SERC order may cut Bihar power demand at IEX

The Central Electricity Electricity Regulatory Commission finally approved the national APPC after no stakeholders submitted any comments/suggestions by the deadline. The APPC will be critical for the implementation of Deviation Settlement Mechanism (DSM) for large-scale solar and wind energy projects across the country. The Commission also approved entry of a new power trading company in the market.

The Punjab State Electricity Regulatory Commission gave a crucial exemption to renewable energy power projects for selling power within the state through open access. Maharashtra Electricity Regulatory Commission (MERC) approved the tariff for renewable energy projects for the current financial year. A hydropower project developer won approval from MERC to sign a PPA with state discom after de-registering from the REC mechanism.

And in a significant decision by the Bihar Electricity Regulatory Commission has allowed Bihar State Power Holding Corporation Limited (BSPHCL) to procure surrendered power from a large private sector generator. This decision is expected to have direct consequences on the day-ahead market where Bihar has been among the largest buyers for the last few months. 

Read details of the orders in the Regulatory Compendium January 2016


Determination of mark-up for delivery of Regulation Up Services, under Central Electricity Regulatory Commission (Ancillary Services Operations) Regulations, 2015. – 12 January 2016

The Commission has proposed to set the mark-up for participation in Regulation Up Ancillary Services at 50 paise/unit. This mark-up will be paid in addition to the fixed charges. The proposal was open for comments from stakeholders till 29 January 2016.

Application for grant of inter-State trading licence to Phillip Commodities India Pvt. Ltd. – 21 January 2016

Result: Philip Commodities India Private Limited was granted Category-IV license for inter-state power trading. Philip Commodities is already a member of MCX and NCDEX.

Calculation of Average Power Purchase Cost (APPC) at the national level – 25 January 2016

The CERC sought to determine a national-level APPC to enable implementation of deviation settlement mechanism for large-scale solar and wind energy projects selling through open access or as captive power plants. The Commission had proposed APPC on 3 December 2015 and had called for comments by 21 December 2015; but no comments were received.

Result: Based on the tariff orders issued by the SERCs/JERCs for the year 2014-15, the CERC determined APPC at the national level as Rs. 3.40/kWh.


Petition for approval of change of Regulation for Fuel Cost Adjustment (FCA) Surcharge Formula – 22 January 2016

Punjab State Power Corporation Limited had prayed the Commission to revise tariff based on Fuel

Cost Adjustment Formula. PSPCL had proposed that if the adjustment is determined as over Rs 1.00/kWh then the discom be allowed to levy Rs 1.00/kWh over subsequent quarters to shield end consumers. 

Result: The Punjab State Electricity Regulatory Commission did not determine the FCA and dismissed the petition without revising the tariff.

Petition seeking relief and refund/exemption of UI charges, octroi and time-of-day charges levied on a captive co-generation power plant. – 7 December 2015

Nahar Industrial Enterprises Limited has filed a petition praying the Commission for exemption/refund of Time-of-Day charge, octroi and UI charges and relief in the matter of adjustment of power banked by captive co-generation power plants due to non-availability of transmission/distribution network.

Result: The Punjab State Electricity Regulatory Commission decided that, as per an earlier order, the time-of-day charge will not be levied on customers who opted for time-of-day tariff regime and purchased power through open access during peak hours. Any charges already collected with be refunded. On the matter of banking of power by captive co-generation projects due to non-availability of transmission/distribution network, the Commission ruled that a separate discussion paper has been released and this matter shall be decided through that paper itself. On the matter of levying octroi, the Commission decided that the matter came under the jurisdiction of the state government. Regarding payment of UI charges, while admitting that the captive co-generation projects (a renewable energy project) is a must-run power plant and is exempted from merit order dispatch, the Commission ruled that it is not exempted from paying the UI charges.

Petition to amend PSERC (Terms & Conditions for Intra-state Open Access) Regulations, 2011) to exempt NRSE projects from transmission and wheeling charges – 15 January 2016

The Punjab Energy Development Agency (PEDA) had proposed to the Commission that NRSE projects in Punjab selling power through open access be exempted from paying 2% transmission and wheeling charges to promote setting up more renewable energy projects.

Result: The Commission decided in favour of the proposal made by PEDA and approved an amendment to the aforesaid regulations. As per the amendment, NRSE projects commissioned between 09 July 2015 and 31 March 2017 will be exempted from paying the 2% transmission and wheeling charges for intra-state open access, irrespective of the distance, for a period of 10 years from the date of commercial operation. Apprehensions of PSPCL regarding the loss of revenue will be addressed while processing the ARR of the discom.

