Here are the latest updates on regulatory developments in India’s power generation sector:
WBERC approves IPCL’s ARR and tariff petition for 2023-26
The West Bengal Electricity Regulatory Commission (WBERC) has approved India Power Corporation Limited’s (IPCL) petition for the determination of aggregate revenue requirement (ARR) and tariff for the 9th Control Period (2023-24 to 2025-26) under the applicable Tariff Regulations.
The commission has determined the allowable net fixed charges after adjusting other incomes for Dishergarh generating stations and IPCL’s distribution function. The net fixed charges for 2023-24, 2024-25, and 2025-26 are Rs 1,761.6 million, Rs 1,848.06 million, and Rs 1,910.90 million, respectively. The allocation is as follows (Rs million):
- Generation: 173.47 (2023-24), 172.19 (2024-25), 171.10 (2025-26)
- Distribution: 1,574.90 (2023-24), 1,661.83 (2024-25), 1,700.62 (2025-26)
- Total: 1,748.38 (2023-24), 1,834.03 (2024-25), 1,871.72 (2025-26)
Source: WBERC
KSERC approves KSEBL’s power banking deal with PSPCL
The Kerala State Electricity Regulatory Commission (KSERC) has approved Kerala State Electricity Board Limited’s (KSEBL) petition for a power banking agreement with Punjab State Power Corporation Limited (PSPCL).
The commission reviewed the banking transaction for power supply from KSEBL to PSPCL between 24 May 2024 and 1 June 2024, with the return period set from 1 April 2025 to 30 April 2025. Additionally, it examined another banking arrangement where KSEBL will supply surplus power from 1 July 2024 to 31 July 2024, with PSPCL returning the banked power from 1 April 2025 to 15 April 2025.
KSERC ratified both arrangements, including the transaction facilitated through aggregator APPCPL, in line with the Electricity Act 2003 and KSERC (Terms and Conditions for Determination of Tariff) Regulations 2021.
KSERC notifies Kerala Electricity Supply Code (Removal of Difficulties) Order, 2025
The Kerala State Electricity Regulatory Commission (KSERC) has issued the Kerala Electricity Supply Code (Removal of Difficulties) Order, 2025, providing relaxation in Regulations 36 and 49.
The order allows individual beneficiaries in abandoned residential colonies or villa projects, or those involved in disputes before the Kerala Real Estate Regulatory Authority or the Appellate Tribunal, to apply directly for service connections. The licensee will process applications and estimate costs based on the project’s total load:
- Above 1 MW: Applicants must share the cost of extending or upgrading the distribution system and internal network based on their connected load.
- 1 MW or below: Applicants must bear the proportionate cost of constructing the internal distribution network.
The move aims to facilitate electricity connections in stalled residential projects.
RERC notifies suo moto order on tariff regulations for 2025
The Rajasthan Electricity Regulatory Commission (RERC) has issued a suo moto notification on the RERC (Terms and Conditions for Determination of Tariff) Regulations, 2025.
Stakeholders emphasized that once the multi-year tariff (MYT) structure is finalized, major changes should not be introduced during the control period. Some also requested that the regulations be published in Hindi for better accessibility.
Discussions focused on definitions, including additional capital expenditure, auxiliary energy consumption, and availability calculations. Stakeholders recommended revising the availability formula to account for auxiliary energy consumption from emission control systems. They also raised concerns about verifying data through independent agencies instead of relying solely on the State Load Despatch Centre.
Another key issue was the inclusion of “Change in Law” provisions to shield consumers from tariff shocks. Stakeholders suggested limiting tariff increases due to legal changes to specific waivers rather than broad adjustments. There were also calls for clearer definitions of force majeure events to prevent arbitrary tariff hikes.
TNERC approves Techno Electric’s petition for review of M.P.No.28 of 2023
The Tamil Nadu Electricity Regulatory Commission (TNERC) has approved Techno Electric and Engineering Company Limited’s petition seeking a review of the final order in M.P.No.28 of 2023.
