CHENNAI: As a result of Tangedco’s decision on Monday, wind-energy generators (WEGs) with long-term energy purchase agreements (power sale to Tangedco) will not be allowed to migrate to captive use or third-party sale, which means they will not be able to sell power to anyone else.
Captive-power users who generate power for their own use, however, opposed this decision and are planning to move court against the order. According to the minutes of the 109th board meeting of Tangedco held recently, based on court directions, migration from the category of ‘sale to board’ to that of ‘captive use’ or ‘third-party sale’ had been allowed in compliance with court orders to avoid contempt proceedings on earlier occasions.
However, as renewable purchase obligation (RPO) percentage has been increasing gradually, migration could not be conceded anymore, the minutes read. A senior officer told TNIE that as per national tariff policy 2006, RPO is a mechanism by which the power utility must procure a certain percentage of electricity from renewable sources. The RPO stood at 14% in 2017-18 and 21% in 2021-22.
“There are no grievance of any WEG regarding delayed payments. Therefore, their request for migration cannot be granted,” the officer added. A captive-power user, seeking anonymity, told TNIE that as per article 300-A of the Constitution of India, they have all the constitutional rights to use their assets in the manner they saw fit.
“If Tangedco objects to such migrations, affected parties will be constrained to file writ petitions in court. The move of Tangedco is against the legal doctrine of res judicata,” he added. Another Tirunelveli-based wind-power generator R Sasikumar said many small entities would definitely be affected through the state power utility’s order. “We are struggling to pay our monthly dues to banks. So, I request TN government to intervene in this issue and cancel the order” he urged.