Facts
The Appellant, a trading licensee, entered into a Power Purchase Agreement (PPA) dated 06.09.2013 with Karnataka ESCOMs (Respondents 4-8) to supply 57MW of power
Source reference: p. 6Due to grid disturbances and technical failures, the generator failed to supply the full quantum in late 2013, leading to deviations exceeding 15% of the contracted capacity
Source reference: p. 7Consequently, the ESCOMs deducted liquidated damages, Unscheduled Interchange (UI) charges, and backup power charges from the Appellant’s invoices, including invoices belonging to subsequent, unrelated PPAs
Source reference: p. 8-10Issues
Whether the Appellant, acting as a trading licensee, can be held liable for Unscheduled Interchange (UI) charges and liquidated damages when it acted as a conduit between the generator and the ESCOMs.
Source reference: no citationLaw Applied
Electricity Act, 2003 regarding the regulatory framework for trading licensees and power purchase agreements.
Source reference: no citationReasoning
The court examined the back-to-back nature of the arrangement where the Appellant served as a conduit for the power supply from the generator to the ESCOMs.
Source reference: no citationHolding
A trader purely as a conduit cannot be held liable for gaming or UI charges relinquished by discoms.
Acts & Sections Cited
5 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.
Electricity Act, 20035
Original Court PDF
Tata Power Trading Company LimitedvsKarnataka Electricity Regulatory Commission & Ors.
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