Renewable energy companies, solar and wind, with Power Purchase Agreements (PPAs) with the state government, have urged the Andhra Pradesh high court to expedite the hearing on the batch of petitions filed challenging the single judge order. The companies told the high court that they have been facing financial troubles and are on the verge of bankruptcy.
The litigation arose out of the state government’s decision to review the power tariffs and a subsequent GO issued in 2019, forming a committee to renegotiate prices with the companies. The state government had proposed paying Rs 2.44 per unit instead of Rs 4.8 for solar power.
The renewable energy companies challenged the GO before the high court arguing that the state government could not form a committee to review power tariffs. They also argued that tariffs were derived through competent bidding process and the government should honour the agreements.
The single judge of the high court had set aside the GO and directed the state government to pay Rs 2.44 as proposed, pending disposal of the petitions. The high court also directed the companies and the state government to approach Andhra Pradesh Electricity Regulatory Commission (APERC) to derive fresh tariffs.
Aggrieved by the single judge order, power companies filed appeal petitions. They argued that the judgement by the single judge is self-contradictory as it set aside the GO but directed paying reduced tariff as decided the by the state government in the same GO.
The high court bench headed by Chief Justice Arup Kumar Goswami and Justice Ninala Jayasurya posted the matter for final hearing from August 2.
