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Rajasthan Regulator Directs DISCOM to Pay Late Payment Surcharge to a Wind Developer

The Rajasthan Electricity Regulatory Commission (RERC) has directed the Jodhpur Vidyut Vitran Nigam Ltd (JVVNL) to pay the late payment surcharge (LPS) to a wind energy generator.However, the Commission rejected the petitioner’s claim for interest on the LPS amounts. It said that there was no provision in the power purchase agreement for adding interest on interest.BackgroundThe petitioner, Maharaja Shree Umaid Mills, had executed a PPA with JVVNL to supply energy from its 15.35 MW wind power project in Jaisalmer and Jodhpur.The petitioner stated that the Rajasthan Urja Vikas Nigam (the erstwhile Rajasthan Distribution Companies (DISCOM) Power Procurement Centre (RDPPC) was making payments from October 2014 to April 2015 as per the invoices.....

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