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					</table><p>U.S.-based residential solar company <a href="https://www.sunnova.com/" target="_blank" rel="noopener">Sunnova</a> posted a net loss of $61.9 million for the fourth quarter (Q4) of 2022 compared to $31.2 million year-over-year.</p>
<p>The higher net loss was primarily the result of higher operating costs, including general and administrative expenses, and an increase in interest expense of $31.9 million. However, this was partially offset by an increase in interest income of $9.4 million due to the company&#8217;s larger customer loan portfolio.</p>
<p>The company recorded revenue of $195.5 million, an increase of 200% YoY. This surge was primarily due to an increased number of solar energy systems in service and the sale of inventory to dealers or other parties.</p>
<p>Total operating expenses increased to $212.4 million, an increase of 186.7% YoY.</p>
<p>Sunnova said that the increase in the number of solar energy systems in service boosted revenue, but the increased cost of operations also led to higher expenses.</p>
<p>The adjusted Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA) totaled $25.5 million for Q4, an increase of 44.2% YoY.</p>
<p>&#8220;We delivered strong growth in the fourth quarter as we placed a record number of customers into service, which brought our total customer additions in 2022 to 87,000, the midpoint of our guidance,&#8221; said William J. (John) Berger, founder, and Chief Executive Officer of Sunnova.</p>
<p>Berger mentioned their &#8220;Energy as a Service&#8221; business model with an open platform strategy enabled Sunnova to navigate various macroeconomic challenges and increase market share.</p>
<p><strong>The Full Year 2022</strong></p>
<p>Sunnova posted a net loss of $130.2 million for the full year compared with $147.5 million in 2021.</p>
<p>The company said the lower net loss was primarily the result of an increase in interest income of $25.6 million.</p>
<p>Additionally, a decrease in loss on extinguishment of long-term debt of $9.8 million related to the early repayment of one of their solar asset-backed notes in June 2021 and a reduction in interest expense of $8.5 million led to a cut in overall losses.</p>
<p>This was, however, partially offset by higher general and administrative expenses.</p>
<p>The company posted revenue of $557.6 million, an increase of 130.6% YoY.</p>
<p>The solar company attributed higher revenue was also fueled by the <a href="https://mercomindia.com/funding-and-ma-roundup-sunnova/" target="_blank" rel="noopener">acquisition</a> of SunStreet Energy Group in April 2021 and the sale of inventory to dealers or other parties.</p>
<p>Total operating expenses increased to $639.2 million, up 115.5% YoY.</p>
<p>The adjusted EBITDA for the full year stood at $119.1 million, a spike of 38.7% YoY.</p>
<p>Sunnova&#8217;s net loss in the third quarter (Q3) <a href="https://mercomindia.com/increased-demand-residential-solar-boost-sunnovas-q3-revenue/" target="_blank" rel="noopener">inched</a> 15% to $29.85 million compared to the loss of $25.86 million in the same period last year.</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/gautamee-hazarika/" class="vcard author" rel="author"><span class="fn">Gautamee Hazarika</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/2022/10/Picture1.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Gautamee,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/gautamee-hazarika/" target="_blank" rel="noopener">More articles from Gautamee.</a><br />
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<a href="gautamee@mercomindia.com" target="_blank" rel="noopener">gautamee@mercomindia.com</a></p>
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Picture1.jpg" width="102" height="102" /><a href="https://mercomindia.com/author/gautamee-hazarika/" rel="noopener">Gautamee</a> is a reporter at Mercom India. Prior to Mercom, Gautamee was working as a multimedia news journalist at ThePrint in New Delhi. She has received her Bachelors in English Honors and Masters in English Literature from St.Stephen&#8217;s College, University of Delhi.<a href="https://mercomindia.com/author/gautamee-hazarika/" rel="noopener">More articles from Gautamee</a></div>
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Sunnova’s Q4 Net Loss Doubles to $61.9 Million on Higher Operating Expenses


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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


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					</table><p>Government-owned Telecommunications Consultants India Limited (<a href="https://www.tcil.net.in/index.php" target="_blank" rel="noopener">TCIL)</a> has issued an expression of interest (EoI) to select a partner for the design, supply, installation, testing, and commissioning of a 2 MW floating solar power plant at Tamarind Falls Reservoir in Mauritius.</p>
