- (1.) THESE applications have been made under similar facts and with almost identical prayers. Therefore, we propose to deal with these applications with reference to the facts stated in Petition No. 108/2007. The prayers made in the application are extracted hereunder: In the facts and circumstances, it is most respectfully prayed that the Hon'ble Commission may be pleased to: (a) Direct the WRLDC to grant open access for the months of October, 2007, in terms requested by the Petitioner No. 1 in its application dated _______; (b) Direct the WRLDC to consider only those technical issues which are provided in the Electricity Act, 2003 and the CERC Regulations, and clarify that WRLDC cannot deny open access on the ground of existence of alleged Power Purchase Agreement etc.; (c) Set aside the endorsement made by Chief Engineer - SLDC, KPTCL dated 20/21.8.2007 in the "Request For Consent For Short Term Open Access", being Annexure P-16 of the present petition; (d) pass such other or further order or orders as this Hon'ble Commission may deem fit and proper in the circumstances of this case.
(2.) Viswanath Sugar Ltd., the second petitioner, hereinafter referred to "VSL", has set up a co-generation plant at Belgaum in the State of Karnataka. It had executed a Power Purchase Agreement dated 26.7.2001 (PPA), initially valid for a period of 20 years, with Karnataka Power Transmission Corporation Limited, the third respondent, hereinafter referred to as "KPTCL", for sale of power. Consequent to reorganization of KPTCL and creation of the distribution companies in the State of Karnataka, the PPA was assigned to Hubli Electricity Supply Co. Ltd., the fourth respondent, hereinafter referred to as "HESCOM" in terms of an agreement dated 9.6.2005. It is provided in Clause 9.1 of the PPA that in the event of any payment default by HESCOM for a continuous period of three months, VSL can sell power to third parties in accordance with Clause 5.2 thereof. It has been stated that HESCOM defaulted in making payment of dues from January to April 2006 for the electricity purchased under the PPA. It is further stated that HESCOM has also not provided any payment security mechanism, required under the PPA. In view of these defaults, VSL approached Karnataka Electricity Regulatory Commission (KERC) for recovery of its dues and for a direction to HESCOM to provide payment security mechanism or in the alternative to grant permission to VSL to sell power to the third parties. The application made before KERC was disposed of by order dated 18.1.2007 with the following directions: It is submitted by the counsel for the petitioner that the petitioner has started selling power to the third party in pursuance of the provisions of the PPA and in terms of the observations of the Commission earlier. He has also been paid the amount by the respondent, which was due as on the date of the petition. Nothing remains further to adjudicate. Hence the petition is disposed of with liberty to come up with fresh petition if required in future. Earlier, KERC through its interim order dated 13.7.2006 is stated to have had permitted VSL to sell power generated by it to third parties pending further hearing on the main issue of opening of letter of credit. The order dated 13.7.2006 is also extracted hereunder: Counsel for the petitioner submits that the respondent 2 has defaulted for more than 3 months in payment and because of that all operations of the petitioner have stopped. Mr. Hiremath who represents the respondent has submitted that as per Clause 9 (1) read with 5.2 of the PPA dated 26-7-2001, as modified by supplemental agreement dated 9-6-2005, the petitioner is at liberty to sell the power to third parties and respondents have no objection to this. In view of this petitioner is permitted to do so namely sell the power generated by it to third parties pending further hearing on the main issue of opening of letter of credit.
(3.) VSL has averred that in view of the orders of the KERC, PPA signed by it with HESCOM stands abandoned and accordingly it has entered into a Power Purchase Agreement dated 18.7.2006 with Tata Power Trading Company Limited, the first petitioner, hereinafter referred to as "Tata", valid for a period of three years, and extendable further by mutual consent, for sale of 7.5 MW of power on round-the-clock basis, starting from 1.9.2006.;