June 29, 2020

India Power Regulation Weekly

An update on regulatory developments in the Indian power sector

INSIDE THIS ISSUE

GENERATION 2
CERC disposes of CGPL’s petition regarding capital expenditure for FGD installation 2
UPERC allows UPRVUNL to withdraw its petition regarding fly-ash transportation cost 2
UPERC allows UPRVUNL to withdraw its petition regarding ash dyke at Anpara TPS 2
CERC to hold public hearing on draft ‘Terms and Conditions of Tariff (First Amendment) Regulations, 2020 2
OERC disposes of petition filed by GRIDCO regarding PPA dispute with Vedanta Limited 3
TRANSMISSION 4
BERC initiates suo-motu proceedings with regard to development of intra-state transmission projects under TBCB 4
MERC partly allows TPC-T’s petition seeking review of order dated March 30, 2020 4
DISTRIBUTION 4
CSERC notifies CSERC (SoP in Distribution of Electricity) Regulations, 2020 4
UERC determines additional surcharge to be levied by UPCL 5
TNERC approves provisional tariff subsidy for 2020-21 5
KERC dismisses BESCOM’s petition seeking amendment to clauses of CoS 6
WBERC determines tariff for DVC for 2006-07 to 2008-09 6
HERC passes order regarding reduction in LPS payment 8
KSERC notifies Kerala Electricity Supply (Amendment) Code, 2020 8
RENEWABLE 8
CERC notifies ‘Terms and Conditions for Tariff determination from Renewable Energy Sources) Regulations, 2020’ 8
UPERC disposes of Continental Carbon India’s petition regarding PPA dispute with UPPCL 9
UPERC determines disallowance towards secondary energy changes and tax on income for Vishnuprayag HEP 9
UERC passes suo-motu order regarding deployment of customised RPOCS web tool in Uttarakhand 9
UERC allows time extension to solar PV plant developers for commissioning of their power plant 10
BERC disposes of BREDA’s petition seeking approval of ceiling tariff for 250 MW solar power 10
KERC disposes of Messrs Adani Green’s petition regarding dispute with GESCOM 10
KERC dismisses Shree Renuka Sugars’ petition regarding payment issues with state discoms 11
KERC allows carry forward of excess banked energy on account of COVID-19 11
MERC partly allows ACME Heergarh Powertech’s petition against MSEDCL 11
MERC partly allows ReNew Solar Power’s petition regarding imposition of safeguard duty 12
JERC disposes of DNHPDCL’s petition regarding PSA for sale of 50 MW wind power 12

www.Indiapowerregulation.com
GENERATION
CERC disposes of CGPL’s petition regarding capital
expenditure for FGD installation
The Central Electricity Regulatory Commission
(CERC) has disposed of a petition filed by Coastal
Gujarat Power Limited (CGPL), regarding approval
of capital expenditure to be incurred due to
installation of flue-gas desulfurization (FGD) system
at its 4,150 MW (5x830 MW) Mundra ultra mega
power project (UMPP) in Gujarat. The commission
accorded approval to the petitioner for Rs 15,473.30
million as capital cost on provisional basis against
the proposed amount of Rs 16,343.30 million. The
commission also allowed the petitioner to claim
expenditure towards interest during construction
(IDC) (at actuals); Goods and Services Tax, taxes
and duties (as applicable); foreign exchange rate
variation (if any); and expenditure towards owner’s
cost (at actuals) after commissioning of the FGD
system, which may be allowed after prudence
check.
As regards contingency, the commission noted
that the petitioner has not given proper justification
and therefore the cost may be allowed subject to
proper justification for such expense and subject to
prudence check by the commission after the
installation of FGD system is completed. As regards
the claim towards restoration of existing access
roads and re-routing of utilities (Rs 120 million) and
miscellaneous costs- installation of electrical and fire
safety system (Rs 750 million), the commission
observed that the Central Electricity Authority
(CEA) has stated that these are not directly required
for installation of FGD system and the petitioner has
to assess its requirements. These costs may be
allowed after installation of FGD system and after
considering proper justification of expenditure,
subject to prudence check by the commission.
The commission held that it is not considering
the opportunity cost at this stage. However, the
same would be considered on actual number of
days of shutdown after prudence check to the effect
that the petitioner has tried to synchronise the
interconnection of FGD system with annual
overhaul and has consulted the beneficiaries in this
respect. The commission further held that the
calculations for capital expenditure, operating
expenditure and auxiliary power consumption will
be done corresponding to installed capacity of 4,150
MW, but the respondents will be liable to pay the
India Power Regulation Weekly | June 29, 2020 January
expenses on pro-rata basis corresponding to 4,000
MW in terms of the PPA.
Petition No. 168/MP/2019
Read Order :CERC_O_20_06_05_01.pdf,
UPERC allows UPRVUNL to withdraw its petition
regarding fly-ash transportation cost
The Uttar Pradesh Electricity Regulatory
Commission (UPERC) has allowed Uttar Pradesh
Rajya Vidyut Utpadan Nigam Limited (UPRVUNL)
to withdraw its petition seeking in-principle
approval of recovery of additional operation and
maintenance expenditure on account of fly ash
transportation cost. The commission gave the liberty
to the petitioner to file fresh a petiton, if needed.
Petition no. 1441 of 2019
Read Order :UPERC_O_20_06_05_02.pdf,
UPERC allows UPRVUNL to withdraw its petition
regarding ash dyke at Anpara TPS
The Uttar Pradesh Electricity Regulatory
Commission (UPERC) has allowed Uttar Pradesh
Rajya Vidyut Utpadan Nigam Limited (UPRVUNL)
to withdraw its petition seeking in-principle
approval for incurring additional capital
expenditure by the petitioner towards raising the
height of the existing ash dyke at the Anpara power
station in order to ensure the efficient and complete
handling and management of the ash.
The commission allowed withdrawal of the
petition and granted liberty to approach, if and
when need so arises, in terms of applicable
Generation Tariff Regulations, 2019.
Petition no. 1493 of 2019
Read Order :UPERC_O_20_06_05_03.pdf,
CERC to hold public hearing on draft ‘Terms and
Conditions of Tariff (First Amendment) Regulations,
2020
The Central Electricity Regulatory Commission
(CERC) has decided to hold a public hearing for the
draft CERC (Terms and Conditions of Tariff) (First
Amendment) Regulations, 2020. The commission
had notified the draft regulations on April 1, 2020. It
has been decided to hold a public hearing on the
above subject on July 13, 2020 at 10:30 am via video
conferencing. The commission has requested that
4, 2016 2
the names of proposed participants from
participating organisations may be registered on the
SAUDAMINI portal after clicking public hearing
registration hyperlink on its homepage (www.cerc-
efiling.gov.in) at least two days in advance.
No. L-1 /236/2018/CERC
Read Order :CERC_R_20_06_05_02.pdf,
OERC disposes of petition filed by GRIDCO regarding
PPA dispute with Vedanta Limited
The Odisha Electricity Regulatory Commission
(OERC) has disposed of a petition filed by GRIDCO
Limited for resolution of disputes regarding
execution of revised power purchase agreement
(PPA) for its Jharsuguda power plant in compliance
with the commission’s order dated January 27, 2016
passed in Case No.21 of 2015.

