Maharashtra distribution company warned over wind non-payments

The Maharashtra Electricity Regulatory Commission (MERC) has cautioned the Maharashtra State Electricity Distribution Company (MSEDCL) over its extended delay in paying wind power producers. The commission has cited the company's non-compliance with payment obligations to CLP Wind Farms India and CLP Wind Farms Khandke, along with failing to adhere to payment charges and previous MERC orders. MSEDCL has been given two weeks to settle debt payment schedules with both developers and submit a compliance report. After this period, the firm will be penalised at a rate of 1.25% of the delayed payment totals per month.

The Maharashtra Electricity Regulatory Commission (MERC) has pulled up state’s DISCOM (MSEDCL) for the continued delay in meeting payment obligations to independent power producers, including delayed payment charge, and for disregarding the previous orders of the commission.

CLP Wind Farms (India) Private Limited and CLP Wind Farms Khandke Private Limited had filed separate petitions against MSEDCL for non-compliance of payment obligations as stipulated in their wind energy purchase agreement (WEPAs), including delayed payment charges which are outstanding for substantial periods of time.

CLP Wind Farms India is the developer of a 106.4 MW wind project at Andhra Lake and another 60 MW wind project at Jath in Maharashtra, while CLP Wind Farms Khandke is the developer of a 50.4 MW wind project at Khandke.

In its order, the commission asked MSEDCL to reconcile the due payment schedule with both the developers within two weeks and submit a compliance report with the commission within two days.

It has ordered MSEDCL to inform the petitioners about the payment time frame within which it would clear the dues, keeping in mind its financial constraints. The commission cautioned the MSEDCL that if it failed to comply with commission’s orders yet again, it would be subjected to penal charges at the rate of 1.25% per month on the delayed payment charges.