Tangedco’s pact with firm caused losses?: HC

CHENNAI: Is it true that Tangedco has entered into a power purchase agreement with a private company (Adani Group) for 21 years at the rate of `7 per unit (approximately)?

This question was raised by a division bench of the Madras High Court when a batch of writ appeals from the TN Electricity Consumers Association and TN Spinning Mills Association came up for hearing on September 20. The appeals were filed against the orders of a single judge dismissing their writ petitions, which challenged the GO dated April 17, 2018.

The single judge had upheld the GO, which had expressed its policy decision to withdraw the permission to amend regulations, taking away the open-access facility to the generators which produce power less than one megawatt.

Is it a fact that power is purchased from the appellants’ companies at the rate of `2 per unit and a loss of `5 per unit is caused to Tangedco because of the agreement with the private power generator for a period of 21 years? Is it a fact that the loss is deliberately caused to wind power generators because of the non-evacuation of power generated by wind energy generators completely in time?

The bench of Justices N Kirubakaran and P Velmurugan raised these questions. But Advocate-General Vijay Narayanan submitted that the GO  was issued in the interest of the public.