M P POWER MANAGEMENT COMPANY LTD Vs. M P BIOMASS ENERGY DEVELOPERS ASSOCIATION & ORS
LAWS(SC)-2018-4-179
SUPREME COURT OF INDIA
Decided on April 26,2018

M P Power Management Company Ltd Appellant
VERSUS
M P Biomass Energy Developers Association And Ors Respondents

JUDGEMENT

- (1.) Leave granted. Heard learned counsel for the parties.
(2.) The Madhya Pradesh Electricity Regulatory Commission (MPERC) by its order dated 30.11.2016 determined tariff for procurement of power from biomass based power plants. The operative part of the order is as follows: "14. In compliance to the directions of the Hon'ble APTEL passed in its judgment dated 04.05.2016, the Gross Calorific Value (GCV) at 3100 kCal/kg and Station Heat Rate (SHR) at 4200 kCal/kWh are considered. Accordingly, the Commission sets the year wise tariff for generation of electricity from new biomass energy projects commissioned on or after 02.03.2012 as under : (a) Commissioned on or after 02.03.2012 and during FY 2012-13 JUDGEMENT_179_LAWS(SC)4_2018_1.html (b) Commissioned during FY 2013-14 and thereafter: JUDGEMENT_179_LAWS(SC)4_2018_2.html 15. In view of the aforesaid judgment dated 04.05.2016 passed by the Hon'ble APTEL and the applicable terms and conditions of the tariff order dated 02.03.2012, the tariff mentioned above in para 14 of this order shall be subject to the following terms and conditions: (a) This tariff shall be applicable till 31.03.2017 or the new tariff order is issued, whichever is earlier. (b) The projects for more than 2 MW are subjected to the 'scheduling' and 'merit order dispatch principles' in terms of the para 8:10 of the tariff order dated 02.03.2012 since date of commissioning. (c) This tariff order is applicable to the projects using rice husk, wheat husk, mulbury and coal (limited to 15% of the total fuel on annual basis) only as a fuel based on which GCV has been decided by the Honb'ble APTEL in its Judgment dated 04.05.2016. (d) This tariff shall be applicable for the projects for which Power Purchase Agreement has already been executed at the time of commissioning of the project. (e) The M.P. Power Management Co. Ltd., Jabalpur shall submit, the draft ofthe Power Purchase Agreement to be executed, if any, with the developer of biomass based power projects to be commissioned after the date of this order, for approval of the Commission. (f) The developers hall have to submit monthly information, as required under para 8.25 of the tariff order dated 02.03.2012, to the M.P.Power Management Co. Ltd., Jabalpur by 10th day of each month following the month of information failing which action as per the provisions of para 8.26 of the tariff order dated 02.03.2012 must be ensured by the M.P. Power Management Company Limited."
(3.) The above order was challenged by the respondents before the Appellate Tribunal for Electricity (APTEL). The APTEL dealt with the question whether the concept of 'Must Run' (MR) or 'Merit Order Dispatch' (MOD) will apply. The MR would require payment for compulsory purchase of electricity irrespective of the requirement while the MOD will require supply of electricity as per requirement so that the initial supply will be at lowest price and thereafter at higher price and so on.;


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