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NSEFI letter to APERC

NSEFI letter to APERC

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Request not to initiate any suo-moto proceedings on the basis of letter from CMD, APSPDCL seeking amendment to the regulation no. 2 of 2015 together with regulation 1 of 2016 to withdraw the exemptions given for transmission and wheeling charges in respect of all the solar power and wind power generators commissioned as per ap solar power policy, 2015 and ap wind power policy, 2015

It has come to our notice that Chairman & Managing Director, APSPDCL has written a letter to the Secretary, APERC seeking necessary amendments to withdraw the exemptions given for the transmission and wheeling charges in respect of all the Solar and Wind power plants commissioned under AP Solar Policy, 2015 and AP Wind Policy 2015 having all kinds of Open Access agreements. In the said letter, APSPDCL also requested to Levy CSS and Additional Surcharge on the open access transaction.

Issuing of new Solar and Wind Power Policies dated: 03.01.2019 by the AP Govt is effective from the date of issue of such policies and neither does it affect the provisions & incentives allowed under the earlier policies nor terminate the regulations/amendments issued by APERC, as claimed in S No 9 and 10 of the letter from CMD, APSPDCL. The same can be observed from the judgement of APTEL in the case between ONGC, Appellant and GERC & Othrs, Respondents which is reproduced below:

63. From the above, it is clear that so far levy of wheeling charges are concerned, the amendment to Wind Power Policy 2007 issued by Government of Gujarat in January 2009 was without authority and were ultra vires.”

We would like to highlight that such arbitrary withdrawal of exemption would be against the public interest also, inasmuch as, if such exemptions are withdrawn, not only it would affect the financial viability of the developers, who invested higher capex during nascent stages of the Solar and Wind technologies, but also would suffer monetary loss of huge amounts thereby affecting the economy. As such the loans which run into thousands of crores of rupees given to the various developers in the state would not be recovered making them NPAs and the very financial equilibrium of economy would be in peril.

Project Developers should not be asked to take a hit by withdrawing transmission and wheeling charges promised to them owing to DISCOMs inability to manage funds efficiently. Karnataka High Court took cognizance of these issues and has rightly quashed the order by KERC.

We earnestly request the commission to not take any actions based on the letter from CMD, APSPDCL.

For more information please see below link:

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Anand Gupta Editor - EQ Int'l Media Network

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