Author: PPD Team Date: 19/05/2025
APTEL recognises fly ash and coal charge hikes as Change in Law
The Appellate Tribunal for Electricity (APTEL) has overturned the Maharashtra Electricity Regulatory Commission’s (MERC) order, declaring additional fly ash transport costs and revised coal charges as “Change in Law” (CIL) events under Power Purchase Agreements (PPAs) between RattanIndia Power Limited and Maharashtra State Electricity Distribution Company (MSEDCL).
The case involved three claims. First, APTEL ruled that the Ministry of Environment’s 2016 and 2021 notifications mandating fly ash transportation costs, 100% within 100 km and 50% beyond, qualify as CIL events. It rejected MERC’s view that the claim was premature.
Second, the tribunal held that increased surface transportation and crushing/sizing charges levied by Coal India Limited (CIL) after 2009 are also CIL events. APTEL referred to the Central Electricity Regulatory Commission’s (CERC) 2019 clarification, which excluded such charges from coal price indices, countering MERC’s reasoning.
Third, APTEL allowed carrying costs from the date of additional expenditure, dismissing MERC’s claim of delay.
The tribunal applied restitution principles under the PPAs, directing compensation for both impacts, with carrying costs at the Late Payment Surcharge (LPS) rate.
Appeal No. 345 of 2021 | Read the full order here.
JSERC clears CPP agreement between JBVNL and Inland Green Energy
The Jharkhand State Electricity Regulatory Commission (JSERC) has approved a draft Captive Power Plant (CPP) agreement between Jharkhand Bijli Vitran Nigam Limited (JBVNL) and Inland Green Energy for synchronization and surplus power sale from a 12.5 MW captive plant.
The approval is in line with Clause 4.1 of the JSERC (Utilization of Surplus Capacity of Captive Power Plants based on Conventional Fuel) Regulations, 2023. Inland Green Energy operates the CPP at its ethanol manufacturing facility in Ramgarh. The plant will be synchronized with JBVNL’s 33/11 kV substation at Huppu (Kusumdiha) Grid.
As per the agreement, Inland Green Energy will maintain a standby contract demand of 1.5 MVA and sell 4 MW of surplus power to JBVNL on a firm basis. JBVNL submitted the draft agreement after internal vetting. Inland Green Energy confirmed its acceptance of all terms.
JSERC noted that the CPP Regulations require a formal agreement for surplus power sale. With both parties in agreement and the draft meeting regulatory conditions, the Commission granted approval.
The CPP agreement is now cleared for execution. The petition was disposed of accordingly.
Case No. 03 of 2025 | Read the full order here.
WBERC clears WBSEDCL’s DBFOO bid deviations for 660 MW project
The West Bengal Electricity Regulatory Commission (WBERC) has approved deviations proposed by West Bengal State Electricity Distribution Company Limited (WBSEDCL) from the Model Request for Proposal (RfP) and Model Power Supply Agreement (PSA) for procuring 660 MW of power through a Design, Build, Finance, Own and Operate (DBFOO) project at the Durgapur Projects Limited site.
The project will be set up at Durgapur Projects Limited. WBSEDCL sought changes to enable e-reverse bidding and clarify contractual terms, including land lease and shared infrastructure agreements. The Commission approved these deviations and directed WBSEDCL to ensure shared facility costs with DPL are approved and benefits passed to DPL beneficiaries.
WBSEDCL shall notify the Commission before bidding begins and submit final RFP and PSA documents within seven days. Approval of the final PSA with the selected bidder shall be sought separately.
Petition No. OA-514/ 24-25 | Read the full order here.
WBERC clears RFQ deviations for 1600 MW brownfield project at Santaldih
The West Bengal Electricity Regulatory Commission (WBERC) has approved deviations proposed by West Bengal State Electricity Distribution Company Limited (WBSEDCL) from the Model Request for Qualification (RFQ) under the Ministry of Power’s 06 March 2019 guidelines for a 1600 MW brownfield thermal power project.
