JSW Power torn between conflicting verdicts

Asks JSW to continue power supply to TN.

The Madras High Court today upheld open access (OA) in transmission and restrained JSW Power Trading Company and Southern Regional Load Despatch Centre (SRLDC) from either cancelling or curtailing the power supply schedule under OA to Tamil Nadu Electricity Board (TNEB).

Informed sources told Business Standard that TNEB had sought an interim relief in its petition after JSW Trading Company informed that it would not be in a position to supply power following the Karnataka government’s directive asking all the generators to supply exportable electricity to the state grid until further orders invoking section 11 of the Electricity Act 2003.

The Karnataka government had issued its directives after the Karnataka high court recently upheld the state government's powers to invoke section 11 of the Electricity Act.

TNEB had argued if power was not supplied it would be a breach of section 28 of the Electricity Act and is likely to cause grid collapse. In view of the high court's order, TNEB would continue to get power upto May.

The high court observed that “it clearly established the fact that JSW Trading, which had entered into a power purchase agreement for the supply of round-the-clock 300 MW power to TNEB for the period January to May, is itending to breach the provision under section 28 of the Electricity Act, 2003”.

“It will be contrary to the Central Electricity Regulatory Commission (CERC) (Open Access Inter State Transmission Regulations, 2004. The Southern Region Load Despatch Centre (SRLDC) has to take into consideration the interest of the entire region and maintain optimum scheduling and smooth flow of power inter state,” the HC order said.

The Madras high court directive is crucial at a time when the Karnataka high court had upheld the Karnataka government's authority to invoke section 11 of the Electricity Act 2003.

The Karnataka high court had ruled that open access does not mean unbridled rights or absolute right to supply electricity by generating of their choice. It is done to promote competition among generating companies to ensure cheaper power supply to consumers. Such liberalisation has ensured a sea of change in telecom and aviation. Though the objectivity to avail electricity looks attractive, but on a close scrutiny, we find there is no substance.

A power ministry official said open access in transmission would bring in comeptition and offer a choice to consumers. He said the ministry would challenge the Karnataka high court order. “The Madras high court order, however, has given a boost to the Centre's efforts to encourage open access by states.”