Rajasthan Rajya Vidyut Prasaran Nigam Ltd. v. SKS Power Generation (Chhattisgarh) Ltd.
2020-09-28
A.S.BOPANNA, S.A.BOBDE, V.RAMASUBRAMANIAN
body2020
DigiLaw.ai
ORDER : 1. Heard the learned senior counsel for the parties and perused the application as also the reply filed to the said application. 2. The appellant, in the appeal has assailed the judgment dated 03.02.2020 passed by the Appellate Tribunal for Electricity at New Delhi (for short ‘ATE’). Through the said judgment the ATE has set aside the order dated 26.02.2019 passed by the Rajasthan Electricity Regulatory Commission and has consequently directed the appellant herein to adopt the tariff offered by respondent No.1 herein in its bid and has directed that the Power Purchase Agreement (for short ‘PPA’) dated 04.02.2019 be revived. The statutory appeal filed against the said judgment in Civil Appeal No.2721/2020 is admitted and is pending consideration. 3. In that background the respondent No.1 while seeking benefit of the direction issued by the ATE during the pendency of the appeal has filed the instant application praying to direct the appellant to start procuring electricity of 100 MW at the duly approved and accepted tariff of L3 (respondent No.11 herein) immediately. The appellant has filed its reply in an attempt to oppose the direction sought therein. 4. Insofar as the rival contentions raised in the appeal, it is a matter to be considered while hearing the appeal. However, the position to be taken note at this point is the fact that the order dated 25.04.2018, 20.09.2018 and the order dated 19.11.2018 passed by this Court enure to the benefit of the respondent No.1 herein; inasmuch as the PPA between the parties is concerned. That apart the issue for consideration is also the adoption of tariff for supply of electricity under the PPA. The respondent No.1 herein undisputedly was L5 in the tender process. The cumulative capacity offered is 906 MW and the Levelized Tariff is Rs/Kwh 5.300. The average cumulative tariff is Rs/Kwh 4.890. The respondent No.1 though has made such offer and is seeking to justify the same, is presently offering to supply power under the PPA at the tariff at which electricity is being purchased from L1 to L3 which ranges between Rs/Kwh 4.517 to 4.738. 5.
The average cumulative tariff is Rs/Kwh 4.890. The respondent No.1 though has made such offer and is seeking to justify the same, is presently offering to supply power under the PPA at the tariff at which electricity is being purchased from L1 to L3 which ranges between Rs/Kwh 4.517 to 4.738. 5. The appellant through the reply filed to the application, apart from contending that the respondent No.1 is not entitled to the interim direction as sought, has also contended that the prevalent price in the market is much less than Rs.3 per unit and the tariff as offered by respondent No.1 at Rs.4.93 per unit is not sustainable. It is further indicated that at this point the appellant has executed PPA in favour of other generating companies to procure power on short term basis during the period 01.08.2020 to 31.03.2021 after competitive bidding process and the power under such PPA dated 13.08.2020 is being supplied at Rs.2.88 per unit. 6. In the above backdrop, the consideration required at this juncture is only with regard to the appropriate tariff at which the respondent No.1 should be permitted to supply the power to the appellant as an interim arrangement in the interest of both the parties. 7. The respondent No.1, as noted had taken part in the tender process; was placed at L5 and the power generated by them would have been procured but for the dispute relating to tariff. Hence, the power in any event, can be utilized by the appellant as the same is an essential requirement. The issues for consideration in the appeal are with regard to the tariff and power of the Commission to fix a tariff which is different from the tariff submitted for approval and in the event of the appellant failing in the appeal the tariff offered by the respondent No.1 will have to be adopted and payment be made accordingly. While stating so, what is to be kept in perspective is also that the appellant is presently securing supply of power at a much lower tariff than what is offered by the respondent No.1 herein. Undisputedly, the appellant is securing the power generated by Manikaran Power Limited at Rs.2.88 per unit. At this juncture the balance of convenience is in favour of respondent No.1.
Undisputedly, the appellant is securing the power generated by Manikaran Power Limited at Rs.2.88 per unit. At this juncture the balance of convenience is in favour of respondent No.1. Public interest demands that by way of an interim arrangement the Respondent No. 1 be permitted to supply the electricity at the tariff of Rs.2.88 per unit subject to result of the appeal. In such event the interest of both the parties would be subserved. The respondent No.1 if entitled to any higher tariff, the same would be available to them at the point of disposal of the appeal and the electricity generated by them would in the meanwhile be appropriately utilized and the interest of the consumers of power would also stand protected. 8. Therefore, it is directed that the appellant shall revive the Power Purchase Agreement dated 04.02.2019 and purchase the electricity to be supplied by the respondent No.1 during the currency of this interim order, as per their interim prayer. But the appellant shall pay the tariff for such supply at Rs.2.88 per unit. The tariff so fixed in the interim shall remain subject to result of the appeal. 9. In the result, the application is allowed in part.