Here are the latest updates on regulatory developments in India’s power distribution sector:
AERC disposes of Star Cement’s petition against Assam SLDC
The Assam Electricity Regulatory Commission (AERC) has disposed of the petition filed by Star Cement Limited, which sought relief against the Assam State Load Despatch Centre (SLDC). The petition contested the SLDC’s implementation of detailed operating procedures for ‘Deviation Energy Accounting and Computation of Charge for Deviation by State Entities’ and the raising of draft invoices under the Deviation Settlement Mechanism, alleging violations of AERC regulations.
The commission observed that the petitioner had not approached the Grid Code Management Committee (GCMC) as required under regulation 39 of the AERC (Terms & Conditions of Open Access) Regulations 2018. The petitioner’s representative failed to provide a satisfactory response regarding this. Upon review, AERC found no order issued by the GCMC.
As a result, the petition was disposed of with the direction to Star Cement to approach the GCMC to address their concerns. The GCMC has been instructed to resolve the issue within one month of receiving the petition from Star Cement.
APTEL rejects Chhattisgarh State Power Distribution’s petition against CSERC order
The Appellate Tribunal for Electricity (APTEL) has dismissed the petition filed by Chhattisgarh State Power Distribution Company, challenging the April 1, 2017 order of the Chhattisgarh State Electricity Regulatory Commission (CSERC) in Petition No. 58 of 2016. The petition contested the applicability of parallel operation charges (POC) for a 30 MW capacity, while the actual captive load was capped at 15 MW.
The tribunal upheld the CSERC’s ruling, stating that POC charges are applicable only to the actual 15 MW generation, not the 30 MW reference cited by the appellant. APTEL found the appeal to be without merit, noting that the respondent must calculate POC based on the 15 MW captive and non-captive load from September 4, 2015, to June 22, 2016, and refund the excess amount by April 30, 2017, with interest at 6% per annum. The appeal was dismissed.
DERC allocates power from NPCIL RAPS Unit-7 & 8 to Delhi distribution licensees
The Delhi Electricity Regulatory Commission (DERC) has allocated 101.11 MW of power from Nuclear Power Corporation of India Limited’s (NPCIL) Rajasthan Atomic Power Station (RAPS) Units 7 and 8 to the distribution licensees in Delhi. This allocation follows a request from NPCIL to confirm the acceptance of the allocated share, as per the June 17, 2024, order to the Ministry of Power.
The allocation is based on cost-benefit data submitted by the discoms, along with considerations for the carbon-free power and reliable supply from RAPS Units 7 and 8. The commission decided to allocate the power proportionally to the distribution licensees, based on the actual energy consumption of the past five years. Since the New Delhi Municipal Council opted not to procure power from RAPS Units 7 and 8, their share was reallocated to other discoms accordingly.
The allocation is as follows:
- Tata Power Delhi Distribution Limited: 32.43 MW
- BSES Rajdhani Power Limited: 44.71 MW
- BSES Yamuna Power Limited: 23.20 MW
- Military Engineering Services: 0.77 MW
Total allocation to Delhi: 101.11 MW
KSERC dismisses petition for shifting of service connection
The Kerala State Electricity Regulatory Commission (KSERC) has dismissed a petition filed by an individual requesting the shifting of a low-tension electric connection, including a 160 kVA transformer and its accessories, to a new premises 300 meters away. The individual’s lease for the current property had expired.
The commission noted the following:
- The Electricity Supply Code, 2014, does not permit the shifting of service connections between premises or grant out-of-turn priority for industrial connections.
- Kerala State Electricity Board Limited (KSEBL) will provide a new connection at the petitioner’s new premises once the 33 kV substation at Kunnumpuram is commissioned, provided the petitioner applies for the new connection.
- KSEBL will utilize the 160 kVA transformer and its accessories to provide the new connection, after collecting applicable charges for labor, transportation, and supervision.
KSERC approves PSA between KSEBL and SECI for procurement of 500 MW power
The Kerala State Electricity Regulatory Commission (KSERC) has approved the power sale agreement (PSA) between Kerala State Electricity Board Limited (KSEBL) and Solar Energy Corporation of India Limited (SECI) for the procurement of 500 MW of power, including 250 MW for 2 hours of peak supply, from SECI’s inter-state transmission system (ISTS) Tranche XV scheme.
The commission noted that the cost of power from this scheme at Kerala’s periphery is approximately Rs 3.94-3.95 per unit, with a low capital utilization factor of 25-27%. The primary benefit for KSEBL is the assured supply of 250 MW for 2 hours during peak hours. KSEBL was instructed to prioritize optimizing power purchase costs, as it constitutes over 55% of its total expenses.
The commission also observed that, under the power purchase agreement between SECI and solar power developers (SPDs), the scheduled commencement of supply date is set for September 27, 2026. However, if the SPDs commission the projects by June 30, 2026, ISTS transmission charges could be reduced, potentially lowering the cost of power to Rs 3.79-3.80 per unit.
KSEBL has been directed to request SECI and the SPDs for an early commissioning of the projects by June 27, 2026, to secure these cost reductions.
KSERC passes order on complaint regarding permanent electric connection
The Kerala State Electricity Regulatory Commission (KSERC) has passed an order regarding a complaint filed by an individual about the denial of a permanent electric connection to their property. The commission directed Kerala State Electricity Board Limited (KSEBL) to provide a permanent electric connection upon accepting the expenditure proportionate to the connected load from the property owners.
