APTEL Ruling Addresses Wheeling Charges and Open Access in Maharashtra Power Sector
APTEL has ruled against Maharashtra State Electricity Distribution Company Ltd. (MSEDCL), rejecting its wheeling charges for renewable energy users. This decision is seen as a significant win for renewable energy sector.
October 30, 2024. By EI News Network
The tribunal's decision focussed on the challenges presented by MSEDCL against the Maharashtra Electricity Regulatory Commission (MERC) orders. Appeal No. 245 contested MERC's directive from April 2, 2018, which mandated MSEDCL to refund retained amounts to LOIL with applicable interest. In contrast, Appeal No. 376 contested MERC's November 3, 2018, observations on transmission charges and losses, leading to invoicing discrepancies by MSEDCL.
LOIL operates a 4.8 MW coal-based Captive Power Plant (CPP) and utilises the generated electricity across two interconnected industrial units. Initially, LOIL applied for Open Access to wheel power from its CPP in the fiscal year 2012-2013, which MSEDCL granted. However, when LOIL sought Open Access for 4 MW for the fiscal year 2013-2014, MSEDCL approved only 2.95 MW. This situation escalated as LOIL entered into an Energy Purchase Agreement with MSEDCL on March 30, 2013, for the supply of 2.95 MW of power. Subsequently, LOIL requested an enhancement of its contract demand from 2950 KVA to 4000 KVA on April 3, 2013, but MSEDCL cited an incomplete application. After submitting a revised application for 4.8 MW on May 6, 2013,
MSEDCL approved this enhancement on October 10, 2013. MSEDCL later informed LOIL on March 29, 2014, that wheeling charges and losses would be applicable for the financial year 2014-2015. LOIL contested these charges, leading to Case No. 59 of 2015, where the Commission ruled on June 3, 2016, that LOIL was liable for the wheeling charges and losses.
Following this, the Distribution Open Access (DOA) Regulations of 2016 were enacted, exempting certain consumers connected directly to the transmission system via dedicated lines. A review petition filed by MSEDCL regarding the June 3, 2016, order was allowed on April 2, 2018, reversing the previous ruling and directing MSEDCL not to levy charges while mandating a refund of any paid amounts by LOIL. Due to MSEDCL’s non-compliance with this directive, LOIL filed a contempt petition on June 11, 2018, further complicating the legal proceedings.
The tribunal noted various delays and procedural disputes during the hearings, including MSEDCL's late responses. Ultimately, the tribunal reaffirmed the Commission's findings, emphasising that the lines used for power transfer between LOIL's units were dedicated transmission lines owned and operated by LOIL, thus exempting them from wheeling charges and losses imposed by MSEDCL.
However, the tribunal's decisions emphasise the need for clear and transparent processes in tariff determination, which is crucial for maintaining consumer trust and ensuring fair pricing in the energy market.
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