Reliance Infrastructure seeks annulment of Odisha Electricity Authority’s payment order to GRIDCO- The New Indian Express | Daily News Byte

By Express News Service

BHUBANESWAR: Reliance Infrastructure Limited (RIL), the managing investor and major shareholder in erstwhile distribution companies – NESCO, SOUTHCO and VESCO, has urged the Appellate Tribunal for Electricity (APTEL) to set aside the October 10, 2021 order of the Odisha Electricity Regulatory Commission. (OERC) directing it to pay arrears of Rs 4,234 crore to the state-owned electricity trading company GRIDCO.

Challenging the legality, validity and propriety of the OERC order, RIL said the Commission has no inherent jurisdiction to issue directions against the appellant who is neither a “licensee” nor a “generating company” under Section 86(1)( f ) of the Electricity Act , 2003.

Stating that the impugned order passed by the OERC is highly contradictory and does not give any reasons for its findings, the petitioner said, “GRIDCO through various letters informed the discoms operated by RIL that Rs 680.11 crore, Rs 742.36 crore and Rs.823.36 crores. outstanding with NESCO, SOUTHCO and VESCO on March 31, 2020.

However, the state-owned enterprise has appealed to the OERC for settlement of outstanding dues of Rs 1,443.75 crore, Rs 1,001.04 crore and Rs 1,789.28 crore from the three discoms. “This clearly establishes that the requested amount is arbitrary and without any proof.” The outstanding liabilities of the BSP as of March 4, 2015 have already been transferred to the accounts of the respective discoms together with other creditors (current liabilities), as well as the amount of receivables. from consumers and all other receivables (current assets),” RIL’s petition said.

Arguing that the OERC failed to apply its opinion independently on GRIDCO’s request, RIL submitted that the alleged requests are time-barred.

A claim filed by GRIDCO with the OERC on October 28, 2019 regarding an amount allegedly due on March 4, 2015, but the Commission, ignoring the statute of limitations, arbitrarily concluded that there was a continuing cause of action and GRIDCO’s claim was not affected by the restriction, the company said.

Claiming that a huge amount of regulatory assets (approximately Rs 4,500 crore) has been created and refusing to allow legitimate tariff hike in its annual tariff orders, the petitioner said that it could have recovered the amount and paid dues to GRIDCO on time had the OERC implemented APTEL orders.

While conceding that 51 per cent shares were held by the appellant, the petitioner said that the OERC had no jurisdiction to entertain the dispute in relation to RIL when the three discoms were independent corporate entities and should have acted in accordance with the terms of the license issued by the OERC.

</p> <p>BHUBANESWAR: Reliance Infrastructure Limited (RIL), the managing investor and major shareholder in erstwhile distribution companies – NESCO, SOUTHCO and VESCO, has urged the Appellate Tribunal for Electricity (APTEL) to set aside the October 10, 2021 order of the Odisha Electricity Regulatory Commission. (OERC) directing it to pay arrears of Rs 4,234 crore to the state-owned electricity trading company GRIDCO. Challenging the legality, validity and propriety of the OERC order, RIL said that the Commission has no inherent jurisdiction to issue directions against the appellant who is neither a “licensee” nor a “generating company” under Section 86(1)(f) of the Electricity Act of 2003. Submitting that the impugned order passed by the OERC is highly contradictory and does not give any reasons for its findings, the petitioner said, “GRIDCO has informed the RIL-managed DISCO through various letters that Rs 680.11 crore , 742.36 crore and Rs 823.36 crore were outstanding with NESCO, SOUTHCO and VESCO as on March 31, 2020. However, the state-owned enterprise has appealed to the OERC for settlement of the arrears of Rs 1,443.75 crore , Rs 1,001.04 crore and Rs 1,789.28 crore from three discoms. “This clearly establishes that the requested amount is arbitrary and without any proof.” The outstanding liabilities of the BSP as of March 4, 2015 have already been transferred to the accounts of the respective discoms together with other creditors (current liabilities), as well as the amount of receivables. from consumers and all other receivables (current assets),” RIL’s petition said. Arguing that the OERC failed to apply its opinion independently on GRIDCO’s request, RIL submitted that the alleged requests are time-barred. A claim filed by GRIDCO with the OERC on October 28, 2019 regarding an amount allegedly due on March 4, 2015, but the Commission, ignoring the statute of limitations, arbitrarily concluded that there was a continuing cause of action and GRIDCO’s claim was not affected by the restriction, the company said. Claiming that a huge amount of regulatory assets (approximately Rs 4,500 crore) had been created and refusing to allow legitimate tariff hikes in its annual tariff orders, the petitioner said that it could have recovered the amount and paid GRIDCO on time had the OERC implemented the APTEL orders – a. Admitting that 51 per cent shares are held by the appellant, the petitioner said the OERC had no jurisdiction to entertain the dispute in relation to RIL when the three discoms were independent corporate entities and should have acted in accordance with the terms of the license issued by the OERC.<br />