Issue Decision
a. Whether the basis If Vedanta injects less power in any 15-minute block, GRIDCO has to source the
of calculation needs shortfall quantity in that time block only from other generators/sources. Therefore,
to be 15 minutes GRIDCO must be compensated on 15-minute block basis. The computation of bill and
block wise or compensation due to shortfall shall be made on 15-minute basis and the bill shall be
monthly? paid on monthly basis after deducting the compensation
b. Definition of Marginal sources should include un-requisitioned power from inter-state generating
marginal sources stations (ISGS), power overdrawn under deviation settlement mechanism and power
and priority of drawn from Indian Energy Exchange. The price of the power drawn from the above
marginal sources marginal sources in 15 minute block should be utilized for computation of loss.
In case of low or no generation in Unit-2, Vedanta has to supply state entitlement of
power from its captive generating plant (CGP) units or from other sources. Such
c. Methodology of
supply of power from CGP units or other sources shall be deemed to have been
annual fixed
supplied from the IPP unit-2. Hence, plant availability factor achieved during the
charge/capacity
month (PAFM) of Unit-2 will be calculated by the state load despatch centre (SLDC)
charges calculation
based on the actual energy supplied by Vedanta. Accordingly, capacity charge shall
be computed.
In case of Jindal India Thermal Power Limited (JITPL) it supplies 12 per cent/14 per
d. Compensation
cent of generated power to GRIDCO on variable cost basis only whereas Vedanta
for short supply
supplies power on full cost basis which consists of both fixed and variable charges. In
and incorporation
case of short supply or no supply of power from Unit-II (IPP unit) of Vedanta, it is
of compensation
duty bound to replenish the same from its converted CGPs which is not the case of
clause in PPA
JITPL.
Since both GRIDCO and Vedanta have agreed for applicability of compensation
e. Period of short
towards short supply with effect from April 1, 2015, that is the date of conversion of
supply
three IPP units to CGP, the revised PPA should mention the same.
Whenever GRIDCO procures additional power from other
sources due to short supply of power by Vedanta Limited and pays additional point
f. Additional PoC
of connection (POC) charges to the central transmission utility beyond the fixed POC
charges and losses
charges on account of such additional power purchase, the additional cost borne by
GRIDCO towards PoC charges shall be recovered from Vedanta
Since Vedanta has agreed to compensate GRIDCO for its actual loss/damages due to
g. Opportunity loss short supply of power
of GRIDCO due to the opportunity loss as claimed by GRIDCO, which is very difficult to quantify,
short supply of should not form part of the PPA. However, GRIDCO has the liberty to file separate
power by Vedanta petition before the commission, when GRIDCO is genuinely affected and the
opportunity loss it claims is quantified.
The commission has directed both the parties to make necessary amendments in the consolidated PPA
dated December 19, 2012 keeping in view the directions of the commission in its order dated January 27,
2016 passed in Case No. 21/2015. The commission has directed GRIDCO to reconcile the arrear amounts of
Vedanta Limited at the earliest in view of the above observations of the commission and accordingly settle
the payments within two months from the date of issue of this order.

