Punjab Regulatory takes Strict note on RPO complaince of PSPCL

The PSERC (Punjab Electricity Regulatory Commission) in response to a petition filed by Punjab State Power Corporation Limited (PSPCL) pertaining to RPO compliance of FY 2014-15, in which the PSPCL has requested before the commission for carrying forward the compliance of RPO to next financial year (FY 2015-16).

Earlier the commission provided carry forward to the PCPCL for unmet RPO of FY 13-14 to FY 14-15 which were be met along with the RPO for FY 2014-15. PSPCL in its petition provided the status of its RPO compliance for FY 14-15 including for FY 2013-14, which is given in the table below:

PSPCL in its petition for carry forward of RPO cited various reasons for non-compliance of RPO. The reasons cited by PSERC were:

  1. Delay in the commissioning of the Project during FY 14-15.
  2. Financial constraints to purchase RECs.
  3. And also stated that it was due to factors beyond control of PSPCL and RPO targets being set by the commission are unachievable.

PEDA in its submission stated that PSPCL misconstrued the RPO targets fixed by commission, as RPO targets can be met through alternate channels and not only by way of RE purchases.

The commission in its order stated that it does not accept that the RPO targets were unachievable and that the shortfall in compliance was not out of control. The commission also stated that it does not accept the argument of alleged financial constraints of PSPCL and its inability to purchase RECs.

The commission also cited the APTEL Judgment which has issued directions to State Electricity Regulatory Commissions and Joint Electricity Regulatory Commission to enforce RPO, and Thus the Commissions are bound to enforce their respective RPO Regulations.

The commission in its judgement has provided the carry forward to FY 15-16 and has taken strict not for the Non-compliance of the RPO, directing the PSPCL to comply with the RPO obligations latest by 30th Dec 2015 and communicated that failing which further action as per Regulations may be initiated.

PSERC Finalizes RE Tariff for FY 15-16

The PSERC (Punjab Electricity Regulatory Commission) on 24th July 2015 has finalized the tariff for Renewable Sources of Energy. The tariff will be applicable for the projects to be commissioned during the year 2015-16. Previously in the May 2015, the commission notified a draft for the determination of the RE tariff and invited comments and suggestion. After considering all the submitted comments and suggestions the commission has come out with the final tariff. The brief details of the tariff finalized are provided in the table below:

The Graph below shows the comparison between the tariffs defined by the PSERC and the Tariff of CERC (Central Electricity Regulatory Commission):

As it can be seen in the graph above that the tariff finalized by PSERC in previous years has remained in line with the CERC and that the commission has done the same for the current financial year also. The tariff for solar energy has reduced by close to 9%, while for wind and small hydro it has been increased by approx. 3.75% and 4.10% respectively.

The more details on the tariff order can be read here.

PSERC Proposes RE Tariff for FY 15-16

The Punjab Regulatory Commission (PSERC) has recently proposed the Renewable Energy Tariff for FY 15-16. The commission through a separate Public Notice has invited comments and suggestions on the proposed Staff Paper. The comments and suggestions can be submitted by 15th June, 2015.

The details of the tariff proposed by the commission are given in the table below:

A graph depicted below shows the tariffs determined by the PSERC over the years.

The tariffs determined by the PSERC over the years have been in line with the tariff determined  CERC. The PSERC has followed the same trend in changing the tariff (% Change in tariff) for different Renewable Energy technologies as carried out by CERC. So it is expected that the PSERC RE tariff for FY 15-16, might be determined in line with the CERC RE tariff. .

The more details on draft RE Tariff can be read here.

Punjab Finalizes New RPO Targets

The Punjab Electricity Regulatory Commission (PSERC) has finalized the amendment to its RPO regulation 2011. The Amendment was notified on May 6, 2015. The new regulation will come in force from the  date of its publication in official gazette.

