Patiala: The Punjab and Haryana high court has directed the cash-strapped Punjab State Power Corporation Limited (PSPCL) to pay fixed charges to Nabha Power Limited and Talwandi Sabo Power Limited for the period of lockdown during Covid-19 restrictions. This will cost PSPCL around ₹300 crore, said officials privy of the development.
Citing Covid-19 restrictions, the PSPCL in March 2020 had invoked the force majeure (a common clause in contracts which essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties) of power purchase agreements with private thermal plants to not to purchase power from them till restrictions are on. The PSPCL had invoked the clause to save ₹20 crore daily during the Covid-induced lockdown and further restriction, when power demand had dipped.
The power purchase agreement (PPA) prescribed a two-fold tariff regime i.e. capacity Charges paid to the generating company on the basis of declared availability of the generating company irrespective of whether the PSPCL and Punjab State Load Dispatch Centre (SLDC) have scheduled electricity or not.