<p>The last date for the submission of the bids is December 21, 2022. Bids will be opened on the same day.</p>
<p>TCIL has been operating in Mauritius since 1991 and intends to participate in this tender as the lead bidder for the Mauritius project.</p>
<p>According to the terms of the bid issued by TCIL, the average annual turnover of the bidders should not be less than $500,000 during the preceding three financial years as of the bid opening date.</p>
<p>The participants should have had a positive net worth for the last three years.</p>
<p>Bidders should have made a profit before tax in two of the last three financial years.</p>
<p>The selected bidder must submit a performance bank guarantee of 10% of the contract price within 14 days from the letter of acceptance.</p>
<p>The scope of work includes coordination with subcontractors for electrical and civil works and ensuring the successful commissioning of the project.</p>
<p>Bidders must have prior experience in designing, supplying, delivering, installing, and commissioning at least one 1.6 MW floating solar photovoltaic project connected to a utility grid or two floating solar projects of at least 1 MW capacity.</p>
<p>Bidders must also possess experience in the supply, installation, testing, and commissioning of 22 kV or higher voltage metal-clad switchgear. They must submit a Manufacturers Authorization Certificate from the original equipment manufacturers for the proposed PV module and inverter, MV Switchgear, and Step-Up Transformer.</p>
<p>Bidders must have a local office in Mauritius or should have the undertaking to open one after the work is awarded.</p>
<p>In May this year, the Central Electricity Board of Mauritius <a href="https://mercomindia.com/tender-hybrid-projects-mauritius/" target="_blank" rel="noopener">issued</a> a request for proposal for the purchase of power from small-scale renewable energy hybrid facilities, aiming at a 35% increase in the share of renewables in the country’s power generation mix by 2025 and a 60% by the end of the decade.</p>
<p>Subscribe to Mercom’s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay updated with the latest developments.</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/gourav-mishra/" class="vcard author" rel="author"><span class="fn">Gourav Mishra</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/2022/04/WhatsApp-Image-2022-04-06-at-6.37.25-PM-1-1.jpeg" width="50" /></p>
<p><strong style="text-decoration: underline">Gourav,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/gourav-mishra/" target="_blank" rel="noopener">More articles from Gourav.</a></p>
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/WhatsApp-Image-2022-04-06-at-6.37.25-PM-1-1.jpeg" width="89" height="102" /><a href="https://mercomindia.com/author/gourav-mishra/" target="_blank" rel="noopener">Gourav</a> is a staff reporter with Mercom India with over six years of experience in various roles with NewsX, The New Indian Express, IBTimes India, and U.S., Republic, and Analytics India Magazine. Gourav has a Master&#8217;s in journalism from Jain University, Bengaluru. <a href="https://mercomindia.com/author/gourav-mishra/" target="_blank" rel="noopener">More articles from Gourav Mishra</a></div>
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TCIL Issues Bid to Select a Partner for 2 MW Floating Solar Project in Mauritius

<p>The Tamil Nadu Electricity Regulatory Commission (<a href="http://www.tnerc.gov.in/" target="_blank" rel="noopener">TNERC</a>) has directed the state distribution company (DISCOM) to make payments to a wind energy generator with a 6% annual interest within a month.</p>
<p><strong>Background</strong></p>
<p><a href="https://www.rajaguruspinningmills.com/" target="_blank" rel="noopener">Rajaguru Spinning Mills Private Limited</a>, a wind energy generator, filed a petition requesting the Commission to direct the Tamil Nadu Generation and Distribution Corporation (<a href="https://www.tangedco.gov.in/" target="_blank" rel="noopener">TANGEDCO</a>).</p>
<p>to pay ₹20.28 million (~$270,535) for the wind energy and interest of ₹3.20 million (~$42,796) for the delay in payment.</p>
<p>The company, which has a 1.5 MW wind energy project in Dindigul, Tamil Nadu, signed a power purchase agreement (PPA) with TANGEDCO. It also signed two PPAs with Dindigul Electricity Distribution Circle to supply wind energy.</p>
<p>TANGEDCO agreed to pay a tariff of ₹3.51(~$0.047)/kWh. It also accepted to pay ₹0.25 (~$0.0033)/kWh for drawing reactive power up to 10% of the net energy generated and ₹0.50 (~$0.0067)/kWh for drawing reactive power more than 10% of the net energy generated.</p>
