DISCOMS SHOULD SAVE FIXED CHARGES DURING LOCKDOWN: AIPEF Apr 2, 2020

Posted On : April 10, 2020

The All-India Power Engineers Federation (AIPEF) has urged Discoms to save fixed charges payment to private generators using force majeure clause of the power purchase agreement.
The AIPEF has written letters to all the Chief Ministers to issue instructions to Discoms  to issue notices to private generators under  force majeure conditions of lockdown not to give power scheduling due to lockdown in the larger interest of the state and consumers.
VK Gupta, Spokesperson of the AIPEF, said that there is a drastic reduction in load and demand in all states as all the industrial, commercial units and railways have been shut down under lockdown.  
The imposition of the above lockdown qualifies as force majeure under the PPA as events and circumstances are beyond the control of the state Discoms.
In the above circumstances of a sudden drastic reduction in demand /load in Discoms should stop scheduling power from these power plants under the existence of force majeure circumstances affecting Discoms. When the situation eases, then state Discoms will again start scheduling power from their power plants as per requirement.
This would save the Discoms which are already facing a fi