MERC Asks MSEDCL To Pay Delay Charges To Wind Power Firms

MERC Asks MSEDCL To Pay Delay Charges To Wind Power Firms

The Maharashtra Electricity Regulatory Commission (MERC) has ordered MSEDCL to pay delayed payment charges and penalty to the small wind power generators for delayed payments. The order came to light after a group of small wind power generators approached the state power regulator complaining about delayed payment from MSEDCL and defiance of earlier order of the MERC in this matter.

The wind power generators demanded Delayed Payment Charges (DPC) for delayed payments from the Maharashtra State Electricity Distribution Company Limited (MSEDCL) and also interest against the same. These wind power generators had long term and short term contracts with the state discom.

The petitioners said that they had been raising monthly invoices to MSEDCL for the clean energy generation. However, they alleged that the Maharashtra discom failed and neglected to pay the dues as per the agreement signed between them.

“MSEDCL failed to comply with the Commission’s directives by neglecting to make the required payments for DPC associated with the outstanding principal sums up to March 2018. Because of this non-compliance, the Petitioners are entitled to the DPC charges, in addition to the corresponding interest incurred due to the non-payment of said DPC charges up to March 2018,” the petitioners told MERC.

Final order

The Maharashtra discom, meanwhile, said that they have made the principal amount payment to the petitioners, albeit with delays. The MERC, in its written order, favoured the arguments of the petitioners and asked them to raise invoices. The state power regulator has also asked MSEDCL to clear the dues.

“The Commission directs the Petitioners to raise invoice for approved amounts of DPC and Interest on delayed payment of DPC on MSEDCL with due date as stipulated in respective EPA. MSEDCL is directed to pay such an amount within a due date. In case of failure to pay within the due date, the Petitioners may take recourse to mechanism stipulated in recently notified the Electricity (Late Payment Surcharge and related matters) Rules 2022 for recovering its due amount,” the MERC judgement read.