NEW DELHI: The government plans to make it costly for gencos (generation companies) or discoms (distribution companies) to challenge orders of state electricity regulatory commissions (SERCs), a move that aims to check “non-serious” litigations often used to delay payments but could also impact efforts to seek rightful compensation by entities.
The power ministry’s latest draft amendment to the Electricity Rules says any party seeking to challenge a SERC’s decision regarding recovery of higher costs as a result of ‘change in law’ clause will have to deposit 75% of the payable amount before moving APTEL (Appellate Tribunal for Electricity).
The deposit in case of disputes on other issues will be 50% of the payable amount,