In case any constraints arise due to right of way issues, KSEBL was instructed to address the matter with the additional district magistrate, as per Regulation 47 of the Kerala Electricity Supply Code, 2014. If delays occur, KSEBL must provide a temporary domestic service connection through a private road.
Furthermore, electric connections to other applicants will be provided once their proportionate expenses are received and the works are completed. KSEBL is also required to shift the meter and other electrical lines installed for temporary service connections for construction purposes as needed.
MERC rejects MSEDCL’s petition seeking review of August 1, 2024 order
The Maharashtra Electricity Regulatory Commission (MERC) has rejected the review petition filed by Maharashtra State Electricity Distribution Company Limited (MSEDCL) regarding the order dated August 1, 2024, in Case No. 174 of 2023.
MSEDCL had been imposed a penalty of Rs 100,000 for repeated procedural violations. These included failing to file a required reply on the e-filing portal within the 15-day period following a notice on August 22, 2023, and instead submitting it via email nearly nine months late on May 15, 2024. Additionally, MSEDCL delayed submitting the interest calculation sheet, which was due after an e-hearing on May 21, 2024, and filed it on July 10, 2024.
In the review petition, MSEDCL admitted its failure to file the reply on the e-filing portal and claimed that its officer was unaware of the process. MERC rejected this excuse, stating that MSEDCL had been using the portal for filing petitions and replies since its inception. The commission also emphasized that Regulation 18 (a) of MERC (Transaction of Business and Fees and Charges) Regulations, 2022, mandates filing petitions and replies exclusively on the e-filing portal.
The commission found no merit in the review petition and upheld the original penalty.
MERC approves combined power procurement plan for SEZ BioTech Services
The Maharashtra Electricity Regulatory Commission (MERC) has approved the petition filed by SEZ BioTech Services Private Limited – Manjari SEZ and SEZ Bio-Tech Services Private Limited – Hadapsar SEZ for a 25 MW power purchase plan. The petition seeks approval for combined power procurement and round-the-clock (RTC) power procurement on a long-term basis from FY 2025-26 to FY 2044-45.
The commission noted that both distribution licensees had submitted their resource adequacy plans in accordance with the MERC (Framework for Resource Adequacy) Regulations, 2024, considering demand assessments, demand forecasts, and generation resource planning for both short-term and long-term periods.
The commission acknowledged that securing a long-term power source would ensure a stable power supply and stabilize procurement expenses for consumers. The combined procurement by Manjari SEZ and Hadapsar SEZ is expected to attract more bidders and reduce administrative costs.
The commission approved the combined power procurement and directed Manjari SEZ and Hadapsar SEZ to approach the commission for tariff adoption through the competitive bidding process under Section 63 of the Electricity Act, 2003.
MERC partly allows MAIIL’s petition for late payment surcharge
The Maharashtra Electricity Regulatory Commission (MERC) has partly allowed the petitions of Manas Agro Industries and Infrastructure Limited (MAIIL), Wardha, and MAIIL, Nagpur, seeking approval for payment of late payment surcharge (LPS) on energy bills paid belatedly by Maharashtra State Electricity Distribution Company Limited (MSEDCL) after the due date.
The petitioners are eligible for the following LPS and penal interest:
- MAIIL, Wardha:
LPS: Rs 32,98,810.06
Interest on delayed payment of LPS: Rs 27,64,129.09
Total: Rs 60,62,939.15 - MAIIL, Nagpur:
LPS: Rs 88,02,863.50
Interest on delayed payment of LPS: Rs 51,98,147.32
Total: Rs 1,40,01,010.82
MSEDCL is required to pay these claims within the timelines stipulated in the respective energy purchase agreements after receiving the supplementary bill.
MERC disposes of Liberty Oil Mills’ petition on contract demand revision
The Maharashtra Electricity Regulatory Commission (MERC) has disposed of the petition filed by Liberty Oil Mills, seeking implementation of the order dated May 26, 2021, in Case No. 25 of 2021. This order allowed the revision of contract demand up to two occasions for high tension (HT) industrial and HT commercial consumers, and up to one occasion for low tension (LT) industrial and LT commercial consumers in a billing cycle, until March 31, 2022.
MERC stated that it does not have jurisdiction to adjudicate disputes related to the reduction of contract demand. The petitioner has been advised to approach the consumer grievance redressal forum (CGRF) for redressal, with the CGRF required to dispose of the grievance within one month from the date of filing.
MERC approves NUPLLP’s petition for PPA and tariff adoption for short-term power procurement
The Maharashtra Electricity Regulatory Commission (MERC) has approved Nidar Utilities Panvel LLP (NUPLLP)’s petition for the adoption of tariff and approval of the power purchase agreement (PPA) for short-term procurement. NUPLLP will procure 1 MW round-the-clock (RTC) power from January 1, 2025, to March 31, 2025, and 2 MW RTC power from April 1, 2025, to October 31, 2025.
The commission noted that the rate discovered through NUPLLP’s competitive bidding process is Rs 5.65 per kWh, which is reasonable compared to rates on the DEEP portal ranging from Rs 6.15 to Rs 6.60 per kWh. The tariff of Rs 5.65 per kWh is deemed reflective of the current market situation.
Thus, MERC has adopted the short-term power procurement for the specified period under Section 63 of the Electricity Act, 2003, and approved the power purchase agreement with the successful bidder. NUPLLP is instructed to submit final copies of the PPA to MERC’s office for records.