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Andhra government’s notice to Greenko on power tariff cut stayed

FE Bureau
Tribunal, Andhra Pradesh, Andhra government, Greenko firms, power tariff, tariff cut, NTPC , Solar Energy Corporation, SECI, economy news,  Chandrababu Naidu, jagan mohan reddy, Aptel, clean energy, solar energy 

The Appellate Tribunal for Electricity (Aptel) has stayed till August 28 a notice issued by the Andhra Pradesh government to three Greenko Energy group companies asking them to reduce their solar power tariff from Rs 4.50 to Rs 2.44 per unit. “The Appellate Tribunal for Electricity has stayed the notice issued by distribution power utility of Andhra Pradesh to three Greenko Energy group firms asking for a drastic reduction in solar power tariff. The tribunal has stayed these orders till the next hearing on August 28,’’ said a company statement. The company also hinted that power which is given for Rs 2.44 per unit in Rajasthan, cannot be provided at the same rate in Andhra Pradesh.

Chief minister YS Jagan Mohan Reddy has maintained that wind and solar PPAs signed by the previous government are at rates higher than those in other states and alleged that there is major scam in the deals favouring a few companies. He has formed a committee to examine all PPAs. Prices are expected to be renegotiated after the findings of the report.

“We have formed a high-level negotiation committee to deliberate and bring down the costs in all the high-priced PPAs for wind and solar power projects signed during the term of the previous Chandrababu Naidu-led government,’’ said a recent statement from the CM’s office.

The state is asking all solar plants, including those which qualified in auctions by NTPC and Solar Energy Corporation of India (SECI), to revise tariffs retrospectively from the time of their commissioning. In fact, Andhra Pradesh Southern Power Distribution Company is also seeking a revision in the PPAs and power sale agreements (PSAs) for solar PV projects executed during the term of the Naidu government.

Research firm India Ratings believes that uncertainty exists for wind and solar power projects in the state whose tariffs are higher than the state’s FY18 weighted average power price of Rs 4.46 per unit.