Author: PPD Team Date: 02/06/2025
SECI withdraws tariff adoption plea for 200 MW peak supply project
The Central Electricity Regulatory Commission (CERC) has allowed Solar Energy Corporation of India Ltd. (SECI) to withdraw its petition seeking adoption of tariff for a 200 MW assured peak supply project awarded under the SECI FDRE VI scheme. In its order dated 15 May 2025, the Commission noted SECI’s submission that power sale agreements (PSAs) with distribution companies had not yet been finalized, making the petition premature.
The project, awarded through a competitive e-reverse auction process as per the Ministry of Power’s 2023 guidelines, was designed to provide 800 MWh (200 MW × 4 hours) of peak supply from ISTS-connected renewable energy sources. SECI had also sought approval of a trading margin of Rs 0.07/kWh payable by the eventual buyers.
However, while upstream arrangements with power generators are in place, SECI informed the Commission that downstream buyer commitments are still awaited. SECI therefore requested permission to withdraw the petition and sought liberty to refile once PSAs are executed with the relevant distribution licensees.
Accepting the request, CERC permitted the withdrawal and allowed the filing fee paid for this petition to be adjusted against a future application for the same purpose.
Petition No. 246/AT/2025 | Read the full order here.
CERC defers revocation of Kreate Energy’s trading licence
The Central Electricity Regulatory Commission (CERC) has allowed Kreate Energy (India) Pvt Ltd (KEIPL) to retain its Category-II inter-State trading licence, but imposed strict financial conditions to address its prolonged and willful default in payments to Uttarakhand Power Corporation Ltd (UPCL). The Commission acted under Section 19(4) of the Electricity Act, 2003, following a petition by UPCL that sought revocation of KEIPL’s licence due to non-payment of dues amounting to over Rs 60 crore, including late payment surcharge.
The dispute traces back to power sale agreements executed from 2016 to 2020 under which KEIPL traded UPCL’s surplus electricity on exchanges but failed to remit full payments despite receiving settlement proceeds from the Indian Energy Exchange (IEX). After repeated demands and failed reconciliations, UPCL initiated legal and regulatory action, including cheque bounce cases and a formal complaint before CERC.
KEIPL contended that its defaults were due to cash flow constraints stemming from the COVID-19 pandemic and pending payments from other utilities. It disputed the late payment surcharge, citing contractual and limitation issues, and sought arbitration.
Rejecting the request for arbitration on the grounds that public interest and regulatory oversight were involved, CERC ruled that the matter was non-arbitrable. However, the Commission acknowledged that outright revocation could hinder recovery of UPCL’s dues.
Instead, it permitted KEIPL’s trading licence to remain in force subject to the following conditions: KEIPL must acknowledge full liability to UPCL, including late payment surcharge; pay an upfront amount of Rs 5 crore within one week; and submit a binding payment plan for the remaining amount within six months. Failure to comply will trigger immediate licence revocation.
Petition No 306/MP/2022 With IA Nos. 20/2023, 85/2023 & 16/2024 | Read the full order here.
DERC modifies approval order for BRPL’s short-term power procurement from Greenko
The Delhi Electricity Regulatory Commission (DERC) has granted partial relief to BSES Rajdhani Power Ltd. (BRPL) by modifying its earlier order dated April 23, 2025, concerning short-term procurement of 200 MW power from Greenko Energies Pvt. Ltd.
BRPL had sought review under Section 94(1)(f) of the Electricity Act, 2003, requesting deletion of Para 8 of the original order, which required BRPL to compare prices discovered on power exchanges with Greenko’s rate and procure from the cheaper source. BRPL argued the condition was impractical due to scheduling timelines under GNA and T-GNA frameworks, and that it risked penalties under contractual obligations if unable to comply.
The Commission acknowledged the condition’s intent was to optimize power procurement costs for consumers, but conceded it imposed operational challenges and potential financial penalties. It accepted that power exchange rates become available only after BRPL must finalize procurement from Greenko, making real-time comparisons infeasible.
Consequently, DERC deleted the contested clause and replaced it with a provision capping the procurement rate at Greenko’s offered tariff of Rs 9.66/kWh, subject to a ceiling based on the average exchange rate for Delhi during the same month, in accordance with Regulation 152(c) of the DERC Tariff Regulations, 2017.
