Andhra Pradesh HC Allows State to Buy Power from Spot Market

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The Andhra Pradesh High Court has allowed the state to buy electricity from spot markets, toppling a direction by the Centre that curtailed such arrangements if distribution companies were not able to maintain bank guarantees in favour of power plants.

The Andhra Pradesh High Court, in a recent order, has allowed the distribution companies (DISCOMs) of the state to operate through power exchanges and to secure power through open access.

The high court said in an order issued that the Centre’s directive was “suggestive of forcing and coercing the petitioners to yield to the demands of the power generators, to pay the dues”.

The order also said the Union power ministry and the ministry of new and renewable energy are not empowered under Section 37 of the Electricity Act, 2003 to enforce contracts signed between discoms and power generating companies. The power of regional load despatch centres is confined to efficient performance of the grid, it said.

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