BAJAJ FINSERV LIMITED Vs. STATE
LAWS(ET)-2015-1-6
CENTRAL ELECTRICITY REGULATORY COMMISSION
Decided on January 07,2015

Bajaj Finserv Limited Appellant
VERSUS
STATE Respondents

JUDGEMENT

- (1.) M/s Bajaj Finserv Ltd. (BFL), c/o M/s Bajaj Auto Ltd., Akurdi, Pune has filed a Petition on 16 July, 2014 seeking exemption from certain provisions of the MERC (Distribution Open Access (DOA)) Regulations, 2014 for non -firm wind energy for captive use / third party sale under Regulation 44.4.
(2.) BFL's prayers are as follows: "1) Hon'ble MERC is requested to hold applicability of regulations of DOA -2014 to non ­firm RE, which are different than earlier practices / MERC's rulings and MERC Order ­ Case No. 137 of 2014 Page 1 of 9 incompatible to implement till Stake Holder's hearing. And direct MSEDCL to follow earlier practices related to OA application, ToD energy adjustment, energy banking, etc. for wind energy. 2) Following Regulations are incompatible and demoting GoM's policies, earlier Regulations, Practices as per EA, 2003 which are currently promoting RE generation in the State, hence humbly requested to exempt applicability of Regulations 3.1, 4.2, 23, 26.8 of DOA ­ 2014 in case of Intra - Discom wheeling of non -firm power for captive / third party sale from the project commissioned earlier to the date of DOA -2014. Regulation 4.2: Reduction of contract demand of RE consumer Regulation3.1: Consumer having contract demand of 1 - MW and above, is eligibility to seek open access, however penalised if he fails to use minimum 70% monthly maximum demand Regulation 23: Installation of SEM for RE transactions Regulation 26.8: Adjustment of RE in 15 minutes time block is mandatory by DOA - 2014 w.e.f. 25 -June -2014..."
(3.) The facts as stated in the Petition are summarized as below: (1) BFL (erstwhile M/S Bajaj Auto Ltd.) had invested in installation of 7 wind energy projects with gross capacity of 65.2 MW, particularly for captive use as per the Wind Energy Policy and with the permission of Govt. of Maharashtra (GoM). In 2008, demerger of the erstwhile Bajaj Auto took place. BFL became the owner of the project and Bajaj Auto and others became third party users of wind energy under Open Access (OA). (2) Wind energy generating plants are injecting energy in Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL)'s grid without revenue from 1st April, 2014, as MSEDCL has held up OA permission for captive use/third party sale by forcing generators/consumers to comply with conditions like installation of Special Energy Meters (SEMs) immediately and independently, which is not in the control of the generator and OA consumer. (3) Even though BFL has provided an undertaking to MSEDCL that the generator/consumer will comply with its requirements in due course and sought continuation of OA permission for FY 2014 -15 till then, MSEDCL has withheld permission. Even before the notification of the DOA Regulations, 2014, MSEDCL had started implementation of some Regulations in advance which were difficult to comply with. (4) Regulation 44.4 of the DOA Regulations, 2014 allows any generator, consumer, etc. to apply to the Commission for exemption from some or all of the conditions for availing OA. BFL is seeking exemption accordingly in view of certain technical difficulties faced by the existing Renewable Energy (RE) projects. ;


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