RERC PROVIDES CLARIFICATION REGARDING DURATION AND TARIFF OF PPAS EXECUTED UNDER REC MECHANISM

Rajasthan Electricity Regulatory Commission (RERC) has released an order clarifying the duration of PPA’s executed under REC mechanism and for setting of tariff for the PPA’s executed under REC framework.

A petition was filed by Jaipur Vidyut Vitran Nigam Ltd., Ajmer Vidyut Vitran Nigam Ltd, Rajasthan Urja Vikas Nigam Ltd. and Jodhpur Vidyut Vitran Nigam Ltd. seeking clarifications with regards to PPA executed under REC mechanism from RERC.

 

The commission came to the conclusion that the operating period of PPAs shall be governed by the terms of PPA. Since as per the petitioners, all the PPAs executed under REC framework are valid upto 31.03.2019, it shall be followed. Also, the pricing methodology for determining the APPC under REC mechanism has been provided in the RERC (Renewable Energy Certificate and Renewable Purchase Obligation Compliance Framework) Regulations, 2010, it shall be followed. RERC will take the suggestions of the petitioners into consideration as and when it amends the REC regulations, 2010.

RERC Approves APPC for Rajasthan Discoms

Rajasthan Electricity Regulatory Commission (RERC) in its orders dated 21st July 2014, has approved the Average Power Purchase Cost (APPC) for its DISCOM’s. Honourable commission approved APPC of FY 12-13 & FY 13-14 for Jodhpur Discom and APPC of FY 13-14 for Jaipur Discom.

The Order came in response of petitions filed by the Discoms for the approval of the APPC. The details of the approved APPC are highlighted below:

Previously commission in its order on 12th Dec 2012 determined a provisional APPC at Rs. 2.75/Unit for FY 12-13 for which the Jodhpur Discom through a petition requested commission to revise the provisional APPC (which has now been approved at Rs. 2.67/unit). While no APPC was determined for FY 13-14.

A graph below is showing the APPC’s approved over last three years:

 

It is evident from above that the APPC for Jodhpur Discom is less in case of FY 12-13 compared to FY 11-12, which is because the commission in its order determined provisional APPC for FY 11-12 at Rs. 2.57/unit ,for which Jodhpur Discom, in 2013, requested commission to revise and to approve the APPC at 2.73 Rs./unit, which the commission approved on 03rd December 2013.

It is quite evident that the commission has approved a higher APPC for Ajmer Discom compared to Jaipur Discom, whereas their APPC was the same for the previous two FY.  The difference, as quoted by JUVVNL, is because of the variation in the the time period of bills received and payments made by each discom, for purchase of power from Rajasthan Discoms Power Procurement Center (RDPPC).

The order for Jaipur Discom APPC FY 13-14 can be accessed here

The order for Jodhpur Discom APPC FY 13-14 can be accessed here

The order for Jodhpur Discom APPC FY 12-13 can be accessed here

Our Previous blog post on Rasthan APPC can be accessed here

Contributed by Dheeraj Babariya

Rajasthan to finalize APPC for its DISCOMs

State owned distribution companies in Rajasthan namely; Jodhpur Vidyut Vitran Nigam Limited (JdVVNL) and Jaipur Vidyut Vitran Nigam Limited (JVVNL) have filed petitions for APPC determination of FY13 and FY14 respectively. The commission had previously declared provisional APPCs for both.

Before going in to the details, it is pertinent to note the definition of APPC being followed by Rajasthan –

“Pooled Cost of Power Purchase: The weighted average price at which the distribution licensee has  purchased the electricity including cost of self generation, if any, in the previous year from all the energy  suppliers, excluding short term power purchases and those based on renewable energy.” 

Unlike other states Rajasthan excludes short-term power purchases also, along with renewable power purchases.

JdVVNL petition for finalization of APPC FY13

RERC had finalized a provisional tariff of Rs. 2.75 per unit for FY13 as per its order dated 11th Jan 2013. Whereas, in the current petition based on audited accounts JdVVNL has asked for approval of Rs. 2.6713 per unit as per audited accounts of FY12.

Comment invited by 5th March 2014.

JVVNL petition for finalization of APPC FY14

In case of JVNNL, RERC has been asked to finalize the APPC of FY14 as Rs. 3.0865 per unit as per audited accounts of FY13.

Comments invited by 28th February 2014.

Our previous blogpost on Rajasthan APPC can be read here.

Blogposts on all other states APPC can be read here.

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