Status Quo for co-generators

In a key judgement pronounced by Hon’ble APTEL on 17th April 2013 condonation of delay was not granted. The issue relates to a case filed by GERC against Century Rayon/MERC for the order passed by tribunal on keeping co-generation plant of Century Rayon outside the purview of RPS obligation (generic order).

The petition was filed by GERC for review after 818 days and evidently the petition was not submitted by tribunal due to huge delay in filling a review and also on the grounds that GERC was not present in the original proceedings and hence cannot be considered as “Aggrieved Entity”.

GERC had prayed for the review because one of the co-generators in Gujarat had approached GERC on the fact that in the order passed by APTEL in favor of century rayon (vs MERC/MEDA), Hon’ble APTEL had asserted that co-generators are at par with renewable energy generators, therefore the co-generator (who knocked GERC) was requesting GERC to allow them to sell their power at preferential tariff on the above grounds.

Subsequently. in the judgement the condonation of delay for review petition filed by GERC was rejected and dismissed.

In a similar spat between UPERC and Hindalco, UPERC was forced to follow the order passed by tribunal in Century Rayon case.

It seems that the breeze, as far as the co-generation issue is concerned, will remain stagnated and a way forward can be expected only if Electricity Act incorporates appropriate amendments.

For our detailed analysis on the co-gen issue, please refer our monthly Newsletter “OPEN ACCESS Vol. 29”.


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