CERC Eases Rules to Permit REC Issuance Despite Delays

CERC Eases Rules to Permit REC Issuance Despite Delays

The Central Electricity Regulatory Commission (CERC), in its latest judgment, relaxed existing norms to allow the issuance of Renewable Energy Certificates (RECs) for the Himachal Pradesh State Electricity Board Limited (HPSEBL). The board had earlier approached the central power regulator seeking intervention.

The state board alleged it was deprived of RECs due to procedural delays. The state discom told CERC it was entitled to the issuance of RECs for the financial years 2019-20, 2020-21 and 2021-22. It said the central authority could condone the procedural delay in applying for re-accreditation and registration.

Procedural delays in application 

The board said it was accredited with the HP State Agency under the REC mechanism until July 10, 2021, and had previously received RECs. It said that before the accreditation expired, it filed an application a day before the deadline and also submitted its Renewable Purchase Obligation (RPO) compliance certificates.

The petitioner in the case said the state agency delayed processing the application due to incomplete data for FY 2020-21. It had earlier informed the central agency that it failed to re-register for accreditation because of technical glitches in the REC web portal.

“It contended that the delay in the re-accreditation and re-registration process was procedural and not due to any fault of its own. The Central Agency’s refusal to process applications based on the new regulations was unjust, and the previous regulatory framework should still apply, particularly given the Petitioner’s registration under the CERC REC Regulations, 2010,” the Himachal electricity board said in its submissions.

CERC judgment

CERC, in its final judgment, cited the provisions of “Power to Relax” under the REC Regulations, 2022. “As per the principle laid down for the grant of RECs, the Petitioner is an eligible entity being a distribution licensee, and it shall be entitled to RECs subject to the fulfilment of the criteria for the issuance of RECs to such entities. The main objective of the REC framework is to promote the generation of renewable energy. The Respondent NLDC has also stated that it has no objection to the Commission condoning the delay. Therefore, the Commission is inclined to exercise the ‘Power to Relax’ under Regulation 18 of REC Regulations, 2022, in order to achieve the object of the regulations,” the CERC judgment said.

It added, “The Commission is of the view that the delay in the application for issuance of REC is procedural in nature due to the reasons stated by the Petitioner and is not likely to prejudice any of the stakeholders, including the Respondent. Accordingly, the timelines stipulated under Regulation 10(3) of the REC Regulations, 2022, are relaxed, and the Petitioner is permitted to file its application for the issuance of RECs before the Central Agency for FY 2019-20, FY 2020-21, and FY 2021-22.”