The Andhra Pradesh High Court has dismissed the experts committee appointed by the CM YS Jagan which was assigned to review the Power Purchase Agreement (PPA). The G.O. number 63 and the letter written by Andhra Pradesh Southern Power Distribution Company Limited (APSPDCL) for renegotiations of the tariffs are squashed by the High Court and also directed the state government to pay off their bills immediately.
The High court justified the decision of the AP government of approaching the AP Electricity Regulatory Commission (APERC) for review of PPAs and also added that this issue should be settled in six months time. This is a setback for the companies that have knocked by the High Court for the government asking for a review of PPAs.
Directing the Andhra discoms to pay immediately tariff at Rs 2.44 per unit, the High Court also asked the state government to take back the generated electricity from the power companies. The Court observed that in case the power tariffs are too high according to the government, they should look out for various ways that can compensation that higher rates.
Only under extreme circumstances, the government can intervene in APERC but has not authority to summon the commission, said the court in a statement.
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