Author: Power Peak Digest Team Pub Date: January 31, 2025

Here are the latest updates on regulatory developments in India’s power generation sector:
KERC notifies regulations for rooftop aero turbines with or without solar
The Karnataka Electricity Regulatory Commission (KERC) has issued the KERC (Implementation of Rooftop Aero Turbine (RAT) with Solar or Without Solar) Regulations, 2025. The regulations mandate that distribution licensees provide gross or net metering arrangements to eligible consumers. Consumers must install grid-connected RAT plants with or without solar as per the specified capacity limits.
The connectivity levels for RAT plants are:
- Up to 5 kW: 230V (single-phase)
- Above 5 kW to 150 kW: 400V (three-phase)
- Above 150 kW: 11kV (HT)
The interconnection must comply with these regulations and other relevant laws. KERC will determine the generic tariff for RAT plants, either based on stakeholder applications or suo-motu, at the start of each control period.
CERC approves tariff petition for Mundtrapur Thermal Power Station (220 MW)
The Central Electricity Regulatory Commission (CERC) has approved the tariff petition submitted by Karai Bijke-Ulpaalan Nigam Limited (KBMUA) for Mundtrapur Thermal Power Station, Stage-I (220 MW) for the 2014-19 period. The approved annual fixed charges cover depreciation, loan interest, return on equity, working capital interest, and O&M expenses.
For 2014-15, the total annualized charges were 647.320 million, with pro-rated charges at 404.353 million. In 2015-16, the annualized charges increased to 1493.331 million, with pro-rated charges at 547.374 million. The charges for 2016-17 were 1484.701 million, remaining the same for both annualized and pro-rated.
In 2017-18, the annualized charges rose to 1536.819 million, and in 2018-19, they further increased to 1607.407 million. For 2019-20, the charges reached 1668.550 million.
JSERC introduces green tariff for renewable energy consumers in Jharkhand
The Jharkhand State Electricity Regulatory Commission (JSERC) has issued an order on Damodar Valley Corporation (DVC)’s petition to implement a green tariff for consumers in DVC areas within Jharkhand. This initiative follows clause 4.2 (C) of the JSERC Green Energy Open Access Regulation 2024.
Consumers opting for renewable energy will be charged 50% of the determined rates as the green tariff, which will be in addition to the regular tariff. Consumers can select the percentage of green power they wish to purchase, in increments of 10%, up to 100% of their consumption.
Distribution licensees will apply the green tariff only to the selected percentage of consumption and will issue annual certificates to consumers, detailing their renewable energy usage. The revenue from the green energy tariff will be included in the petitioner’s tariff income, and detailed information about consumers choosing green energy must be provided in the Annual Revenue Requirement (ARR) and tariff filings. The petitioner must also ensure that the green energy consumed by these consumers comes exclusively from renewable sources.
UPERC approves UPPCL’s petition for peak and off-peak hours declaration
The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved the petition filed by Uttar Pradesh Power Corporation Limited (UPPCL) to declare peak and off-peak hours for banking and withdrawal of banked energy from April 1, 2024.
The commission issued an order under suo-moto Petition No. 69/SM/2024, acknowledging that the five-year control period of the CRE Regulations, 2019 ended on March 31, 2024. It noted that the draft regulations for the 2024-29 control period are being framed and will be notified retrospectively after due regulatory procedures.
UPPCL’s petition sought clarity on the applicable peak and off-peak slots for banking after the end of the previous period. The commission confirmed that until the new regulations are notified, the provisions for peak and off-peak hours will remain as detailed in Petition No. 1761 of 2021.
UERC approves PTCUL’s petition for investment in capacity augmentation
The Uttarakhand Electricity Regulatory Commission (UERC) has approved the petition filed by Power Transmission Corporation of Uttarakhand Limited (PTCUL) for investment approval to augment transformation capacity at 220 KV S/s Virbhadra, Rishikesh. The project involves the procurement, installation, testing, and commissioning of an additional 132/33 KV 40 MVA transformer and the construction of a related 132/33 KV bay.
