Author: PPD Team Date: 03/04/2025
MERC approves TP Solapur Saurya and others’ petition against incorrect levy of wheeling charges
The Maharashtra Electricity Regulatory Commission (MERC) has approved the petition filed by TP Solapur Saurya Limited, TP Arya Saurya Limited, and TP Ekadash Limited regarding the incorrect levy of wheeling charges and losses on the energy generated from their solar power plants.
The commission ruled that Maharashtra State Electricity Distribution Company Limited (MSEDCL) is not entitled to impose wheeling charges and losses on power sourced through open access in this case. It has directed MSEDCL to refund the wheeling charges recovered from the petitioners and open access consumers, along with applicable interest, within one month from the date of this order.
Additionally, the petitioners highlighted that MSEDCL continued to deduct 4.05 lakh units from the consumers of TP Arya Saurya Limited and TP Ekadash Limited between April 2024 and June 2024. The commission has directed MSEDCL to adjust these units accordingly. MSEDCL has also been instructed not to levy wheeling charges and losses on open access power in this matter.
Petition No: Case No. 100 of 2024 | Read the full order here.
MPERC designates state agency for RPO monitoring
The Madhya Pradesh Electricity Regulatory Commission (MPERC) has notified the designation of state renewable purchase obligation (RPO) monitoring agencies under Regulation 14 of the Madhya Pradesh Electricity Regulatory Commission (Cogeneration and Generation of Electricity from Renewable Sources of Energy) (Revision-II), Regulations, 2021.
The designated agencies are authorized to collect RPO compliance data from renewable energy generating companies, obligated entities, and the state load dispatch centre (SLDC). These agencies must follow protocols approved by the commission. They are required to register on the RPO web portal https://mperc.in/page/rpo-portal and begin their assigned functions immediately.
Additionally, the commission has directed the state RPO monitoring agencies to appoint a nodal officer, at the rank of general manager or superintending engineer, for coordination. The officer must oversee monitoring, verification, and submission of RPO compliance reports to the commission within 10 days from the date of this order.
The order issued by the commission on December 21, 2021, for the designation of the state agency stands withdrawn with immediate effect.
Read the full order here.
APTEL approves UPCL’s appeal against UERC order
The Appellate Tribunal for Electricity (APTEL) has approved the appeal filed by Uttarakhand Power Corporation Limited (UPCL) against the Uttarakhand Electricity Regulatory Commission (UERC) order dated November 24, 2017, in petition no. 40 of 2017 (suo-motu). The UERC order had determined the tariff for the entire life of Uttar Bharat Hydro Power Private Limited’s project.
APTEL noted that the order suffered from procedural irregularities, including failure to serve notice, provide a copy of the suo-motu petition, and conduct a fair hearing. Considering these lapses, APTEL ruled in favor of UPCL, setting aside the impugned order and remanding the matter to UERC for fresh adjudication. The commission must now reexamine the case, ensuring due notice and an opportunity for all involved parties to be heard.
Petition No: APPEAL No. 295 of 2018 | Read the full order here.
APTEL rejects Harison Hydel Construction Company’s appeal against HPERC order
The Appellate Tribunal for Electricity (APTEL) has rejected the appeal filed by Harison Hydel Construction Company Private Limited against the Himachal Pradesh Electricity Regulatory Commission (HPERC) order dated March 15, 2016, in petition no. 96 of 2015. The case involved the calculation of operations and maintenance (O&M) charges for the interconnection bay at the Jari substation of Himachal Pradesh State Electricity Board Limited (HPSEB).
APTEL ruled that the appellant’s claim regarding the number of feeders at the 33/11 kV Jari substation was incorrect. Examination of the single-line diagram confirmed that the actual number of feeders was six, not eight or nine, as claimed. The tribunal upheld HPSEB’s pro-rata apportionment of O&M costs, finding no error in HPERC’s order.
Regarding the penalty for delayed O&M payments, APTEL noted that under the power purchase agreement dated June 8, 2004, and the interconnection facility agreement dated September 19, 2009, the appellant was obligated to pay O&M charges with a penalty of 1.5 percent per month for delays. The appellant failed to make timely payments from 2008-09 to 2014-15 and later deposited only the principal amount without penalties. APTEL ruled that discrepancies in charge calculations did not exempt the appellant from making timely payments and dismissed the appeal.
