LANCO BUDHIL HYDRO POWER PVT. LIMITED Vs. NORTHERN REGIONAL POWER COMMITTEE (NRPC) AND NORTHERN REGIONAL LOAD DISPATCH CENTRE (NRLDC)

JUDGEMENT

(1.) THE petitioner, Lanco Budhil Hydro Power Private Ltd., has filed present petition under Section 79 of the Electricity Act, 2003 (hereinafter "2003 Act") with the following prayers, namely: (a) That this Hon'ble Commission may direct the Respondent No. 1 to revise the UI Accounts for the project of the petitioner during the relevant period commencing from 25.5.2012 to 29.8.2012, in accordance with the applicable CERC Connectivity Regulations 2009 as amended from time to time and CERC UI Regulations 2009 as amended on 28.4.2010. (b) This Hon'ble Commission may pass such other and further order(s) as may be deemed fit in the facts and circumstances of the present case. Facts of the case The petitioner has set up a 70 MW (2x35 MW) hydro power project (generating station) in Tehsil Bharmour, District Chamba at Himachal Pradesh pursuant to a Memorandum of Undersigning dated 23.9.2004 executed between the petitioner and Government of Himachal Pradesh. On 13.4.2012, the petitioner has signed a connection agreement with NHPC Ltd., and Power Grid Corporation of India Limited. Upon connection to the Central Transmission Utility (CTU), on 25.5.2012, the petitioner synchronized its plant and started injecting the infirm power into the grid. The generating station was declared under commercial operation on 30.8.2012. Thereafter, Northern Regional Load Despatch Centre issued UI accounts for the said infirm power injected into the grid by the petitioner as under: (a) From 25.5.2012 to 1.7.2012: by applying capped rate of Rs. 4.03/kWh; (b) For the remaining period by applying capped rate of Rs. 1.55/kWh. NRLDC also started unilaterally revising the earlier accounts by applying capped rate of Rs. 1.55 kWh.

(2.) THE petitioner enquired from NRLDC the reasons for capping the rate at Rs. 1.55/kWh as well as for revising the accounts. In response, no reply was received from the NRLDC. The petitioner has submitted that it is a generating company within the meaning of Regulation 2 (2) of the Connectivity Regulations read with Section 2 (30) of the Electricity Act, 2003. Once Connectivity Regulations are applicable to the petitioner's generating station, the petitioner becomes entitled to payment of UI charges for the infirm power injected into the grid by it before the date of commercial operation, in terms of Regulation 8 (7) of the Connectivity Regulations which provides that the infirm power injected in to the grid by a generator is treated as Unscheduled Interchange of the units of the generating station and the generator is to be paid for such injection of infirm power in accordance with the provisions of the Central Electricity Regulatory Commission (Unscheduled Interchange Charges and related matters) Regulations, 2009. The petitioner has been granted connectivity pursuant to the connection agreement dated 13.4.2012 and has injected infirm power into the grid before its date of commercial operation for a period not exceeding six months from the date of first synchronization after obtaining prior permission of the concerned Regional Load Despatch Centre. Accordingly, the petitioner is entitled for payment of infirm power injected into the grid for the period from 25.5.2012 to 29.8.2012 in accordance with UI Regulations.

(3.) REPLY to the petition has been filed by the Northern Regional Power Committee (NRPC) and Northern Regional Load Despatch Centre. In its reply dated 18.6.2013, NRPC has submitted as under: (a) Since the generating station has not been defined in Regulation 2 (2) of the Connectivity Regulations, therefore, for the purpose of applicability of UI Regulations the petitioner is not a generating station and it is considered under the category of seller; (b) Since the generating station was not declared under commercial operation, the installed capacity was considered as zero and the UI charges have been calculated considering the scheduled injection and installed capacity as zero as per the UI rates prescribed under UI Regulations. The reason for considering zero installed capacity during infirm period was on account of following: (i) As per convention/practice the installed capacity is considered only after commercial operation of the unit. (ii) Second amendment of UI Regulations, 2009, which was stayed by Hon'ble High Court of Madras, provides for cap rates for infirm power. The intention is to compensate the generators for injection of infirm power but not to use UI mechanism as market tool for sale of power. (c) The issue raised by the petitioner was discussed in NPRC Secretariat on 14.9.2012 and 21.12.2012 and during the discussion methodology used for UI computation was clarified. (d) Since the error for the computation of UI charges for the period 2.7.2012 to 30.8.2012 was noticed in the month of July, 2012, cap rate of Rs. 1.55 kWh was applied on computation of UI charges on infirm power w.e.f. 2.7.2012. NRPC has prepared the revised accounts for the period from 25.5.2012 to 1.7.2012. However, same has been kept on hold pending disposal of the present petition.