In Himachal, SHP Ordered to Pay Imbalance Charges

HPPTCL Asked to Ensure Timely Commissioning of Barshaini Substation

In a recent order, the Himachal Pradesh Electricity Regulatory Commission (HPERC) has directed M/s Sandhya Hydro Power Projects Balargha Pvt. Ltd. to pay imbalance charges amounting to Rs.2,14,18,511 to the Himachal Pradesh State Load Dispatch Centre (HPSLDC) for period beginning March 24, 2018 and ending December 2, 2018.

Sandhya Hydro Power; the petitioner, had requested HPERC’s intervention against HPSLDC, Himachal Pradesh State Electricity Board Limited (HPSEBL) and Himachal Pradesh Power Transmission Corporation Limited (HPPTCL). The producer had requested HPERC for quashing the demand of Rs.1,21,28,112 out of Rs.2,14,18,511 towards imbalance charges for the period beginning March 24, 2018 and ending December 2, 2018 raised by the HPSLDC. It had also sought a declaration that the provisions of the deviation settlement mechanism (DSM) regulations are not applicable to the 9 MW Balargha Small Hydro Project (SHP) for any deviation from the schedule for reasons not within control.

The producer had submitted that HPSEBL had slapped imbalance charges amounting to Rs.2,14,18,511 based on the extent of deviation recorded for various entities. It has paid an amount of Rs.92,90,399 as the amount payable due to deviation in generation attributed to it. The balance amount of Rs.1,21,28,112 was attributable to the failures/restrictions in the grid maintained by HPSEBL.

The HPERC in its order stated that on the behalf of the producer (Sandhya Hydro) the energy was being made available to its consumers even in case of insufficient generation, hence it is liable to pay the imbalance charges/DSM charges. The imbalance/DSM charges do not constitute a penalty, per the HPERC. The imbalance charges and DSM charges have to be paid expeditiously and timely without linking with any other issues.

HPERC was of the view that HPERC DSM regulations are applicable to the producer. HPERC directed Sandhya Hydro Power Projects Balargha Pvt. Ltd. to clear the outstanding dues on account of the imbalance charges as well as the DSM charges, along with the interest/surcharge for late payment at the applicable rates, within 30 days of the issue of this order failing which the HPSLDC has been ordered to take requisite action.

The state commission has asked the petitioner to check for any discrepancies in the billing and to report the same within 15 days to HPSEBL and HPSLDC. HPSEBL, HPSLDC and the producer were asked to improve communication arrangements/operating procedures to avoid delays related with real-time operations/revisions.

HPERC also directed the HPPTCL to ensure the timely commissioning of the Barshaini 33/132 kV substation in December 2020 to ensure a dedicated infrastructure for the project.

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Saumy Prateek

Saumy Prateek

Saumy has been a writer with Reuters, Mercom India and Rystad Energy.