India Power Regulation Weekly | June 29, 2020 January 4, 2016 3

 Case No. 68/2018
Read Order :OERC_O_20_06_05_01.pdf,

TRANSMISSION
Read Order :BERC_O_20_06_05_01.pdf,
BERC initiates suo-motu proceedings with regard to
development of intra-state transmission projects
MERC partly allows TPC-T’s petition seeking review
under TBCB
of order dated March 30, 2020
The Bihar Electricity Regulatory Commission
The Maharashtra Electricity Regulatory Commission
(BERC) has initiated suo-motu proceedings with
(MERC) has partly allowed a petition filed by the
regard to with regard to development of intra-state
Tata Power Company Limited (Transmission) (TPC-
transmission projects under tariff-based competitive
T) seeking review of certain aspects of the multi-
bidding (TBCB). The commission had issued a
year tariff (MYT) order issued on March 30, 2020 for
notification dated December 23, 2019 fixing the
TPC-T in Case No. 299 of 2019 in the matter of
threshold limit for TBCB mode at Rs 1 billion.
truing-up of aggregate revenue requirement (ARR)
Through the same notification the commission had
for 2017-18 and 2018-19, provisional truing-up of
also directed the Bihar State Transmission Company
ARR for 2019-20 and ARR for fourth MYT control
Limited and Bihar State Power (Holding) Company
period from 2020-21 to 2024-25.
Limited (BSPHCL) to come up with detailed
guidelines for operationalisation of regulatory The request of the petitioner for removal of
provisions within three months from the date of income of Rs 36.50 million and Rs 24.30 million for
notification. amortisation of service line contributions from the
non-tariff income for 2017-18 and 2018-19,
However, due to COVID-19, the commission
respectively, was allowed by the commission
did not receive the guidelines in time. Meanwhile, a
without carrying cost. The financial impact of the
directive under from the state government section
same will be considered at the time mid-term
108 of the Electricity Act, 2003 was issued to the
review for the present control period. The second
commission via a letter dated April 27, 2020 stating
request of the petitioner to allow surplus amount of
that the state government has decided of not opting
Rs 273.20 million as against approved Rs 1,019.80
for TBCB as of now. The commission, therefore, in
million for the total past recovery to be adjusted in
the interest of equity and transparency deems it
2020-21 was dismissed as being without merit. The
proper to deliberate and act upon the aforesaid
request to allow expenses of Rs 40.80 million
directive of the state government by giving
towards renovation and modernisation expenses for
opportunity of being heard to the state government,
2018-19 was dismissed as being without merit. The
intra-state transmission licensees, BSPHCL and
commission allowed capitalisation of Rs 4.3 million
other stakeholders.
in 2017-18 towards merged detailed project report
The last date to file the written comments to the for replacement of 22 kV and 33 kV bus sections at
commission is by July 10, 2020. Further due to Carnac receiving station. The commission ordered
pandemic isolation protocol and social distancing that the consequential financial impact of the same
norms, there will not be any open court public may be filed by TPC-T at the time of mid-term
hearing of this case. Based on the written review for the present control period.
objections/comments/suggestion received from the
Case No. 95 of 2020
respondents and other stakeholders, the commission
will decide the issue. Read Order :MERC_O_20_06_05_01.pdf,

Suo-Motu Proceeding No. 17/2020

DISTRIBUTION
CSERC notifies CSERC (SoP in Distribution of
Electricity) Regulations, 2020
The Chhattisgarh State Electricity Regulatory
Commission (CSERC) has notified the CSERC
(Standards of Performance in Distribution of
Electricity) Regulations, 2020. These regulations will

India Power Regulation Weekly | June 29, 2020 January 4, 2016 4

be applicable to all the distribution licensees and
deemed licensees engaged in the distribution of
electricity in Chhattisgarh and will be effective from
the date of their publication in the Chhattisgarh
Rajpatra.
The objectives of these performance standards
are to lay down standards of performance; to
measure performance against the standards for the
licensee in providing service; to ensure that the
distribution network performance meets a
minimum standard which is essential for the
consumers' installation to function properly; to
enable the consumers to design their systems and
equipment to suit the electrical environment that
they operate in; and to enhance the quality of the
services to meet acceptable customer service
standards in the short term and gradually move
towards improved customer service standards in
the long term.
Read Order :CSERC_R_20_06_05_01.pdf,
UERC determines additional surcharge to be levied
by UPCL
The Uttarakhand Electricity Regulatory Commission
(UERC) has determined Rs 1.11 per unit as
additional surcharge to be levied by Uttarakhand
Power Corporation Limited (UPCL) for April 1, 2020
to September 30, 2020 to meet the fixed cost arising
out of its obligation to supply electricity to the open
access consumers.