TNERC ruled in favor of the petitioner, holding that Tamil Nadu Generation and Distribution Corporation (TANGEDCO) cannot automatically extend the directive of applying the Solar Energy Corporation of India (SECI) price cap—meant only for unutilized banked energy—to the Average Power Purchase Cost (APPC). The commission deemed this action illegal and in violation of its tariff orders.
TNERC has modified its directions in para 4.15 of the order as follows:
- If the APPC rate does not exceed the preferential tariff of the corresponding year, TANGEDCO must pay the petitioner the full APPC rate without any cap.
- If the APPC rate exceeds the preferential tariff, TANGEDCO must pay 75 percent of the preferential tariff set for that year.
GERC approves DGVCL’s petition for adoption of tariff for solar power plants
The Gujarat Electricity Regulatory Commission (GERC) has approved Dakshin Gujarat Vij Company Limited’s (DGVCL) petition for the adoption of tariffs discovered through the competitive bidding process for 112 solar power plants totaling 212 MW. The plants will be developed under the RESCO model for solarisation of 11 kV feeders in DGVCL, as part of the PM-KUSUM-C scheme by the Government of India.
The commission confirmed that the proposed Power Purchase Agreement (PPA) to be signed with the successful bidder aligns with the draft PPA in the bid documents, with only minor modifications allowed under MNRE guidelines for the KUSUM scheme. No deviation approval from the Central Government or the Commission is necessary.
GERC has adopted the tariff determined through the transparent bidding process and has directed DGVCL to publicly disclose the name of the successful bidder and the agreed tariff, along with its components, on its website within 30 days after signing the PPA.
GERC approves MGVCL’s petition for adoption of tariff for solar power plants
The Gujarat Electricity Regulatory Commission (GERC) has approved Madhya Gujarat Vij Company Limited’s (MGVCL) petition for the adoption of tariffs discovered through the competitive bidding process for three solar power plants totalling 3 MW. The plants will be developed under the RESCO model for solarisation of 11 kV feeders in MGVCL, as part of the PM-KUSUM-C scheme by the Government of India.
The commission noted that MGVCL transparently conducted the bidding process, in accordance with the provisions of the PM KUSUM Scheme and its amendments. The bid evaluation committee confirmed the transparency of the process and recommended adopting the discovered tariff.
GERC has approved the petition and the bid evaluation committee’s recommendation to adopt the negotiated tariff. The commission also authorized MGVCL to issue the Letter of Award (LoA) and sign the Power Purchase Agreement (PPA) with the successful bidders, following the draft PPA in the bid documents and Ministry of Power (MoP) guidelines for the PM KUSUM Yojna.
APTEL passes order on TANGEDCO’s petition challenging TNERC’s decision
The Appellate Tribunal for Electricity (APTEL) has passed an order regarding Tamil Nadu Generation and Distribution Corporation Limited’s (TANGEDCO) petition challenging the Tamil Nadu Electricity Regulatory Commission’s (TNERC) order dated August 31, 2023, in M.P. No. 3 of 2022.
In the impugned order, TNERC had allowed the termination of the Coal Supply and Transportation Agreement (CSTA) and permitted the execution of a Fuel Supply Agreement (FSA) with Coal India Limited (CIL) or any domestic coal supplier, along with the removal of the ceiling price mechanism. TNERC also approved the procurement of coal from alternate sources during the interim period between the termination of the CSTA and the execution of the FSA, along with amendments to the Power Purchase Agreement (PPA).
APTEL has directed that the interim arrangement, allowing the respondent to procure imported coal for power supply to TANGEDCO until domestic coal linkage is secured, will continue for up to 12 months. This period is either until the revamped SHAKTI Policy comes into force or domestic coal linkage is secured, whichever comes first.
APTEL stated that if domestic coal linkage is not secured within the stipulated period, TANGEDCO may take legal action, and the respondent may approach the State Commission for further legal proceedings. With this, the appeal and associated interim applications were disposed of.
APTEL passes order on Aditya Industries’ petition seeking prayers
The Appellate Tribunal for Electricity (APTEL) has approved the petition filed by Aditya Industries, which sought the following reliefs: (a) to allow the interim application (IA) and recall the order disposing of the execution petition (EP); (b) alternatively, to hear the present EP on merits; (c) and to pass any other order it deems fit.