<p>The agreement specified that TANGEDCO must pay the wind energy generator within 30 days of receiving the invoice. In case of delay beyond 30 days, TANGEDCO was liable to pay 1% monthly interest.</p>
<p>In its petition, the company informed the Commission that TANGEDCO was liable to pay ₹23.49 million (~$313,093) for procuring power from 2017 to 2020. However, TANGEDCO had failed to clear the invoices.</p>
<p>The company issued a legal notice to DISCOM to claim the payment. However, DISCOM replied that the bills had been processed, but funds were awaited from the headquarters.</p>
<p>TANGEDCO agreed to pay the amount with a 6% interest on delayed payment within 30 days from December 22, 2020, against the contractual interest of 12%. However, it did not comply with the Commission’s direction and said it would release the payments before March 9, 2021.</p>
<p>The wind energy generator refused to accept 6% interest and requested the Commission consider the contractual interest rate of 12%.</p>
<p><strong>TANGEDCO’s response</strong></p>
<p>TANGEDCO said the company was claiming 18% annual interest on delayed payments, which was against the terms of the PPA.</p>
<p>TANGEDCO said its revenue collection had come down due to the Covid-19 pandemic, which was the reason for the delay in payment.</p>
<p>TANGEDCO told the Commission that its fund flow would be adversely affected if it was directed to pay ₹23.49 million (~$313,093) to the wind generator.</p>
<p><strong>Commission’s analysis</strong></p>
<p>After examining submissions made by both parties, the Commission said TANGEDCO is liable to pay 1% per month interest for the delay in settlement of invoices.</p>
<p>It also observed that TANGEDCO had not settled the dues despite the petitioner agreeing to 6% interest, and ₹80 million (~$1.066 million) was due to the wind energy generator. Even though TANGEDCO was directed to comply with its directions within 15 days for compliance, it had failed to do so.</p>
<p>Expressing displeasure over the non-compliance, the Commission directed TANGEDCO to verify the claim of the generator and make payments with a 6% interest within a  month. If TANGEDCO failed to pay within a month, it would be liable to pay 12% interest in line with the applicable tariff order.</p>
<p>The Commission said it would not accept any further delay in settlement. If TANGEDCO failed to pay dues at 6% interest within a month, the amount paid over and above at 6% interest would not be allowed as a pass-through in annual recurring revenue, and TANGEDCO would have to bear the difference in interest.</p>
<p>In September 2021, TNERC <a href="https://mercomindia.com/tamil-nadu-discom-pay-interest-dues-three-wind-generators/" target="_blank" rel="noopener">directed</a> TANGEDCO to pay 1% interest per month for delayed payment to three wind generators for the energy supplied.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable 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/harsh-shukla/" class="vcard author" rel="author"><span class="fn">Harsh Shukla</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><p><img class="alignleft" src="https://mercomindia.com/wp-content/uploads/2022/02/Harsh-Shukla-293x300-1-new.jpg" width="99" height="102" /><a href="https://mercomindia.com/author/harsh-shukla/" target="_blank" rel="noopener"><strong style="color: #00b451">Harsh Shukla</strong> </a>is a staff reporter at Mercom India. Previously with Indian Express, he has covered general interest stories. He holds a Masters Degree in Journalism from Symbiosis Institute of Media and Communication, Pune.</p>
<p><a href="https://mercomindia.com/author/harsh-shukla/">More articles from Harsh Shukla.</a></p>
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Commission Directs Tamil Nadu DISCOM to Clear Dues of Wind Energy Generator in a Month

<p>The Tamil Nadu Electricity Regulatory Commission (<a href="http://www.tnerc.gov.in/" target="_blank" rel="noopener">TNERC</a>), in a recent order, directed the Tamil Nadu Generation and Distribution Corporation (<a href="https://www.tangedco.gov.in/" target="_blank" rel="noopener">TANGEDCO</a>) to pay 1% interest per month for delayed payment to three wind generators for the energy supplied.</p>
<p>The Commission directed the distribution company (DISCOM) to verify the claims made by the petitioners and make the payments towards interest within one month from the receipt of the order.</p>
<p>Natesan Synchrocones, Tamil Nadu Gears and Shaft Corporation, and Natesan Precision Components had filed petitions requesting the Commission to direct TANGEDCO to pay ₹4.036 million (~$54,748), ₹570,585 (~$7,740), and ₹158,337(~$2,147), respectively, as interest against delayed payments made by TANGEDCO for the power supplied.</p>