The new amendment to principle regulation defines new RPO targets for the upcoming years. The details of the new RPO targets are as below:

The targets defined by the commission are as same as the targets being proposed by the commission in its earlier draft notification in March 2015.

The graph above shows the comparison of the Punjab RPO targets with the RPO targets defined in the National Tariff Policy. The total RPO target year-on-year, seem to be nowhere close to NAPCC targets, and when compared to NTP targets, Non-Solar RPO targets fall considerably short while Solar RPO seem to be on track to meet NTP target by 2019-20. It is more important to observe whether PSERC ensures strict implementation in the future, or allows carry forward like the other states are doing.

The order can be accessed here.

Punjab notifies Draft for amendment in RPO regulation

Punjab state Electricity regulatory Commission (PSERC) has notified a draft along with a staff paper for amendment in RPO regulation. Through public notice the commission has invited comments and suggestions on or before 20th March 2015.

The new regulation proposes RPO obligation of 7.0% (4.5% Non-solar & 2.5% Solar) by 2019-20. The details of the proposed targets (in %) are mentioned in the graphs below:


Punjab is among those few states that have taken strict action on RPO compliance by imposing heavy penalties on obligated entities, albeit most other states have allowed Discoms to carry forward their RPO to next FY. As can be seen from the graphs above, the state has proposed ambitious targets for Solar, which will meet the National Tariff Policy (NTP) 2006 Solar target set for 2019-20, albeit proposed Non-Solar targets are much lower. The proposed total RPO targets are also significantly lower than the targets set by NAPCC.

Apart from this the commission has also proposed some changes in the amendment. The commission has proposed new definition for the “obligated entity” which can be read as:

‘obligated entity’ means the ‘distribution licensee(s)’, ‘captive user(s)’ of the electricity generated in a Captive Generating Plant and ‘Open access customer(s)’ which are mandated under clause (e) of sub-section (1) of Section 86 of the Act to fulfill the renewable purchase obligation;”

Previous definition by the commission, did not include any consumer or licensee.

The draft can be accessed here.

The stern order given by PSERC on pending RPO of PSPCL can be read here.

Solar Rooftop & Net Metering

In recent months many states have formulated ‘Net metering’ policies. These polices herald an exciting phase in the development of solar sector in the country as they will enable every household to become a power generator.
In this article, we have compared the various net-metering approached adopted by states. Some states have formulated regulations, while other have declared policies. While regulations are specific and binding, policies are more directional and state-ments of intent. Further, it is important to study and understand the fine-print of the regulations or poli-cies, as the way the policy works will have a signifi-cant impact on the return made by investors of roof-top projects.
A key difference is in the tariff paid for power ex-ported to the grid. Some states have adopted a ‘feed-in-tariff’ (FIT) approach, while other will al-low carryover of excess power to the next month – implying that the tariff is equal to the retail tariff be-ing paid by the consumer. FITs range from Rs 8.15 to Rs 9.56 per unit – these are significantly higher from the recently discovered prices of MW scale solar

projects of Rs 6- 7 per unit. In the case of offset with retail tariffs, projects will benefit from annual escala-tions, and therefore will see increasing savings over the life of the project.
We believe that net-metering regulations are im-portant to make solar of every roof a reality. How-ever, a key shortcoming in the existing regulations is that the procedure to get net-metering going are missing. Any net-metering project will involve an agreement with the Discom, and this is where pro-cedural and operational challenges will crop up. Simple, yet detailed and time-bound procedures need to be laid out on how to make a roof-top pro-ject a reality. Only Delhi has made some headway in laying down detailed procedures that projects can follow to get net-metering in place.
Table below compares each policy with the other.


Punjab Declares Distribution & Transmission Tariff for FY 14-15

Punjab state Electricity Regulatory Commission (PSERC) has determined its Tariff for FY 14-15. The tariff has been declared on 22nd August 2014 for the Distribution Company PSPCL & transmission Company PSTCL.