APTEL also considered IA No. 1609 of 2024, requesting the correction of an error in disposing of EP No. 4 of 2016. APTEL has noted the accidental omission in the order and corrected the cause title and the operative part of the order, removing references to EP No. 4 of 2016. As a result, EP No. 4 of 2016 has been restored to file and will be taken up for hearing.
Additionally, EP No. 9 of 2024, which sought the execution of the same judgment as EP No. 4 of 2016, was deemed superfluous and has been closed. APTEL did not deem it necessary to examine whether a second EP seeking execution of the same judgment is maintainable or constitutes res judicata.
Consequently, IA Nos. 1515 and 1609 of 2024 have been disposed of, and EP No. 9 of 2024 has been closed.
APTEL disposes of TANGEDCO petition assailing TNERC’s March 31, 2016 order
The Appellate Tribunal for Electricity (APTEL) has disposed of the petition filed by Tamil Nadu Generation and Distribution Corporation (TANGEDCO), which challenged the March 31, 2016 order passed by the Tamil Nadu Electricity Regulatory Commission (TNERC). The TNERC order sought to clarify the applicability of slot-to-slot adjustments for wind energy generators (WEG) under the Commission’s order No. 3 dated May 15, 2006.
APTEL observed that the 2006 tariff order distinctly provides for energy adjustments for biomass/bagasse-based plants and WEGs. If it were the intention of the Commission to apply adjustments in the same manner for both, there would have been no need to include specific provisions for WEGs in the order.
While APTEL acknowledged that the Commission’s intention to extend the benefit of energy adjustment to WEGs under the 2006 tariff order could be seen as bona fide, it deemed the approach used by the Commission as impermissible. Consequently, APTEL set aside the impugned order of the Commission to the extent challenged in the appeal. The appeal stands allowed.
APTEL passes order in IWPA’s petition challenging GERC order dated December 31, 2016
The Appellate Tribunal for Electricity (APTEL) has passed an order on the petition filed by the Indian Wind Power Association (IWPA), challenging the Gujarat Electricity Regulatory Commission (GERC) orders dated December 31, 2016, in Petition No. 1542/2015 and Petition No. 1518/2015.
APTEL noted that the appellant was aggrieved by the GERC’s decision to revise the Renewable Purchase Obligation (RPO) for FY 2014-15, arguing that the revision was contrary to the scheme, import, and intent of the Electricity Act of 2003, along with the related policies and regulations.
While APTEL did not make specific observations on the submissions, it emphasized that, in accordance with the provisions of the Electricity Act, 2003, and the relevant regulations, the respondents must comply with the RPO obligations. It also directed that for future orders, the respondents should ensure adherence to the regulations as notified from time to time.
APTEL passes order in matter of petition filed by IWPA challenging PSERC orders dated March 21, 2017
The Appellate Tribunal for Electricity (APTEL) has passed an order on the petition filed by the Indian Wind Power Association (IWPA), challenging the Punjab State Electricity Regulatory Commission (PSERC) orders dated March 21, 2017, and May 22, 2017, in Petition No. 61/2016 and Petition No. 60/2015, respectively.
The appellant was aggrieved by the PSERC’s decision allowing the carry-forward of the shortfall in Renewable Purchase Obligation (RPO) compliance for FY 2015-16 to FY 2016-17, thereby undermining the Renewable Energy Certificate (REC) mechanism. The IWPA also objected to the refusal to direct the distribution licensees to address the RPO shortfall despite the availability of RECs.
APTEL did not offer specific observations on the submissions made but emphasized that, under the provisions of the Electricity Act, 2003, and the relevant regulations of the State Commission, the second respondent must comply with the RPO obligations. APTEL further directed that, for future orders, the respondents must adhere to the regulations within the specified timelines.