<p><strong>Background</strong></p>
<p>The petition was by three generators &#8211; Natesan Synchrocones (7.43 MW), Tamil Nadu Gears and Shaft Corporation (0.5 MW), and Natesan Precision components (2.01 MW).</p>
<p>The petitioners submitted that they had entered into wind energy purchase agreements (EPAs) with TANGEDCO. They have been facing delays in payments by TANGEDCO since December 2017. They had also not been paid interest on delayed payments.</p>
<p>The generators added that the DISCOM would delay payments and then force the generators to give them rebates against invoices and seek a waiver of interest.</p>
<p>The petitioners argued that all generators covered by the 2009 tariff order were entitled to claim interest at 1% per month against pending amounts beyond 30 days from the receipt of the bill.</p>
<p>The petitioners claimed that they had raised invoices for power supplied every month as per the terms of the EPA. However, TANGEDCO had failed to pay the amounts within the agreed timelines, thereby incurring interest liability on the delayed payments.</p>
<p>TANGEDCO, in its reply, said that due to the shortage of power in Tamil Nadu, TANGEDCO had to purchase power at higher rates from other sources. This had landed it in a financial crisis, so it could not make the payments in time.</p>
<p>The DISCOM’s monthly revenue from the sale of power was ₹32 billion (~$435.55 million), and tariff subsidy from the state government is around ₹6 billion (~$81.7 million). At the same time, the total outflow (expenditure) was around ₹51.5 billion (~$698.6 million). So, the shortfall was about ₹13.6 billion (~$184.48 million). Some payments were cleared when it received loans from financial institutions.</p>
<p><strong>Commission’s analysis</strong></p>
<p>The Commission observed that except for stating that the payment could not be made due to financial constraints, TANGEDCO had not cited any valid reason for the delay in payment.</p>
<p>Considering all the facts, the Commission asked TANGEDCO to pay 1% interest per month for delayed payment beyond the stipulated period as per the tariff orders.</p>
<p>The state regulator directed TANGEDCO to verify the claims made by the petitioners and make payment within one month from the receipt of this order, deducting payments if already made.</p>
<p>In April this year, TNERC <a href="https://mercomindia.com/tamil-nadu-discom-outstanding-dues-wind-generator/" target="_blank" rel="noopener">directed</a> TANGEDCO to pay ₹132.8 million (~$1.76 million) in dues, including interest at 12% per annum, to a wind developer within 30 days from the issuance of the order.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable 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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Tamil Nadu DISCOM Asked to Pay Interest Dues to Three Wind Energy Generators

<p>The Tamil Nadu Electricity Regulatory Commission (<a href="http://www.tnerc.gov.in/" target="_blank" rel="noopener noreferrer">TNERC</a>) has directed the Tamil Nadu Generation and Distribution Corporation (<a href="http://www.tangedco.gov.in/" target="_blank" rel="noopener noreferrer">TANGEDCO</a>) to pay wind generators about ₹74.2 million (~$1 million) in delayed wind power dues along with interest at 12% per year.</p>
<p><strong>Background: </strong></p>
<p>The Commission received petitions from Techno Electric &amp; Engineering Company Limited and a yarn merchant with 33 MW and 225 kW of wind power projects in the state, respectively. They sought the Commission to direct TANGEDCO to pay their dues along with interest due to the delays to the tune of ₹74.2 million (~$1 million) and court fees of ₹759,424 (~$10,241).</p>
<p>They said that the distribution company (DISCOM) had been consistently late in paying their dues over the last few years and even when any dues were paid, the interest on delays was not included.</p>
<p>The petitioners also noted that TANGEDCO did not avail their offers to settle the dues at a reduced interest rate of 6% per year, provided they make the payment within 60 days from the date of their memos.</p>
<p>They explained that the delays in payments had caused them &#8220;severe difficulties&#8221; and has hampered their ability to carry on their respective businesses.</p>
<p><strong>Commission&#8217;s Stance: </strong></p>
<p>The Commission said that while TANGEDCO did not deny its liability for the payment of interest on the delayed amount, it failed to take up the petitioners&#8217; offer for a reduced interest rate. So, it is now obliged to pay interest to the wind power generators as per the contract&#8217;s original terms.</p>
