Case Note & Summary
The case involved appeals against a common order of the Andhra Pradesh High Court regarding a dispute over the pricing of power supplied by the appellant, M/s Sagar Sugars & Allied Products Ltd., to the respondent, The Transmission Corporation of A.P. Ltd. The appellant entered into a Memorandum of Understanding with the NEDCAP for setting up a power plant using bagasse and subsequently entered into a Power Purchase Agreement (PPA) with the respondent. The APERC permitted the appellant to supply power, but issues arose when the appellant's sugar plant was not operational, leading to unutilized power. The appellant challenged a directive from the Chief Engineer of the respondent to stop power evacuation, resulting in a series of legal proceedings. The High Court initially ruled in favor of the appellant, but the Division Bench later set aside this order, directing the parties to approach the appropriate forum for dispute resolution. The appellant argued for a specific tariff based on a previous Supreme Court judgment regarding non-conventional energy pricing, while the respondent contended that the appellant's plant was not classified as a co-generation plant during the disputed period. The Supreme Court ultimately directed the APERC to determine the appropriate price for the power supplied during the relevant period, emphasizing the regulatory body's role in tariff determination. The appeals were disposed of without costs.
Headnote
A) Electricity Law - Power Purchase Agreement - Tariff Determination - Andhra Pradesh Electricity Reforms Act, 1998, Section Not mentioned - The court directed the Andhra Pradesh Electricity Regulatory Commission to determine the price of power supplied by the appellant during the period when the sugar plant was not operational, emphasizing the regulatory body's expertise in tariff matters. Held that the determination of price should be based on relevant materials and factors (Paras 9-10).
Issue of Consideration
Whether the price of unutilized power supplied by the appellant during a specific period should be determined by the Andhra Pradesh Electricity Regulatory Commission.
Final Decision
The Supreme Court directed the Andhra Pradesh Electricity Regulatory Commission to determine the price of power supplied by the appellant during the period from 13.01.2003 to 21.01.2004 and to make any necessary balance payments by the respondent to the appellant.
Law Points
- Power Purchase Agreement
- Regulatory Authority
- Tariff Determination
- Non-Conventional Energy
- Electricity Supply
