The Tamil Nadu State Electricity Regulatory Commission (TNERC) has directed the Tamil Nadu Generation and Distribution Company (TANGEDCO) 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.

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:

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.

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.

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.

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.

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.

Previously, Mercom reported 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.

In a previous article, 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.