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

Unknown Apr 02, 2026 1,000 Views

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...

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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