Andhra Pradesh High Court had struck down the G.O released by the State Government which appoints a committee to review the PPAs signed by the Renewable Energy Companies with the State. The high court had referred the issue to APERC and instructed the Commission to resolve the issue in Six Months.
Until APERC resolves the issue, the government is instructed to pay the companies on the rates decided by the new government. APERC already clarified that PPAs can not be reviewed and so, this is actually a setback to the State Government. But then, Sakshi and YSR Congress Government supporting media twisted the Judgement to suit their narrative.
Referring to the issue to APERC is a setback to Power Companies, the media alleged which is completely wrong. The government’s argument that the electricity distribution companies in the state will go bust if the energy department continues to pay for wind and solar power at current tariffs.
The companies, however, say any negotiations in the signed PPAs will have an adverse effect on their balance sheets.
