O R D E R

This writ petition has been filed to direct the respondents to treat the WEGs on par with other private power producers such as IPPS, Merchant Power Plants, Captive Power plants and consequently, direct the respondents to make payment towards outstanding dues to the first petitioner.

2. The case of the petitioners is that the State of Tamil Nadu is infusing funds to the tune of Rs.10,000 crores which has been received from the Central Government into the TANGEDCO for the purposes of setting outstanding dues payable by TANGEDCO to IPPS and other private generators of power. Unless definite instructions are issued to the respondents to treat the petitioners on par with other power generators such as thermal and gas based private sector generators, there is a real danger of TANGEDCO continuing with its practice of delaying payments to WEGs and preferring other power producers over WEGs such as members of the petitioner association and petitioners 2 to 11. Hence, the petitioners have come forward with the present writ petition praying for the relief, as stated therein.

3. Vide, order, dated 28/7/2022, this Court had appointed Mr.N.L.Rajah, learned Senior Counsel as Amicus Curiae.

4. The learned Amicus Curiae submitted that TANGEDCO themselves have admitted that Agri consumption is accounted based on the units consumed per HP. This is purely theoretical and there are already reports of instances of rampant misuse of Agri connections and in the absence of metering, the end use and misuse cannot be monitored. Misuse, if any, gets accounted as transmission and distribution losses. Similarly, the metering at the distribution transformers is also not complete, without which focused action cannot be taken to reduce the transmission and distribution losses. To reduce the losses, there is a requirement to know where the leakage is and that can be identified only with metering at all points of generation, distribution and consumption.

5. The learned counsel appearing for the second respondent submitted that TNERC had issued tariff order No.1 of 2012 dated 29/3/2012 revising the tariff rates to be collected by TANGEDCO from its consumers with effect from 1/4/2012. The revision of tariff order dated 29/3/2012 will ensure additional revenue of Rs.7874 crores to the respondent during the financial year 2012 – 13.

6. It is stated in the counter filed on behalf of the second respondent that in view of the huge outstanding dues to the private power producers who are using coal, gas, etc., have been threatening that they will not supply power to the second respondent. One of the generators has made a request to terminate the Power Purchase Agreement and a generator or two have been threatening to initiate Liquidation Proceedings against the TANGEDCO under the Companies Act, 1956 for the purpose of realising the outstanding dues and all of them have been insisting payment then and there so as to buy raw materials. Whereas, in the case of WEGs, the nature (wind) is the raw material sourced at free of cost.

7. It is further stated that despite stringent financial position and considering the various parameters, technical as also financial, TANGEDCO has been making payment to every generator on judicious basis keeping in mind the availability of the source of power either in Tamil Nadu or elsewhere the requirement of procurement and continuous power supply to match the ever growing demand in the State, besides, keeping in mind the larger public interest.

8. The outstanding dues, as on 25th June, 2012 in respect of Wind Energy Generator (WEGs), Independent Power Producers (IPPs) and Captive Power Plants (CPPs) are as follows:-

WEGs ... Rs.1252 crores IPPs ... Rs.2198 crores CPPs ... Rs. 403 crores

9. Today, when the matter has come up for hearing, learned Amicus Curiae has produced the Tamil Nadu Electricity Regulatory Commission, with regard to determination of Tariff for generation and distribution for the financial year 2022 – 23 to 2026 – 27, made