Delhi Discoms Penalised for Defaulting on RPOs

DERC has imposed penalties to the tune of Rs 1.71 crore on discoms TPDDL and Rs 2.88 crore each on BYPL and BRPL for defaulting on their RPOs

Delhi’s power regulator, the Delhi Electricity Regulatory Commission (DERC) has imposed penalties to the tune of Rs 1.71 crore on discoms TPDDL and Rs 2.88 crore each on BYPL and BRPL for defaulting on renewable energy purchase obligations (RPOs) for three financial years.

The DERC in its order last month found default on the part of the three power discoms in meeting their RPO. The order was passed on petitions filed by Green Energy Association and Indian Wind Power Association with DERC against TPDDL, BSES Yamuna Power Ltd (BYPL) and BSES Rajdhani Power Ltd (BRPL). The petitioners sought action against the discoms under the DERC (Renewable Purchase Obligation and Renewable Energy Certificate Framework Implementation) Regulations, 2012, for alleged failure to meet the RPO.

A spokesperson of Tata Power Delhi Distribution Ltd (TPDDL) said the order by DERC was under examination and an appropriate course of action will be decided.

“Sufficient renewal power or REC (renewable energy certificate) is not available at reasonable rates at power exchanges, to meet RPO compliance. If discoms meet RPO obligation in an uneconomical way it will have serious negative financial implications and will in fact burden consumer with additional tariff,” he added.

BSES discoms have signed long term agreements for around 1700 MW green power at a very competitive rate, which will raise the share of renewable energy in BSES portfolio to 27 percent by 2021-22, said a company spokesperson.

“BSES will achieve 100 percent RPO requirement from 2021-22 onwards and surplus energy from renewable energy will help BSES to offset accumulated RPO shortfall of the previous years,” he said.

The Green Energy Association sought action against discoms for non-compliance of solar RPO in 2012-13 and 2013-14. The IWPA claimed non-compliance of RPO for financial years 2012-13 to 2014-15.

The Commission in its order observed, “there is no doubt that discoms have failed to meet their RPO.”

“Keeping in view all factors and various directions of the Appellate Tribunal for Electricity (APTEL), it is established that the failure of discoms to meet the RPO makes them liable to pay penalty.”

A penalty of Rs 1 lakh for each year of default and an additional Rs 5000 per day fine for continuing default till discoms met the RPO for a given year, was imposed by the Commission. The Commission has ordered the respondent discoms to pay the penalties within one month of the order.