Maharashtra Discom Warned Over Late Payment to Wind Developers

If MSEDCL deviates from its commitment to Petitioners to clear the dues within the time limit, penal interest will accrue thereafter at 1.25% per month on any Late Payment Surcharge/Delayed Payment Charge.

The Maharashtra Electricity Regulatory Commission (MERC) has cautioned state Discom Maharashtra State Electricity Distribution Corporation Ltd. (MSEDCL) over the delay in making payments to Independent Power Producers, including the delayed payment charges and for disregarding the commissions’ previous orders.

CLP Wind Farms (India) Private Limited and CLP Wind Farms Khandke Private Limited had filed separate petitions against MSEDCL for non-compliance of payment obligations as stipulated in their wind energy purchase agreement (WEPAs), including delayed payment charges which are outstanding for substantial periods of time.

CLP Wind Farms India is the developer of a 106.4 MW wind project at Andhra Lake and another 60 MW wind project at Jath in Maharashtra, while CLP Wind Farms Khandke is the developer of a 50.4 MW wind project at Khandke.

In its findings, the commission noted that the MSEDCL has paid a substantial amount due to the petitioner, however, there are still unpaid dues towards the principal amount, DPC and interest on DPC. The Commission observes that delay in making payments impacts the concerned Wind generators, the DPC liability also affects MSEDCL’s finances further since DPC amount is not allowed to be passed through to its consumers in the tariff.

In its order, the commission has directed the two involved parties to sit together and reconcile the statement of account within two weeks from the date of the Order. At the time of reconciliation, MSEDCL shall inform the Petitioners the exact time limit within which the payment would be made to them for their outstanding dues of principal and DPC amount. A compliance report shall be submitted to the Commission within two working days thereafter.

Finally, the state commission also ordered that if MSEDCL deviates from its commitment to Petitioners to clear the dues within the time limit, penal interest will accrue thereafter (beyond the date committed) at 1.25% per month on any Late Payment Surcharge /Delayed Payment Charge.

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