<p>However, the Commission said that any claims for interest payment would be limited to three years from the date on which the &#8220;cause of action&#8221; arose. In this case, the petitions claiming interest were filed on June 16, 2014, and December 10, 2014. As a result, the interest cannot be claimed for invoices older than June 16, 2011, and December 10, 2011.</p>
<p>Considering this limitation, the TNERC directed TANGEDCO to rework its interest computation at 12% per year for payments delayed beyond 30 days from the receipt of the power bill after deducting any payments already made. The Commission did not pass an order regarding the court fees incurred.</p>
<p>Mercom’s real-time renewable energy <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener noreferrer">Regulatory Updates</a> has earlier tracked similar petitions; in one case, TNERC <a href="https://mercomindia.com/tamil-nadu-directs-state-discom-pay/">directed</a> TANGEDCO to pay wind generators ₹6.69 million (~$91,586) along with interest at 1% per month towards delayed payments for the supply of wind power. In another case, the state regulator had asked the DISCOM to <a href="https://mercomindia.com/tamil-nadu-discom-late-payment-surcharge/">rework</a> the late payment surcharge at 12% per year for the delayed payments to a wind generator.</p>
<p>Recently, the Ministry of Power <a href="https://mercomindia.com/power-ministry-decides-late-payment/" target="_blank" rel="noopener noreferrer">proposed</a> ‘Late Payment Surcharge Rules 2020.’ As per the proposed rules, the surcharge on the outstanding payment will increase by 50 basis points each month after the first month’s expiry, subject to a maximum of the applicable bank rate plus 200 basis points.</p>
<p>Image credit: Photo by <a href="https://unsplash.com/@publicpowerorg?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText" target="_blank" rel="noopener noreferrer">American Public Power Association</a> on <a href="https://unsplash.com/?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText" target="_blank" rel="noopener noreferrer">Unsplash</a></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/nithin-thomas-prasad/" class="vcard author" rel="author"><span class="fn">Nithin Thomas</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/2022/04/Nithin-2-1.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Nithin Thomas,</strong> Staff reporter at Mercom India<br />
<a href="https://www.mercomindia.com/author/nithin-thomas-prasad/" target="_blank" rel="noopener">More articles from Nithin Thomas.</a></p>
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Nithin-2-1.jpg" width="102" height="102" /><a href="https://www.mercomindia.com/author/nithin-thomas-prasad/" rel="noopener">Nithin Thomas</a> is a staff reporter at Mercom India. Previously with Reuters News, he has covered oil, metals and agricultural commodity markets across global markets. He has also covered refinery and pipeline explosions, oil and gas leaks, Atlantic region hurricane developments, and other natural disasters. Nithin holds a Masters Degree in Applied Economics from Christ University, Bangalore and a Bachelor&#8217;s Degree in Commerce from Loyola College, Chennai.<a href="https://www.mercomindia.com/author/nithin-thomas-prasad/" rel="noopener">More articles from Nithin Thomas Prasad</a></div>
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Tamil Nadu DISCOM Asked to Pay Over ₹74 Million in Wind Dues Along with Interest

<p>The Tamil Nadu State Electricity Regulatory Commission (<a href="http://www.tnerc.gov.in/" target="_blank" rel="noopener noreferrer">TNERC</a>) has directed the Tamil Nadu Generation and Distribution Company (<a href="https://www.tangedco.gov.in/" target="_blank" rel="noopener noreferrer">TANGEDCO</a>) to pay wind generators ₹24.1 million (~$321,701) along with interest at 10% towards delayed payments for the supply of wind power.</p>
<p>The TNERC received petitions from KBD Sugars and Distilleries Limited, D.A. Srinivas, and D.A. SathyaPrabha for 27 MW of wind projects, collectively. The petitioners sought the Commission to direct TANGEDCO to pay their dues along with interest on account of delays. The details of the dues and the wind projects under each petition are provided below:</p>
<p><a href="https://mercomindia.com/wp-content/uploads/2020/08/Amount-Payable-to-Wind-Generators-in-Tamil-Nadu-towards-Outstanding-Dues.png"><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-20871" src="https://mercomindia.com/wp-content/uploads/2020/08/Amount-Payable-to-Wind-Generators-in-Tamil-Nadu-towards-Outstanding-Dues.png" alt="Amount Payable to Wind Generators in Tamil Nadu towards Outstanding Dues" width="501" height="226" srcset="https://cms.mercomindia.com/wp-content/uploads/2020/08/Amount-Payable-to-Wind-Generators-in-Tamil-Nadu-towards-Outstanding-Dues.png 501w, https://cms.mercomindia.com/wp-content/uploads/2020/08/Amount-Payable-to-Wind-Generators-in-Tamil-Nadu-towards-Outstanding-Dues-300x135.png 300w" sizes="(max-width: 501px) 100vw, 501px" /></a></p>
