SC is the new approach on tariff issue taken by renewable companies

A Tata Power subsidiary and two other renewable energy producers have moved the Supreme Court, requesting the transfer of their case from Andhra Pradesh High Court, where they are contesting the unilateral tariff reduction and non-payment of dues by the state and its power distribution company.

In July 2019, the YSR Congress-led government in Andhra Pradesh said it will renegotiate wind and solar power purchase agreements signed by the previous administration, citing high tariffs. The developers declined to renegotiate and took the state to court, which led to a logjam and accumulating dues. 

The Supreme Court in a batch of transfer petitions filed by various renewable energy companies issued notices to the state of Andhra Pradesh and the distribution companies. The renewable energy companies have sought transfer of the case, stating that the discoms had not paid contractual dues since August 2018 and have not made any payments since April, 2020.

  The apex court said that the matter would be listed for hearing when the court resumes after the Christmas-New Year Holidays.

In July 2019, Andhra unilaterally decided to reduce tariffs to ₹ 2.44 a unit. This was challenged by the renewable power generators in the high court. The court had subsequently directed payment of the dues but only a small portion was cleared.