In view of the order proposed detailed summation of the factual background, the rival case of the respondents and elaborate submissions made by the Counsel may not be necessary. In a nutshell the admitted case is as follows. The petitioner is Independent Power Producer (IPP) having entered into a Power Purchase Agreement (PPA). Under the agreement, the entire electricity produced by the petitioner by non-conventional method/conventional method is purchased by the second respondent at an agreed tariff or the tariff as fixed by the first respondent in accordance with the provisions of the Electricity Act 2003 (hereafter called ‘the Act’). Initially, when the issue of tariff was not decided by the first respondent the second respondent agreed to purchase the electricity from the petitioner at Rs.2.25 (base year 1994-’95), which is enhanced at the rate of 5% every year. Before the matter was taken up by first respondent, the petitioner was selling electricity at the rate of Rs.3.48 to the second respondent. In the year 2004, the first respondent initiated suo motu proceedings for determination of tariff applicable to non-conventional energy projects in A.P. to be effective from 01.4.2004. After an elaborate exercise; presumably – the first respondent passed general order on 20.3.2004 in R.P.No.84 of 2003 in O.P.No.1075 of 2000 fixing the tariff (fixed cost and variable cost) at Rs.2.74 for the IPPs using bagasse as fuel, at Rs.2.88 for the IPPs using biomass as fuel and at Rs.2.34 for mini hydel projects.
