APTEL Clears NTPC of Metering Liability in Solar Project Case

APTEL Clears NTPC of Metering Responsibility in Solar Project Case

The Appellate Tribunal for Electricity (APTEL) in its latest judgement has ruled in favour of NTPC Ltd., overturning a CERC order that had held the state-run energy major responsible for meter sealing in solar power projects, a finding that contributed to delays in project commissioning.

In the judgment, APTEL allowed NTPC’s appeal against the Central Electricity Regulatory Commission (CERC)’s January 2020 order, which had identified NTPC as the ‘buyer’ under metering regulations and held it contractually liable for sealing meters in grid-connected solar photovoltaic (PV) projects developed under the National Solar Mission.

Assigning Metering Responsibilities

The Tribunal’s decision came in response to a plea filed by NTPC. The ruling modifies CERC’s earlier findings, concluding that the Commission had erred in assigning metering responsibilities to NTPC, which operates in this context as a trading licensee.

NTPC, acting as the implementation agency for certain solar projects under a State Specific Bundling Scheme, had challenged the observation in CERC’s order. That order held that NTPC was responsible for meter sealing, citing Article 7 of the Power Purchase Agreements (PPAs) it had signed with solar developers.

CERC had found that delays in project commissioning were partly due to delays in meter sealing—an obligation it assigned jointly to NTPC (as the buyer) and the solar power developers. This finding formed the basis for attributing an event of default to NTPC under the agreed commissioning timelines.

NTPC’s Role As Intermediary  

NTPC contended that it merely functions as an intermediary trading licensee, facilitating power transactions between generating companies and distribution licensees, and does not own or operate any system that receives electricity. As such, it argued, it could not be classified as a “buyer” under the Central Electricity Authority (Installation and Operation of Meters) Regulations, 2006.

The Tribunal upheld this argument, stating that the definition of “buyer” under the 2006 regulations includes only those entities—such as generating companies, licensees, or consumers—whose systems actually receive power. Since NTPC does not own or maintain such infrastructure, APTEL said, it cannot be held responsible for metering obligations.

Role Of Trading Licensee

“The role of a trading licensee, as defined under the Electricity Act, 2003, is limited to coordinating the purchase and resale of electricity between sellers and buyers,” the Tribunal said. “A trading licensee does not maintain any network assets or equipment to receive or transfer power, and therefore cannot be termed a ‘buyer’ under the CEA regulations.”

As a result, the Tribunal ruled that CERC’s classification of NTPC as a buyer was unjust and unwarranted, and that meter sealing responsibilities lie with the system operator—be it the generator, distribution licensee, or owner of the metering location.

The Tribunal concluded that the delay in project commissioning could not be attributed to NTPC as an event of default, and modified the Impugned Order accordingly.