Centre interfering with judicial process by issuing orders to TS discoms unilaterally: TSERC

The Minister also said that State government would not be spending even a rupee for repairs and other costs of the pump houses which got submerged during the recent floods in Godavari river. The entire cost would be borne by the agency as per Defect Liability Period norms, he said.

Hyderabad: Telangana State Electricity Regulatory Commission (TSERC) observed that the Central government was unnecessarily interfering with the judicial process by issuing directions to Telangana distribution companies (TS discoms) to pay dues to APGenco.

Responding to an order issued by the Ministry of Power (MoP) recently to pay power dues to AP, the TSERC said the Central government cannot issue an order when the issue pertaining to payment of dues was pending before the court.

TSERC Chairman T Sriranga Rao said the Centre’s order to TS discoms to pay dues to APGenco was nothing but over reaching the courts of law and advised the TS discoms to take appropriate action accordingly.

The Central government enacted Andhra Pradesh Reorganisation Act (APRA)-2014 for carving out separate Telangana in 2014. Subsequently, the existing discoms were allowed to continue as they were covering specific geographical areas in their respective States except for transfer of districts of Kurnool and Anantapur from erstwhile Central discoms to Southern discom of Andhra Pradesh.

Since power utilities have been included in Schedule-IX and X of the Act, the assets and liabilities were to be bifurcated in terms of provisions made in the enactment. Towards this end, though efforts were made to settle the assets and liabilities, the same were yet to be resolved as there were claims and counter claims between utilities.

The TS discoms had approached TSERC by filing a petition requesting to declare the claim made by APGenco in the petition as non-enforceable and TS discoms were not required to pay any amount contrary to the provisions contained in the Electricity Act-2003, APRA and relevant regulation and orders issued by TSERC.

The TS Discoms also asked TSERC to direct APGenco to pay dues to TSDicoms and TSGenco towards the investments made in Andhra Pradesh Power Development Company Limited (APPDCL) along with interest at 18 per cent per annum till the date of realisation.

They also urged TSERC to direct the APTransco to release the amounts due to TSTransco and pay the same immediately along with interest at 18 per cent per annum till the date of realisation along with refunding the amounts resting with it to TSGenco towards the share of pension bonds, excess liability discharged towards common loans.

In response to an interlocutory application filed by TS discoms in 2018, the TSERC passed an interim order asking APGenco to be restrained from taking any coercive action before any forum till the TSERC decided the original petition in the larger public interest.

Aggrieved by the order, the APGenco has filed a writ petition before the then High Court for the States of Telangana and AP. The petition was admitted and notices were issued to respondents including TSERC. However, no interim order had been passed at the relevant time. Presently, the writ petition was pending in the High Court.

Meanwhile, the APGenco again filed a writ petition in 2021 seeking to issue an appropriate order declaring the action of TS discoms in not releasing the payment of Rs 6283.68 crore out of which Rs.3441.78 crore is towards the principal and Rs 2841.90 crore towards interest as illegal arbitrary and in violation of rules.

The APGenco has withdrawn the petition. Later, the TS discoms and TSGenco filed a writ petition before the High Court of Telangana to issue an order to AP to pay dues of Rs 4,774 crore subsequent to bifurcation at the earliest.

“From the above litigation, the Central government being a party to the litigation between the utilities of Telangana and AP is interfering with the judicial process by issuing directions to TS discoms to pay power dues – the principal amount being Rs.3441.78 crore, and late payment surcharge being Rs.3315.14 crore up to July 31, 2022 in addition to the principal amount as per the applicable provisions.