UPCL-determined additional surcharge to be levied by UPCL

a Stranded power due to open access consumers at state periphery (MUs) 142.89
b Stranded power due to open access at consumer end (MUs) 120.77
Billed fixed cost of four generating stations during April 2019 to September 2019 (Rs
c 388.00
million)
Energy received at state periphery from the four ISGS stations during the period April 2019
d 410.58
to September 2019 (MUs)
Corresponding energy received from the four ISGS stations during the period at consumer
e 347.00
end (MUs)
f Weighted average fixed cost of four stations at consumer end (Rs per unit) [(c)*10/(e)] 1.12
g Total cost of stranded power due to open access consumers (Rs million) [(f)*(b)/10] 135.00
h Total open access units at state periphery for April 2019 to September 2019 (MUs) 143.77
i Corresponding open access power at consumer end (MUs) 121.51
Applicable additional surcharge for April 2020 to September 2020 (Rs per unit) based on
j 1.11
the open access units for the period April 2019 to September 2019 [(g)*10/(i)]
Source: UERC

Petition No. 04 of 2020

Read Order :UERC_O_20_06_05_02.pdf,
and Distribution Corporation Limited
(TANGEDCO). TANGEDCO has been directed to
TNERC approves provisional tariff subsidy for 2020-
reconcile the subsidy allowed with the actual
21
consumption and revenue assessed for 2019-20 and
The Tamil Nadu Electricity Regulatory Commission to furnish the report on or before September 30,
(TNERC) has approved provisional tariff subsidy 2020.
for 2020-21 as requested by Tamil Nadu Generation
TNERC-approved tariff subsidy for 2020-21
Categories of consumers Rs million
Domestic (free supply/reduction in tariff) 33,773.70
Agricultural consumers under normal category (free supply) 33,099.30
Agricultural consumers under self-sustained farming system category (free supply) 9,659.30
Hut consumers (free supply) 1,940.30
Actual place of public worship (reduction in tariff) 162.40
Power loom weavers (free supply/reduction in tariff) 3,847.00

India Power Regulation Weekly | June 29, 2020 January 4, 2016 5

Hand loom weavers (free supply) 61.60
Lift irrigation co-operative societies (free supply) 153.70
Total 82,697.30
Add: Additional subsidy payable for 2018-19 1,442.50
Net amount payable by state government to TANGEDCO for 2019-20 84,139.80
Source: TNERC

Order No.7 of 2020

Read Order :TNERC_O_20_06_05_01.pdf,
materials/equipment from the market. As submitted
by the petitioner, the consumers have to purchase
KERC dismisses BESCOM’s petition seeking
the materials from the approved vendors. The
amendment to clauses of CoS
approved vendors have already agreed to provide a
The Karnataka Electricity Regulatory Commission guarantee period of five years. In such a situation,
(KERC) has dismissed a petition filed by Bangalore BESCOM may also specify the quality of materials /
Electricity Supply Company Limited (BESCOM) equipment so as to ensure quality and duration of
requesting the commission to amend the clauses of such materials / equipment. Hence, it was held that
the Conditions of the Supply of Electricity of the there is no need to amend the KERC (Recovery of
Distribution Licensees in the State of Karnataka, Expenditure) Regulations 2004.
2006 (CoS) and KERC (Recovery of Expenditure for
Supply of Electricity) Regulations 2004 (RoE) by OP No.38/2019
substituting the existing requirement of one year Read Order :KERC_O_20_06_05_03.pdf,
guarantee with the proposed requirement of five
years guarantee.
WBERC determines tariff for DVC for 2006-07 to
The commission held that there is no restriction 2008-09
on the distribution licensee to increase this
The West Bengal Electricity Regulatory Commission
guarantee period as per its requirement of electrical
(WBERC) has determined tariff for Damodar Valley
equipment/material and techno-economic feasibility
Corporation (DVC) for 2006-07, 2007-08 and 2008-09
of its works/projects and therefore, the grounds
in terms of order passed by the High Court of
made out for amending the specific clauses of CoS
Calcutta passed on March 5, 2019. The commission
are not tenable and liable to be rejected.
has retained the demand charge rate at Rs 365 per
The commission further noted that provisions in KVA per month for all the three years in line with
the Recovery of Expenditure Regulations are the proposal of DVC to recover a part of the
supplemental to the Conditions of Supply are admitted fixed cost through demand charge and
enable the licensees to recover the expenditure balance part through variable charge. However, the
incurred in providing the electricity to the refundable amount of fixed cost will be passed on to
consumers. In most of the self-executed works, the consumers through reduced level of energy charge
consumers himself will procure the determined in this order.
WBERC-determined tariff for DVC for 2006-07
Name of Customer Name of Energy charge (Paise per KWh) Fixed charge/
consumer category tariff Demand
scheme Summer Monsoon Winter charge as admitted (Rs
per KvA per month)
L&MV Normal 250 250 250 5
Industrial and
Commercial (33 l-2(H) Normal 198 198 198 365
kV)
Industrial and
Commercial (132 l-3(H) Normal 195 195 195 365
kV)
Industrial and
l-4(H) Normal 191 191 191 365
Commercial (220

