CERC adopts Rs 2.45 per kWh usage charge in NLC solar case

The Central Electricity Regulatory Commission (CERC) has reiterated the importance of bid sanctity while ruling on solar usage charges in a case involving NLC India Limited. While maintaining the discovered ceiling charge, the Commission has allowed provisional relief linked to a Change in Law claim.

In a petition of NLC India Limited vs. Indian Renewable Energy Development Agency Limited & Others, NLC India sought adoption of usage charges of Rs 2.52/kWh and Rs 2.57/kWh for a 510 MW solar project under the Central Public Sector Undertaking (CPSU) Scheme Phase-II. The competitive bid was held on 23 September 2021 with a notified ceiling usage charge of Rs 2.45/kWh.

CERC held that the parameters applicable on the date of bidding remain the reference benchmark and cannot be altered post-bidding. It stated that deviations after bid conclusion would undermine the integrity of the competitive process. The Commission therefore adopted Rs 2.45/kWh as the usage charge.

However, NLC India argued Change in Law arising from increased Goods and Services Tax (GST), and noted that the Ministry of New and Renewable Energy later revised the ceiling usage charge. Taking this into account, CERC allowed the developer to provisionally charge the enhanced rate as interim relief. It also permitted NLC India to file a separate petition within six weeks to establish its Change in Law claim.

The ruling reinforces adherence to established bid conditions while allowing procedural space for justified financial adjustments arising from policy developments.

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