Petition No: APPEAL No. 109 OF 2017 & IA No. 845 of 2024 | Read the full order here.
APTEL rejects Siddhayu Ayurvedic Research Foundation’s appeal against MERC order
The Appellate Tribunal for Electricity (APTEL) has dismissed the appeal filed by Siddhayu Ayurvedic Research Foundation Private Limited, challenging the Maharashtra Electricity Regulatory Commission’s (MERC) order dated December 23, 2020, in Case No. 161/2020. The MERC had rejected the appellant’s request to adjust banked units from April 2020 in the consumer bills of July 2020.
APTEL ruled that the appellant’s demand for adjustment of excess energy or its purchase at the average power purchase cost was in violation of existing regulatory provisions. The appellant argued that Covid-19 constituted a force majeure event justifying relaxation of the Maharashtra Electricity Regulatory Commission (Distribution Open Access) (First Amendment) Regulations (DOA Regulations). However, APTEL found that these regulations explicitly limit banking to 10 per cent of actual generation per month. Granting an exception would not only contradict the regulatory framework but also undermine uniform application of the law.
APTEL also rejected the appellant’s reliance on Section 86(1)(e) of the Electricity Act, which mandates promotion of renewable energy. The appellant had claimed that as a small generator, it was disadvantaged compared to Maharashtra State Electricity Distribution Company Limited (MSEDCL). However, APTEL concurred with the respondent that any regulatory relaxation would impact consumer tariffs. The tribunal further observed that the appellant’s decision to continue with open access (OA) in April 2020 was a commercial choice aimed at benefiting from an independent contractual agreement.
Notably, on March 31, 2020, when the OA application was approved, the appellant had the alternative option of selling electricity on MSEDCL’s online portal. This option had been available since March 27, 2020, for all wind generators due to their “must-run” status. However, the appellant chose not to use this alternative without justification. APTEL held that this was a commercial risk undertaken by the appellant, and the regulations could not be relaxed to accommodate its decisions.
Finding no merit in Appeal No. 124 of 2021, APTEL dismissed it and upheld the MERC order dated December 23, 2020.
Petition No: APPEAL No. 124 OF 2021 | Read the full order here.
BERC notifies draft renewable purchase obligation regulations for 2025
The Bihar Electricity Regulatory Commission (BERC) has released the draft BERC (Renewable Purchase Obligation, its Compliance, and REC Framework Implementation) Regulations, 2025. This follows the Ministry of Power’s notification (S.O. 4617(E), dated October 20, 2023), which sets the renewable purchase obligation (RPO) trajectory until 2029-30 for different non-fossil fuel sources.
Under the draft regulations, every obligated entity must meet the following minimum purchase requirements for renewable energy sources:
As per the draft regulations:
- Wind RPO shall be met only through energy generated from wind power projects (WPPs) commissioned after March 31, 2024. It may also include wind energy consumed beyond 7 per cent from WPPs commissioned before this date.
- Hydro Purchase Obligation (HPO) shall be fulfilled only with energy generated from large hydro projects, including pumped storage and small hydro projects, commissioned after March 31, 2024.
- Other RPO may be met using energy generated from any renewable power project not classified under Wind RPO or HPO.
The draft regulations aim to align Bihar’s renewable energy targets with national RPO mandates and provide a framework for compliance.
Read the full order here.
HERC issues suo motu order on fuel cost determination for renewable energy projects in FY 2024-25
The Haryana Electricity Regulatory Commission (HERC) has issued a suo motu order on fuel cost determination for renewable energy projects in Haryana for FY 2024-25. The order covers projects using biomass, paddy stubble, biogas, biomass gasifier, and bagasse/non-bagasse cogeneration. The commission has relied on parameters from the HERC (Terms and Conditions for Determination of Tariff from Renewable Energy Sources, Renewable Purchase Obligation, and Renewable Energy Certificate) Regulations, 2021, with the exception of fuel cost, which has been newly determined.
After considering inputs from stakeholders, HERC has approved the following fuel costs and tariffs for FY 2024-25:
Fuel cost and tariff determination for FY 2024-25:
A special incentive applies to paddy straw-based power projects achieving a plant load factor (PLF) above 80 per cent:
- Rs 0.50 per kWh for annual generation with PLF between 80 per cent and 90 per cent.
