Petition No. 33/MP/2012. Case: PTC India Ltd, New Delhi Vs Punjab State Power Corporation Ltd. and Jammu & Kashmir State Power Development Department. Central Electricity Regulatory Commission

Case NumberPetition No. 33/MP/2012
CounselFor Appellant: Shri. Atul Nanda, Sr. Advocate, Shri. Ravi Prakash, Advocate, Shri. Varun Pathak, Advocate, Shri. Aditya Dewan, Advocate and Ms. Ramiza Hakim, Advocate for PTC (I) Ltd.
JudgesDr. Pramod Deo, Chairperson, Shri. S. Jayaraman, Member, Shri. V.S. Verma, Member and Shri. M. Deena Dayalan, Member
IssueElectricity Act, 2003 - Sections 2, 79, 86
Judgement DateJanuary 08, 2013
CourtCentral Electricity Regulatory Commission


1. The petition has been filed by PTC India Ltd, Category I inter-State trading licensee, for adjudication of dispute seeking payment of ` 124,51,53,525/- with interest arising out of the alleged for abrupt discontinuance by the first respondent of drawl of 100 MW of contracted power w.e.f. 8.6.2011 and non-payment of trading margin dues amounting to ` 3,88,16.750/-. The petitioner has prayed this Commission to

  1. Direct Respondent No. 1 to compensate the petitioner with a payment of Rs. 124,51,53,626/-;

  2. Direct Respondent No. 1 to pay interest @ 15% p.a. from 19.8.2011 till the time of receipt of payment;

  3. Direct Respondent No. 1 to make Outstanding Payment amounting to Rs. 3,88,16,750 plus Late Payment Surcharge as per PSA till the time if receipt of payment.

The petitioner entered into Power Purchase Agreement dated 13.10.2008 (PPA) for purchase of 225 MW of power from the second respondent, Jammu & Kashmir State Power Development Corporation (JKSPDC) generated at Baglihar Hydro-electric Project for a period of 12 years during the months of November, December, January and February every year for further sale of 150 MW of power outside the State of Jammu and Kashmir. Out of 150 MW of power agreed to be sold outside the State, the petitioner executed Power Supply Agreement dated 19.6.2009 (PSA) with the first respondent for supply of 100 MW of power also for a period of 12 years. Clause 2.2 of Schedule B of PSA inter alia provides as under:

2.2 PTC's Trading Margin

2.2.1 PTC Trading margin shall be the capped trading margin as notified by CERC for contracts of such nature and duration from time to time (Trading Margin').

2. The Central Electricity Regulatory Commission (Fixation of Trading Margin) Regulations, 2010 apply to short-term buy and short-term sale contracts for inter-State trading in electricity undertaken by a licensee. The short-term buy and short-term sale contract has been defined as a contract whose duration is less than one year. Thus PPA and PSA, whose duration is 12 years, are long-term contracts and are not governed by the ceilings of trading margins fixed under the Trading Margin Regulations.

3. The petitioner in its communications dated 9.4.2010 is said to have informed the first respondent that as per clause 2.2 of Schedule B of PSA the trading margin worked out to 11 paisa/kWh calculated on the basis of its purchase price of ` 3.65/kWh but it had reduced the trading margin to 9 paisa/kWh. Thus, the petitioner claims to have agreed to charge trading margin of 9 paisa/kWh and raised the invoice dated 10.4.2010 accordingly. The petitioner has alleged that on receipt of the invoice the first respondent informed it (the petitioner) that the long-term rates would apply after the agreement for long-term was signed and thus repudiated the petitioner's claim for trading margin at the rate of 9 paisa/kWh. The petitioner, however, claims to have insisted on payment of trading margin at the rate of 9 paisa/kWh as the power was being...

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