Andhra: HC stands with state govt, asks power companies to approach APERC

The Andhra Pradesh High Court on Tuesday directed power generator companies opposing renegotiation of tariffs by the state to approach state electricity regulator.

"Andhra Pradesh high court dismissed the argument of Power companies that the Government cannot review Power Purchase Agreements (PPA) and justified the government argument of going to the Andhra Pradesh Electricity Regulatory Commission (APERC) for review of the PPAs," a press release by the Andhra Pradesh Chief Minister's Office (CMO) read.

The release added that the court directed the companies to raise their objections before Andhra Pradesh Electricity Regulatory Commission (APERC), which it directed to settle the issue within six months.

"The High Court directed the Government and Power Companies to hear their arguments before APERC and told that the High Court cannot confirm the decisions taken by APERC. High Court told the APERC to finalise the issue within six months," the release read.

"The High Court has agreed to the argument of Government of the interim payment at Rs 2.43 to Rs 2.44 per unit. The High Court told that the Government can issue notices as per law to power companies and stop power generation and directed the Government to take back the generated electricity from the power companies," the release added.

The court also decided to ignore the earlier Government order (GO) as the state administration itself is approaching the APERC.