COD Delay Hands Acme Solar A Bigger Transmission Bill, As CERC Rules In Favour of CTUIL

In a recent order, the Central Electricity Regulatory Comission (CERC) has ruled in favour of CTUIL in a case brought by Acme Solar against the central utility. Acme Solar, in this case pertaining to a 250 MW project of the firm at Bhadla, Rajasthan, has contended that CTUIL (Central Transmission Utility of Indian Limited), was erring in applying the wrong regulations to charges payable, besides charging for transmission during a period between operationalisation of its plant and achieving 100% completion of the project. These charges were for the period when the firm got permission for Medium Term Open access(MTOA), pending Long term Access(LTA) from CTUIL.

This was the period between 26.10.2019 (operationalization of MTOA) and 01.01.2020 (COD of the balance 20 MW Project capacity).  CTUIL raised its bill as per the 2010 Sharing regulations while Acme contended these needed to be as per 2020 Sharing regulations, as bills were raised only in 2022.

The root of Acme’s troubles started with its failure to achieve COD for full capacity of MTOA before 15 days of commencement of date of MTOA, hence it was liable to open the LC as per the 2009 Connectivity Regulations and Detailed procedure, declared CERC. The date of commencement of MTOA was 26.10.2019 and ACME achieved COD for 100 MW capacity on 20.10.2019, 130 MW on 26.10.2019 and 20 MW on 1.1.2020. Hence as per the Regulations, petitioner was liable to open the LC for MTOA capacity for which COD of generation projects could not be achieved, ruled the CERC bench.

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On the second issue of Acme Solar’s liability to pay the transmission charges for the period between 26.10.2019 (operationalisation of MTOA) and 01.01.2020 (COD of the balance 20 MW Project capacity), or even whether the transmission charges bill dated 28.09.2022 raised by CTUIL has to be as per the 2010 Sharing regulations or the 2020 Sharing regulations, CERC again ruled against ACME Solar, quoting its contract with CTUIL.

At stake was  Regulation 13(7) of the CERC Sharing Regulations 2020 that mandates charges at the rate of 10% of the transmission charges payable per MW. This is what ACME wanted, contending that CTUIL raised its bill on 28.09.2022. CERC on the hand observed that the period of mismatch/ billing is 26.10.2019 to 31.12.2019 and during that period the 2010 Sharing Regulations were effective. Accordingly, the bills have to be raised on the Petitioner in terms of the 2010 Sharing Regulations.

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Thus, CERC held that Acme Solar is liable to pay the applicable transmission charges for the 20 MW capacity under the MTOA for the period from 26.10.2019 to 31.12.2019 in terms of the 2010 Sharing Regulations.