India Power Regulation Weekly | June 29, 2020 January 4, 2016 6

kV)
Traction T Normal 195 195 195 365
Source: WBERC

WBERC-determined tariff for DVC for 2007-08

Name of Customer Name of Energy charge (Paise per KWh) Fixed charge/
consumer category tariff Demand
scheme Summer Monsoon Winter charge as admitted (Rs per
KvA per month)
L&MV Normal 210 210 210 5
Industrial
and
l-2(H) Normal 142 142 142 365
Commercial
(33 kV)
Industrial
and
l-3(H) Normal 138 138 138 365
Commercial
(132 kV)
Industrial
and
l-4(H) Normal 132 132 132 365
Commercial
(220 kV)
Traction T Normal 138 138 138 365
Source: WBERC

WBERC-determined tariff for DVC for 2008-09

Name of Customer Name of Energy charge (Paise per KWh) Fixed charge/
consumer category tariff Demand
scheme Summer Monsoon Winter charge as admitted (Rs per
KvA per month)
L&MV Normal 210 210 210 5
Industrial
and
l-2(H) Normal 142 142 142 365
Commercial
(33 kV)
Industrial
and
l-3(H) Normal 138 138 138 365
Commercial
(132 kV)
Industrial
and
l-4(H) Normal 132 132 132 365
Commercial
(220 kV)
Traction T Normal 138 138 138 365
Source: WBERC

