CERC Directs Andhra, Telangana DISCOMs to Clear Dues to Wind Power Firm

In a significant decision aimed at resolving a long-standing financial dispute, the Central Electricity Regulatory Commission (CERC) has directed the power distribution companies (DISCOMs) of Telangana and Andhra Pradesh to clear outstanding dues owed to NILE Ltd., a wind power generator operating a 2 MW plant in Anantapur district.

The order, issued under a petition, addresses unpaid electricity bills from August 2011 to December 2012, alongside interest for delayed payments between January and October 2013. NILE Ltd. also sought reimbursement of INR 1,09,624, claiming it was wrongfully deducted as maintenance charges, with interest.

The dispute began when the erstwhile Andhra Pradesh Power Distribution Company Ltd. (APPDCL) started paying only 50 percent of NILE’s monthly bills in 2011, citing a pending tariff revision. This continued until late 2012, despite a valid Power Purchase Agreement (PPA) requiring full payment within 30 days and mandating 10 percent  annual interest for delays.

Matters were further complicated after the bifurcation of Andhra Pradesh on June 2, 2014, under the Andhra Pradesh Reorganisation Act. The Anantapur-based plant came under the jurisdiction of APSPDCL, Andhra Pradesh’s new DISCOM, while the original PPA was with APCPDCL, which became Telangana’s TSSPDCL. Both states’ utilities attempted to shift liability for the dues onto each other.

After examining legal provisions, including Section 53 and the Twelfth Schedule of the Reorganisation Act, and key government orders, CERC apportioned the liability: TSSPDCL is responsible for 82.55 percent  of the unpaid dues, while APSPDCL must cover the remaining 17.45 percent, both with 10 percent interest per annum until settlement.

This same split was applied to interest due on delayed payments made in 2013, in accordance with the PPA terms.

Regarding the maintenance charge, CERC acknowledged that NILE had already paid INR 1,09,624 to APTRANSCO in July 2011. However, APSPDCL later deducted the same amount, prompting NILE’s claim. Though supporting documents were not initially provided, CERC granted NILE 60 days to submit proof, including the Andhra Bank demand draft, to both DISCOMs. Upon verification, the amount must be reimbursed with 10 percent interest, as per the PPA and relevant government directives.

This ruling clarifies the financial responsibilities of DISCOMs post-bifurcation and reinforces the principle that liabilities are determined by power consumption and contractual obligations, not simply by geographic jurisdiction. It also sets a significant precedent for resolving similar legacy payment disputes in India’s power sector.