INTERIM ORDER

Damodar Valley Corporation (in short ‘DVC’) has filed the instant petition under Section 79(1)(f) of the Electricity Act, 2003 (in short ‘Act’) for adjudication of disputes between DVC and Punjab State Power Corporation Limited (in short, ‘PSPCL’), seeking the following relief(s):

(a) “Declare that PSPCL is liable to pay to DVC towards the fixed charges for BTPS A for the period 23.2.2017 to 25.3.2018, a sum aggregating to Rs 340.04 crores towards principal and delayed payment surcharge as on 31.1.2020 and further interest at the rate specified in the Hon’ble Commission’s Regulations till full payment and discharge of all the outstanding;

(b) Direct PSPCL to pay the amount due to DVC in terms of the prayer (a) above within 30 days from the date of the order together with interest as per the delayed payment surcharge for the period till due payment and discharge of the amount outstanding by PSPCL;

(c) Pass an interim order directing PSPCL to pay on an ad-hoc basis 85% of the amount claimed by DVC subject to further adjustments on the passing of the final order;

(d) Allow DVC to file the duly affirmed affidavit to the Petition and the annexures to the Petition as and when the restrictions imposed due to Covid-19 are lifted;

(e) pass such further order or orders as this Hon’ble Commission may deem just and proper in the circumstances of the case.”

Background

2. DVC is constituted under the Damodar Valley Corporation Act, 1948 and controlled by the Central Government and operates as a generating company. DVC entered a Power Purchase Agreement (in short ‘PPA’) on 7.11.2006 with PSPCL to supply 200 MW of electricity from one of its generating stations, Bokaro Thermal Power Station (in short 'BTPS-A'), in accordance with the terms and conditions contained in the PPA.

3. Clauses 4.4 and 4.5 of the PPA required PSPCL to seek long-term open access from Power Grid Corporation of India Ltd (PGCIL) and coordinate the necessary transmission system for power evacuation from DVC's delivery points. As per Article 5.10 of the PPA and applicable tariff regulations, PSPCL was obligated to pay tariffs, including fixed and energy charges, for the scheduled quantum of power from BTPS A. PSPCL remained liable for fixed charges for power that DVC was prepared to generate and deliver, even if PSPCL did not schedule it for delivery.

Submissions of DVC

4. In the above background, DVC has submitted the following:

a. As per the PPA and applicable regulations, DVC was capable of generating and supplying electricity from the Commercial Operation Date (COD) of BTPS A. Although DVC informed PSPCL about the arrangements required for power delivery, PSPCL did not complete the necessary formalities and failed to finalise the Long-Term Access (LTA) Agreement within the timeline prescribed by PGCIL. As a result, the LTA initially granted was revoked. On 16.8.2016, DVC informed PSPCL that the COD of BTPS-A was expected by September 2016. After this declaration, PSPCL was required to start scheduling power up to 200 MW under the PPA. DVC requested PSPCL to obtain approval from PGCIL for LTA to enable the delivery of power. On 23.2.2017, DVC declared the COD of BTPS-A and asked PSPCL to confirm the status of the LTA. DVC also informed PSPCL that non-drawal of power would result in liability to pay fixed charges. Despite repeated reminders, PSPCL delayed signing the LTA Agreement. Due to this delay, PGCIL revoked the granted LTA. This inaction by PSPCL directly affected DVC’s ability to supply power under the PPA.

b. DVC informed PSPCL that DVC had filed a tariff petition for BTPS-A before the Commission. Pending the tariff order, DVC proposed fixed charges of ₹1.6853/kWh and energy charges of ₹1.95/kWh. PGCIL notified PSPCL regarding 200 MW LTA, subject to signing the LTA Agreement within 30 days. PGCIL also requested that PSPCL sign the LTA Agreement and Transmission Service Agreement (TSA) to share transmission charges in accordance with the applicable