The power will be procured on a long-term basis from a 2 x 800 MW plant to be developed under the Design, Build, Finance, Own and Operate (DBFOO) model at surplus land within the Santaldih Thermal Power Station owned by West Bengal Power Development Corporation Limited (WBPDCL).
WBSEDCL highlighted rising demand in its licensed area and cited Central Electricity Authority (CEA) projections that West Bengal would require an additional 6203 MW of thermal capacity by FY 2034–35. The proposed project is part of efforts to ensure energy security through state-based generation.
The Department of Power, Government of West Bengal, will act as the nodal agency, coordinating between WBSEDCL, WBPDCL, the state transmission utility, and bidders. It also plans to secure long-term coal linkage under SHAKTI B(iv) of the Ministry of Coal.
In this petition, WBSEDCL only sought approval for deviations in the RFQ, citing the need to accommodate shared use of land and infrastructure and to enable e-reverse bidding. Deviations to the Request for Proposal (RFP) and Power Supply Agreement (PSA) will be submitted in separate petitions.
WBERC found the proposed changes to be project-specific and justified, especially those supporting e-reverse bidding to enhance competitiveness and benefit consumers. It directed WBSEDCL to:
- Submit the revised RFQ with updated bidding schedule dates within seven days of the order.
- Seek separate approvals for deviations in the RFP and PSA before proceeding.
- Publish the order on the Commission’s website and comply with procedural formalities under its Conduct of Business Regulations.
Petition No. OA -510/24-25 | Read the full order here.
WBERC approves DVC’s hydro PPA with NHPC for Parbati-II project
The West Bengal Electricity Regulatory Commission (WBERC) has approved the power purchase agreement (PPA) executed between Damodar Valley Corporation (DVC) and NHPC Ltd for the procurement of hydro power from the 800 MW Parbati-II hydroelectric project, subject to a cap of 200 MW. The approval is limited to the power utilised within West Bengal.
DVC had entered into the PPA on 07 February 2025 for a 40-year term, or until the end of the balance normative life of the plant, whichever is earlier. The project, developed by NHPC in Himachal Pradesh, is scheduled for commissioning in April 2025 and will operate as a run-of-the-river plant with three hours of peaking support. DVC has been allocated 29 MW of firm power by the Ministry of Power.
The expected design energy for the project is 3124.6 MUs, with DVC’s allocation corresponding to approximately 113.27 MUs. The power is expected to help meet peak demand during summer and monsoon months, reducing dependence on costlier market-based power.
The levelised tariff is estimated at Rs 6.14/kWh, subject to final approval by the Central Electricity Regulatory Commission (CERC). Additional secondary energy, which may be generated over the design energy, will be priced at Rs 1.20/kWh. The power will be exempt from Inter-State Transmission System (ISTS) charges for 18 years under CERC’s amended regulations.
Petition No. PPA-138/24-25 | Read the full order here.
UPERC approves short-term procurement of infirm power from Ghatampur TPS
The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved the procurement of infirm power by Uttar Pradesh Power Corporation Limited (UPPCL) from Unit-1 of the Ghatampur Thermal Power Station (3×660 MW), operated by Neyveli Uttar Pradesh Power Limited (NUPPL), at a tariff of Rs 2.872 per unit.
The procurement will be effective until the declaration of commercial operation date (COD) for Unit-1, which was synchronised with the grid on 4 November 2023 and declared commercially operational on 12 December 2024. The project is a joint venture between NLC India Ltd and Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd (UPRVUNL) with a 51:49 shareholding.
UPPCL, as the nodal agency for state discoms, signed a Supplementary Power Purchase Agreement (SPPA) with NUPPL on 29 November 2024 to formalize this short-term power purchase. The rate was based on the methodology under CERC (Terms and Conditions of Tariff) Regulations, 2024 and is subject to final determination by the Central Electricity Regulatory Commission (CERC).
Accordingly, UPERC approved the SPPA and disposed of the petition.
Petition No. 2177 of 2024 | Read the full order here.
For more regulatory updates, read the latest orders covered on Power Peak Digest: Energy Regulatory Updates – Power Peak Digest
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