The Appellate Tribunal for Electricity (Aptel) has set aside an order issued by the Central Electricity Regulatory Commission (CERC) against the Tamil Nadu Generation and Distribution Corporation (Tangedco) in a dispute against GMR Group of companies.
The CERC had held that the State utility was liable to make a payment to the companies for capacity charges, irrespective of the grid constraint between November 2015 and March 2016, along with the late payment surcharge.
In 2013, Tangedco signed an agreement with GMR Trading for a period of 15 years, from June 1, 2014 to September 30, 2028, for the purchase of electricity up to a contracted capacity of 150 MW, which was to be supplied from the GMR Warora Energy Limited thermal power plant in Maharashtra.
GMR Warora Energy had an agreement by which it would sell 150 MW to GMR Trading for the purpose of further sale to Tangedco. The grid constraint affected the availability of power that led to a dispute between Tangedco and GMR Trading. GMR Trading had raised invoices seeking payment of about ₹89.9 crore along with interest, which were disputed by Tangedco.
Aptel ruled that the CERC order had erred in rejecting the contention of Tangedco that grid constraint is a natural force majeure event as per the clauses of the power purchase agreement, and the State utility was not liable to pay tariff for that period. It also directed the CERC to review the issue and grant consequential relief to Tangedco.