India Power Regulation Weekly | June 29, 2020 January 4, 2016 7

 Case no: TP-80/19-20
Read Order :WBERC_O_20_06_05_01.pdf,
HERC passes order regarding reduction in LPS
payment
The Haryana Electricity Regulatory Commission
(HERC) has ordered that given the rapid recovery in
power demand and restoration of the economic
activities to a large extent, there will be no extension
in reduced late payment surcharge (LPS) beyond
May 31, 2020. The commission has earlier provided
relief to the state distribution companies on account
of COVID-19 by reducing the rate of LPS for the
delayed payment to the state generation company
and transmission company from 14.6 per cent to
8.65 per cent.
Case No. HERC/PRO-21 of 2020
Read Order :HERC_O_20_06_05_01.pdf,
KSERC notifies Kerala Electricity Supply
(Amendment) Code, 2020
The Kerala State Electricity Regulatory Commission
(KSERC) has notified Kerala Electricity Supply
(Amendment) Code, 2020. The regulation will be
effective from the date of publication of the same in
the official gazette.
Some key amendments include:
(i) In Sub-regulation (1) of Regulation 11 of the
Code, the words “except in the case of consumers
billed on the basis of contract demand” shall be
added at the end;
(ii) In the Code, the proviso to sub Regulation
(1) of Regulation 11 shall be substituted, namely:
“Provided that a low tension consumer who, as
on the date of implementation of the Kerala
RENEWABLE
CERC notifies ‘Terms and Conditions for Tariff
determination from Renewable Energy Sources)
Regulations, 2020’
The Central Electricity Regulatory Commission
(CERC) has notified CERC (Terms and Conditions
for Tariff determination from Renewable Energy
Sources) Regulations, 2020. These regulations will
be effective from July 1, 2020, and unless reviewed
earlier or extended by the commission, will remain
India Power Regulation Weekly | June 29, 2020 January
Electricity Supply Code, 2005, had a contracted
connected load exceeding the limit of 100 kVA, may
be permitted, subject to realisation of low voltage
supply surcharge, to operate with the same
contracted connected load at the same voltage level
of supply until an upward revision of connected
load is sought for by the consumer.”;
(iii) In the Code, the proviso to Sub-regulation
(2) of Regulation 11 of the Code, the following
provisos shall be substituted, namely:
“Provided that the consumers who existed on
the date of implementation of Kerala Electricity
Supply Code, 2005, and who were permitted to
operate at low tension up to a connected load of 150
kVA in accordance with clause (b) of sub
Regulation(5) of Regulation 4 of the Kerala
Electricity Supply Code, (Fourth Amendment)
Regulations 2008 and subsequently opted for
contract demand based billing shall be allowed to
operate at the same voltage level and contract
demand as on the date of implementation of the
Code, subject to realisation of low voltage surcharge
until an upward revision of contract demand is
granted on application submitted by the consumer
or becomes otherwise necessary.”
“Provided further that the contract demand for
an Industrial consumer in Industrial parks /
industrial estate notified by notified by Government
of Kerala and/or by Government of India except in
multi storied buildings shall be limited to 150 kVA
in low tension subject to payment of low voltage
surcharge in which their LT metering point shall be
at the transformer point”
Read Order :KSERC_R_20_06_05_01.pdf,
effective to March 31, 2023. The tariff norms
specified in these regulations will continue to
remain applicable until notification of the revised
norms through subsequent re-enactment of these
regulations.
These regulations will apply to cases where
tariff for a grid connected generating station or a
unit thereof commissioned during the control
period and based on renewable energy sources, is to
be determined by the commission under Section 62
read with Section 79 of the Electricity Act, 2003. In
4, 2016 8
cases of wind power projects, small hydro projects,
biomass power project with rankine cycle
technology, non-fossil fuel based co-generation
projects, solar photovoltaic power projects, floating
solar projects, solar thermal power projects,
renewable hybrid energy projects, renewable energy
with storage projects, biomass gasifier based power
projects, biogas based power projects, municipal
solid waste based power projects and refuse derived
fuel based power projects, these regulations will
apply subject to the fulfilment of eligibility criteria
specified in Regulation 4 of these Regulations.
Read Order :CERC_R_20_06_05_01.pdf,
UPERC disposes of Continental Carbon India’s
petition regarding PPA dispute with UPPCL
The Uttar Pradesh Electricity Regulatory
Commission (UPERC) has disposed of a petition
filed by Continental Carbon India Limited, against
Uttar Pradesh Power Corporation Limited (UPPCL),
regarding power purchase agreement (PPA)
disputes. The petitioner submitted that UPPCL has
not made timely payments for power purchased
from its waste-heat recovery plant set up at its
industrial unit in Ghaziabad.
The commission noted that the petitioner has
received payment till December 2019, which is
reflective of the payment intentions of UPPCL and it
is adhering to the PPA. Hence, the commission
UPERC-determined disallowance for Vishnuprayag HEP (Rs million)
Particulars 2007-08 to 2013-14
Disallowance in secondary energy
charges
Disallowance in taxes on charges
Total disallowance
Source: UPERC
Petition no. 1464 of 2019
Read Order :UPERC_O_20_06_05_04.pdf,
UERC passes suo-motu order regarding deployment
of customised RPOCS web tool in Uttarakhand
The Uttarakhand Electricity Regulatory Commission
(UERC) has passed a suo-motu order regarding
deployment of customised renewable purchase
obligation compliance system (RPOCS) web tool in
Uttarakhand.
The commission has directed Uttarakhand
Power Corporation Limited (UPCL) to issue proper
directions to its concerned officers and specify the
India Power Regulation Weekly | June 29, 2020 January
disposed of the petition and held that the parties
should honors the terms and conditions of the PPA.
Petition no. 1533 of 2020
Read Order :UPERC_O_20_06_05_01.pdf,
UPERC determines disallowance towards
secondary energy changes and tax on income for
Vishnuprayag HEP
In response to a petition filed by Jai Prakash Power
Ventures Limited, the Uttar Pradesh Electricity
Regulatory Commission (UPERC) has determined
disallowance towards secondary energy charges
and tax on income for 400 MW Vishnuprayag
hydroelectric project (HEP).
The commission held that the power purchase
agreement (PPA) signed with Uttar Pradesh Power
