JUDGEMENT
Rakesh Nath, J. -
(1.) APPEAL Nos. 22 of 2014 and 24 of 2014 have been filed by the distribution licensees in which they have raised the issue whether the renewable energy generators which are supplying energy to 3rd parties through open access are entitled to avail promotional benefits provided by the State Commission under Section 61(h) and 86(1)(e) of the Electricity Act as well as claim the benefit of Renewable Energy Certificate under the provisions of the Central Commission's Regulations?
(2.) APPEAL No. 22 of 2014 has been filed by Madhya Gujarat Vij Company Limited, a distribution licensee, against the impugned order dated 25.06.2013 allowing the Petition of Respondent No. 1, the renewable energy generator and holding that the Respondent No. 1 is entitled to promotional measures applicable to renewable energy generators under the applicable regulations and orders of the State Commission while simultaneously taking the benefit of Renewal Energy Certificate ('REC') under the Central Commission's Regulations. Appeal No. 24 of 2014 has been filed by Paschim Gujarat Vij Company Limited, and other two distribution companies, GUVNL and Gujarat Energy Transmission Company, the Transmission Licensee, challenging the Order dated 07.11.2013 passed by the State Commission whereby the State Commission has adjudicated the dispute in regard to entitlement of promotional measures under Section 61(h) and 86(1)(e) of the Electricity Act, 2003 and directing the Appellants to refund the amount of cross subsidy surcharge and wheeling charges/losses recovered from the Respondents and pay the tariff to the Respondent No. 2 at the rate of 85% of the Average Power Purchase Cost ("APPC") for the surplus energy generated by the Respondent No. 2 and not utilized by the consumer of the Respondent No. 2. By virtue of this order, Respondent No. 2 will avail the benefit of concessional and promotional benefits provided by the State Commission under Section 61(h) and 86(1)(e) of the Electricity Act, 2003 as well as take the benefit of REC under the provision of the Central Commission's Regulations.
(3.) THE brief facts of the Appeal No. 22 of 2014 are as under: - -
"(a) On 14.01.2010 Central Commission notified Central Electricity Regulatory Commission (Terms and Conditions for recognition and issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010, hereinafter referred as "REC Regulations, 2010".
(b) The State Commission by Order No. 5 of 2010 dated 17.05.2010 determined the tariff for procurement of power by the distribution licensees from biomass based power generator and other commercial issues. The said order provided concessional and promotional measures to biomass generators, being renewable energy generators.
(c) On 08.04.2011, the Respondent No. 1 registered its biomass project with central agency as per Central Commission's REC Regulations, 2010
(d) On 28.07.2011, a tripartite wheeling agreement was entered into between Appellant, Respondent No. 1 and the consumer for wheeling of electricity from the generating station to the place of use using the distribution system of the Appellant. Wheeling agreement provided for applicability of Order No. 5 of 2010 of the State Commission providing the promotional measures to the renewable energy generators.
(e) On 18.12.2010, Central Commission in an alternate Petition held that the cogeneration based renewable generators which is not a captive generating plant will also have to forgo all concessional benefits or banking facility or waiver of electricity duty, etc., before availing the RECs for the entire generation from the generating plant including self -consumption.
(f) Subsequently in July, 2012 when the Appellant came to know that the Respondent No. 1 had registered itself under the REC Regulations of the Central Commission to be entitled to RECs for the electricity generated by it, the Appellant raised demand on the Respondent for the period August, 2011 to April, 2012 for electricity duty, wheeling charges/losses and cross subsidy surcharge as applicable to other/normal open access customers.
(g) On 21.02.2012, the Respondent No. 1 filed a petition before the State Commission challenging action of the Appellant stating that the Respondent No. 1 is entitled to promotional and concessional measures as applicable to renewable generators and at the same time is entitled to RECs under REC Regulations of the Central Commission.
(h) By the impugned order dated 26.06.2013, the State Commission allowed the Petition filed by the Respondent No. 1. Aggrieved by the impugned order of the State Commission, the Appellant has filed this Appeal.";
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