- Rs 1 per kWh for PLF between 90 per cent and 100 per cent.
This incentive is applicable only for additional generation exceeding the normative 80 per cent PLF level.
The fuel cost determined by HERC will apply to all renewable energy projects commissioned in Haryana under previous control periods where a generic tariff is applicable, as well as projects commissioned in FY 2024-25 from April 1, 2024 onwards.
The fuel cost will remain in effect until amended or re-determined by the commission. Any changes for FY 2025-26 will be subject to the fuel price escalation clause under the existing RE regulations.
Petition No: HERC/Petition No. 1 of 2025 | Read the full order here.
KERC issues discussion paper on tariff norms for MSW-based power plants
The Karnataka Electricity Regulatory Commission (KERC) has released a discussion paper on the fixation of norms and determination of tariffs for power procurement from municipal solid waste (MSW)-based power plants for the financial year 2025-26 (FY26).
The commission has proposed a plant load factor of 65 per cent in the first year and 80 per cent for the remaining useful life of the plant, which is set at 20 years from the date of commercial operation. Auxiliary consumption is proposed at 15 per cent for both integrated and standalone power plants. The capital cost has been considered at Rs 210 million per megawatt, with a debt-equity ratio of 70:30. Loan repayment tenure is set at 13 years, with an interest rate of 11.10 per cent per annum.
Working capital requirements are proposed to be equivalent to two months’ receivables, with an interest rate of 11.50 per cent per annum. Operations and maintenance expenses are estimated at 6 per cent of the capital cost, with an annual escalation of 5.25 per cent. Depreciation is calculated at 5.387 per cent per annum for the first 13 years, with the remaining depreciation spread equally over the balance years. The return on equity is proposed at 14 per cent per annum.
The discount rate is determined based on the weighted average cost of capital (WACC), which will be used as the discount factor to arrive at the levelised tariff.
KERC has invited suggestions, comments, and views from stakeholders and interested parties on the proposed norms.
Read the full order here.
KERC issues discussion paper on tariff and norms for solar power projects for FY26
The Karnataka Electricity Regulatory Commission (KERC) has released a discussion paper on the determination of tariff and norms for solar power projects, including solar rooftop photovoltaic (SRTPV) projects, for the financial year 2025-26 (FY26).
For MW-scale ground-mounted solar projects, the proposed tariff is Rs 2.92 per unit. The cost is estimated at Rs 30.05 million per megawatt, with a debt-equity ratio of 70:30. The debt component is Rs 21.03 million per megawatt, with an interest rate of 11.10 per cent per annum and a repayment period of 13 years. The capacity utilization factor is set at 19 per cent, and auxiliary consumption is considered at 0.25 per cent. Operations and maintenance (O&M) expenses are Rs 0.59 million per megawatt, escalating at 5.72 per cent annually. Depreciation is 5.667 per cent, and the return on equity is set at 14 per cent. Working capital interest, based on two months’ receivables, is 11.50 per cent.
For kW-scale SRTPV projects, the proposed cost is Rs 35,000 per kilowatt for systems ranging from 1 kW to 10 kW, and Rs 30,000 per kilowatt for systems above 10 kW up to the sanctioned load. The debt-equity ratio remains at 70:30, with a debt component of Rs 24,500 per kilowatt for smaller systems and Rs 21,000 per kilowatt for larger ones. The interest rate on debt is 11.10 per cent per annum, with a repayment period of 13 years. The capacity utilization factor is set at 19 per cent. O&M expenses are Rs 791.314 per kilowatt, escalating at 5.72 per cent annually. Depreciation is 5.38 per cent, and the return on equity is 14 per cent. Working capital interest, based on one month’s receivables, is 11.50 per cent.
The proposed tariff for kW-scale projects without subsidy is Rs 3.47 per unit for 1 kW to 10 kW systems and Rs 3.08 per unit for larger systems. Under the PM Surya Ghar: Muft Bijli Yojana, subsidized tariffs are Rs 2.30 per unit for 1 kW up to 2 kW, Rs 2.48 per unit for systems above 2 kW up to 3 kW, and Rs 2.93 per unit for systems above 3 kW.
KERC has invited suggestions, comments, and views from stakeholders and interested parties on the proposed norms.
Read the full order here.