Corporation Limited (UPPCL)stipulates that the tax
on income would be computed as an expense at
actuals for any under/over recovery to be adjusted
every year on the basis of auditor’s certificate. It
further held that the PPA was executed before 2009,
and therefore, the norms of operation and terms and
conditions for determination of tariff in respect of
secondary energy charges will be governed by the
terms of PPA. However, this would be applicable
only for the control period 2009-14 as the Tariff
Regulations 2014, approved by the commission have
withdrawn such dispensation.
2014-15 to 2017-18 Total
4.40 236.50 240.90
271.90 1,479.10 1,750.90
1,991.80
procedures to collect the relevant information for
verification purpose. Further, taking cognizance of
the fact that there are numerous captive users in
Uttarakhand and it will be a tedious job for UPCL to
collect and verify the data of each and every captive
user, the commission held that RPO shall be
applicable on all captive users having contracted
load of 75 kW/88 kVA and above. Accordingly,
UPCL should verify the information uploaded by
the captive users on the RPOCS webtool having
contracted load of 75 kW/88 kVA and above. The
commission held that based on the information
4, 2016 9
required for verification and validation of the
information uploaded by the open access
consumers, the state load despatch centre (SLDC)
and UPCL may form a procedure mutually for
sharing of information/documents so that SLDC can
validate the information uploaded by open access
consumers on the RPOCS webtool. Accordingly,
SLDC should verify the information uploaded by
open access consumers on the RPOCS webtool. The
obligated entities shall upload the consumption
details along with supporting documents for the
month by the 30th of the following month.
Petition No.: 12 of 2020 (Suo-Motu)
Read Order :UERC_O_20_06_05_01.pdf,
UERC allows time extension to solar PV plant
developers for commissioning of their power plant
Taking cognisance of COVID-19 pandemic situation
and ongoing monsoon season that will last up to
September 2020, the Uttarakhand Electricity
Regulatory Commission (UERC) has allowed the
solar power developers to develop and commission
their respective plants by March 31, 2021 to get the
tariff rates as specified in respective power purchase
agreements (PPAs) executed with UPCL. Further, in
case of any delay beyond March 31, 2021 the lower
of the tariff determined by the commission for the
year of commissioning of the proposed plant and
determined through competitive bidding/PPA tariff
will be applicable.
The commission reiterated that the solar
photovoltaic (PV) plants developers selected
through the competitive bidding for setting up of
the solar PV plants having cumulative capacity of
200 MW and the solar PV plant developers who
have been allowed to execute PPA with
Uttarakhand Power Corporation Limited (UPCL)
with zero central finance assistance by the
commission vide its order dated September 17, 2019
are required to commission their respective projects
by the end of March 2021 to get the tariff as
determined through competitive bidding or as
mentioned in their respective PPA, as the case may
be.
Petition No.: 13 of 2020 (Suo-Motu)
Read Order :UERC_O_20_06_05_03.pdf,
BERC disposes of BREDA’s petition seeking approval
of ceiling tariff for 250 MW solar power
India Power Regulation Weekly | June 29, 2020 January
The Bihar Electricity Regulatory Commission
(BERC) has disposed of a petition filed by Bihar
Renewable Energy Development Agency (BREDA),
seeking approval of ceiling tariff for procurement of
250 MW (AC) solar power from grid connected
ground mounted solar power plants to be set up in
Bihar on a long-term basis (25 years) through
competitive bidding.
The commission held that there is no need to set
“Cap” or upper ceiling tariff in the instant proposal.
The commission further held that e-reverse auction
process (such as being done through DEEP portal)
should be followed in the bids as e-reverse auction
will help in discovering competitive tariff rates. The
commission further directed that e-reverse auction
process shall be conducted through a reliable and
suitable portal which will not only ensure
transparency in the auction process but also
improves chances of participation of maximum
number of bidders.
Case No. 04/2020
Read Order :BERC_O_20_06_05_02.pdf,
KERC disposes of Messrs Adani Green’s petition
regarding dispute with GESCOM
The Karnataka Electricity Regulatory Commission
(KERC) has disposed of a petition filed by Messrs
Adani Green Energy (UP) Limited requesting the
commission to declare that the petitioner was
prevented from performing the obligation under the
power purchase agreement (PPA) due to ‘force
majeure’ events affecting it and to grant concurrence
to the supplemental power purchase agreement
(SPPA) dated December 26, 2016.
The commission held that there was no direction
given to the parties that after entering into the
SPPA, the same should be again approved by the
commission. It further held that the non-production
of documents of title relating to the project lands is
due to ‘force majeure’ event and hence, the
petitioner is not liable for consequences under
Article 4.3 of the PPA.
The commission ordered Gulbarga Electricity
Supply Company Limited (GESCOM) to refund Rs
1.2 million recovered (if any) from the petitioner,
towards damages within eight weeks from the date
of this order. In the event of default, the said
amount will carry interest at the rate of 8 per cent
per annum from the date of default till the date of
payment.
4, 2016 10
 OP No.205/2017
Read Order :KERC_O_20_06_05_01.pdf,
KERC dismisses Shree Renuka Sugars’ petition
regarding payment issues with state discoms
The Karnataka Electricity Regulatory Commission
(KERC) has dismissed a petition filed by Shree
Renuka Sugars Limited requesting the commission
to direct the Bangalore Electricity Supply Company
Limited, Chamundeshwari Electricity Supply
Company Limited, Mangalore Electricity Supply
Company Limited, and Gulbarga Electricity Supply
Company Limited, to release the payments to the
petitioner as per the invoices raised along with the
interest at 18 per cent per annum.
The commission noted that the respondents did
not make any representation for supply of power
from December 26, 2016 to January 1, 2017 andin
the absence of such representation, the principles of
estoppel are not applicable.
It was submitted that Hubli Electricity Supply
Company Limited (HESCOM) paid its share
towards the energy supplied to the petitioner. The
commission noted that the petitioner had on
