Don’t Levy Wheeling Charges In Select Open Access Cases: MERC

Don't Levy Wheeling Charges In Few Open Access Cases: MERC

The Maharashtra Electricity Regulatory Commission (MERC), in its latest judgment, stated that the state discom is not entitled to levy wheeling charges on certain open-access connections. The ruling came after three solar power generators and consumers approached the Commission with complaints.

The petitioners included ReNew Sun Renewables, Renew Surtya Alok, and Renew Sunlight Energy. They argued that MSEDCL had levied wheeling charges and wheeling losses on their open-access connections, despite the fact that the green energy generated by them was transmitted directly to consumers without utilizing MSEDCL’s distribution system.

MSEDCL’s Defense and MERC’s Response

The Maharashtra State Electricity Distribution Company Limited (MSEDCL), in response, told MERC that the definition of a distribution system was not limited to just the wires or network but also encompassed associated facilities. MSEDCL also pointed out that the generating stations or open access consumers were not directly connected to the transmission system.

MERC, in its order, stated that it was important to note that the Commission had, through various orders, directed MSEDCL “not to levy Wheeling Charges and Wheeling losses on the power sourced through Open Access and to refund the wheeling charges on open access transactions recovered by it along with applicable interest.” MERC cited eight similar cases in support of its ruling and reaffirmed that MSEDCL is not entitled to levy such charges in the present cases.

When Wheeling Charges Could Not be Imposed? 

“MSEDCL is not entitled to levy Wheeling Charges and Wheeling losses on the power sourced through Open Access when the energy is injected directly into the transmission system. Therefore, the Commission is of the view that MSEDCL is required to adjust the units deducted toward wheeling losses,” the MERC said in its judgment.

It also added, “In view of the above, the Commission think it fit to direct MSEDCL to adjust the units deducted towards wheeling losses in the next billing cycle of Petitioners’ OA consumers.”