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					</table><p>The Maharashtra Electricity Regulatory Commission (<a href="https://merc.gov.in/" target="_blank" rel="noopener">MERC</a>) has directed the Maharashtra State Electricity Distribution Company (<a href="https://www.mahadiscom.in/en/home/" target="_blank" rel="noopener">MSEDCL</a>) to pay ₹2.62 million (~$32,073) to a wind developer as interest on delayed payment charges.</p>
<p>Ghatge Patil Industries (<a href="https://www.gpi.co.in/" target="_blank" rel="noopener">GPIL</a>) had sought directions against MSEDCL for the recovery of delayed payment charges along with the accrued interest amount against invoices generated under the energy purchase agreements (EPAs).</p>
<p><strong>Background</strong></p>
<p>GPIL had entered into various EPAs with MSEDCL for the sale of power generated by its wind projects in Maharashtra.</p>
<p>GPIL had been raising monthly invoices for the power generated and supplied to MSEDCL under the EPAs. MSEDCL was required to make payment within 45 days of receiving the monthly bills. In case of delay in payment beyond the due date, GPIL was entitled to interest at 2% per annum above the State Bank of India&#8217;s short-term lending rates.</p>
<p>However, there were consistent failures on the part of MSEDCL to make timely payments. The wind generator approached the Commission on various occasions seeking timely payments from MSEDCL.</p>
<p>After the order in 2017, MSEDCL made a partial payment on November 27, 2017, but did not make further payments despite numerous reminders.</p>
<p>GPIL was compelled to issue an EPA termination notice in January 2018 to come into effect from February 1, 2018.</p>
<p>Later, MSEDCL admitted the liability to pay ₹3.78 million (~$46,274). However, as per GPIL, such an amount was ₹4.21 million (~$51,538). On April 26, 2021, after more than three years, MSEDCL belatedly released the said amount of ₹3.78 million.</p>
<p>MSEDCL clarified that it had already paid the reconciled amount of ₹3.78 million (~$46,274) to GPIL on April 26, 2021. It had also paid the interest accrued on the delayed payment charges at 15% per annum on December 28, 2021, for the period between August 2014 and July 2018. Hence, no outstanding amount was payable to GPIL.</p>
<p><strong>Commission&#8217;s analysis</strong></p>
<p>The Commission noted that GPIL had claimed penal interest at 1.25% per month. As per GPIL&#8217;s computations, the penal interest worked out to be ₹3.21 million (~$39,296).</p>
<p>The Commission observed that during scrutiny of the claim sheet submitted by MSEDCL, it was evident that it had considered the interest rate as 10.25% per annum. Whereas in the affidavit, MSEDCL mentioned that it had settled penal interest at the rate of 1.25% per month (15% per annum).</p>
<p>Such contradictory statements involving money matters were unacceptable from a distribution company (DISCOM) like MSEDCL.</p>
<p>The state regulator noted that MSEDCL had partially settled delayed payment charges and, based on reconciliation, paid ₹3.78 million (~$46,274). The DISCOM had not considered interest on the entire delayed payment charges paid belatedly and some amount of delayed payment charges on earlier dates.</p>
<p>Accordingly, the Commission directed MSEDCL to pay the balance penal interest amount of ₹2.62 million (~$32,073) within 30 days of the order.</p>
<p>Last October, MERC <a href="https://mercomindia.com/maharashtra-regulator-discom-late-payment-surcharge-wind-generator/" target="_blank" rel="noopener">directed</a> MSEDCL to pay a late payment surcharge to a wind developer from March 15, 2017, to March 2020, within a month.</p>
<p>Earlier, MERC had <a href="https://mercomindia.com/maharashtra-discom-late-payment-surcharge-to-wind-developer/" target="_blank" rel="noopener">ruled</a> in favor of a wind power developer and said that it was eligible for a late payment surcharge for January 2017 and from April 2017 to February 2018 with an interest of 1.25% per month on the outstanding amount.</p>
<p>Subscribe to our real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure that you never miss any critical updates from the renewable energy industry.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/rakesh-ranjan-parashar/" class="vcard author" rel="author"><span class="fn">Rakesh Ranjan</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Rakesh Ranjan,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener">More articles from Rakesh Ranjan.</a></p>
