Withdraw obligation to pay energy capacity charges: Punjab CM

Chandigarh, April 27 (SocialNews.XYZ) Terming the imposition of lockdown as a clear case of 'force majeure under the Power Purchase Agreements, Punjab Chief Minister Amarinder Singh on Monday urged the Union Power Ministry to withdraw the obligation on PSPCL to pay capacity charges.

The Punjab State Power Corporation Ltd (PSPCL) is unable to schedule the energy due to force majeure situation that has arisen due to low demand in view of COVID-19 in the state, said the Chief Minister in a letter to Union Minister of State (Independent Charge) for Power, Raj Kumar Singh.

"The imposition of the lockdown qualifies as Force Majeure under the Power Purchase Agreements (PPAs) in as much as it prevents the performance of the obligation on the part of the procurer, including PSPCL, of scheduling the power from the generator, as events and circumstances are beyond the control of the PSPCL as these could not be avoided by them under any circumstances even with exercise of prudent utility practices," said the Chief Minister, citing other central government orders terming Covid-19 pandemic as force majeure.

Citing the nationwide lockdown in place since March 24, Amarinder Singh said, "Due to imposition of restrictions on the operations of all kinds of establishments, barring those providing essential services, the demand for power has resultantly been severely reduced."

The current scenario is influenced by factors beyond the control of the state discom PSPCL, he said, adding that the current events "have rendered scheduling of power from state IPPs and central sector power projects by PSPCL, impossible and impracticable."

Source: IANS