NEW DELHI: The Appellate Tribunal for Electricity (Aptel) on Wednesday stayed the controversial July 12 letter issued by a distribution power utility of Andhra Pradesh to three Greenko Energy group firms asking for drastic reduction in solar power tariff.

This is the first case stayed at any judicial forum by a power generating company affected by the new YS Jagan Mohan Reddy-led state government's decision to renegotiate solar and wind power purchase agreements (PPAs).

Most renewable energy companies are contemplating approaching the Andhra Pradesh high court on the matter.

The tribunal has said, “Tariff is a subject which lies exclusively within the domain of the appropriate electricity regulatory, which is the present case is the respondent commission.”

The companies including SEI Green Flash and SEI Arushi Pvt Ltd had in 2017 filed cases against Andhra Pradesh electricity regulator in APTEL for reducing tariffs from its power plants.

While the cases were still pending, the discoms under new Andhra Pradesh government issued letters to all solar power companies asking them to lower tariffs to Rs 2.44 per unit discovered under a separate bidding in Rajasthan.

The state is asking all solar plants including those in qualified in auctions by NTPC and Solar Energy Corp of India (SECI), to revise tariffs retrospectively from the time of commissioning of the plants.

Aptel has stayed the operation of the letter till the next hearing on August 28, said advocate Shri Venatesh of law firm SKV Law Offices.