SLS POWER LIMITED Vs. ANDHRA PRADESH ELECTRICITY
LAWS(ET)-2012-2-18
CENTRAL ELECTRICITY REGULATORY COMMISSION
Decided on February 01,2012

Sls Power Limited Appellant
VERSUS
Andhra Pradesh Electricity Respondents

JUDGEMENT

- (1.) THE above IAs have been filed by renewable energy generators in appeals challenging the order dated 12.09.2011 passed by the Andhra Pradesh Electricity Regulatory Commission ('State Commission') in RP No.84/2003 in OP No.1075/2000 upon remand from the Hon'ble Supreme Court. In the impugned order the Chairman and the two Members of the State Commission have given three different and divergent orders on the tariff applicable to the renewable energy sources.
(2.) THE appellants in appeal nos. 150/2011 and 166/2011 are the biomass generators and in appeal no.168/2011 bagasse based generator, while the appellants in appeal nos. 172 of 2011 and 173 of 2011 have set up mini hydro generating plants. The respondents are the State Commission, transmission licensee and the distribution licensees in the state of Andhra Pradesh.
(3.) THE brief facts of the cases are as under: - 3.1 The State Commission by its order dated 20.06.2001 determined the tariff applicable to the renewable energy generators for supply to distribution licensees. The tariff determined was Rs.2.25 per kwh with the year 1994 -95 as the base year with 5% increase year -on -year up to 31.03.2004. Subsequently, the appellants signed Power Purchase Agreements (PPAs) with the respondent transmission corporation for supply of energy at the tariff determined by the State Commission. 3.2 The State Commission determined the tariff applicable w.e.f. 01.04.2004 by order dated 3.3 Several appeals were filed against this order by the renewable energy generators. The Tribunal by its judgment dated 02.06.2006 in appeal no. 1 of 2005 and batch allowed the appeal and set aside the State Commission's order dated 20.03.2004. 3.4 AP Transco and the distribution licensees filed appeals before the Hon'ble Supreme Court challenging the judgment of the Tribunal. Hon'ble Supreme Court by its judgment dated 08.07.2010 set aside the judgment of the Tribunal and remanded the matter to the State Commission directing it to hear the non -conventional energy generators afresh and determine the tariff. 3.5 Pursuant to the order of remand by the Hon'ble Supreme Court, the State Commission concluded the hearing in the matter on 07.12.2010. However, the three Members of the State Commission gave three different orders. On 12.09.2011, the Secretary to the State Commission communicated all the three orders passed by the Members of the State Commission. 3.6 Aggrieved by the above order, the appellants have filed these appeals. The IA nos. 235/2011, 252/2011, 253/2011, 257/2011 and 258/2011 have been filed by the appellants with the prayer to allow interim tariff to the renewable energy generators, applicable from 01.04.2004 onwards, pending disposal of the appeals by the Tribunal. 3.7 Since the IAs are seeking interim orders against the same impugned order, a common order is being rendered. The Ld. Counsel for the appellants have submitted as under: - 4.1 The appellants have a very strong prima facie case in their favour. The balance of convenience also lies in their favour and against the respondents. 4.2 The financial viability of the renewal energy projects set up by them has been very badly affected due to the present unsustainable tariff being paid by the distribution licensees. 4.3 During the pendency of the matter before the Hon'ble Supreme Court the State Commission passed an order in regard to the variable cost i.e. price of fuel from 01.04.2009 onwards, subject to the orders of the Hon'ble Supreme Court. In the said order the State Commission did not determine any tariff for hydel projects on the ground that there was already an existing tariff passed for 10 years of operation in the year 2004. Thus, even after 01.04.2009, while the biomass generators have been receiving variable charges payments on the basis of revised fuel cost, the fixed cost was still on the basis of the unrevised tariff and the tariff for hydro projects had not been revised. 4.4 While some appellants have prayed for interim tariff based on parameters suggested by them, othershave requested for adoption of tariff determined by Shri C.R. Sekhar Reddy, Member, State Commission in the interim period till the disposal of the appeals. However, the appellant in IA no. 258 of 2011 has prayed for continuation of tariff of Rs.3.84 per kwh prevailing on 31.03.2004 for the mini hydro projects. ;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.