MERC Orders Compliance of Green Energy Open Access Rules

Highlights :

  • The petitioners sought Green Energy Open Access benefits without the existence of a state-rule on the issue.
  • The petition was filed by Pimpri Chinchwad Municipal Corporation (PCMC) a waste-to-energy company.
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The Maharashtra Electricity Regulatory Commission (MERC), in its latest order, has directed government officials and concerned authorities to roll out the provisions of the Union government’s Green Energy Open Access Rules 2022. It comes under the absence of a state rule in this regard in the state.

The order of the Commission came to force when a petition was filed by the Pimpri-Chinchwad Municipal Corporation (PCMC) and a waste-to-energy company. Both of them petitioned for the captive use of this waste to energy for the energy needs of PCMC through open access routes. The provisions of Green Energy Open Access allow benefits like nil cross-subsidy charges and exemptions in additional surcharges.

The petition said that while the Union government has framed the Green Energy Open Access rules, the MERC is aligning and formulating rules. The petitioners sought interim relief from the MERC, including the non-requirement of payment of cross-subsidy surcharge and additional surcharge by the petitioner or the generator. 

In its order, the MERC said that an earlier letter from the Ministry of Power claimed that Green Energy Open Access Rules 2022 was framed under the Electricity Act 2023 and is subordinate legislation. It needed to be implemented by all concerned authorities. The MSEDL, however, opposed the plea of PCMC. It submitted that before implementing the Union government’s Green Energy Open Access Rules, DOA Regulations needed to be amended after following the due-publication procedure. 

“The Commission does not agree with MSEDCL’s submission in this regard. Once Act or Rules has been notified, all concerned needs to comply with provisions of the said Act or Rules. It is important to note that MSEDCL has not raised any operational difficulty while opposing the relief sought. Also, none of the other Distribution Licensees have raised any operational issue. Nevertheless, such issues, if any, can be raised during the previous publication process on draft amendment to DOA Regulations which the Commission will initiate shortly. Therefore, the Commission is inclined to allow the relief sough in the present petition,” the order said.

It also added, “All concerned authorities to comply with provisions for Green Energy Open Access Rules notified on 6 June 2022 as amended from time to time. If there is inconsistency in MERC’s Regulations and Rules, then provisions of GEOA Rules will prevail.”

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