{"id":233227,"date":"2020-07-31T15:00:35","date_gmt":"2020-07-31T09:30:35","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=233227"},"modified":"2020-07-31T15:04:36","modified_gmt":"2020-07-31T09:34:36","slug":"cerc-rejects-ntpcs-petition-for-removal-of-difficulties-on-the-aspect-of-the-severe-under-recovery-of-variable-charges-under-regulation-13-3-for-the-five-gas-based-generating-stations-of-ntpc","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/07\/31\/cerc-rejects-ntpcs-petition-for-removal-of-difficulties-on-the-aspect-of-the-severe-under-recovery-of-variable-charges-under-regulation-13-3-for-the-five-gas-based-generating-stations-of-ntpc\/","title":{"rendered":"CERC rejects NTPC\u2019s plea for removal of difficulties on aspect of severe under-recovery of variable charges under Regulation 13.3 for five Gas Based Generating Stations of NTPC"},"content":{"rendered":"

Central Electricity Regulatory Commission (CERC):<\/strong> The Bench of P. K. Pujari (Chairperson) and I.S. Jha (Member), Arun Goyal (Member), rejected the petition of NTPC Limited after finding it contrary to the ASO regulations and RRAS.<\/p>\n

NTPC Limited is a \u2018generating company\u2019 as defined under Section 2(28) of the Electricity Act, 2003 whereas the Respondent, POSOCO is the National Load Despatch Centre (NLDC) and is the implementing agency for scheduling and dispatch of electricity. Five gas-based generating stations of NTPC were directed by NLDC to operate so as to maintain the grid frequency, there was a huge difference in the energy charges received and actual fuel cost borne by these generating stations by participating in RRAS. This made NTPC incur losses and therefore, they filed the petition.<\/p>\n

NTPC was represented by Swapna Seshadri, Advocate, and S.P. Kesarwani, Advocate, and POSOCO was represented by Gautam Chakraborty.<\/p>\n

The petitioner formed their case under Regulation 15 and 16 of the ASO Regulations which discuss the Commission\u2019s power to relax any of ASO\u2019s regulation and Commission\u2019s power to issue direction.\u00a0 They further contest the intent of the ASO regulations by stating it to be one which intends that the generating companies recover all reasonable costs and expenses and also get incentivized to participate in RRAS and do not incur losses for such participation. The respondent\u2019s contend \u00a0according to ASO regulations, no retrospective settlement shall be undertaken, therefore, ASO Regulations have to be read in their entirety.<\/p>\n

Commission in deciding the retrospective settlement issue, went through the Statement of Reasons(SoR) for ASO regulations and found that \u201cparticipation in RRAS is based on the prices intimated at the time of participation and same cannot be changed subsequently\u201d. The relevant\u00a0 extract from the Statement of Reason (SoR) of the CERC Regulations, 2015 was stated where it was clearly stated that \u201cNo retroactive settlement shall be undertaken even if the fixed or variable charge is modified at a later date.\u201d (emphasis added) .\u00a0 The petitioner\u2019s request for retrospective change of variable cost of the imported RLNG based generating stations would go against this principle specified for implementation of RRAS and shall defeat the very purpose of making it a merit order based despatch . The Commission rejected the petition by finding that relaxing the provisions of the regulation and allowing true-up of the variable charges, would amount to changing the basic structure and principle of despatch of generating stations under RRAS. Therefore, relaxation sought by the petitioner in provisions of Regulation 13.3 by application of Regulation 15 and truing-up of the variable charges for RLNG was rejected.[NTPC Ltd. v .Power System Operation Corporation Limited, Petition No. 382\/MP\/2018, decided on 27-07-2020]<\/p>\n","protected":false},"excerpt":{"rendered":"

