Author: PPD Team Date: 25/02/2025

 

UPERC approves NCRTCL’s petition on electricity supply terms

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved the National Capital Region Transport Corporation Limited’s (NCRTCL) petition seeking approval for the terms of electricity supply inside its stations and premises on a franchisee basis.

The commission noted that it had abolished the 5 per cent additional charge for the single-point category (LMV-1b – supply at a single point for bulk loads) in its tariff order for FY 2022-23, issued on July 20, 2022. As a result, it denied NCRTCL’s request for 5 per cent revenue retention, stating that there was no valid justification.

Regarding concerns over the extent of commercial load, UPERC questioned Paschimanchal Vidyut Vitran Nigam Limited’s (PVVNL) reluctance to allow higher commercial loads, emphasizing that increased load supply would ultimately benefit the respondents through higher revenue.

Since NCRTCL’s franchisee model involves supplying electricity to commercial establishments such as retail shops, malls, offices, ATMs, and EV charging stations within its Regional Rapid Transit System (RRTS) stations and depots, the commission ruled that capping the commercial load would be impractical and against the Supply Code. However, it clarified that power factor surcharges, where applicable, would be levied as per the existing tariff order.

Petition No: 2095 of 2024 | Read the full order here.

APTEL sets aside CERC orders in Rajasthan discoms’ appeals

The Appellate Tribunal for Electricity (APTEL) has approved the petition filed by the three distribution companies (discoms) operating in Rajasthan against two identical but separate orders dated September 29, 2017, passed by the first respondent, the Central Electricity Regulatory Commission (CERC), in Petition Nos. 15/MP/2016 and 186/MP/2016. These petitions were filed by the second respondent, Rajasthan Steel Chambers, regarding the settlement of Unscheduled Interchange (UI) accounts. APTEL affirmed its jurisdiction to adjudicate the dispute.

APTEL noted that the facts and circumstances of this case were identical to those in Appeal No. 70 of 2015 before APTEL. The findings in that appeal, concerning embedded customers in Gujarat using a collective power exchange transmission system, were deemed applicable to the present case. As a result, the tribunal held that the same legal principles would apply to the dispute between Rajasthan Steel Chambers and Rajasthan discoms.

The tribunal observed that CERC had not considered its judgment in Appeal No. 70 of 2015, issued on April 7, 2016, while passing the impugned orders. It ruled that the dispute in these petitions fell within the exclusive jurisdiction of the Rajasthan Electricity Regulatory Commission (RERC). Therefore, CERC’s assertion of jurisdiction was erroneous.

Consequently, APTEL set aside CERC’s orders, stating they could not be upheld. It allowed the appeals and dismissed Petition Nos. 15/MP/2016 and 186/MP/2016, ruling that they were not maintainable before CERC due to lack of jurisdiction.

Petition No: APPEAL No. 111 of 2018 & APPEAL No. 112 of 2018 | Read the full order here.

APTEL rejects KSEBL’s appeal against KSERC’s order on PSAs

The Appellate Tribunal for Electricity (APTEL) has rejected the appeal filed by Kerala State Electricity Board Limited (KSEBL) against the order of the Kerala State Electricity Regulatory Commission (KSERC) in OP No. 05 of 2021. KSERC had declined to approve four power supply agreements (PSAs) signed by KSEBL following a tariff-based competitive bidding process under Section 63 of the Electricity Act, 2003.

The four PSAs under dispute include:

  1. A PSA with Jabhua Power Limited (Respondent No. 2) for 115 MW.
  2. Another PSA with Jabhua Power Limited for 100 MW.
  3. A PSA with Jindal India Thermal Power Limited (JITPL, Respondent No. 3) for 100 MW.
  4. A PSA with Jindal Power Limited (Respondent No. 4) for 150 MW.

APTEL noted that while a committee formed by the Government of Kerala had recommended against approving deviations in the standard bidding process followed by KSEBL, its recommendation held little significance. The tribunal pointed out that the state government has no role in tariff adoption under Section 63 of the Electricity Act, as this authority lies with KSERC, which must ensure that the tariff determination follows a transparent bidding process in line with the Government of India’s 2013 Guidelines.

APTEL upheld KSERC’s decision, stating that KSEBL’s bidding process significantly deviated from the 2013 Central Government Guidelines, making the PSAs ineligible for approval. It found no fault in KSERC’s order that would warrant interference. As a result, APTEL dismissed the appeal and the related interlocutory applications (I.As).

Petition No: APPEAL NO. 518 OF 2023 & IA NO. 2015 OF 2024 | Read the full order here.

KSERC rejects CoPA’s draft PPA for 350 kW grid-connected solar project

The Kerala State Electricity Regulatory Commission (KSERC) has rejected the petition filed by Cochin Port Authority (CoPA) seeking approval for the draft power purchase agreement (PPA) for a 350 kW grid-connected rooftop solar photovoltaic (RTS PV) project at Cochin Port Authority.

