{"id":256100,"date":"2021-10-26T16:30:24","date_gmt":"2021-10-26T11:00:24","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=256100"},"modified":"2021-10-26T15:55:19","modified_gmt":"2021-10-26T10:25:19","slug":"compensation-rules-for-curtailing-must-run-renewable-power-notified-vide-electricity-promotion-of-generation-of-electricity-from-must-run-power-plant-rules-2021","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2021\/10\/26\/compensation-rules-for-curtailing-must-run-renewable-power-notified-vide-electricity-promotion-of-generation-of-electricity-from-must-run-power-plant-rules-2021\/","title":{"rendered":"Compensation Rules for curtailing \u2018Must Run\u2019 Renewable Power notified vide Electricity (Promotion of Generation of Electricity from Must-Run Power Plant) Rules, 2021"},"content":{"rendered":"<p style=\"text-align: justify;\"><span id=\"page27R_mcid127\" class=\"markedContent\"><span dir=\"ltr\" role=\"presentation\">On October 22, 2021<\/span><span dir=\"ltr\" role=\"presentation\">, the Central Government notified Electricity (Promotion of Generation of Electricity from Must-Run Power Plant) Rules, 2021<\/span><span dir=\"ltr\" role=\"presentation\">.<\/span><\/span><\/p>\n<p style=\"text-align: justify;\">\n<h4 style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Key points:<\/span><\/h4>\n<ul style=\"text-align: justify;\">\n<li><span id=\"page29R_mcid3\" class=\"markedContent\"><strong><span dir=\"ltr\" role=\"presentation\">Must<\/span><span dir=\"ltr\" role=\"presentation\">&#8211;<\/span><\/strong><span dir=\"ltr\" role=\"presentation\"><strong>run power plant<\/strong> : <\/span><\/span><span id=\"page29R_mcid4\" class=\"markedContent\"><span dir=\"ltr\" role=\"presentation\">A must<\/span><span dir=\"ltr\" role=\"presentation\">&#8211;<\/span><span dir=\"ltr\" role=\"presentation\">run <\/span> <span dir=\"ltr\" role=\"presentation\">power plant shall not be subjected to curtailment or regulation of generation or supply of <\/span><span dir=\"ltr\" role=\"presentation\">electricity on account of merit order dispatch or any other commercial consideration.<\/span><\/span><span id=\"page29R_mcid5\" class=\"markedContent\"><br role=\"presentation\" \/><\/span><span id=\"page29R_mcid7\" class=\"markedContent\">Note: <\/span><span id=\"page29R_mcid3\" class=\"markedContent\"><span dir=\"ltr\" role=\"presentation\">A wind, solar, wind<\/span><span dir=\"ltr\" role=\"presentation\">&#8211;<\/span><span dir=\"ltr\" role=\"presentation\">solar hybrid or hydro power plant (in case of exc<\/span><span dir=\"ltr\" role=\"presentation\">ess water <\/span><span dir=\"ltr\" role=\"presentation\">leading to spillage) or a power plant from any other sources, as may be notified by the Appropriate Government, which <\/span><span dir=\"ltr\" role=\"presentation\">has entered into an agreement to sell the electricity to any person, shall be treated as a must<\/span><span dir=\"ltr\" role=\"presentation\">&#8211;<\/span><span dir=\"ltr\" role=\"presentation\">run power plant.<\/span> <\/span><span id=\"page29R_mcid4\" class=\"markedContent\"><\/span><\/li>\n<li><span id=\"page29R_mcid7\" class=\"markedContent\"><strong>Compensation<\/strong>: <span dir=\"ltr\" role=\"presentation\">In the event of a curtailment of supply from a must<\/span><span dir=\"ltr\" role=\"presentation\">&#8211;<\/span><span dir=\"ltr\" role=\"presentation\">run power plant, compensation shall be payable by the <\/span><span dir=\"ltr\" role=\"presentation\">procurer to the must<\/span><span dir=\"ltr\" role=\"presentation\">&#8211;<\/span><span dir=\"ltr\" role=\"presentation\">run power plant at the rates specified in the agreement for purchase or supply of electricity.