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MERC approves the ‘Green Power Tariff’ for the consumers of all the distribution Licensee of Maharashtra

In a recent order, The Maharashtra Electricity Regulatory Commission(MERC) has allowed a ‘Green Power Tariff’ for the consumers opting for 100% Green energy. 
All consumers including Extra High Voltage, High Voltage and Low Voltage will be eligible for opting 100% RE power on payment of Green Power Tariff. As per the order, Green Power Tariff of Rs 0.66/ kWh, which is over and above the normal tariff of the respective category as per Tariff Orders, will be levied to such consumers.
The Tata Power Company Limited (Distribution) (TPC-D) had filed a Petition seeking approval for “Green Power Tariff” for supply of Renewable Energy (RE) to consumers for meeting their requirement of utilizing 100% green energy for their entire demand.
In its submission, TPC-D stated that: 

  1. a) Approve the procurement of additional Renewable Energy to meet the 100% Green Energy requirement of consumers, 
  2. b) To approve issuance of a monthly certificate to the consumers certifying 100% green energy sale 
  3. c) Approve the “Green Energy Tariff” as proposed above or as deem fit by the Hon’ble Commission towards processing the 100% Green Energy Requirement 
  4. d) Allow treatment of this RE power under RPO of Tata Power-D in case the consumers do not wish to use the green attributes for meeting its RPO obligations. 

TPC-D in its submission also pointed out that such provision is already in place in the state of Karnataka, where Karnataka Electricity Regulatory Commission (KERC) has already approved Green Power Tariff for the Distribution Licensee (BESCOM) since FY 2011-12 in the respective tariff orders. While computing the green power tariff, TPC-D follows the same  methodology adopted by KERC.
Commission’s Analysis:
The Commission in its order noted that all the Distribution Licensees supported the proposal of TPC-D and stressed on the need to adopt uniform methodology.
Subsequently, the Commission allowed the Green Power tariff stating that the Distribution Licensees would have to incur additional expenses for arranging RE for such consumers. Such additional expenses need to be recovered from the same set of consumers without burdening other consumers.
The Commission further noted that the Green Power Tariff which would be uniform for all Distribution Licensees in the State. Computation of such tariff would be the difference between pooled power purchase cost of non-conventional and conventional sources of energy (only variable cost) for all Distribution Licensees in the State as described below:

RE power Procurement for MYT Period Non-RE power procurement (only variable) for MYT Period Diff Bet RE & NonRE power
MU Rs. Cr Rs/kWh MU Rs. Cr Rs/kWh Rs/kWh
MSEDCL 141772 57440 4.05 586029 146412 2.5 1.55
AEML-D 13295 4691 3.53 38206 15367 4.02 -0.49
BEST Undertaking 2949 940 3.19 22534 7938 3.58 -0.34
TPC-D 3927 1491 3.8 22377 8069 3.61 0.19
MBPPL 58 17 2.88 348 161 4.19 -1.31
GEPL 41 12 2.88 248 101 4.08 -1.2
KRC 35 10 2.89 190 76 4.02 -1.14
Total 162077 64600 3.99 669968 178125 2.66 1.33

As this concept is being introduced for the first time, the commission decides to levy only 50% of charge determined above i.e. 0.66/kWh as Green Power Tariff to the consumer opting for meeting its 100% of power requirement through RE sources.
The Commission also ruled that if the consumer is not an obligated entity under RPO Regulations, it would be appropriate to count this energy towards RPO fulfilment of Distribution Licensee which will reduce the additional cost of the utility for purchasing the same and ultimately benefit its consumers.