Initially, PTCUL sought approval for Rs 197.4 million, but the detailed project report (DPR) enclosed with the petition indicated a cost of Rs 96.7 million. After UERC’s direction, PTCUL submitted a revised DPR with a total cost of Rs 199 million, though the process used to prepare the revised estimate, based on the lowest bidder’s rates, did not follow standard norms.
The approval is granted subject to the conditions set forth, and any future violations or inaccuracies in the provided information that materially impact the approval basis may lead to the cancellation of approval or refusal to allow expenses in the ARR/True-up, along with potential further action.
CERC approves Navinal Transmission’s petition for adoption of transmission charges
The CERC has approved the petition filed by Navinal Transmission Limited for the adoption of transmission charges for its system. The selection of the successful bidder and the discovery of annual transmission charges were conducted through a transparent competitive bidding process, in line with the Ministry of Power’s guidelines under Section 63 of the Act.
The Bid Evaluation Committee (BEC) confirmed that Adani Energy Solutions Limited was the successful bidder, emerging with the lowest annual transmission charges of Rs 2987.14 million. Based on the BEC’s certification, the commission approved the adoption of the transmission charges of Rs 2987.14 million per annum, contingent on the grant of a transmission licence to the petitioner.
These transmission charges will remain valid throughout the period specified in the Transmission Service Agreement (TSA). The sharing of these charges among designated ISTS customers will be governed by the CERC’s 2020 regulations on sharing inter-state transmission charges and losses.
APTEL disposes of ReNew Wind Energy’s petition against CERC order
The Appellate Tribunal for Electricity (APTEL) has disposed of the appeal filed by ReNew Wind Energy (TN) Private Limited against the CERC order in Petition No. 63/MP/2021. ReNew sought to set aside the CERC’s order and other related reliefs.
APTEL clarified that its interim order does not direct the respondents to encash the bank guarantee furnished by the appellant. The respondents may choose to invoke the guarantee, but any encashed amount will be subject to the result of the main appeal. If the appellant succeeds, they may claim a refund with interest. Any claims will be adjudicated on their merits in due course.
WBERC approves IPCL’s petition for review of March 2024 order
The West Bengal Electricity Regulatory Commission (WBERC) has approved the India Power Corporation Limited’s (IPCL) petition seeking a review of the order passed on March 6, 2024, in Case No. FPPCA-100/21-22 and APR-88/21-22 for the 2016-17 annual performance review.
The review addressed issues including depreciation, fuel cost, and APR adjustments, with the following adjustments made for FY 2016-17:
- Fuel cost: Revised to Rs 106.01 million (from Rs 96.04 million).
- Net fixed charge: Revised to Rs 793.5 million (from Rs 795.3 million).
- Reliability incentives: Revised to Rs 49 million (from Rs 50.26 million).
- Benefit from T&D loss savings: Adjusted to Rs 402.14 Lakhs (from Rs 402.54 Lakhs).
- Interest credit: Adjusted to Rs 41.62 million (from Rs 40.5 million).
APTEL disposes of Christian Medical College Vellore’s appeals
The APTEL has disposed of Christian Medical College Vellore’s appeals against the Tamil Nadu Electricity Regulatory Commission (TNERC) orders in M.P. No. 24 of 2023 and M.P. No. 23 of 2023.
APTEL directed TNERC to pass fresh orders after giving both the appellant and the second respondent a fair opportunity to be heard. The tribunal urged TNERC to expedite the process, preferably within four months from the date of receiving this order. The remand order does not prevent the second respondent from taking legal action against the appellant for periods after the first tariff order and following orders. Any actions will be considered per law without being influenced by this order.
