Author: PPD Team Date: 11/02/2025
The Tamil Nadu Electricity Regulatory Commission (TNERC) has approved Techno Electric and Engineering Company Limited’s petition for a review of the final order in M.P.No.28 of 2023. In the original order, the commission had ruled in favor of the petitioner.
The review petition argued that the average pooled power purchase cost (APPC) rate is dynamic, meaning it should be compared to the preferential tariff for the corresponding year, not the tariff in the control period when the renewable energy plant was commissioned. The petitioner also agreed with direction (c) in para 4.15 of the impugned order, which aligns with the Appellate Tribunal for Electricity’s (APTEL) directions.
The commission acknowledged the review request, considering whether there was an apparent error or a mistake of fact. Citing para 12.2 of the APTEL judgment in Appeal No.232 of 2017, it clarified that the APPC rate should be compared annually, with a cap arising when the APPC rate exceeds the preferential tariff for that year.
As a result, the review petition was granted, and Tamil Nadu Generation and Distribution Company Limited (TANGEDCO) is instructed to make payments to the petitioner at the full APPC rate for the corresponding year without applying a cap, provided the APPC rate does not exceed the preferential tariff for the same year.
Petition No: R.P.No.2 of 2024 in M.P. No. 28 of 2023
Click here to read the full order.
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