORY COMMISSION
Shri Jishnu Barua, Chairperson, Shri Ramesh Babu V., Member, Shri Harish Dudani, Member, Shri Ravinder Singh Dhillon, Member
M/s NILE Limited – Appellant
Versus
Transmission Corporation of Andhra Pradesh Limited (APTRANSCO) – Respondent
Petition under section 86(1)(f) of the Electricity Act, 2003 | Petition No. 71/MP/2021
For the Appellants/Petitioners: Shri Pramarth Gupta, Shri Itika Venkata Murthy, Ms. K. Rajani, Shri T. Hemanth Kumar
For the Respondents: Shri Sidhant Kumar, Ms. Ekssha Kashyap, Ms. Manyaa Chandok, Shri D. Abhinav Rao, Shri Devadipta Das, Shri Rahul Jajoo, Shri H. Raghav Bherwani
Distribution companies in Andhra Pradesh are jointly liable for unpaid energy bills under the Power Purchase Agreement, with interest applied for delays, particularly post-bifurcation issues involving jurisdiction. Payment responsibility is defined by regional allocations.
Headnote:(A) Electricity Act, 2003 - Section 86(1)(f) - Non-Payment of Monthly Power Bills - Petitioner, engaged in renewable energy generation, claims outstanding bills from August 2011 to December 2012 along with stipulated interest for delayed payments. The Commission held that liability lies with APSPDCL for debts post-bifurcation of Andhra Pradesh as per G.O.Ms. No. 20. (Paras 1, 18-34)
(B) Regulatory compliance - Article 5.2 of Power Purchase Agreement obliges timely payment by distribution companies. Interest at 10% applicable on delayed payments. (Paras 24, 40)
Facts of the case:
Petitioner sought outstanding dues for power supplied; Respondents paid reduced amounts since July 2011 based on disputed tariff rates post the bifurcation of Andhra Pradesh. Parties argue over distribution of liabilities between Telangana and residual Andhra Pradesh.
Findings of Court:
APERC directive affirms the responsibility of APSPDCL for payments, including interest, based on the geographical location as per the bifurcation norms.
Issues: 1) Whether Respondents must collectively or individually pay the outstanding bills and interest? 2) Are they liable for maintenance charges withheld?
Ratio Decidendi: Liability for payments rests with APSPDCL for consumption from the plant located in its jurisdiction, hence must clear the dues.
Result: Petition granted; APSPDCL and others directed to pay dues with interest.
| Table of Content |
|---|
| 1. petition details and parties involved. (Para 1 , 3 , 6) |
| 2. background and procedural history of the case. (Para 7 , 9) |
| 3. respondent's submissions and defenses. (Para 8 , 10 , 11 , 12) |
| 4. legal basis of claims and counterclaims. (Para 14 , 15) |
| 5. issues identified for adjudication. (Para 17 , 18 , 19 , 20 , 21) |
| 6. final decision and order of the court. (Para 35 , 42) |
| 7. detailed examination of financial claims. (Para 36 , 38) |
आदेश/ ORDER
The Petitioner, M/s NILE Limited, is engaged in the business of wind power generation and has set up a non-conventional energy project, i.e., a 2 MW capacity wind farm at Ramagiri, Anantapur District. The project achieved commercial operation on 30.08.1995. Initially, the power generated from the project was captively consumed by the Petitioner company, after paying the wheeling charges under the Power Wheeling Agreement dated 21.07.1995, entered into with the erstwhile APSEB. APERC initiated proceedings and passed Orders dated 20.06.2001 in O.P. No.1075 of 2000, and also orders dated 20.03.2004 in R.P. No. 84 of 2003 in O.P. No. 1075 of 2000. APERC fixed tariff of Rs. 3.37 per unit from 01.04.2004. The Petitioner agreed to supply power to the Andhra Pradesh Central Power Distribution Company Limited (APCPDCL/ Respondent No. 3) under the Power Purchase Agreement dated 20.05.2002 (PPA). As per Article 2.2 of PPA, Andhra Pradesh State Power Distribution Company Limited (APSPDCL/Respondent No. 2) is obligated to pay the tariff that is fixed by APERC from time to time. The Petitioner is seeking payment of outstanding bills from August 2011 to December 2012, along with interest as per the statement of account and further interest till the date of payment.
2. Respondent No. 1, Transmission Corporation of Andhra Pradesh Limited (APTRANSCO) is a transmission licensee in the State of Andhra Pradesh.
3. Respondent No. 2, Andhra Pradesh State Power Distribution Company Limited (formerly part of APPDCL) & Respondent No. 3, Andhra Pradesh Central Power Distribution Company Limited (APCPDCL) are distribution licensees in the State of Andhra Pradesh.
4. Respondent No. 4, Telangana State Southern Power Distribution Company Limited (TSSPDCL) is a distribution licensee in the State of Telangana, and it was formerly known as the Central Power Distribution Company of Andhra Pradesh Limited (APCPDCL) prior to the State reorganization.
5. The Petitioner has made the following prayers:
a) Direct the respondents jointly or severally to clear the outstanding bills from August, 2011 to December, 2012 along with interest as per the statement of account and further interest till the date of payment.
b) Direct the respondents jointly or severally to pay the interest @ 10% on the delayed payments from January, 2013 to October, 2013 as per the statement of account and further interest till the date of payment.
c) Direct the respondents jointly or severally to pay a sum of Rs. 1,09,624/-, along with interest @ 18% per annum from 28th November, 2011 till payment is made.
d) And pass such order or orders as this Hon’ble Commission may deem fit and proper in the circumstances of the case.
Brief Background:
6. The Petitioner has submitted as under:
a. APERC fixed tariff of Rs. 3.37 per unit from 01.04.2004. The Petitioner agreed to supply power to the Respondent No. 3 (Andhra Pradesh Central Power Distribution Company Limited/APCPDCL) under PPA dated 20.05.2002. As per the Art. 2.2 of PPA, the Respondent No. 2 (Andhra Pradesh State Power Distribution Company Limited/APPDCL) is obligated to pay the tariff that is fixed by APERC from time to time. The procedure for submitting bills and making payments is set out in Art. 5.2 & 5.3. On submitting the bills, APPDCL has to clear the bill as per Article 5.1 of the PPA within 30 days at the rate as fixed by the APERC, and for any delay in payment beyond the due date, APPDCL is liable to pay interest @ 10% PA.
b. Till the billing month of June 2011, APPDCL paid the monthly power purchase