<p>The petitioners claimed that the stipulated period for recovery of dues from high-tension consumers by TANGEDCO was seven days as per their power purchase agreements (PPAs), and if this were not adhered to, interest would be automatically charged on these payments.</p>
<p>The petitioners said that the payments were delayed by one year or more, but TANGEDCO has not included the interest due on any of these delayed payments. They explained that they have been accounting for payments received from TANGEDCO towards interest due first and then the remainder towards energy dues.</p>
<p>After these adjustments, the cumulative dues payable by TANGEDCO stood at around ₹24.1 million (~$321,701). The petitioners also claimed ₹148,062 (~$1,978) in court fees.</p>
<p>The petitioners had filed a memo accepting TANGEDCO’s proposal to pay interest at 6% if the dues were paid within 60 days from the date of the invoice, and 10% otherwise. However, TANGEDCO failed to make these payments in full.</p>
<p>“We have no manner of doubt on the question of entitlement of interest on the part of the petitioner for the delay in settlement. However, the rate at which the interest is payable by the respondent to the petitioner for the late payment of invoice amount remains to be settled,” the Commission said after analyzing the submissions of all the parties involved.</p>
<p>It cited a previous order issued by the Supreme Court of India wherein a 10% interest rate was prescribed for delayed payments since there were no provisions in the PPA. It said that this rate was applied to these cases, as well.</p>
<p>It explained that since payments were not made within 60 days, it was clear that an interest rate of 10% on the dues would apply.</p>
<p>It subsequently directed TANGEDCO to rework its calculations for the amount due based on the prescribed 10% interest rate on the delayed payments and to settle its dues with the petitioners. The dues included both the principal amount due towards energy supplied and the interest payable due to delays after deducting any previously made payments.</p>
<p>The Commission directed TANGEDCO to make these payments within three months from the date of the issue of its order. It added that there would be no order concerning the legal costs incurred by the petitioners.</p>
<p>Recently, the TNERC also <a href="https://mercomindia.com/tangedco-asked-to-clear-dues/" target="_blank" rel="noopener noreferrer">directed</a> the TANGEDCO to pay ₹74.8 million (~$998,885) to six wind power generators in interest due towards delayed payments for supplied power.</p>
<p>Previously, Mercom <a href="https://mercomindia.com/payment-delays-hit-solar-and-wind-developers/" target="_blank" rel="noopener noreferrer">reported</a> that payment delays were becoming a problem again for solar and wind project developers in India, especially in Andhra Pradesh, Tamil Nadu, and Telangana. Some instances in Madhya Pradesh and a DISCOM in Karnataka are also being blamed for long payment delays to developers.</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/nithin-thomas-prasad/" class="vcard author" rel="author"><span class="fn">Nithin Thomas</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/2022/04/Nithin-2-1.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Nithin Thomas,</strong> Staff reporter at Mercom India<br />
<a href="https://www.mercomindia.com/author/nithin-thomas-prasad/" target="_blank" rel="noopener">More articles from Nithin Thomas.</a></p>
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Nithin-2-1.jpg" width="102" height="102" /><a href="https://www.mercomindia.com/author/nithin-thomas-prasad/" rel="noopener">Nithin Thomas</a> is a staff reporter at Mercom India. Previously with Reuters News, he has covered oil, metals and agricultural commodity markets across global markets. He has also covered refinery and pipeline explosions, oil and gas leaks, Atlantic region hurricane developments, and other natural disasters. Nithin holds a Masters Degree in Applied Economics from Christ University, Bangalore and a Bachelor&#8217;s Degree in Commerce from Loyola College, Chennai.<a href="https://www.mercomindia.com/author/nithin-thomas-prasad/" rel="noopener">More articles from Nithin Thomas Prasad</a></div>
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Tamil Nadu Commission Asks DISCOM to Pay ₹24.1 Million in Wind Energy Dues