<\/span> <\/span><span id=\"page29R_mcid8\" class=\"markedContent\"><br role=\"presentation\" \/><\/span><span id=\"page29R_mcid10\" class=\"markedContent\"><span dir=\"ltr\" role=\"presentation\">Note: 1. Any deficit in realisation of amount, with respect to the com<\/span><span dir=\"ltr\" role=\"presentation\">pensation shall be paid by the procurer on <\/span><span dir=\"ltr\" role=\"presentation\">monthly basis. <\/span> <\/span><span id=\"page29R_mcid11\" class=\"markedContent\"><br role=\"presentation\" \/><span dir=\"ltr\" role=\"presentation\">Note: 2. Any excess realisation of amount during a month from sale of electricity in a power exchange, if any, shall <\/span><span dir=\"ltr\" role=\"presentation\">be carried forward and adjusted in the next month or months. <\/span> <\/span><span id=\"page29R_mcid12\" class=\"markedContent\"><br role=\"presentation\" \/><\/span><span id=\"page29R_mcid13\" class=\"markedContent\"><br role=\"presentation\" \/><\/span><\/li>\n<li><span id=\"page29R_mcid13\" class=\"markedContent\"><span dir=\"ltr\" role=\"presentation\"><strong>Intermediary procurer to procure electricity for distribution licensees<\/strong>: <\/span><span dir=\"ltr\" role=\"presentation\">The intermediary proc<\/span><span dir=\"ltr\" role=\"presentation\">urer, <\/span><span dir=\"ltr\" role=\"presentation\">an agency nominated by the Central Government or State Government, may procure electricity through a transparent <\/span><span dir=\"ltr\" role=\"presentation\">process of bidding in accordance with the guidelines issued by the Central Government under section 63 of the Act for <\/span><span dir=\"ltr\" role=\"presentation\">sale to one or more<\/span> <span dir=\"ltr\" role=\"presentation\">distribution licensees.<\/span> <\/span><span id=\"page29R_mcid14\" class=\"markedContent\"><br role=\"presentation\" \/><span dir=\"ltr\" role=\"presentation\">Note: The intermediary procurer referred to in sub<\/span><span dir=\"ltr\" role=\"presentation\">&#8211;<\/span><span dir=\"ltr\" role=\"presentation\">rule (1) shall be deemed to be a trader for the purposes of the <\/span><span dir=\"ltr\" role=\"presentation\">Act, buying electricity from the must<\/span><span dir=\"ltr\" role=\"presentation\">&#8211;<\/span><span dir=\"ltr\" role=\"presentation\">run power plant and selling the same to one or more distribution licensees.<\/span> <\/span><span id=\"page29R_mcid15\" class=\"markedContent\"><br role=\"presentation\" \/><\/span><span id=\"page29R_mcid16\" class=\"markedContent\"><\/span><span id=\"page32R_mcid1\" class=\"markedContent\"><\/span><\/li>\n<li><span id=\"page32R_mcid1\" class=\"markedContent\"><span dir=\"ltr\" role=\"presentation\"><strong>Appropriate Government<\/strong>: The Appropriate Commission shall adjust the rate of tariff on annual basis based on the actuals.<\/span> <\/span><span id=\"page32R_mcid2\" class=\"markedContent\"><\/span><span id=\"page32R_mcid2\" class=\"markedContent\"><span dir=\"ltr\" role=\"presentation\">The intermediary procurer, from the sale of electricity under these rules, shall be allowed to retain only the <\/span><\/span><span id=\"page32R_mcid2\" class=\"markedContent\"><span dir=\"ltr\" role=\"presentation\">trading margin as specif<\/span><span dir=\"ltr\" role=\"presentation\">ied in the agreements or the regulations or as may be determined by the Appropriate <\/span><\/span><span id=\"page32R_mcid2\" class=\"markedContent\"><span dir=\"ltr\" role=\"presentation\">Commission.<br \/>\n<\/span><\/span><\/li>\n<\/ul>\n<div class=\"canvasWrapper\" style=\"text-align: justify;\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>On October 22, 2021, the Central Government notified Electricity (Promotion of Generation of Electricity from Must-Run Power Plant) Rules, 2021. Key points: <\/p>\n","protected":false},"author":8808,"featured_media":154904,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,15],"tags":[],"class_list":["post-256100","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislationupdates","category-rules_regulations"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Compensation Rules for curtailing \u2018Must Run\u2019 Renewable Power notified vide Electricity (Promotion of Generation of Electricity from Must-Run Power Plant) Rules, 2021 | 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\/2021\/10\/26\/compensation-rules-for-curtailing-must-run-renewable-power-notified-vide-electricity-promotion-of-generation-of-electricity-from-must-run-power-plant-rules-2021\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Compensation Rules for curtailing \u2018Must Run\u2019 Renewable Power notified vide Electricity (Promotion of Generation of Electricity from Must-Run Power Plant) Rules, 2021\" \/>\n<meta property=\"og:description\" content=\"On October 22, 2021, the Central Government notified Electricity (Promotion of Generation of Electricity from Must-Run Power Plant) Rules, 2021. 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