In a relief for Continuum, a renewable energy (“RE”) generator, the Ld. Madhya Pradesh Electricity Regulatory Commission (“Ld. MPERC”) has passed an Order holding that short-term transmission charges are to be paid on the basis of per unit of energy injected and not on the Open Access (“OA”) capacity sought.
The rationale behind the methodology for computation of transmission charges on the basis of units injected is that the ‘capacity utilisation factor’ of RE plants is low and imposing transmission charges on allocated capacity/Open Access quantity of such plants, will make them unreasonable / onerous.
Ld. MPERC’s findings are in line with the statutory mandate of the Electricity Act, 2003 which enjoins the Commission to promote consumption of electricity from RE sources.
The Commission’s Order paves the path for similarly placed RE generators/consumers qua appropriate levy of short-term transmission charges, thereby making the consumption of RE financially more viable.
JSA’s team comprised of Abhishek Munot (Lead Partner), along with Kunal Kaul (Partner), Tushar Nagar (Partner) and Purvi Shrivastava (Associate).
The matter was argued by Kunal Kaul (Partner).
Abhishek is a part of Disputes group of JSA and anchors the Regulatory Practice of JSA in Western India. Abhishek handles sector specific commercial litigation, arbitration constitutional & administrative law litigation and regulatory proceedings before statutory authorities, tribunals and courts.