APTEL Ends 10-Year AP–Telangana Wind Energy Payment Row

APTEL Ends 10-Year AP–Telangana Wind Energy Payment Row

A prolonged dispute over unpaid power dues between wind energy firm NILE Limited and state-run distribution companies (Discoms) in Andhra Pradesh and Telangana has seen a major resolution, with an order from APTEL. In its latest order, the apex electricity regulator clarified the liability provisions arising from the 2014 bifurcation of Andhra Pradesh.

The dispute stems from a plea filed in 2012 before the Andhra Pradesh Electricity Regulatory Commission (APERC). It was later transferred to the Central Electricity Regulatory Commission (CERC) due to the involvement of both states.

Decades-Old Tariff Dispute

NILE Limited had established a 2 MW wind farm in Anantapur district, which began commercial operations in August 1995. Initially set up for captive use, the company later entered into a Power Purchase Agreement (PPA) in 2002 with the Andhra Pradesh Central Power Distribution Company Limited (APCPDCL), the state discom. The wind power generator agreed to supply electricity at a tariff of ₹3.37 per unit fixed by APERC from April 2004.

The company alleged that the Discom made full payments only until June 2011. From July 2011, it began clearing only half of the billed amount, citing a pending tariff revision case at the Commission. A legal battle ensued, with NILE seeking full payments.

In November 2012, APERC issued an interim order in a separate tariff determination case (O.P. No. 14 of 2006), directing APCPDCL to pay a reduced tariff of ₹1.69 per unit beyond the 10th year of project commissioning.

This prompted NILE to appeal to the Appellate Tribunal for Electricity (APTEL), which in August 2013 set aside the interim order and directed APCPDCL to continue paying ₹3.37 per unit until a final tariff was decided.

State Bifurcation Complicates Liabilities

Following the bifurcation of Andhra Pradesh on June 2, 2014, the Discoms began disputing liability for dues incurred before the state’s division. The petitioner’s wind farm fell in Anantapur, a district transferred to the jurisdiction of Andhra Pradesh Southern Power Distribution Company Limited (APSPDCL), though earlier under APCPDCL, now restructured as Telangana’s Southern Power Distribution Company Limited (TSSPDCL).

A government order clarified that while APSPDCL was to handle payments for dues originating in Anantapur before bifurcation, TSSPDCL was responsible for reimbursing those amounts.

The Commission ruled accordingly, holding APSPDCL liable for 17.45% of the outstanding bills, with the remainder to be paid by TSSPDCL. The order directed the Discoms to clear pending dues from August 2011 to December 2012, along with 10% annual interest.

Maintenance Charges to Be Reimbursed

The order also addressed the petitioner’s claim of ₹1,09,624 towards wrongly deducted maintenance charges, which had been paid to APTRANSCO. TSSPDCL had argued that proof of payment was missing. However, the Commission found documentation supporting the petitioner’s claim and directed the petitioner to furnish relevant bank proofs to APSPDCL.

Once verified, the Discoms must reimburse the full amount along with 10% interest within 60 days of the order.

Conclusion

The July 1 order brings closure to a legal battle spanning over a decade, reaffirming payment obligations despite changes in state boundaries. The petition has now been disposed of in line with these directions.