KSERC stated that it has no authority to intervene in the steps taken by CoPA as an electricity consumer to meet the targets under the Harit Sagar Green Port Guidelines issued by the Government of India. However, as a distribution licensee, electricity distribution, infrastructure maintenance, power procurement, and renewable purchase obligation (RPO) compliance must follow the rules and regulations issued by the commission under the Electricity Act, 2003.

The commission noted that the Solar Energy Corporation of India Limited (SECI) invited tenders for a 448 kW RTS PV project to meet part of CoPA’s electricity demand. However, SECI did not follow the Guidelines for Tariff-Based Competitive Bidding Process for Procurement of Power from Grid-Connected Solar Power Projects issued by the Ministry of Power for distribution licensees.

Under Section 63 of the Electricity Act, 2003, KSERC cannot adopt the tariff or approve the PPA if the power procurement bidding process for a distribution licensee does not follow the guidelines set by the central government. Furthermore, KSERC has no authority to approve power procurement by consumers from sources other than the distribution licensee, as such decisions fall under consumer discretion and must align with relevant regulations.

Petition No: OP No 42/2024 | Read the full order here.

KSERC approves CIAL’s draft PPA with KSEBL at Rs 4.30 per unit

The Kerala State Electricity Regulatory Commission (KSERC) has approved the petition filed by CIAL Infrastructures Limited seeking approval of the draft power purchase agreement (PPA) dated May 23, 2023, between CIAL and Kerala State Electricity Board Limited (KSEBL).

KSERC noted that all clauses of the draft PPA were mutually agreed upon by both parties. It also observed that CIAL has been generating and supplying power from its 4.5 MW Arippara Small Hydro Project (SHP) since August 5, 2021, with KSEBL currently making payments at Rs 4.30 per unit.

The commission approved the draft initialed PPA, including the proposed exit clause, by invoking its powers under Section 86(1)(b) of the Electricity Act, 2003, and Regulation 77 of the KSERC (Terms and Conditions of Tariff) Regulations, 2021, along with its amendments.

KSERC directed KSEBL to enter into a PPA with CIAL at Rs 4.30 per unit for the entire electricity generated from the project. The commission issued the following orders:

  1. The draft PPA, as initialed by CIAL and KSEBL, is approved with the exit clause.
  2. CIAL and KSEBL are to sign the PPA within one month from the date of the order.
  3. A copy of the signed PPA is to be submitted to the commission for record-keeping.

Petition No: OP No. 48/2023 | Read the full order here.

KSERC approves KPUPL’s draft supplementary PPA with KSEBL

The Kerala State Electricity Regulatory Commission (KSERC) has approved the petition filed by KINESCO Power Utilities Private Limited (KPUPL) seeking approval of the draft supplementary power purchase agreement (SPPA) between Kerala State Electricity Board Limited (KSEBL) and KPUPL. The agreement allows for an enhancement of contract demand from 2000 kVA to 3000 kVA for KINFRA Integrated Industrial and Textile Park (KIITP), Kanjikode, Palakkad.

KSERC noted that KPUPL is a small distribution licensee in Kerala, supplying electricity to KIITP. KPUPL procures its entire power requirement from KSEBL at the bulk supply tariff approved by the commission.

After examining the petition, the provisions of the Electricity Act, 2003, and KSERC (Conditions of License for Existing Distribution Licensees) Regulations, 2006, along with other applicable rules and regulations, KSERC has approved the draft SPPA initialed between KPUPL and KSEBL on January 5, 2024, for increasing the contract demand of KIITP from 2000 kVA to 3000 kVA.

Petition No: OP No. 19/2024 | Read the full order here.

TNERC rejects Annamalai University’s plea against tariff classification

The Tamil Nadu Electricity Regulatory Commission (TNERC) has rejected Annamalai University’s petition seeking to set aside the impugned communication dated August 24, 2004, which reclassified its service connection (HTSC 95) from Tariff IIA (for educational institutions) to Tariff III (commercial). The university had also sought a declaration that the communication was illegal and requested reclassification under Tariff IIA.

TNERC ruled that the respondents’ contention—that the university was liable to pay at Tariff III rates as revised by the second respondent—was legally valid. The commission noted that the relief sought by the petitioner hinged on overturning the audit-based reclassification that led to the change in tariff.

Since the commission upheld the respondents’ argument, it concluded that the impugned communication was legally sustainable and that the university was liable to pay the revised Tariff III rates for the energy consumed from December 1, 2001, to July 31, 2004. Consequently, TNERC denied Annamalai University any relief in the matter.