APTEL approves Ratnagiri Gas’ appeal for execution of the order
The APTEL has approved the appeal filed by Ratnagiri Gas and Power Private Limited (RGPPL) seeking execution of the order passed in Appeal No. 261 of 2013. RGPPL sought directions for Maharashtra State Electricity Distribution Company Limited (MSEDCL) to comply with the tribunal’s earlier findings.
APTEL upheld RGPPL’s submission that the dispute regarding capacity charges has attained finality after the dismissal of Civil Appeal No. 1922 of 2023 by the Supreme Court. APTEL emphasized that the mere pendency of proceedings before the CERC does not prevent the execution of its prior order.
MSEDCL is directed to pay RGPPL a total of Rs 24,772,064,656 within four months from receiving the order.
APTEL disposes of UPPCL and others’ petition challenging CERC order
The APTEL has disposed of the appeal filed by UPPCL and others, challenging a CERC order. The CERC had ruled that the appellants must refund capacity and transmission charges deducted from the respondent, along with carrying cost/late payment surcharge.
APTEL found no error in the CERC’s ruling that the appellants were liable for the reimbursement of transmission charges once open access was operationalized. The tribunal rejected the appellants’ argument that reimbursement should be contingent on usage.
APTEL upheld the CERC’s order, dismissing the appeal and all associated interim applications (IAs).
APTEL disposes of Damodar Valley Power’s petition seeking vacation of stay
The APTEL has disposed of the petition filed by Damodar Valley Power Consumers Association and others, seeking the vacation of the stay granted on June 21, 2022.
Rather than completely vacating the stay, APTEL decided to modify the previous interim orders. It directed that 50 percent of the arrears based on the tariff as determined in the impugned order be paid within 30 days. The remaining 50 percent of the arrears will remain stayed.
To safeguard DVC in case the main appeal is dismissed later, APTEL required the appellants to provide an unconditional bank guarantee from a scheduled bank for the stayed 50 percent of the arrears within 30 days. The interim arrangement is subject to the result of the main appeal, and the interim applications (IAs) have been disposed of accordingly.
RERC passes order for AP Energy’s petition seeking adjudication of dispute
The Rajasthan Electricity Regulatory Commission (RERC) has issued an order in the petition filed by SAP Energy, seeking the adjudication of disputes related to the payment of invoices for grid failures from 2021-22 to 2023-24, as per the power purchase agreement (PPA) dated September 2, 2020, and the refund of supervision charges under the KUSUM Scheme, Component-A.
RERC upheld its earlier decision in Petition No. 1929/2021 and ruled that SAP Energy is entitled to a refund of supervision charges paid under protest. The commission also noted that while the respondent is no longer charging supervision fees, the rural power generators (RPGs) under the Kusum-A scheme should not face hardship over this issue.
Regarding compensation for generation loss due to grid unavailability, RERC determined that SAP Energy is not entitled to compensation at the PPA tariff rate. However, it is entitled to an adjustment of the excess generation as per the PPA clause 4.9.1.
The respondent is directed to refund the supervision charges paid by SAP Energy for its Mitasar and Ghadsisar solar plants without interest. All state discoms are also ordered to refrain from charging supervision fees from RPGs under Kusum-A and refund any amounts charged without interest.
RERC partly approves Rajasthan Textile Mills’s petition for clarification of the order dated July 26, 2024
The RERC has partly approved the petition filed by Rajasthan Textile Mills seeking clarification and review of the commission’s order dated July 26, 2024, which disposed of Petition No. 2236/2024.
The commission clarified that, under the Tariff Regulations, 2019, it has the authority to permit deviations from the 15 percent ceiling on a case-to-case basis, provided that the distribution licensee files a separate petition for approval. In this case, the distribution licensee had filed Petition No. 2236/2024 seeking approval to recover fuel surcharge exceeding the 15 percent ceiling. The commission approved the surcharge beyond the specified limit per the regulations.
RERC rejected the petitioner’s contention, stating it lacked merit. Additionally, the petitioner did not demonstrate an error or sufficient grounds for a review under Section 114 and Order XLVII Rule 1 of the Code of Civil Procedure regarding the July 26, 2024, order. Therefore, the review petition was dismissed.
