DERC Proposes Rs 150cr Limit For New Intra State Power Projects

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Delhi Electricity Regulatory Commission (DERC) in its latest notification has proposed a threshold limit to develop Intra-State Transmission Projects under its proposed Draft Tariff Based Competitive Bidding) Regulations, 2024. The draft laid down certain criteria for setting the threshold limit. For instance, the notification stated, “The threshold limit of above Rs. 150 crores excluding land cost for the new Intra-State Transmission (InST) projects to be awarded under TBCB.” It further placed the threshold for all new intra-state transmission projects costing above Rs 150 crore formulated by STU and approved by the Commission.

This bidding will be managed by the bid process coordinators as per the recommendations of the empowered committee to be constituted by the government of NCT of Delhi following the guidelines for competitive bidding notified by the central government from time to time.”

Through these regulations, DERC set a threshold limit on all new intra-state transmission projects for which approval is yet to be accorded by the commission. The entire intra-state independent transmission projects including any upstream/downstream projects are to be designed as a single project for inviting bids for the development of the project through TBCB.

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The notification also laid down guidelines in case the STU intends to implement any Intra-State Transmission System above the Threshold Limit through a cost-plus approach.

For instance, under Section 62 of the act, due to some specific reasons such as the project being of a critical nature (e.g., Transmission System being developed for Defence, Railways, Airport, etc.) or there are issues involved in ownership interface issues, i.e., where the ownership of new intra-state transmission system cannot be delineated from the assets of existing transmission assets, the STU shall obtain prior approval of the commission for the same.

Further, in case the STU intends to implement any intra-state transmission system below the threshold limit through tariff-based competitive bidding, due to some specific reasons. In such as case, the STU is to implement such projects through tariff-based Competitive Bidding if there are valid reasons to do so, with prior approval of the Commission.

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POWER TO RELAX

The Commission can, by general or special order, for reasons to be recorded in writing and after affording an opportunity of hearing to the parties likely to be affected, relax or waive any of the provisions of these Regulations on its motion or an application made to it by any interested person.

Under the “Issue Of Order Ana Practice Directions” subject to the provisions of the Electricity Act, 2003 and these Regulations, the commission can, from time to time, issue orders and practice directions about the implementation of the Regulations and procedure to be followed on various matters which the Commission has been empowered by these Regulations to specify or direct.

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Additionally, under the “POWER TO REMOVE DIFFICULTIES” if any difficulty arises in giving effect to any of the provisions of these Regulations, the commission can, by a general or special order, do or undertake or direct the STU to do or undertake things which in the opinion of the Commission are necessary or expedient for removing the difficulties.