Petition for allowing same Variable Cost to all Biomass based Power Projects operating in Punjab at rates declared annually by PSERC as a component of generic tariff for Biomass Power Projects Commissioned during the year – 29 January 2016

The petition has sought revision of calorific value considered for fuel used by existing biomass power projects.

Result: The Commission agreed to revise the calorific value of existing biomass power projects to 3,174 kCal/kg, which is equal to that for the new projects commissioned in FY2015-16.

Petition by Indus Towers Private Limited for inclusion of LT consumer categories in time-of-day tariff schedule – 12 January 2016

Indus Towers Private Limited, which operates as number of telecom towers in Punjab, had prayed to the Commission to include LT consumers into the time-of-day tariff schedule. The petitioner submitted several arguments for its candidacy for inclusion in the ToD tariff regime.

Result: The Commission ruled that the nature of load of the petitioner is such that it may not provide much relief to the utility for flattening the load curve, which is precisely the objective of the ToD tariff regime. Thus, the petition was dismissed with the ruling going against the petitioner.


Petition filed by Essel Jabalpur MSW Pvt. Ltd. seeking approval of tariff for electricity generated from 11.5 MW municipal solid waste-based power plant – 5 January 2016

Essel Jabalpur MSW Pvt. Ltd. had filed a petition with the Madhya Pradesh Electricity Regulatory Commission seeking revision of norms, terms and conditions and tariff specific for MSW-based power plants in the existing tariff order of 01 October 2013. The petitioner had claimed that due to the change in market scenario the current tariff was inadequate.

Result: The Commission ruled that it is going to initiate tariff order for the next control period starting from 1 April 2016 and thus it would not be appropriate to take up this petition at this juncture. The petition was dismissed as non-tenable.


Determination of Generic Tariff for Renewable Energy for the period from 10 November, 2015 to 31 March, 2016 of FY 2015-16 – 25 January 2016

The Maharashtra Electricity Regulatory Commission determined following as the renewable energy tariffs for various technologies with control period of 10 November 2015 to 31 March 2016.


Tariff Period (Years)

Levelised Tariff (Rs/kWh), without tax and AD benefit

Wind Energy

Zone – I



Zone – II



Zone – III



Zone – IV



Small Hydro Power

500 kW & below



Above 500 kW & up to 1 MW



Above 1 MW & up to 5 MW



Above 5 MW & up to 25 MW



Biomass Power


Non-Fossil Fuel Cogeneration Power


Solar PV



Rooftop Solar PV



Solar Thermal Power



Petition filed by Celerity Power Pvt. Ltd. for determination of its 6 MW hydro power project in Maharashtra – 27 January 2016

Celerity Power Pvt. Ltd. had filed a petition with the Maharashtra Electricity Regulatory Commission (MERC) to determine tariff for its 6 MW hydro power project located in Pune. The project was commissioned in 2009 and was accredited under the Renewable Energy Certificate scheme in November 2011. This accreditation is valid for 5 years, that is, until November 2016. The petitioner is thus seeking to exit the REC mechanism and sell power at a preferential tariff.

Result: The Commissioned determined tariff for the power plant as Rs 3.84/kWh. The petitioner can sell power to the discom from the date of issuance of the order or signing of the PPA, whichever is later. The tariff shall remain applicable for the balance of the plant’s useful life or up to the 35th anniversary of plant’s date of commissioning. The discom will have to verify that the power plant has ben de-registered from the REC mechanism. Electricity procured by the discom from the power plant shall be considered for meeting the Renewable Purchase Obligation.


Petition for availing 358 MUs of power surrendered/not scheduled by discoms during FY2014-15 applicable variable charges only – 20 January 2016

The Bohar SPHCL had signed a power purchase agreement with Adani Energy Limited for supply of 200 MW between 1 March 2012 and 31 December 2015 through medium-term open access. BSPHCL, however, surrendered 358 MUs during FY2014-15 during off-peak hours due to variation in demand. BSPHCL now wants to avail this surrendered power from AEL after payment of variable changes; it has already paid fixed charges. 

Result: The Commission accepted BSPHCL’s prayer to procure 358 MUs from AEL at the applicable variable charge without paying the fixed charges.

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