Regulatory News In last Fortnight

MERC directs MSEDCL to create 'RPO Regulatory Charge Fund'

On 4th August, 2015, as an unprecedented step, MERC directed MSEDCL to
constitute a separate RPO Regulatory Charges Fund, within a month of the
Order. The key highlights of the Order are:

The fund is to be utilised by MSEDCL to purchase Solar and Non-Solar

RECs and/or to procure power to fully meet RPO
MSEDCL is required to furnish a monthly statement of the amount
deposited into the Fund and the purchase of RECs and/or actual power
therefrom to MEDA.
MEDA has to report the position to the Commission with its comments
every month.
The Commission also clarified that the expenditure on purchase of RECs
and/or actual power procurement from the Fund shall not be passed
through to consumers to the extent of the shortfall not met by MSEDCL by
the end of FY 2015-16.

PSERC Order on RPO compliance by PSPCL

In response to a petition filed by Punjab State Power Corporation Limited (PSPCL)
on carry forward of RPO compliance of FY 2014-15, PSERC directed PSPCL to
comply with the RPO obligations latest by 30th Dec, 2015, failing which further
action as per Regulations may be initiated. The Commission did not accept the
argument of PSPCL and its inability to purchase RECs and cited the APTEL
Judgment which has issued directions to SERCs to enforce RPO, and thus the
Commissions are bound to enforce their respective RPO Regulations

KERC proposes amendment to RPO Regulation

Karnataka ERC, in its notification dated 2nd July has proposed an amendment to
its RPO Regulations and has invited comments from stakeholders latest by 6th
Aug 2015. The key highlights of the proposed amendment are:

Solar RPO targets proposed as 0.25% of the total purchase by Discoms.

The non-solar targets defined are as below:
RPO Non Solar
Distributi
on
Licensee

2015-16

2016-17

2017-18

2018-19

2019-20

bescom
mescom
cesc
hescom
gescom
hrecs
Deemed
licensee

10%
10%
10%
7%
7%
7%
0%

12%
14.5%
12%
7.5%
5.5%
7.5%
5.5%

13%
15%
13%
8.5%
6.0%
8.5%
6.0%

14%
15.5%
14%
9.5%
7.0%
9.5%
7.0%

15%
16%
15%
11%
8%
11%
8%

Penalty Clause: Any obligated entity which is unable to meet the RPO for
any year will have to purchase RECs to the extent of 110% of quantum of
shortfall in meeting RPO by 30th June of the next year, failing which action
under Section 142 of the Electricity Act, 2003 shall be initiated.
CERC
CERC has notified Forecasting, Scheduling and Imbalance Handling
mechanism on 5th August and Ancillary Services on 19th August.