APTEL approves IWPA’s challenge to the order dated November 14, 2017
The Appellate Tribunal for Electricity (APTEL) has approved the petition filed by the Indian Wind Power Association (IWPA), challenging the order dated November 14, 2017, in Petition No. RERC-867/2016, passed by the Rajasthan Electricity Regulatory Commission (RERC). The state commission had allowed the distribution licensees in Rajasthan to make up for the shortfall in Renewable Purchase Obligation (RPO) over the next five years.
APTEL noted that Rajasthan’s distribution companies (discoms) have achieved around 85 percent of their RPO target and are making additional efforts to meet the goal in the coming years. The state commission had also directed the discoms to address the shortfall in the subsequent years.
Although APTEL did not offer specific observations on the submissions, it emphasized that the discoms are duty-bound to comply with RPO obligations under the Electricity Act, 2003, and the relevant regulations of the state commission. For future orders, the respondents must adhere to the regulations within the specified timelines.
APTEL approves Green Energy’s petition challenging order in Case No. 09 of 2015
The Appellate Tribunal for Electricity (APTEL) has approved the petition filed by Green Energy Association, challenging the Jharkhand State Electricity Regulatory Commission’s (JSERC) order dated February 28, 2017, in Case No. 09 of 2015.
In the impugned order, JSERC had exempted Tata Steel Limited (Respondent No. 2) from fulfilling its renewable purchase obligation (RPO) for the fiscal years 2011-12 to 2013-14, based on the assertion that the company’s captive cogeneration had exceeded the RPO requirement. This decision was based on a prior order that APTEL found to be legally untenable.
APTEL noted the respondent’s argument that any direction for compliance with Regulation 10 of the 2010 JSERC Regulations, regarding penalties for non-compliance with RPO, would be penalizing Tata Steel for non-compliance when it had been granted lawful relaxation. APTEL, however, found merit in the appellant’s arguments.
The tribunal set aside JSERC’s order and directed the state commission to determine the amount of non-compliance for the relevant period, as per Regulation 10 of the RPO Regulations. Respondent No. 2 must deposit the determined amount within one month of the judgment, and the amount should be used for the purchase of renewable energy certificates (RECs), in addition to the RECs that Tata Steel is required to purchase.
OERC rejects OHPC petition for truing up expenses including GFA of different power stations
The Odisha Electricity Regulatory Commission (OERC) has rejected the petition filed by OHPC Limited for truing up expenses, including the gross fixed assets (GFA) of its various power stations.
The commission noted that prior to 2014, the generation tariff was governed by the CERC’s Tariff Regulations. An anomaly was observed in the GFA of the Upper Indravati Hydro Electric Project (UIHEP) related to the tariff order for FY 2007-08, where the commission had approved Rs 12.33 million as the GFA for UIHEP. However, the tariff was determined using a provisional GFA of Rs 11.95 billion due to the lack of detailed information and the final settlement of accounts at the time. OHPC subsequently provided the relevant details, leading to the commission approving a corrected additional GFA of Rs 0.37 billion for UIHEP.
Despite this, the commission clarified that at this stage, there is no scope to allow return on equity (RoE), depreciation, interest on loan, and working capital on the differential GFA, as OHPC failed to make such claims at the appropriate time.
The commission concluded that the capital expenditure and additional capital expenditure incurred for the block period ending March 31, 2024, concerning OHPC’s hydroelectric plants, will be considered during the truing up exercise for FY 2025-26 in line with OERC’s Generation Tariff Regulations, 2020.
CERC approves Beempow petition seeking compensation for change in law events
The Central Electricity Regulatory Commission (CERC) has approved the petition filed by Beempow Energy Private Limited for compensation to offset the financial impact of change in law events. This includes the increase in the rate of Goods and Services Tax (GST) from 5% to 12/18%, as per Notification No. 8/2021- Central Tax (Rate).
CERC views the notification as a change in law event under Article 17 of the Power Purchase Agreement (PPA) dated November 25, 2021. Beempow is entitled to compensation due to this change in law, in accordance with the mutually agreed project capacity under the PPAs.
The commission has instructed the contracting parties to reconcile additional expenditure as per Article 17.1(c) of the PPAs, ensuring a direct correlation with the projects and within the threshold limit of Rs 20,000,000.
