MPERC rejects review plea on STOA charges for renewable generators
The Madhya Pradesh Electricity Regulatory Commission (MPERC) has dismissed a review petition filed by the State Load Despatch Centre (SLDC) and Madhya Pradesh Power Transmission Company Limited (MPPTCL) challenging its earlier order on transmission charges applicable to Short-Term Open Access (STOA) customers.
In its order dated July 3, 2026, the Commission held that the petitioners had failed to establish any error apparent on the face of the record and that the issues raised had already been examined during the original proceedings.
The dispute relates to MPERC’s November 17, 2025, order in Petition No. 19/2025, which clarified that transmission charges for non-conventional energy-based generating stations availing STOA would be billed at the rates approved in the Transmission Multi-Year Tariff (MYT) Order. The Commission had further stated that any adjustment would be carried out on the basis of actual energy handled or transmitted, subject to due diligence by the respondents upon the petitioner’s request.
Review arguments
SLDC and MPPTCL sought a review of the order on the grounds that STOA charges are linked to reserved transmission capacity rather than actual energy transmitted.
They argued that Regulation 11.3 of the Open Access Regulations requires users to surrender unutilised transmission capacity and contended that permitting charges to be based on actual energy injection could result in capacity hoarding, with generators reserving transmission corridors without fully utilising them.
The petitioners also submitted that such an interpretation could reduce non-tariff income earned through STOA transactions, potentially increasing transmission tariffs for Long-Term Open Access (LTOA) consumers. They further argued that the order created a differential treatment between renewable and conventional generators.
Continuum MP Windfarm Development Pvt. Ltd., the respondent in the matter, opposed the review petition, stating that it amounted to an appeal in disguise and did not satisfy the limited grounds available under review jurisdiction.
Commission’s findings
MPERC observed that the scope of review proceedings under Order 47 Rule 1 of the Code of Civil Procedure (CPC) is limited to correcting errors apparent on the face of the record and cannot be used to re-argue matters already decided.
The Commission noted that the issues relating to Regulations 11.3, 13 and 16.3 of the Open Access Regulations had been extensively considered while passing the original order and therefore could not be reopened through a review petition.
Significantly, MPERC recorded that SLDC had itself submitted a compliance report stating that “no reconciliation/adjustment of charges as per actual injection is required to be done,” which the Commission said demonstrated compliance with the November 17, 2025, order.
The Commission also took note of the fact that Continuum MP Windfarm Development Pvt. Ltd. had migrated to Medium-Term Open Access (MTOA) with effect from April 16, 2026, and had paid all applicable STOA bills up to that date.
Legal precedents
In support of its findings, MPERC cited the Supreme Court’s judgment in Parison Devi v. Sumitri Devi, which held that an error requiring a process of reasoning cannot be considered an error apparent on the face of the record.
The Commission also referred to the Supreme Court’s decision in Lily Thomas v. Union of India, wherein it was held that the power of review is intended for correction of mistakes and not for substituting one view with another.
With the dismissal of the review petition, MPERC’s earlier ruling remains in force. The Commission reiterated that any reduction in STOA-related revenue would be addressed through the Annual Revenue Requirement (ARR) process.
The order has implications for renewable energy generators availing STOA in Madhya Pradesh, as it preserves the Commission’s interpretation regarding transmission charge adjustments based on actual energy transmitted.
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