Petition No: M.P. No. 29 of 2023 | Read the full order here

BERC disposes of NBPDCL and SBPDCL’s plea on penalty relaxation

The Bihar Electricity Regulatory Commission (BERC) has disposed of the petition filed by North Bihar Power Distribution Company Limited (NBPDCL) and South Bihar Power Distribution Company Limited (SBPDCL). The petition sought relaxation of the penalty provision for smart meter consumers exceeding their opted demand and requested an adjournment of the power factor surcharge for single-phase low-tension (LT) smart meter consumers until March 31, 2026, to support the smart metering rollout.

The commission stated that granting an extension would require amending its order dated June 27, 2023, which introduced the Bihar Electricity Supply Code (7th Amendment), 2023. It also noted that the petitioners had already filed two separate tariff petitions (Case No. 29/2024 and Case No. 30/2024) on November 15, 2024, before the current petition was admitted. Given this, BERC decided to address the issues raised in the petition within the framework of the ongoing tariff petitions for FY 2025-26, ensuring compliance with Clause 1.2(8) of the Bihar Electricity Supply Code, 2007.

Regarding the request to adjourn the power factor surcharge, BERC ruled that it could not entertain the plea, as it would amount to reviewing its tariff order dated March 1, 2024. Since a review petition against that order had already been disposed of, the commission found the request in the current petition to be unsustainable.

Petition No: 32/2024 | Read the full order here.

HERC approves MSIL’s request for single-point supply connection

The Haryana Electricity Regulatory Commission (HERC) has partly approved Maruti Suzuki India Limited’s (MSIL) petition seeking a single-point supply connection for its industrial complex in Kharkhoda, Haryana. The petition, filed along with its ancillaries association, also requested adjustments of all securities and advance consumption deposits against the required securities for the proposed connection from Uttar Haryana Bijli Vitran Nigam Limited (UHBVN).

The commission noted that existing Single Point Supply Regulations were designed for licensed colonies and did not account for large industrial plots with multiple manufacturing units within a notified industrial estate. However, considering the economic significance of MSIL’s plant, HERC acknowledged the need to amend the regulations to include large industrial plots under their scope.

The commission also pointed out that MSIL’s Manesar plant, under Dakshin Haryana Bijli Vitran Nigam (DHBVN), has a similar connection setup with a 70 MVA, 220 kV connection supplying both MSIL and its joint venture ancillary units. To maintain uniformity in approach between the two discoms, HERC directed UHBVN to provide power and metering arrangements for MSIL and its ancillaries in Kharkhoda following the same pattern as DHBVN at Manesar, as an interim arrangement.

Petition No: Case No. HERC/P. No. 40 of 2024 | Read the full order here.

MERC approves LBSCML’s PPA execution and tariff adoption

The Maharashtra Electricity Regulatory Commission (MERC) has approved Laxmipati Balaji Supply Chain Management Limited’s (LBSCML) petition for executing a power purchase agreement (PPA) with Manikaran Power Limited (MPL). The petition also sought tariff adoption for short-term power procurement of 1 MW under a regulated tariff mechanism for one year, from February 1, 2025, to January 31, 2026, for its free trade and warehousing zone and IT/IT-enabled services special economic zone in Panvel, Raigad.

The commission noted that LBSCML discovered a tariff of Rs 6.30 per kWh through a competitive bidding process. It observed that short-term power rates on the DEEP (Discovery of Efficient Electricity Price) portal varied from Rs 3.85 to Rs 12.99 per kWh, making the discovered tariff reasonable and reflective of the current market conditions.

In light of these findings, MERC adopted the short-term procurement tariff under Section 63 of the Electricity Act, 2003, and approved the PPA between LBSCML and MPL at Rs 6.30 per kWh at the Maharashtra State periphery. LBSCML has been directed to submit copies of the final PPA to the commission for records.

Petition No: Case No. 04 of 2025 & IA No. 05 of 2025 | Read the full order here.

MERC rejects MSEDCL’s review petition on interest payment for banked units

The Maharashtra Electricity Regulatory Commission (MERC) has dismissed Maharashtra State Electricity Distribution Company Limited’s (MSEDCL) petition seeking a review of its order dated March 31, 2024, in Case No. 146 of 2023. The petition pertained to the non-entitlement of interest on the principal payment related to over-injected units from FY 2019-20 to FY 2022-23.

MSEDCL argued that Persistent Systems Limited (PSL) had never raised an invoice for its claim regarding the purchase of over-injected or unutilized banked units for the said period. It contended that granting interest was an apparent error and required correction. However, the commission clarified that interest on delayed payments for unutilized banked units is applicable only after an invoice is submitted and the due date expires.

Since no invoices were raised by PSL, MERC ruled that the issue did not qualify as an error apparent on the record. Consequently, the commission dismissed MSEDCL’s review petition, upholding its original order.

Petition No: Case No. 97 of 2024 | Read the full order here.

Featured photograph is for representation only. 

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