The compensation will be paid at a discount rate of 9.12% over a 15-year annuity period. The liability for monthly annuity payments starts 60 days from the date of this order or from the date the petitioner submits the claims, whichever is later. A late payment surcharge will apply if the monthly annuity payment is not made on time.
DERC approves BYPL petition seeking approval for SPPA
The Delhi Electricity Regulatory Commission (DERC) has approved the petition filed by BSES Yamuna Power Limited (BYPL) seeking approval for the supplementary power purchase agreement (SPPA) dated June 15, 2022, between BYPL and NHPC Limited for the Bairasiul Hydro Generating Station.
The commission noted that the Central Electricity Regulatory Commission (CERC), in its order dated June 3, 2016, in Petition No. 76/MP/2015, had approved NHPC’s renovation and maintenance (R&M) proposal for the life extension of the Bairasiul Power Station by 25 years, effective from April 1, 2021. As a result, the useful life of the Bairasiul Power Station was extended by 25 years from the commercial operation date of R&M.
Consequently, DERC granted approval to the SPPA, which extends the power purchase agreement (PPA) signed on August 8, 2017. This extension covers the period from April 1, 2017, to August 30, 2021, and further extends the agreement for 25 years, from August 31, 2021, to August 30, 2046, on similar terms and conditions.
DERC approves BRPL petition seeking approval for supplementary PPA
The Delhi Electricity Regulatory Commission (DERC) has approved the petition filed by BSES Rajdhani Power Limited (BRPL) seeking approval for the supplementary power purchase agreement (SPPA) dated June 15, 2022, between BRPL and NHPC Limited for the Bairasiul Hydro Generating Station.
The commission noted that the Central Electricity Regulatory Commission (CERC), in its order dated June 3, 2016, in Petition No. 76/MP/2015, approved NHPC’s renovation and maintenance (R&M) proposal for the life extension of the Bairasiul Power Station by 25 years, effective from April 1, 2021. This extension increased the useful life of the power station by 25 years, starting from the commercial operation date of the R&M.
As a result, DERC granted approval to the SPPA, which extends the power purchase agreement (PPA) signed on August 8, 2017. The extension covers the period from April 1, 2017, to August 30, 2021, and further extends the agreement for 25 years, from August 31, 2021, to August 30, 2046, on similar terms and conditions.
MERC disposes of AAEL petition seeking reduction in demand charges
The Maharashtra Electricity Regulatory Commission (MERC) has disposed of the petition filed by A. A. Energy Limited (AAEL), which sought a direction to Maharashtra State Electricity Distribution Company Limited (MSEDCL) to charge demand charges at the 25% rate applicable for startup power of a generating plant, as per previous tariff orders in Case No. 48 of 2016, 195 of 2017, and 322 of 2019. AAEL also sought a refund of the excess amount paid along with interest.
The commission noted that MSEDCL, in its reply dated November 28, 2024, confirmed that a credit of Rs 5.17 million had been provided to AAEL in the energy bill for October 2024. Additionally, MSEDCL entered into a contract demand agreement for startup power with AAEL on October 18, 2024. During the e-hearing on December 3, 2024, AAEL confirmed satisfaction with MSEDCL’s compliance and relief provided.
Given these developments, the commission concluded that there was no further matter to adjudicate and disposed of the petition.
MERC allows APL petition seeking compensation on account of change in law event
The Maharashtra Electricity Regulatory Commission (MERC) has allowed the petition filed by Adani Power Limited (APL) seeking compensation due to the levy of user fee charges by Mahanadi Coalfield Limited (MCL), considering it a change in law event.
The commission noted that the user fee charges of Rs 1 per tonne, notified by MCL in its notice dated April 24, 2024, comply with the criteria stipulated in the power purchase agreement (PPA) for considering an event as a change in law. Consequently, APL is eligible for compensation based on the actual expenditure incurred. Additionally, carrying costs will be payable on the change in law compensation at the late payment surcharge rate, as per the PPA, on a compounding basis.