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Andhra takes U-turn on PPAs, to move ERC

YS Jagan plans to renegotiate his predecessor, Chandrababu Naidu's power purchase agreements, over suspected violations.

, ET Bureau|
Jul 26, 2019, 01.19 PM IST
Untitled design (5)
AP CM, YS Jaganmohan Reddy, during a cabinet meeting
HYDERABAD: Andhra Pradesh government on Thursday said it intends to move the AP Electricity Regulatory Commission (APERC) on renegotiating the power purchase agreements (PPAs) entered into with the wind and solar power developers by the previous regime of N Chandrababu Naidu.

This significant shift in the stand of Andhra government headed by chief minister YS Jaganmohan Reddy, which threatened to cancel the PPAs and stop payments through July 1 orders, comes on the day AP High Court stayed its orders to renegotiate PPAs.

Hearing the petitions of the Indian Wind Power Association and few wind power developers on Thursday that challenged the AP government’s orders to renegotiate PPAs, the High Court stayed the orders for four weeks. The court asked the state government to file its counter, while posting the case to August 22 for further hearings.

In a statement on Thursday evening, Andhra government said the power distribution companies (Discoms) will not unilaterally cancel the PPAs but will approach APERC on the issue, in a shift from its earlier stand.

“The show-cause notice issued by the Discoms threatening cancellation if they (renewable power developers) don’t agree for negotiation is only to mean as seeking revision of the PPA terms in accordance with the procedure under the electricity act,” said the government in its evening statement, adding that it “intends to move the APERC in that regard and the present Negotiation Committee was only to find if a consensus could be arrived at.”

Claiming that it suspects quite a few violations in the PPAs and that it is now in the process of finding the facts, the Andhra government, however, defended its right to cancel the PPAs, saying taking such decisions was within its purview.

The Andhra government, in its statement, said the High Court judge “observed that he finds the negotiating procedure is outside the jurisdiction of the government under the Electricity Act and there should be no haste in these matters.”

Also Read

Power ministry unveils norms for allocating coal linkage to plants without PPAs

Andhra Pradesh contests HC order prohibiting revision of PPAs

Minister to ask states to uphold PPAs with green energy firms

State cannot seek changes to solar, wind PPAs: AP HC

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