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Winds of Justice: CERC Orders Andhra, Telangana Discoms to Clear Long-Pending Dues with Interest

Updated: July 07, 2025 18:34

Image Source: Mercom India
In a significant regulatory intervention, the Central Electricity Regulatory Commission (CERC) has directed the power distribution companies (Discoms) of Andhra Pradesh and Telangana to settle longstanding dues owed to wind energy developers, along with applicable interest. The order is seen as a major boost for renewable energy stakeholders grappling with delayed payments and financial uncertainty.
 
Background and Legal Context
  • The directive stems from a petition filed by Sembcorp Energy India Ltd (SEIL), now known as SEIL Energy India Ltd, seeking recovery of late payment surcharges (LPS) from Telangana Discoms
  • The dues pertain to energy supplied under two purchase orders issued in 2016 and 2018
  • CERC invoked Sections 79(1)(b) and 79(1)(f) of the Electricity Act, 2003, to adjudicate the matter and enforce payment obligations
Key highlights of the order:
  • Telangana Southern and Northern Discoms have been ordered to pay Rs 22.02 crore and Rs 2.24 crore respectively in LPS
  • The dues cover delayed payments for power supplied between May 2016 and September 2018
  • Interest will continue to accrue until the actual date of payment
  • CERC also directed interim relief by asking Discoms to release 75 percent of the outstanding amount immediately
Implications for Renewable Sector
  • The ruling reinforces the sanctity of power purchase agreements (PPAs) and strengthens investor confidence in India’s clean energy sector
  • It sets a precedent for other renewable developers facing similar delays, especially in states with financially stressed Discoms
  • The decision is expected to improve cash flows for developers and support ongoing and future wind energy projects
Outlook
With India targeting 500 GW of nonfossil fuel capacity by 2030, timely payments and regulatory enforcement are critical to sustaining momentum. The CERC’s firm stance signals a more accountable and transparent power market, where contractual obligations are upheld and clean energy players are protected from systemic delays.
 
Sources: Kalpa Power, CERC Order No. 270/MP/2022, SEIL Legal Filings, EnergyWorld India

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