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Andhra Pradesh Electricity Regulatory Commission (APERC) Orders APTRANSCO to Refund Rs48 lakh in Unlawful O&M Charges to Aurobindo Pharma

The Andhra Pradesh Electricity Regulatory Commission (APERC) has directed APTRANSCO to refund Rs48 lakh to Aurobindo Pharma for Operation and Maintenance (O&M) charges unlawfully collected for two transmission projects. The Commission clarified that APTRANSCO owns the transmission assets and is thus responsible for their maintenance, which is already accounted for in the retail supply tariff paid by consumers.

The dispute stems from APTRANSCO demanding annual maintenance charges for infrastructure constructed by Aurobindo under APTRANSCO’s supervision. Aurobindo had built a 132 kV transmission line linking its facility to the Pydibheemavaram substation and later transferred the infrastructure to APTRANSCO. Despite this handover, APTRANSCO charged O&M fees until 2022. Additionally, the company developed a 30 MW solar captive project in Srikakulam and handed over its transmission assets to APTRANSCO in 2023, but was still asked to pay Rs236,959 in O&M charges post-commissioning.

Aurobindo claimed APTRANSCO refused to renew its long-term open access agreement unless these charges were paid. It sought a cumulative refund with 12% interest and requested that such charges not be imposed in the future.

In its defense, APTRANSCO argued the charges were for periods prior to the formal asset transfer and were necessitated by Aurobindo’s delay in handing over the infrastructure. It also cited third-party O&M costs incurred during this period.

However, APERC found that no legal justification existed for collecting O&M charges after the projects were handed over. It ruled that APTRANSCO must refund the charges within a month, but rejected the request for interest payments. The Commission emphasized that once assets are transferred, ongoing maintenance costs fall under APTRANSCO's scope, reinforcing consumer protections under the regulatory framework.