Central government proposes to set up new electricity tribunal

The central government has proposed to set up an electricity tribunal solely to enforce power purchase agreements (PPAs) signed between state distribution companies and generating companies in a time-bound manner. The tribunal would also deal with contract issues in cases where discoms fail to buy the full quantum of electricity agreed upon in the PPAs. The powers of the existing Appellate Tribunal for Electricity and electricity regulators will remain unchanged. The tribunal is proposed to have an independent member from the private sector, besides a chairperson and a technical member. The proposed move follows the Andhra Pradesh government’s attempt to renege on renewable PPAs.