RERC rejects JVVNL and others’ petition to make necessary amendments in procedure stipulated by discoms
The RERC has rejected the petition filed by Jaipur Vidyut Vitran Nigam Limited (JVVNL), Ajmer Vidyut Vitran Nigam Limited (AVVNL), and Jodhpur Vidyut Vitran Nigam Limited (JdVVNL) seeking amendments to the procedure stipulated by the discoms in compliance with the RERC order under Petition No. 1502/19 for the formation of the VCR Committee to review cases under Section 135 of the Electricity Act, 2003, related to electricity theft.
The commission emphasized that under Section 135 of the Act, electricity theft is a punishable offence with imprisonment or a fine. In addition to this, the licensee is authorized to recover civil liability from the consumer. The commission further noted that the provisions for compounding offenses under Section 152 of the Act do not affect the licensee’s right to recover civil liability.
RERC clarified that under Section 154(5) of the Act, a Special Court determines civil liability for theft and the amount is recoverable as if it were a civil court decree. The commission rejected the discoms’ argument that once compounding money is accepted from the consumer, they are unable to recover civil liability, as they always retain the right to approach the Special Court for recovery.
RERC passes order in matter of RRVPNL seeking approval of preliminary expenditure
The RERC has passed an order in the matter of Rajasthan Rajya Vidyut Prasaran Nigam Limited (RRVPNL) seeking approval of preliminary expenditure for the schemes announced in the state government budget and other schemes sanctioned/to be sanctioned as per system requirements for FY 2024-25.
The commission noted that while the state government initially presented a vote-on-account for FY 2024-25 without announcing extra high voltage (EHV) schemes, EHV schemes were later included in the modified budget and related documents. As RVPN could not include these schemes in its original investment plan, the commission found it appropriate to consider the petition in light of the exceptional circumstances.
After reviewing the DPR, approval by the Technical Committee (TSPCC), and the Board of Directors (BoD/WTD), the commission approved a capital expenditure of Rs 551 million for the 49 EHV schemes announced in the state budget. However, this approval is deemed an exception and not a precedent.
RVPN is directed to ensure the techno-economic feasibility of new projects before seeking approval and ensure that each new project’s DPR is approved by the Board of Directors/WTD.
RERC approves petition filed by Saraf Export Palace seeking adjudication of dispute
The RERC has approved the petition filed by Saraf Export Palace seeking adjudication of a dispute under Section 86 (1) (f) of the Electricity Act, 2003.
The commission observed that the demand raised by the respondent is in line with cost recovery principles, ensuring the beneficiary of infrastructure modifications bears the associated costs. It affirmed that the Rs 1,974,458 demand raised by RVPNL for a new bay at 132 kV GSS Kolayat aligns with the Rajasthan Solar Policy, 2019, which allows cost recovery for infrastructure modifications linked to revised connectivity requests.
Consequently, the commission ruled that Saraf Export Palace is not entitled to an adjustment or refund of Rs 1,200,000 connectivity charges it had deposited.
TNERC approves SEPC Power’s petition seeking approval for new environmental norms
The TNERC has approved the petition filed by SEPC Power Private Limited for the promulgation of new environmental norms under the Ministry of Environment, Forest and Climate Change (MOEFCC) Notification, as a change in law under Article 14 of the PPA.
The commission granted in-principle approval to the provisional Engineering, Procurement, and Construction (EPC) cost for the installation of flue gas desulphurisation, pending the final determination of all associated costs.
TNERC also allowed the petitioner to withdraw the unnumbered petition in SR No.110 of 2024 with the liberty to file a fresh petition on the same subject matter. Additionally, the commission ordered the deduction of Rs 5,000 from the court fee of Rs 75,000 for reasonable expenses incurred in processing the petition, with Rs 70,000 to be refunded to SEPC Power.
Featured photograph is for representation only.