Power purchase: HC asks single bench to decide on JSW plea in one week

A division bench of the high court on Monday said that till the disposal of the pending petition before the single bench, the purchase of the power by the state government from JSW Energy Limited will be at the rate of Rs 7.25/KWH (unit).

A division bench comprising Chief Justice Prasanna B Varale and Justice Krishna S Dixit passed this order while disposing of the appeal filed by JSW Energy Limited, requesting the single bench to decide the petition within one week.

“The single bench is requested to decide the petition within one week thereafter. Needless to reiterate that as all contentions are kept open for hearing of the single bench, the single bench is at liberty to hear the counsel representing the parties on all contentious issues, including the rate of power purchase. Till the decision of the petition the purchase of power by the state will be at the rate 7.25 per unit. Needless to state that the purchase of power at this rate is subject to the final outcome of the petition,” the division bench said.

The JSW had challenged the October 27, 2023 order of the single bench declining to pass an interim order. The single bench had directed the JSW to continue supplying their surplus electricity to the state grid pursuant to the order issued by the state government.

The state government in the earlier order had directed that all power generators in the state to operate and maintain the concerned generating stations to maximum exportable capacity and supply all the electricity generated to the state grid subject to certain conditions. One of the conditions was that the Escoms should purchase the power at Rs 4.86 per unit provisionally subject to the proceedings before the Karnataka State Electricity Regulatory Commission (KERC). Subsequently, by a communication dated October 17, 2023 the state had withdrawn all the NOCs/consents issued earlier.

JSW, which owns and operates an Imported Coal Based Power Plant (ICB Power Plants) in the state, had made an offer to the state on August 11, 2023, to sell power at Rs 7.25 per unit. Appearing for appellant JSW Energy Limited before the division bench, senior advocate Mukul Rohatgi submitted that though the state government had no jurisdiction, the state on October 16, 2023, insisted that the power will be purchased at the rate of Rs 4.86 per unit. He submitted that JSW is obligated to follow the union government’s order dated February 20, 2023, issued by exercising the power under Section 11 of the Electricity Act.

“The rate submitted by the state government is half of the prevailing market rate. We (JSW) are losing Rs 10 crore per day. The union government in the meantime has extended the validity of February 20, 2023 notification till June 30, 2024. Though this was mentioned, the single bench had failed to consider the same,” he said.

On the other hand, Advocate General Shashikiran Shetty argued that in the past also the state had invoked its jurisdiction under Section 11 of the Electricity Act to mitigate power crisis. He further said the state is faced with daily energy shortages because of a drought situation. It was also submitted that the state was constrained to exercise its jurisdiction under Section 11 of the Electricity Act to direct all the generating companies to operate and maintain generating stations to maximum exportable energy and supply electricity only to the state grid.