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.