MERC Rules Against MSEDCL in Three Cases

All Cases Pertain to Non-Payment of Dues to Wind Energy Generators

The Maharashtra Electricity Regulatory Commission (MERC) in three separate cases has ruled against the Maharashtra State Electricity Distribution Company Limited (MSEDCL). All the cases pertain to non-payment of dues by MSEDCL to wind energy project owners.

Riddhi Siddhi Gluco Biols Ltd. (RSGBL) had approached the MERC seeking payment of dues of Rs. 51,84,540 from MSEDCL. MSPL Limited had sought MERC’s intervention as MSEDCL had over time failed to pay dues amounting to Rs.5.5753 crores for long-term wind energy power purchase agreement (PPA) dues and Rs.0.82 crores as dues for short-term PPAs.

Windmill Owners Welfare Association of India (WOWAI) had petitioned the MERC seeking its guidance in matter of non-payment of dues amounting to Rs.5.40 crores by MSEDCL. In each instance the MSEDCL refuted the exact amount claimed.

After going through submissions made, in the case of RSGBL, MERC found that there was difference between the amount claimed by RSGBL and that submitted by MSEDCL. The commission directed MSEDCL to reconcile the outstanding amount with RSGBL within two weeks. It also asked MSEDCL to inform within a week the date by which outstanding amount will be paid.

In the case of MSPL Limited, MERC  directed MSEDCL to reconcile the outstanding amount of long-term PPAs as claimed by MSPL Limited within two weeks. It provided MSEDCL with a week’s time post reconciliation of amount to inform of the date by which full and final outstanding amount along with interest will be paid to MSPL Limited. Regarding short-term PPAs, MERC directed MSEDCL to make remaining payment as soon as it receives financing from financial institutions.

In the case of WOWA and MSEDCL, the MERC specified that MSEDCL must reconcile the outstanding amount with WOWA within two weeks. It also asked MSEDCL to inform within a week the date by which outstanding amount will be paid.

Recently, MERC had partially rejected a plea by renewable energy generators in Maharashtra seeking intervention in a matter regarding non-compliance of a MERC order regarding forecasting, scheduling and deviation settlement. In another order, MERC directed MSEDCL to pay compensation to solar PV project developers in Maharashtra.

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Saumy Prateek

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

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