SAI CHEMICALS PRIVATE Vs. CHHATISGARH STATE REGULATORY
LAWS(ET)-2011-11-3
CENTRAL ELECTRICITY REGULATORY COMMISSION
Decided on November 11,2011

Sai Chemicals Private Appellant
VERSUS
Chhatisgarh State Regulatory Respondents

JUDGEMENT

- (1.) M . KARPAGA VINAYAGAM, CHAIRPERSON 1. M/s. Sai Chemicals Private Limited is the Appellant. Chhattisgarh State Electricity regulatory Commission (State Commission) is the first Respondent. State Load Despatch Centre is the second Respondent. The Appellant has challenged the order dated 5.10.2010 passed by the State Commission.
(2.) AGGRIEVED over the directions issued by the State Commission to the Appellant to make a payment of wheeling and transmission charges for use of intra -state transmission system for inter -state transmission of electricity generated from its bio - mass based generating plant, the Appellant has filed this Appeal. The short facts are as follows. (a) The Appellant has setup an 8 MW Bio -mass based power producer in the State of Chhattisgarh. It executed PPA dated 7.5.2008 with the distribution Company for supplying 1.5 MW power. The Appellant is free to sell remaining 6.5 MW power to any person. (b) The State Load Despatch Centre (R -2) is responsible for keeping the accounts of the quantity of the electricity transmitted through the State Grid and collecting the fees and charges prescribed by the State Commission. (d) On 22/5/2008, the State Commission notified the CSERC (Terms and Conditions for determination of generation tariff and related matters for electricity generated by plants based on non -conventional source of energy) Regulation 2008 (in short 2008 Regulation). These regulations provide a special dispensation to power plants based on non conventional source of energy. (e) The Appellant sought permission from the State Load Despatch Centre (R -2) for sale of electricity to 3rd party by way of short term open access. While open access was granted and sale of electricity to the third party was permitted to the Appellant, the SLDC (R -2), proceeded to recover the open access charges including the wheeling and transmission charges. (f) Aggrieved over this, the Appellant filed a Petition before the State Commission under section 86 (1) (e) and Section 142 of the Act praying for the action as against the SLDC for non compliance of the Commission's 2008 Regulations by charging and collecting excess open access charges from the Appellant for wheeling its power through the State Grid. (g) The State Commission after hearing the parties, dismissed the said petition on the ground that the Regulations 2008 are for determination of tariff for non - conventional sources of energy for sale to distribution licensee and covers only intra State supply and since the Appellant has been selling the power generated from its bio -mass base plant to the parties outside the State of Chhattisgarh the provisions of tariff Regulation 2008 will not be applicable to the Appellant. (h) Being aggrieved over this order, the Appellant has filed the present Appeal.
(3.) THE main issue raised by the Appellant in the present Appeal is that tariff Regulations 2008 are applicable to the Appellant and as such the Appellant is liable to pay only the beneficial open access charges as per the said Regulations and therefore, the act of the SLDC (R -2), collecting the excess open access charges is liable to be proceeded with under section 142 of the Act. The Appellant submissions on this point in brief are as follows: (a) The Appellant being a non conventional energy based power plant for sale of power generated by its power plant should be governed by the Chhattisgarh Electricity Regulatory Commission (Terms and Condition for Determination of Generation Tariff and related matters for Electricity generated by plants based on non -conventional source of energy) Regulations, 2008. Therefore, the sale is chargeable only to transmission/wheeling charges as prescribed in Regulation 7 of these Regulations. (b) There is no provision for levy of charges other than wheeling charges while undertaking 3rd party sale in the specific dispensation provided for the non conventional energy producers through the adjudicatory process before the State Commission. On these two points, the State Commission while rejecting the contentions of the Appellant specifically held in the impugned order that the tariff Regulations 2008 and the earlier orders passed by the State Commission and this Tribunal are in relation to sale of power generated using non conventional source of energy inside the State of Chhattisgarh but in the present case, the Appellant is selling the power outside the State of Chhattisgarh and therefore the concessional rate regarding transmission and wheeling charges under Regulation 2008 can not be made applicable to the Appellant.;


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