KSERC approves KSEBL’s petition for long-term PPA
The Kerala State Electricity Regulatory Commission (KSERC) has approved the petition filed by Kerala State Electricity Board Limited (KSEBL) to enter into a long-term power purchase agreement (PPA) with CV Renewables Private Limited. Under this agreement, KSEBL will procure wind power from the company’s 1×250 kW wind plant at Ramakkalmedu at a ceiling tariff of Rs 3.94 per unit.
Following deliberations during the hearing, the commission directed both parties to comply with certain conditions within one month from the date of the order. KSEBL and CV Renewables must finalize the terms and conditions of the PPA through mutual consensus and submit a draft initialed PPA as an additional affidavit to the original petition for approval. Until the final PPA is approved, KSEBL is permitted to make payments to the developer at the approved generic tariff of Rs 3.94 per unit. Both parties are also allowed to submit any additional details if required.
Petition No: OP No 08/2025 | Read the full order here.
CERC rejects Juniper Green Energy’s petition on non-execution of PPA with DVC
The Central Electricity Regulatory Commission (CERC) has rejected the petition filed by Juniper Green Energy Private Limited, which sought a declaration that its bid dated September 17, 2023, had expired on June 30, 2024, and that it was not obligated to execute a power purchase agreement (PPA) with Damodar Valley Corporation (DVC) for a 50 MW wind power project. The petitioner also sought directions for REC Power Development and Consultancy Limited (RECPDCL) to return the bank guarantee deposited as an earnest money deposit.
The commission noted that DVC had already taken steps toward PPA execution by filing a petition for tariff adoption on April 23, 2024, well before the bid validity expired on June 30, 2024. After the commission adopted the tariff on August 1, 2024, DVC requested the petitioner to execute the PPA on August 5 and August 8, 2024. However, the petitioner refused to sign the agreement on August 12, 2024.
CERC found no merit in the petitioner’s claims of financial hardship and increased project costs as valid reasons for refusing to execute the PPA. Given these findings, the commission ruled against Juniper Green Energy and in favor of the respondents, denying any relief to the petitioner.
Petition No: 275/MP/2024 along with IA 64/2024 | Read the full order here.
CERC approves levelised tariff for DVC’s solar project in Jharkhand
The Central Electricity Regulatory Commission (CERC) has approved Damodar Valley Corporation’s (DVC) petition for determining the levelised tariff of its 10 MW solar photovoltaic (PV) power project at Koderma Thermal Power Station in Jharkhand.
The commission reviewed the project parameters and made key adjustments before finalizing the tariff. The approved figures are as follows:
Capital Cost and Financial Parameters:
Operational Parameters:
Based on these parameters, the commission has determined a levelised tariff of Rs 4.20 per kWh, lower than DVC’s proposed Rs 4.68 per kWh.
CERC has directed DVC to bill energy generated from the project at the approved tariff.
Petition No: 346/GT/2023 | Read the full order here.
CERC approves NTPC’s tariff adoption for 1000 MW wind-solar hybrid projects
The Central Electricity Regulatory Commission (CERC) has approved NTPC Limited’s petition for adopting the tariff of 1000 MW wind-solar hybrid power projects connected to the interstate transmission system (ISTS). These projects were awarded through a competitive bidding process.
The commission observed that NTPC conducted the bidding transparently and in accordance with the Ministry of Power’s Guidelines. Therefore, under Section 63 of the Electricity Act, CERC has adopted the individual tariffs for the projects, as per the letters of award dated August 22, 2024, subject to NTPC securing power purchase agreements (PPAs) and power sale agreements (PSAs) for the awarded capacity.
Approved Tariffs for Awarded Capacity:
CERC also noted that the awarded capacity is yet to be tied up with distribution licensees. The trading margin will be governed by the provisions of the PSAs and the payment security mechanism outlined in the Guidelines and PPAs.
In case NTPC fails to provide an escrow arrangement or an irrevocable, unconditional, and revolving letter of credit to the wind-solar power generators, the trading margin shall not exceed Rs 0.02 per kWh, as per Regulation 8(1)(d) and Regulation 8(1)(f) of the Trading License Regulations.
Petition No: 402/AT/2024 | Read the full order here.
