New Delhi: Four step-down subsidiaries of JSW Energy Limited have filed writ petitions in the Andhra Pradesh High Court (HC), challenging a key provision of the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, commonly referred to as LPS Rules. The petitions come after dues amounting to Rs 506.52 crore were reportedly denied by the Southern Power Distribution Company of Andhra Pradesh Limited (APSPDCL) and the Andhra Pradesh Power Coordination Committee.
The petitions were filed by Mytrah Vayu (Tungabhadra), Mytrah Vayu (Krishna), Mytrah Vayu (Pennar), and Mytrah Vayu (Indravati) — all wholly owned step-down subsidiaries of JSW Energy. The companies are contesting the first proviso to sub-rule 3 of rule 6 of the LPS Rules, which bars power generators from claiming late payment surcharge (LPS) if they continue supplying electricity despite not receiving the prescribed payment security.
In a regulatory filing on Wednesday, JSW Energy disclosed that the subsidiaries had filed writ petitions before the High Court, questioning the vires (constitutional validity) of the provision. The company said the discom and the state power coordination body had invoked this clause to withhold overdue payments and late payment surcharge, leading to the legal action.
“The Southern Power Distribution Company of Andhra Pradesh Limited and Andhra Pradesh Power Coordination Committee, relying upon the said provision, had denied the payment of certain dues including late payment surcharge totalling approximately Rs 506.52 crore,” JSW Energy stated.
This litigation adds to a series of disputes between private power producers and distribution utilities in Andhra Pradesh. JSW Energy and its subsidiaries have previously raised concerns about non-payment of dues for excess generation and other billing-related issues before the Andhra Pradesh Electricity Regulatory Commission (APERC) in 2023.