Relief to power companies, Andhra Pradesh HC suspends govt review order

VIJAYAWADA: The high court has suspended the constitution of the high level negotiating committee (HLNC), giving temporary relief to solar and wind power companies, which have signed the Power Purchase Agreements (PPAs) with the previous government.
The high court said the constitution of HLNC falls outside the jurisdiction of the government under the Electricity Act. GO 73, issued to constitute the panel has been suspended for four weeks.
After coming to power, chief minister YS Jaganmohan Reddy directed officials to review the PPAs entered by the TDP government alleging irregularities. Following this, power distribution companies wrote to private power companies to reduce the tariff to present market rates and said that if they did not agree, they were to meet the negotiating committee for further course of action.
Contending the decision of the state government, the wind and solar power companies moved the high court challenging the constitution of the committee and letters written by discoms to reduce the tariffs.
Appearing on behalf of the companies, senior counsel Mukul Rohatgi argued, the state government’s decision to appoint HLNC is ultra vires and arbitrary. He said the PPAs were executed after the companies participated in competitive bidding and the tariffs have the approval of AP Electricity Regulation Commission (APERC). So any review in tariffs or PPAs should be done through APERC but not the HLNC, he said.