<p>The Tamil Nadu State Electricity Regulatory Commission (<a href="http://www.tnerc.gov.in/" target="_blank" rel="noopener noreferrer">TNERC</a>) has directed the Tamil Nadu Generation and Distribution Company (<a href="https://www.tangedco.gov.in/" target="_blank" rel="noopener noreferrer">TANGEDCO</a>) to make payments to the tune of ₹74.8 million (~$998,885) to six wind power generators in interest due against delayed payments for supplied power.</p>
<p>The six wind generators asked the Commission to direct TANGEDCO to pay its dues along with interest and also to bear the costs they had to incur towards court fees and legal expenses. A break-up of charges claimed by each company is provided below:</p>
<p><a href="https://mercomindia.com/wp-content/uploads/2020/08/Tamil-Nadu_Amount-Payable-to-the-Wind-Generators-Towards-Delayed-Payments.png"><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-20570" src="https://mercomindia.com/wp-content/uploads/2020/08/Tamil-Nadu_Amount-Payable-to-the-Wind-Generators-Towards-Delayed-Payments.png" alt="Tamil Nadu_Amount Payable to the Wind Generators Towards Delayed Payments" width="519" height="262" srcset="https://cms.mercomindia.com/wp-content/uploads/2020/08/Tamil-Nadu_Amount-Payable-to-the-Wind-Generators-Towards-Delayed-Payments.png 519w, https://cms.mercomindia.com/wp-content/uploads/2020/08/Tamil-Nadu_Amount-Payable-to-the-Wind-Generators-Towards-Delayed-Payments-300x151.png 300w" sizes="(max-width: 519px) 100vw, 519px" /></a></p>
<p>The generators also sought the Commission to impose an interest rate of 1% per month for payments delayed beyond 30 days from the receipt of invoices.</p>
<p>The petitioners said they were previously willing to accept TANGEDCO’s offer to settle their dues at an interest rate of 6% per annum if payment was made within 60 days. However, in a subsequent hearing, they rejected the offer.</p>
<p>In its final order, the Commission said that TANGEDCO was liable to pay the interest for charges delayed beyond 30 days of receipt of invoices at a rate of 1% per month.</p>
<p>It also directed TANGEDCO to pay the wind generators a cumulative amount of about ₹74.8 million (~$998,885) along with interest as specified towards its dues against delayed payments for wind power supplied. However, it stated that there would be no order regarding the costs incurred by the generators towards court fees and legal expenses.</p>
<p>In February, the state Commission directed TANGEDCO to pay five wind developers a sum of ₹16.72 million ($0.23 million) as accrued interest against the delayed payment. TANGEDCO was asked to make the payments within 60 days from the date of the order.</p>
<p>Previously, Mercom <a href="https://mercomindia.com/payment-delays-hit-solar-and-wind-developers/" target="_blank" rel="noopener noreferrer">reported</a> that payment delays were becoming a problem again for solar and wind project developers in India, especially in Andhra Pradesh, Tamil Nadu, and Telangana. Some instances in Madhya Pradesh and a DISCOM in Karnataka are also being blamed for long payment delays to developers.</p>
<p>In a <a href="https://mercomindia.com/payment-delays-hit-solar-and-wind-developers/" target="_blank" rel="noopener noreferrer">previous article,</a> it was reported that in Tamil Nadu, TANGEDCO had delayed payments for more than a year to renewable developers. Moreover, the distribution company has also been known for curtailing power from solar and wind projects.</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/nithin-thomas-prasad/" class="vcard author" rel="author"><span class="fn">Nithin Thomas</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/2022/04/Nithin-2-1.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Nithin Thomas,</strong> Staff reporter at Mercom India<br />
<a href="https://www.mercomindia.com/author/nithin-thomas-prasad/" target="_blank" rel="noopener">More articles from Nithin Thomas.</a></p>
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Nithin-2-1.jpg" width="102" height="102" /><a href="https://www.mercomindia.com/author/nithin-thomas-prasad/" rel="noopener">Nithin Thomas</a> is a staff reporter at Mercom India. Previously with Reuters News, he has covered oil, metals and agricultural commodity markets across global markets. He has also covered refinery and pipeline explosions, oil and gas leaks, Atlantic region hurricane developments, and other natural disasters. Nithin holds a Masters Degree in Applied Economics from Christ University, Bangalore and a Bachelor&#8217;s Degree in Commerce from Loyola College, Chennai.<a href="https://www.mercomindia.com/author/nithin-thomas-prasad/" rel="noopener">More articles from Nithin Thomas Prasad</a></div>
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