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Stop paying fixed charges to pvt generators: AIPEF

Hindustan Times, Lucknow | By, Lucknow
Apr 02, 2020 08:50 PM IST

All-India Power Engineers’ Federation (AIPEF ) has urged discoms (distribution companies) to save fixed charges that they pay to private generators using force majeure (unforeseeable circumstances) clause of the power purchase agreement.

All-India Power Engineers’ Federation (AIPEF ) has urged discoms (distribution companies) to save fixed charges that they pay to private generators using force majeure (unforeseeable circumstances) clause of the power purchase agreement.

Chairman, AIPEF, Shailendra Dubey on Thursday said there was a drastic reduction in load and demand in all states as all the industrial, commercial units besides railways had been shut under the ongoing lockdown.

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Dubey said it was more important for UP discoms to stop payment of fixed charges to generators as UP government had announced that industries were exempted from paying fixed charges of electricity to discoms during lockdown.

“The imposition of lockdown qualifies as force majeure under the PPA as events and circumstances are beyond the control of the state discoms,” he said.

He further said in view of a sudden drastic reduction in demand load, discoms should immediately stop purchasing power from these power plants till the things got normal. “Thus already financially crunched discoms will not be further burdened by paying fixed charges without purchasing electricity,” he said.

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