APERC rejects Tata Power plea to quash Rs 10cr fine for failing to supply to State Discoms…

Spark found from Market Buzz that Tata Power suffered a setback in a dispute between  the Andhra Pradesh Discoms and Tata Power after the AP Electricity Regulatory Commission (APERC) refused to intervene in the dispute and imposed a penalty of Rs. 10 Crore on Tata Power  for failing to supply power under the short-term power supply agreement which signed in 2010.

Taking strong objection to the violation, APTransco and four discoms imposed a penalty of Rs 9.72 crore and Rs 96.48 lakh respectively on Tata Power. After several rounds of correspondence, APTransco deducted the penalty from the amount to be paid to Tata Power.

As per the agreement, Tata Power has to supply power AP Discoms to cater  the demands of the rabi season. However, Tata Power has supplied power to other states such as Gujarat, Maharashtra and West Bengal instead of supplying power to AP.

Taken aback by APTransco's move, Tata Power later filed a petition in APERC urging it to declare the deduction of Rs 9.72 crore as null and void. However, the commission dismissed its plea.