The Andhra Pradesh High Court on Thursday temporarily stayed the state government's order to constitute a committee to review the Power Purchasing Agreements (PPAs) signed between power companies and the previous TDP dispensation.
Forty energy companies filed a petition in the court on Wednesday after YSR Congress-led government issued an order for constitution of high-level negotiations committee to review the agreements.
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Chief Minister YS Jaganmohan Reddy's government believed to be suspecting irregularities especially in the agreements in solar and wind power sectors.
The Centre had written two letters asking the state government not to go ahead with the plan but the state government did not budge.
The court, while passing the order, asked the government to file a counter-petition in the matter and adjourned the hearing to August 22.
With the court's order, Andhra Pradesh Southern Power Distribution Company Limited's (APSPDCL) letter asking the power companies to lower tariffs and provide the details of pending bills stand cancelled for four weeks.
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Meanwhile, the government defended its move, contending that it was "well within its purview to take such a decision" and emphasized that there was "no threat or coercion".
"Countering the submissions of the petitioner it was submitted that the state has the power to involve in the subject matter since electricity is in the concurrent list at entry 38 and the State is competent to intervene," the government said in a communique.
It said: "The show-cause notice issued by the discoms (power distribution companies) threatening cancellation if they 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, the state has contended adding that it intends to move the APERC (Andhra Pradesh Electricity Regulatory Commission) in that regard and the present negotiation committee was only to find if a consensus could be arrived at."
Defending its move, the government said that the APERC wrote a letter to it asked its opinion on the revision of the terms of the agreement.
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