JERC (Goa & UTs) imposes penalty for non-compliance of RPO

Joint Electricity Regulatory Commission (JERC) for UTs and Goa has become the second electricity regulator to impose penalty for non-compliance of RPO targets. JERC (Goa & UTs) had previously through a suo-motu order (dated 27th Dec 2013) directed all obligated entities to comply with RPO targets of FY11 to FY14 by 31st March 2014 and submit a detailed report by 17th April 2014. JERC notes that some of the obligated entities have failed to fulfil the targets.

Goa – In case of Goa, JERC after scrutiny of the report (submitted by former) was of the view that Goa has failed to fulfil Solar RPO targets from FY11 to FY14 and has consequently been directed to submit a detailed report by 21 July 2014. JERC has asked Goa to meet its RPO targets (along with all backlogs) positively.

Andaman & Nicobar Islands – JERC found that respondent has met with all targets up-to FY14. JERC emphasized that quarterly submission of RPO compliance reports to state agency should continue without fail.

Chandigarh – Chandigarh has also fulfilled RPO targets from FY11 to FY14. JERC mentioned that Chandigarh has also submitted the planning report for compliance of RPO targets of FY15.

Dadra & Nagar HaveliJERC has taken serious steps for non-compliance of RPO targets. The utility of Dadra & Nagar Haveli has therefore been asked to deposit INR 110 crore (Provisional) with the state designated agency positively by 30th September 2014 if it fails to comply with targets by 21st July.

The utility has also been directed to submit proposed plan to meet RPO targets of Fy15.

Daman & Diu – As per JERC, Daman & Diu has also not complied with RPO targets of FY11- FY14. The regulator also emphasized that OA consumers in the area of licensee are also required to meet the targets. The utility in Daman & Diu was asked to submit detailed report by 21st July 2014.

Lakshadweep – Lakshadweep has failed to meet non-solar RPO targets for FY11 to FY14. However, no penalty was imposed with respect to such non-compliance.

Puducherry – Puducherry has failed to comply with solar RPO targets for FY11-FY14, noted JERC. In this case also, there was no penalty imposed and the utility of Puducherry was asked to submit detailed report by 21st July 2014.

The additional information w.r.t amendment to principal RPO regulations is that the same has been forwarded to Controller of Publication, Govt. of India for publication. Our blog-post on the issue can be read by clicking here.

For more details refer the order here.

UERC maintains its tough stand for non-compliance of RPO

Uttarakhand – the only state in the nation to have imposed penalty for non-compliance of RPO, has once again stood by its tough stand in the order dated – 22nd Jan 2014. In the order (refer) –

UERC has considered UPCL’s non-compliance as willful contravention of the direction of the Commission and has imposed penalty of Rs.20,000/- on the Managing Director of UPCL. The Commission has also directed UPCL to comply its pending RPO by March 2014, failure to which will attract additional penalty of Rs.2000/Day thereafter.

In continuation to this, UPCL’s MD had filed a review application for reconsideration of commissions directives. After a motion-hearing, UERC has held that review application does not qualify as UPCL failed to substantiate any ground for review or highlight any errors therein.

However, UERC taking note of this, has given UPCL another opportunity for paying the amount of Rs. 20,000 within one week i.e. by 30th April 2014.

UPCL in the hearing has clarified that it plans to meet the RPO of FY12 and FY13 in four monthly installments. The penalty of Rs 2000 per day applicable for non-payment will continue to be in force post 30th April 2014.

The order is available here.

UERC order on RPO compliance for co-gen based CPPs

Uttarakhand Electricity Regulatory Commission (UERC) on April 10th 2014, released a joint order in case of 9 captive power producers, having co-generation units. The petitioners (CPPs with co-gen plants) in reply to show-case notice issued by commission (UERC) on 12th March 2013, had prayed to relax the RPO regulations since they had co-gen units and in support, referred to ApTel’s judgement (2010) in case of Century Rayon vs. MERC, where it was pronounced that co-generation unit cannot be fastened with RPOs.

UERC had recently (28th Dec 2013) made amendment to prevalent RPO regulations of 2010. In this amendment, the definition of obligated entity was modified from –

““Obligated Entity” means the distribution licensee, captive user and open access consumer in the State, which is mandated to fulfill renewable purchase obligation under these regulations;” (2010)

to

““Obligated Entity” means the distribution licensee, captive user (excluding co-generation based  captive power plants) and open access consumer in the State, mandated to fulfill renewable purchase obligation under these regulations.” (2013)

UERC is of the view, that all CPPs having co-gen units will necessarily have tocomply with RPO targets of FY12, FY13 and FY14 (upto 27th Dec 2013) i.e. till the time the amendment was introduced. However, from 28th Dec 2013 onwards, there will be no obligation on CPPs with cogen units. All such CPP with co-gens are asked to meet with RPOs by 31st May 2014 and submit compliance report by 10th June 2014.

UERC also clarified that all other captive users will continue to be regarded as “obligated entity” and such CPPs have to fulfill shortfalls by 30th April 2014 and submit compliance report by 10th May 2014.

The petitioners prayer to quash such show-cause notice letters was also dismissed.

The order can be read in detail by clicking here.

Our previous blog-post on UERC’s landmark order on penalization on UPCL’s MD can be accessed here.

 

Uttarakhand penalizes UPCL for non-compliance of RPOs

After a prolonged wait and significant suffering of RE stakeholders, finally, a regulatory body has shown its true strength and purpose by imposing the penalty on an RPO defaulting entity – a first ever penalty imposed on any obligated entity in India. The case matter is as follow:

In December 19, 2012, UERC (Uttarakhand Electricity Regulatory Commission) had ordered state DISCOM – Uttarakhand Power Corporation Limited (UPCL), to carry forward the unmet RPO for FY 2011-12 for both solar as well non-solar sources to 2012-13 which were to be met alongwith the RPO for FY 2012-13.

  • Subsequently, in September 11 – 2013, UPCL was directed to procure RECs for unmet RPO of 59.12 MUs (59,120 REC equivalent) of non-solar sources for FY 2011-12 within 2 months, i.e. by November 15, 2013 failing which UPCL would be liable for appropriate action u/s 142 of Electricity Act, 2003.
  • In the same order, UPCL was also allowed to carry forward the unmet RPO of FY 2012-13 for both solar as well as non-solar sources to FY 2013-14 which was to be met with its obligation for FY 2013-14 by March 31, 2014 failure of which may attract action against it under Section 142 of the Electricity Act, 2003.

However, UPCL paid no heed to UERC’s directives and failed to comply with Commission’s order.  The Commission also acknowledged that “UPCL has been time and again making repeated non-compliance of the directions issued to it under the Act & Regulations inspite of the fact that numerous opportunities has been provided to it to mend its affairs.” Further, the Commission also commented that “ignorance of law is no excuse. UPCL being a commercial organization and a licensee under the Electricity Act, 2003 has to ensure compliances of the Act, Rules and Regulations made there under.”

UERC has considered UPCL’s non-compliance as willful contravention of the direction of the Commission and has imposed penalty of Rs.20,000/- on the Managing Director of UPCL. The Commission has also directed UPCL to comply its pending RPO by March 2014, failure to which will attract additional penalty of Rs.2000/Day thereafter.

This order brings a ray of hope for all the RE Generators in India who have desperately been waiting to see any positive step towards compliance. This order will certainly boost confidence of RE fraternity towards an almost written-off REC market.

The order can be read here

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