IN RE: POWER GRID CORPORATION OF INDIA LIMITED Vs. STATE
LAWS(ET)-2015-3-4
CENTRAL ELECTRICITY REGULATORY COMMISSION
Decided on March 02,2015

In Re: Power Grid Corporation Of India Limited Appellant
VERSUS
STATE Respondents

JUDGEMENT

- (1.) CLAUSES 1(u) and (v) of Regulation 7 of the Central Electricity Regulatory Commission (Sharing of Inter -State Transmission Charges and Losses) Regulations, 2014 (hereinafter referred to as "Sharing Regulations") provide as under: "7(1)(u) No transmission charges for the use of ISTS network shall be charged to solar based generation. This shall be applicable for the useful life of the projects commissioned in next three years. (v) No transmission losses for the use of ISTS network shall be attributed to solar based generation. This shall be applicable for the useful life of the projects commissioned in next three years."
(2.) THE Sharing Regulations came into effect from 1.7.2011. As per the above provision of the Sharing Regulations, no transmission charges and losses are payable by the solar based generation commissioned on or after 1.7.2011 till 30.6.2014.
(3.) CTU vide its letter dated 2.2.2015 has submitted that as per the Sharing Regulations, no transmission charges were payable for transmission of power from solar generating units which have been commissioned prior to 30.6.2014. CTU has sought guidance of the Commission regarding levying of transmission charges and losses from the solar based generation projects commissioned after 1.7.2014. We have considered the issue. As per the Sharing Regulations, the solar based generation projects commissioned on or after 1.7.2011 till 30.6.2014 were exempted from payment of transmission charges and losses for use of inter -State Transmission System. The Commission through the draft Central Electricity Regulatory Commission (Sharing of inter -State Transmission Charges and Losses) (Third Amendment) Regulations, 2014 (third amendment) has proposed to exempt the solar based generation from payment of transmission charges and losses which are to be commissioned in the next three years starting from 1.7.2014. After stakeholders' consultation, the Commission is in the process of finalizing the third amendment to the Sharing Regulations. The Commission is of the considered view that till the notification of the third amendment to the Sharing Regulations, the existing provisions of Regulation 7(1)(u) and (v) of Sharing Regulations should continue to operate in respect of solar based generation commissioned on or after 1.7.2014. In exercise of our power under Regulation 20 of the Sharing Regulations, we relax the period of three years as specified in the Regulation 7(1)(u) and (v) of the Sharing Regulations and direct that these clauses will be in operation till the notification of the third amendment to the Sharing Regulations.;


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