Central Electricity Regulatory Commission (CERC): The Bench of P. K. Pujari (Chairperson) and I.S. Jha (Member), Arun Goyal (Member), rejected the petition <\/p>\n","protected":false},"author":67011,"featured_media":45421,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[31959,14631,42858],"class_list":["post-233227","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-cerc","tag-electricity-act","tag-ntpc"],"yoast_head":"\nCERC rejects NTPC\u2019s plea for removal of difficulties on aspect of severe under-recovery of variable charges under Regulation 13.3 for five Gas Based Generating Stations of NTPC | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2020\/07\/31\/cerc-rejects-ntpcs-petition-for-removal-of-difficulties-on-the-aspect-of-the-severe-under-recovery-of-variable-charges-under-regulation-13-3-for-the-five-gas-based-generating-stations-of-ntpc\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CERC rejects NTPC\u2019s plea for removal of difficulties on aspect of severe under-recovery of variable charges under Regulation 13.3 for five Gas Based Generating Stations of NTPC\" \/>\n<meta property=\"og:description\" content=\"Central Electricity Regulatory Commission (CERC): The Bench of P. 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Jha (Member) and Arun Goyal (Member) disposed of a petition while condoning the delay in the matter filed under Section 79(1)(k) of the Electricity Act, 2003 read with Regulation 15 of the Central Electricity Regulatory Commission (Terms and\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":214497,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/05\/09\/cerc-application-for-determination-of-tariff-can-be-filed-by-a-generating-company-60-days-before-anticipated-date-of-commercial-operation\/","url_meta":{"origin":233227,"position":2},"title":"CERC | Application for determination of tariff can be filed by a generating company, 60 days before anticipated date of commercial operation","author":"Bhumika Indulia","date":"May 9, 2019","format":false,"excerpt":"Central Electricity Regulatory Commission (CERC): The Coram of P.K Pujari (Chairperson), and Dr M.K. Iyer and I.S. Jha (Members) disposed of a power generating company\u2019s petition for determination of tariff as infructuous, due to change in anticipated date of commercial operation (COD). Petitioner company had entered into power purchase agreements\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":172394,"url":"https:\/\/www.scconline.com\/blog\/post\/2017\/11\/30\/conduct-parties-sufficient-determine-mode-payment\/","url_meta":{"origin":233227,"position":3},"title":"Conduct of parties sufficient to determine the mode of payment","author":"Saba","date":"November 30, 2017","format":false,"excerpt":"Central Electricity Regulatory Commission:\u00a0In an order passed by Gireesh B Pradhan (Chairperson), AK Singhal, AS Bakshi and MK Iyer (Members) on a\u00a0 petition filed under Section 79(1)(f) of the Electricity Act, 2003 read with Regulations 44 & 45 of CERC (Terms and Conditions of Tariff), Regulations, 2014, the petiton challenged\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/Electricity1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/Electricity1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/Electricity1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/Electricity1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/Electricity1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":154204,"url":"https:\/\/www.scconline.com\/blog\/post\/2017\/09\/06\/electricity-regulatory-commission-allows-extension-to-ntpc-for-interchange-of-power-to-run-design-make-up-water-pumps-through-66-kv-tower-construction\/","url_meta":{"origin":233227,"position":4},"title":"Electricity Regulatory Commission allows extension to NTPC for interchange of power to run design make up water pumps through 66 kV tower construction","author":"Saba","date":"September 6, 2017","format":false,"excerpt":"Central Electricity Regulatory Commission: The petitioner, NTPC Ltd. filed a petition under under Regulation 8 of Central Electricity Regulatory Commission (Grant of Connectivity, Long-term Access and Medium-term Open Access in inter-State Transmission and related matters) Regulations, 2009 for seeking permission to allow interchange of power for testing including full load\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/Electricity1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/Electricity1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/Electricity1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/Electricity1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/Electricity1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":217749,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/08\/06\/cerc-commission-approves-transmission-charges-of-two-400-kv-lines-for-inclusion-in-computation-of-point-of-connection-transmission-charges\/","url_meta":{"origin":233227,"position":5},"title":"CERC | Commission approves transmission charges of two 400 kV lines for inclusion in computation of point of connection transmission charges","author":"Bhumika Indulia","date":"August 6, 2019","format":false,"excerpt":"Central Electricity Regulatory Commission (CERC): The Bench of P.K. Pujari (Chairperson), Dr M.K. Iyer (Member) and I.S. Jha (Member) determined the transmission charges for the two 400 kV lines, namely, Seoni (MP)-Sarni (MP) and Seoni (MP)-Bhilai (Chhattisgarh) Transmission lines for the period from 2011-12 to 2013-14, for inclusion in computation\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/Central-Electricity-Regulatory-Commission-%E2%80%93-CERC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/233227","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67011"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=233227"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/233227\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/45421"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=233227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=233227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=233227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}