CERC disposes of Adani Solar Energy Jodhpur (Four) petition seeking directions against respondents
The Central Electricity Regulatory Commission (CERC) has disposed of the petition filed by Adani Solar Energy Jodhpur (Four) Private Limited. The petition sought directions against the Solar Energy Corporation of India (SECI) and Rajasthan Urja Vikas Nigam Limited (RUVNL) for the release of deficit payments and late payment surcharge related to change-in-law compensation, as allowed by the commission in its order dated June 30, 2023, in Petition No. 72/MP/2020.
The petitioner, through an affidavit dated March 19, 2025, requested permission to withdraw the petition, citing the need to incorporate subsequent events and additional material facts not adequately addressed in the original filing. The petitioner also requested that the filing fees paid for the withdrawn petition be adjusted against a fresh petition on the same subject.
Considering the petitioner’s submissions, CERC granted permission to withdraw the petition, allowing the petitioner to file a new petition in accordance with the law. The commission also approved the adjustment of the filing fees for the fresh petition. Consequently, the petition stands disposed of as withdrawn.
Petition No: 326/MP/2025 | Read the full order here.
CSERC disposes of Chhattisgarh Biomass Energy Developers Association’s petition on electricity duty recovery
The Chhattisgarh State Electricity Regulatory Commission (CSERC) has disposed of the petition filed by the Chhattisgarh Biomass Energy Developers Association. The petition sought approval for the recovery of electricity duty paid by the association on auxiliary power consumption, as per the provisions of the Renewable Energy Tariff Regulations, 2022.
The commission observed that the Chhattisgarh State Power Distribution Company Limited (CSPDCL) had restricted the pass-through of electricity duty, considering a 10 percent auxiliary consumption limit. As this dispute falls under Section 86(1)(f) of the Electricity Act, 2003, the commission directed the petitioner to file a fresh petition under the same provision for adjudication.
CSERC granted the petitioner the liberty to adjust the filing fees paid for the current petition against the new petition. With these observations, the petition stands disposed of.
Petition No: 05 of 2025 | Read the full order here.
HPERC approves HPSEBL’s review petition, revises provisional tariff for Banu hydro project
The Himachal Pradesh Electricity Regulatory Commission (HPERC) has approved the review petition filed by Himachal Pradesh State Electricity Board Limited (HPSEBL) regarding its order dated September 9, 2024, in Petition No. 103 of 2024. The petition sought a revision of the provisional tariff of Rs 4.84 per kWh for the Banu small hydroelectric project.
HPERC noted that the tariff required adjustments based on the free power structure outlined in the supplementary implementation agreement dated September 18, 2019. For projects with capacities between 5 MW and 25 MW, the free power allocation was set at 7 percent (including 1 percent for the Local Area Development Fund (LADF)) for the first 12 years and 13 percent (including 1 percent LADF) for the remaining project life. Additionally, the commission factored in adjustments under the Industrial Development Scheme, 2017, and an additional tariff of Rs 0.26 per kWh for operations and maintenance charges.
Considering these adjustments, the correct provisional tariff for the project should be Rs 4.62 per kWh instead of Rs 4.84 per kWh, which was inadvertently allowed earlier. HPERC has now revised the tariff to Rs 4.62 per kWh and directed the parties to sign a supplementary power purchase agreement within 30 days. All other terms and conditions from the order dated September 9, 2024, in Petition No. 103 of 2024, remain unchanged.
Petition No: 130 of 2024 | Read the full order here.
CERC rejects DVC’s tariff petition for 8 MW solar project in West Bengal
The Central Electricity Regulatory Commission (CERC) has rejected Damodar Valley Corporation’s (DVC) petition for determining the levelised tariff of its 8 MW ground-mounted solar photovoltaic (PV) power project at Panchet, West Bengal.
The commission reviewed the project’s cost structure and financial parameters, making significant revisions before determining an interim tariff.
Key Financial and Operational Parameters:
Based on these parameters, the levelised tariff has been set at Rs 3.62 per kWh, lower than DVC’s proposed Rs 3.92 per kWh.
The commission noted that the commercial operation date (COD) of the project has been extended to October 30, 2024. DVC has been granted the liberty to submit a revised petition with actual costs after commissioning. Meanwhile, the interim tariff of Rs 3.62 per kWh has been approved.
Petition No: 175/GT/2024 | Read the full order here.
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