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<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="77" height="102" /><a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener"><strong style="color: #00b451">Rakesh Ranjan</strong></a> is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). <a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" rel="noopener noreferrer">More articles from Rakesh Ranjan.</a></p>
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Regulator Asks DISCOM to Pay Interest on Delayed Payments to Wind Developer

<p>Mrs. Aishwarya Rai Bachchan along with Relishah Export (RM) and Classic marble Company Private Limited (CMCPL), have jointly filed a case with the Maharashtra Electricity Regulatory Commission (<a href="https://www.merc.gov.in/" target="_blank" rel="noopener noreferrer">MERC</a>) against the <a href="http://www.mahadiscom.in/" target="_blank" rel="noopener noreferrer">Maharashtra State Electricity Distribution Company Limited</a> (MSEDCL) for the delay in payments towards the power generated from wind energy projects.</p>
<p>Similarly, Vostok (Fareast) Securities Private Limited (VFSPL), Silverline Investment Company Private Limited (SICPL), and Bengal Cardboard Industries &amp; Printers Private Limited (BCIPPL), have also filed petitions against MSEDCL for the same reason.</p>
<p>All six petitioners are wind power generators.</p>
<p>The commission has directed MSEDCL, the respondent, in this case, to reconcile the statement of accounts with the petitioners within two weeks and intimate the date by which the payment would be made.</p>
<p>The MSEDCL owes a total sum of ₹30.24 million (~$0.423 million) to the six wind generators.</p>
<p>The commission noted that MSEDCL made the payments of the outstanding principal amount and delayed payment charges as claimed by the petitioners in their original petitions. It also stated that MSEDCL has started paying some amount including late payment charges which were due to be paid to the wind generators after the original petition, but, there is still some amount pending for payment.</p>
<p>The Commission has now ordered the MSEDCL to note that if the payment is further delayed, penal interest of 1.25% per month on the late payment charges will have to be paid.</p>
<p>In May 2019, Mercom had <a href="https://mercomindia.com/merc-warns-msedcl-wind/" target="_blank" rel="noopener noreferrer">reported</a> that MERC reprimanded MSEDCL for the continued delay in meeting payment obligations to independent power producers, including delayed payment charge, and for disregarding the previous orders of the commission.</p>
<p>The state has been struggling to meet its solar and non-solar renewable purchase obligations (RPOs) and has been issuing tenders to procure <a href="https://mercomindia.com/maharashtra-tender-solar-projects/" target="_blank" rel="noopener noreferrer">solar</a> and <a href="https://mercomindia.com/maharashtra-wind-energy-tariff-cap/" target="_blank" rel="noopener noreferrer">wind</a> energy to meet the obligations. The tariff caps and the questionable creditworthiness of the DISCOM have earlier seen a <a href="https://mercomindia.com/maharashtra-ag-feeder-solar-retender/" target="_blank" rel="noopener noreferrer">tepid</a> response for the tenders issued.</p>
<p><u>Tag: </u>Maharashtra Electricity Regulatory Commission, MSEDCL, wind generators, petitions, respondent, delay payment, MERC, delayed payment charges</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/anjana/" class="vcard author" rel="author"><span class="fn">Anjana Parikh</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><p><img class="alignleft" src="https://mercomindia.com/wp-content/uploads/2019/06/Anjana2.png" width="112" height="121" />Anjana is a news editor at Mercom India. Before joining Mercom, she held roles of senior editor, district correspondent, and sub-editor for The Times of India, Biospectrum and The Sunday Guardian. Before that, she worked at the Deccan Herald and the Asianlite as chief sub-editor and news editor. She has also contributed to The Quint, Hindustan Times, The New Indian Express, Reader’s Digest (UK edition), IndiaSe (Singapore-based magazine) and Asiaville. Anjana holds a Master’s degree in Geography from North Bengal University, and a diploma in mass communication and journalism from Guru Ghasidas University, Bhopal.</p>
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Maharashtra Commission Asks DISCOM to Settle Dues of Wind Power Generators

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