TIMARPUR-OKHLA WASTE MANAGEMENT COMPANY LTD. (TOWMCL) Vs. DELHI ELECTRICITY REGULATORY COMMISSION AND ORS.

JUDGEMENT

(1.) THE Appeal No. 251 of 2013 under Section 111 of the Electricity Act, 2003, has been preferred by Timarpur -Okhla Waste Management Company Limited (in short, the 'Appellant'), challenging only a part of the tariff Order, dated 31.7.2013, passed by the Delhi Electricity Regulatory Commission (in short, the 'State Commission)/Respondent No. 1 herein, in Petition No. 1 of 2013, whereby the State Commission has while conducting the True -up for FY 2011 -12, Review and Provisional True -up for FY 2012 -13 and approving the Annual Revenue Requirement of the Respondent No. 2 (BSES Rajdhani Power Limited)/Distribution Licensee for its Distribution (Wheeling and Retail Supply) business for FY 2013 -14 has allowed the Respondent No. 2 to fulfill part of its Renewable Purchase Obligation (RPO) by purchasing 50 MU power from the Appellant at Rs. 2.60 per unit. The Appellant is the Power Generating Company, Respondent No. 1/DERC is the State Regulatory Commission and Respondent No. 2/BSES Rajdhani Power Ltd. is the Distribution Licensees (hereinafter referred to as 'BRPL').

(2.) THE Appeal No. 325 of 2013 under Section 111 of the Electricity Act, 2003, has been preferred by Timarpur -Okhla Waste Management Company Limited (in short, the 'Appellant'), challenging the Order, dated 18.9.2013, passed by the Central Electricity Regulatory Commission (in short, the 'Central Commission)/Respondent No. 1 herein, in Petition No. 246/MP/2012, whereby the Central Commission relied on the tariff order, dated 31.7.2013, passed by the Delhi Electricity Regulatory Commission regarding 'True -up for FY 2011 -12, Aggregate Revenue Requirement and Distribution Tariff (Wheeling & Retail Supply) for FY 2013 -14', considered the 8 MW power supplied by the Appellant towards fulfillment of Renewable Purchase Obligation (RPO) of the Respondent No. 3 (BSES Rajdhani Power Limited) (hereinafter referred to as 'BRPL') at a price of Rs. 2.60 per unit and, further, directed the Appellant to either take steps for resolution of the dispute regarding the same in accordance with the Dispute Resolution Mechanism provided under Article 22 of the Energy Purchase Agreement (EPA) or to approach the State Commission for a clarification as to whether 8 MW of Energy covered under the EPA with the Respondent No. 3/BRPL qualifies to be considered as meeting the Renewable Purchase Obligation of the said Distribution Licensee. The Appellant is the Power Generating Company, Respondent No. 1 is the Central Electricity Regulatory Commission, Respondent No. 2 is the National Load Dispatch Centre and Respondent No. 3/BSES Rajdhani Power Ltd. is the Distribution Licensee.

(3.) THE National Electricity Policy and National Tariff Policy also provide for promotion of Renewable energy and for giving them preferential tariff. The project of the Appellant is of much more significant importance as compared to Solar Power Generation or Wind Power Generation. In the case of Solar Projects or Wind Power Projects, there is only a conversion of solar power or wind power without any treatment of waste etc. In the case of Waste to Power Project, it is environmental friendly and provides much needed treatment of Urban/Municipal Waste, which itself, is an important social objective and additionally power is generated. The project of the Appellant is being set up at an old compost plant site converted into Municipal Solid Waste (MSW) dumping site of the Municipality thereby utilizing the dumping site in the most efficient and environment friendly manner. The project activity reduces emission of methane, a powerful contributor to climate change and any leachate that would have been generated. Such project activity directly results into more cleaner and healthy environment thereby reducing the possible health hazards that would emerge from mere dumping of waste and thus lead to improved public health. In view of the nature of the project namely, the project being non -conventional energy development project involving the use of Municipal Solid Waste to generate electricity, it is necessary to encourage the developer with a tariff and by registering the same under the REC Mechanism to provide sufficient additional incentives to induce necessary investment. The technology required for such project is also new and needs to be procured and used at significant cost. The project clearly comes into the provisions of Section 61(1)(h) read with Section 86(1)(e) of the Act and is also a part of the declared policies of the Central Government and State Government and the Central Electricity Regulatory Commission and State Electricity Regulatory Commissions.