The modified order retains BRPL’s responsibility to supply power without passing any additional cost burden to consumers if the arrangement fails. The review petition stands disposed.
Review Petition No. 25/2025 | Read the full order here.
GERC approves short-term procurement by discoms for peak summer demand
The Gujarat Electricity Regulatory Commission (GERC) has approved the short-term procurement of power by PGVCL, DGVCL, UGVCL, and MGVCL to meet the peak demand during April to June 2024. The order was issued in Petition No. 2194 of 2023 filed by the four state distribution licensees.
The petition sought advance approval for short-term power purchase on a need-basis through competitive bidding or power exchange, capped at Rs 7.25/kWh. The discoms cited rising summer demand, system constraints, and past shortfalls as justification for flexibility in sourcing.
GERC noted that the discoms had previously adhered to regulatory norms and justified their projections using historical trends and current grid conditions. The Commission agreed that ensuring continuous supply was crucial and accepted the proposed procurement ceiling, subject to the principles laid down under Section 63 of the Electricity Act, 2003 and GERC’s relevant procurement guidelines.
The Commission directed that all purchases must comply with the merit order dispatch principle and that cost recovery would be subject to scrutiny during the true-up process. It also advised the discoms to prioritize cheaper sources and maintain transparency in the bidding process.
Petition No. 2194 of 2023 | Read the full order here.
HERC approves HPPC’s short-term power procurement to avert summer shortages
The Haryana Electricity Regulatory Commission (HERC) has approved the Haryana Power Purchase Centre’s (HPPC) proposal to procure up to 193.5 MW of power from the central unallocated quota to manage expected shortages during the summer of 2025. The approval, issued on May 22, 2025, responds to projected deficits of 1,000–3,300 MW caused by coal supply constraints, reduced hydro generation, and rising demand during the paddy season.
For May 2025, HPPC is permitted to draw 161.25 MW—10% of the Northern Region’s unallocated pool. From June through September, this allocation increases to 193.5 MW, reflecting a 12% share as revised by the Northern Regional Power Committee (NRPC) on March 28, 2025.
HPPC argued that spot market rates—reaching up to Rs 10/unit—were prohibitively high and unreliable, making central pool procurement a more economical and stable solution. Peak demand in Haryana is expected to rise to 15,500 MW, up from 14,709 MW in 2024, driven largely by cooling loads and irrigation needs. The unavailability of key sources, such as CGPL Mundra (500 MW) and the Faridabad Gas Plant, has further strained the state’s supply position.
The Commission noted that similar approvals had been granted in 2024 and stressed that this procurement strategy would help stabilize the grid and avoid load shedding during critical months. It cited Section 86(1)(b) of the Electricity Act, 2003, and the Central Electricity Regulatory Commission’s (CERC) Tariff Regulations, 2019, as the legal framework for the order, ensuring that the cost of procurement is distributed equitably among beneficiaries.
The HPPC has been directed to finalize power purchase agreements (PPAs) to initiate supply from June 1, 2025.
Petition No. 32 of 2025 IA No. 14 of 2025 | Read the full order here.
WBERC closes India Power’s long-pending 150 MW PPA petition
The West Bengal Electricity Regulatory Commission (WBERC) has officially disposed of a petition filed by India Power Corporation Limited (IPCL) for approval of a 150 MW power purchase agreement (PPA), following IPCL’s request to withdraw the case. The matter, registered as PPA-89/18-19, was formally closed through an order dated May 26, 2025.
IPCL had initially approached the commission in July 2018, seeking approval for a draft Letter of Award (LOA) and PPA to be issued through the DEEP e-bidding portal, in line with guidelines issued by the Ministry of Power. However, after WBERC raised clarification queries in December 2018, the case saw no further engagement from IPCL, leading to a prolonged period of inactivity.
In July 2023, IPCL moved to withdraw the petition, which the commission accepted, ending the matter without additional proceedings. The order notes that IPCL may obtain a certified copy of the closure order by fulfilling the required formalities on the commission’s website.
Petition No. CASE NO: PРА-89/18-19 | Read the full order here.
For more regulatory updates, read the latest orders covered on Power Peak Digest: Energy Regulatory Updates – Power Peak Digest
Featured photograph is for representation only.
