Here are the latest updates on regulatory developments in India’s power generation sector:
CERC grants Category ‘I’ trading licence to RECPDCL
The Central Electricity Regulatory Commission (CERC) has approved the petition filed by REC Power Development & Consultancy Limited (RECPDCL) for a Category ‘I’ trading licence for inter-state trading in electricity across India.
CERC found that RECPDCL meets the requirements of the Act and the Trading Licence Regulations. The licence is subject to several conditions throughout its 25-year duration. These include:
- The licensee must comply with the Act, Rules, Regulations, and all Commission orders.
- It shall not engage in the business of electricity transmission during the licence period.
- Trading margins must be charged in accordance with the Trading Licence Regulations.
- The licensee must adhere to the qualifications and disqualifications in Chapter 2 of the Trading Licence Regulations.
- It must follow all terms in Chapter V of the Trading Licence Regulations.
- The licensee is required to pay the annual licence fee as per the Central Electricity Regulatory Commission (Payment of Fees) Regulations, 2012.
- Non-compliance with any provisions may lead to revocation of the licence.
- If the licensee fails to start trading within one year from the licence date, the licence may be revoked.
- The licensee must also submit all reports or information as required by the Commission.
CERC approves GMR Energy’s petition seeking review of order passed in Petition No.114/MP/2019
The Central Electricity Regulatory Commission (CERC) has approved the petition filed by GMR Energy Trading Limited for a review of the order in Petition No.114/MP/2019.
CERC held that full capacity charges are payable based on the contracted capacity at a normative availability of 80 per cent. An incentive is payable for availability above 85 per cent. If availability falls below 80 per cent, the capacity charge is reduced proportionately, and a penalty at 20 per cent of the average capacity charge for all months in the contract year is imposed on the energy corresponding to the shortfall.
The term ‘without any liability on either side’ implies that Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) is only liable for paying capacity and energy charges for power available and supplied at the drawl point. Any losses between the injection point and the drawl point caused by transmission or grid constraints will not be payable by TANGEDCO. The contracted capacity of 150 MW remains unchanged for the purpose of calculating capacity charges.
The commission has modified the impugned order accordingly and directed the parties to reconcile the transmission charges within one month from the date of this order, in strict accordance with the provisions of the Power Purchase Agreement.
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