'Adani Power stops supply to Haryana power utilities'

Adani Power has stopped supplying power to Haryana with effect from August 27, forcing Haryana power utilities to make alternate arrangements to protect the interest of electricity consumers, an official release said here tonight.
There is an agreement between Haryana power utilities and Adani Power for 1,424 MW power supply round-the-clock for 25 years, the release added.
Haryana power utilities have already provided Letter of Credit to Adani Power as a primary payment security mechanism.
The company had asked the utilities to open an Escrow Account on August 26, which was also opened within 2 hours after receipt of the communication in the same bank.

The Central Electricity Regulatory Commission had awarded the compensatory tariff over and above the normal tariff, about 61 paise per unit, to Adani Power which was challenged by Haryana in Appellate Tribunal for Electricity (APTEL) to protect the interest of 55 lakh electricity consumers of the state, the release said.
APTEL vide its interim order had stayed the recovery of past dues only and allowed current charges only as per actual from March 14, 2014 onwards, the release added.

In view of huge financial burden on consumers because of the interim order, the same was challenged in the Supreme Court by Haryana and tariff increase claimed by Adani Power was disallowed and stayed by Supreme Court, it said.

The counsel of Adani Power agreed to accept the power purchase agreement tariff for supply of power, it said.
"Inspite of this, Adani Power has discontinued 1,424 MW power supply since yesterday without any rhyme or reason specially in view of the fact that not even a day's delay was ever made by Haryana power utilities for about last 18 months till date," it said.
In the meantime, Haryana Power Utilities have already made alternate arrangements to protect the interest of electricity consumers.