Brief Details of the approved Distribution Tariff is given below:

It is worth noticing that Tariffs have not increased much for general industrial consumers, while it has reduced by approx. 3% for large industries, and has reduced by more than 6% for Commercial category. The Commission has increased the MMC by 2.74% compared to previous year.

Open Access Charges:

The Transmission Tariff and SLDC charges approved is as below:

  • The Cross Subsidy Surcharge for large supply industrial consumers has been calculated at 95 paisa/kWh, while the same for Commercial Consumer has been computed at 92 paisa/kWh.
  • The Commission has determined Wheeling charges at Rs. 1.21/kWh, applicable for all categories of OA consumers. It is relatively high compared to other states.
  • For Renewable Power (consumption within the state), the transmission and wheeling charges  shall be levied at 2% of energy injected into the grid, while in case of wheeling of Renewable power outside the state normative wheeling and transmission charges shall be payable.

The Open Access Consumer shall bear transmission and distribution losses as given below:

The PSERC Distribution Tariff can be accessed here.

The PSERC Transmission Tariff can be accessed here.

Our Previous blog post on PSERC Net Metering Policy can be read here.

Contributed by Dheeraj Babariya.

Punjab Approves Net Metering Policy for Rooftop Solar

Punjab state Govt. has approved the Net Metering Policy for Solar Rooftop systems, a draft for the same has been notified by Punjab Energy Development Agency (PEDA). According to the policy any consumer of electricity of distribution licensee in the state can setup a Rooftop Solar system under net metering provision, which can be owned by him or by a third party.

A brief Analysis is given below:

The new policy has been approved in order to encourage renewable energy generation in the state. Punjab’s commercial and industrial tariff range between 6.5 to 7.50 Rs/unit, whereas the tariff provided for Solar PV is 7.72 Rs/unit (proposed for FY 14-15). This will not put too much cost liability on the DISCOMS in fulfilling their RPO.

Grant of capital subsidies on PV panels and exemption from paying open access charges and losses, will only encourage generators to invest in rooftop systems after the policy is officially released.

The Draft policy can be accessed here.

Our previous blog post on Punjab RE tariff can be read here.

Contributed by Dheeraj Babariya.

PSERC Draft RE Tariffs for FY 2014-15

Punjab State Electricity Regulatory Commission (PSERC) has released a draft for determination of tariff for Renewable Energy sources on 11th July 2014. PSERC has Invited comments and suggestions by 6th Aug 2014.

The graph below shows a comparison between tariff’s of CERC and PSERC over last three years (note that the tariff of PSERC for FY 14-15 is proposed and not approved).

It is evident from above that the tariff of PSERC over the period is same as the tariff determined by CERC. So it can be presumed that the final tariff of PSERC for FY 14-15 could be same as tariff determined by CERC. It is worth noting that the tariffs for Wind and Hydro have been marginally increasing over the last 3 years, which is contrary to the trend for Solar.

For further details please refer here.

Contributed by Dheeraj Babariya.

Punjab pushes PSPCL for RPO compliance by December’13

Punjab state power corporation limited (PSPCL) has been asked to comply with its stipulated RPO target for FY12, FY13 and FY14 cumulatively. In an order dated 12 August 2013, Punjab regulator allowed PSPCL to carry forward 114.80 non solar MUs and 25.8 solar MUs to FY14, which is the cumulative shortfall for FY12 and FY13.

For the current fiscal (FY14), the Punjab Discom has to purchase around 400,000 RECs and the shortfall of 114800 will eventually entail over 500,000 RECs to be purchased by end of December 2013.

in MUs Shortfall (+/-) in MWh RECs required
Non Solar Obligation 114.8 114800 114800
Solar Obligation 25.8 25800 25800
  140.6 140600 140600

With Maharashtra and Delhi also pushing for RPO on similar lines, it is expected that the buy side participation  will improve in the  poorly performing REC market.

For the copy of the order – Click Here

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