Studying Time: 2 minutes
In a current growth, the Punjab State Energy Company Ltd. (PSPCL) has sought a discount in tariff by ₹0.50 paisa/kWh per day for a delayed interval associated to a Energy Buy Settlement (PPA) dated 29.12.2017. This settlement concerned the acquisition of fifty MW of wind energy from Adani Inexperienced Power (MP) Restricted (AGEMPL).
PSPCL, a distribution licensee within the State of Punjab, claims that AGEMPL was obligated to fee the mission by 03.05.2019 or, in any case, not later than 03.02.2020. The commissioning, nonetheless, befell on 07.03.2020, resulting in a delay of roughly 10 months past the unique scheduled commissioning date. PSPCL argues that as per the PPA, any delay past 27 months from the date of issuance of the Letter of Award (LoA) ought to end in a discount of tariff on the charge of 0.50 paise/kWh per day.
AGEMPL, an organization engaged within the era and sale of renewable power, counters PSPCL’s declare by stating that the PPA between AGEMPL and Photo voltaic Power Company of India Restricted (SECI) doesn’t present for a diminished tariff on account of mission commissioning delays. AGEMPL emphasizes that the extension of the Scheduled Industrial Operation Date (SCoD) to 03.01.2020 was granted by SECI in response to the non-operationalization of Lengthy-Time period Entry (LTA) by the Central Transmission Utility (CTU), a drive majeure occasion past their management.
SECI helps AGEMPL’s place, stating that the extension of the SCoD was based mostly on MNRE’s instructions. SECI contends that PSPCL’s declare lacks advantage, because the mission was commissioned throughout the prolonged timeline, and liquidated damages had been already imposed for the delay.
The regulatory fee, after listening to the arguments from all events, noticed that if a developer is prevented from performing obligations on account of drive majeure occasions, the SCoD and Expiry Date of the PPA will be deferred for an affordable interval with out monetary implications. The fee famous that the extension of SCoD was validly granted, and the mission commissioning fell throughout the permissible timeline.
The fee emphasised that the provisions of the PPA needs to be learn harmoniously, and the 27-month deadline for tariff discount needs to be calculated from the revised SCoD, i.e., 03.01.2020. It acknowledged that liquidated damages had already been imposed by SECI for the delay, and a discount in tariff may solely be utilized from 03.07.2020, a date past the mission commissioning. In conclusion, the fee dismissed PSPCL’s declare for tariff discount, stating that AGEMPL can’t be topic to extra penalties because it has already paid liquidated damages following the PPA. The mission commissioning delay was deemed acceptable throughout the prolonged timeline, and the difficulty was resolved in favor of AGEMPL.
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