December 12, 2016 itself made a request for supply
of energy and the HESCOM had replied through its
letter dated December 23, 2016, intimating the
petitioner that it would pay for its share of liability
only, for the energy supplied to the grid from
December 26, 2016 onwards on fulfilling certain
conditions stated therein. However, the petitioner
failed to obtain the consent of other escoms before
injecting the energy in advance. Therefore, the
commission held that the payment by HESCOM
does not in any way improve the case of the
petitioner and the said payment does not create any
liability on other ESCOMs.
OP No.69/2018
Read Order :KERC_O_20_06_05_02.pdf,
KERC allows carry forward of excess banked energy
on account of COVID-19
The Karnataka Electricity Regulatory Commission
(KERC) has ordered to allow carry forward of the
banked energy remaining unutilised as on May 31,
2020 up to July 31, 2020, in respect of mini hydel
generators who have executed wheeling and
banking agreement (WBA), subject to the condition
that any banked energy allowed to be carried
forward and remaining unutilised till July 31, 2020,
India Power Regulation Weekly | June 29, 2020 January
shall be deemed to have been supplied to the
concerned escoms at no cost. No carry forward of
banked energy is allowed to renewable projects
under renewable energy certificate (REC) route and
to the renewable projects under non-REC route
other than the mini hydel project. Accordingly,
Article-9 of WBA has been amended for mini hydel
projects.
KERC/Misc/Banking/2020-21
Read Order :KERC_O_20_06_05_04.pdf,
MERC partly allows ACME Heergarh Powertech’s
petition against MSEDCL
The Maharashtra Electricity Regulatory Commission
(MERC) has partly allowed a petition filed by
ACME Heergarh Powertech Private Limited
(AHPPL), a special purpose vehicle of , ACME Solar
Holding Limited (ASHL) seeking directions against
Maharashtra State Electricity Distribution Company
Limited (MSEDCL) by declaring that the power
purchase agreement (PPA) dated August 21, 2019
executed between AHPPL and MSEDCL stands
invalid on account of force majeure. The petitioner
has also requested for consequential relief under
Section 86 of the Electricity Act, 2003 along with
statutory framework governing procurement of
power through competitive bidding and Article 8 of
the PPA.
ASHL was declared one of the successful
bidders for development of 300 MW solar project at
tariff of Rs 2.74 per kWh following the competitive
bidding process. After adoption of competitively
discovered rate by the commission vide order dated
May 27, 2019 in Case No. 87 of 2019 and furnishing
of performance bank guarantee of Rs 420 million,
PPA between AHPPL, SPV of ASHL and MSEDCL
was signed on August 21, 2019 with the effective
date of PPA as June 26, 2019. As per the timelines in
PPA, AHPPL was required to achieve financial
closure and submit evidence of clear possession of
land required along with land documents within 10
months of effective date, that is, by April 25, 2020
and scheduled commercial operation date within 24
months from the effective date that is, by June 25,
2021.
The commission held that disruption in global
supply chain due to outbreak of COVID-19 and
imposition of consequential lockdown in India is
considered as event of force majeure and therefore
exempted AHPPL from its obligation for the period
granted under force majeure without any
4, 2016 11
compensation. MSEDCL has been directed to
ascertain the exact period for relief under force
majeure after lock down is completely lifted and
accordingly the timeline for financial closure and
SCoD will be extended with additional 30 days
thereafter.
Case No. 78 of 2020
Read Order :MERC_O_20_06_05_02.pdf,
MERC partly allows ReNew Solar Power’s petition
regarding imposition of safeguard duty
The Maharashtra Electricity Regulatory Commission
(MERC) has partly allowed a petition filed by
ReNew Solar Power Private Limited seeking an
appropriate mechanism for grant of
adjustment/compensation to offset
financial/commercial impact of change in law events
on account of imposition of safeguard duty on solar
cells/modules.
The commission held that the central
government’s notification dated July 30, 2018
imposing safeguard duty qualifies as ‘change in
law’ event. It further held that the petitioner is
eligible for claiming compensation on account of
imposition of safeguard duty (including additional
GST) under change in law provisions of the power
purchase agreement (PPA) for capacity of 362.50
MW of solar module/panel installed at project
location. The petitioner shall provide undertaking
that all modules installed at project site for
supplying power to Maharashtra State Electricity
Distribution Company Limited (MSEDCL) have
been imported from the countries which are
subjected to safeguard duty.
MSEDCL has been further directed to act upon
such undertaking given by the petitioner and
ascertain the compensation amount under change in
law. Such ascertainment of compensation amount
India Power Regulation Weekly | June 29, 2020 January
will be at risk and cost of the petitioner. The
commission has ordered MSEDCL to complete this
process within 15 days from date of this order. The
commission has stated that, based on the scrutiny of
documents (to be completed in 45 days) and/or
physical verification of radio frequency
identification tag (to be completed in six months),
compensation amount ascertained earlier should be
re-verified and in case of any deviation, same
should be adjusted with holding/carrying cost in
future payments.
Case No. 8 of 2020
Read Order :MERC_O_20_06_05_03.pdf,
JERC disposes of DNHPDCL’s petition regarding PSA
for sale of 50 MW wind power
The Joint Electricity Regulatory Commission for the
state of Goa and Union Territories (JERC) has
disposed of a petition filed by DNH Power
Distribution Corporation Limited (DNHPDCL),
regarding power sale agreement (PSA) for sale of 50
MW wind power on a long-term basis.
The commission examined the PSA in detail and
also considered the submissions of the petitioner
and the respondent, Solar Energy Corporation of
India Limited (SECI). The commission held that it is
not convinced with the arguments made by SECI to
justify charging of 7 paise per kWh trading margin.
The commission was of the view that the petitioner
and the respondent should revisit the trading
margin to be charged by the respondent and resolve
the issue amicably with mutual consent along with
justification. The commission directed both the
parties to place on record the trading margin
mutually agreed on affidavit within two weeks.
Petition No. 28/2019
Read Order :JERC_O_20_06_05_01.pdf,◆
4, 2016 12