Haryana protests as Adani Power cuts power supply
Posted on Aug 29 2014 | IANS
Chandigarh, Aug 29 : Haryana power utilities Friday protested a unilateral move by private sector power company Adani Power to cut its 1,424 MW electricity supply to the state.
"Despite making all payments timely in lieu of power given/sold to Haryana, Adani Power has stopped giving/supplying power to Haryana with effect from Aug 27. There is an agreement between Haryana Power Utilities and Adani Power for 1,424 MW power round-the-clock for 25 years," a state government spokesman said here Friday.
The power utilities are blaming Adani Power for the power crisis saying that the company resorted to the move to cut electricity supply from its power plants just two days after the Supreme Court stayed an earlier order of the Central Electricity Regulatory Commission (CERC) and Appellate Tribunal for Electricity (APTEL) granting it compensatory tariff.
Haryana's discoms (distribution companies) had gone to the Supreme Court against the CERC and APTL order.
"The CERC had awarded the compensatory tariff over and above the normal tariff (about 61 paise per unit) to Adani Power which was challenged by Haryana in APTEL to protect the interest of 55 lakh electricity consumers of the state.
"APTEL, vide its interim order, had stayed the recovery of past dues only and allowed current charges only as per actual from March 14 onwards. In view of huge financial burden on consumers because of the interim order, the same was challenged in the Supreme Court by Haryana," the spokesman said.
Adani Power used the excuse of default in providing an escrow account for cutting the power supply, he added.
"Haryana power utilities have already provided Letter of Credit to Adani Power as a primary payment security mechanism. The firm had asked the utilities to open an escrow account on Aug 26 which was also opened within 24 hours after receipt of the communication in the same bank," the spokesman said.
"Adani Power has discontinued 1,424 MW power supply without any rhyme and reason, especially in view of the fact that not even a day's delay was ever made by Haryana power utilities for about last 18 months till date," he said.
The spokesman pointed out that the power distribution companies were trying their best to ensure power supply to all areas despite 60 percent deficient rainfall and the power demand from the agriculture sector being double of last year.
"In the present scenario, such a move from APL was arbitrary and uncalled for and depicts a mala fide intention," he said, adding the power utilities are taking the appropriate legal and administrative action.
He pointed out that thermal power plants were not getting enough coal supplies and existing stocks were depleting fast.
The Haryana government had, in August 2008, signed its biggest ever power purchase and power sharing agreements of 3,044 MW with various private and public sector companies for power supply for the next 25 years. Out of this, the agreement with Adani Power was for 1,424 MW.