Nishka Srinivas Veluvali
Published On: December 11, 2021 at 18:00 IST
The Karnataka High Court issued directives to the Electricity Supply Companies (Escoms) in the state to respect all the duties, obligations and all the liabilities signed with Power Generators under the power purchase Contracts.
According to the guidelines, all the Escoms are Ordered to make prompt, regular and on time payments to the power generators without any postponements over bills or invoices of the Power Generators.
The direction was given while hearing the Petition filed by the host of power-generation companies.
Justice SR Krishna Kumar noted that due to the incompetence to do the payments decreases the Petitioner’s ability to generate energy, which has severe and largescale consequence on the supply of renewable energy.
The Court asserted that the failure of Escoms to honour PPAs is violation of constitutional norms.
The Court observed the course of action taken by the Escoms is totally contrary to the Policy necessity of Karnataka Electricity Regulatory Commission (KERC) for promoting renewable energy.
Some of the Petitioners handling solar power plants and others wind power plants had requested the Court to give an Order against Escoms for carrying forward the Statutory and Contractual Liabilities by compelling them to pay in lieu for the power purchased by them.
On the contrary, Escoms asserted that the Petitioners are not maintainable as they have sought alternatives available before KERC specifically constituted for such conditions.
They even informed the Court that because huge amounts had not been paid by the rural and urban local bodies, state government dues, subsidy dues from farmers resulted in Escoms being in a position where it is unable to pay dues to the power- generating companies including the Petitioners.
Also Read: CRIMINAL NEGLIGENCE AND LIABILITIES
