MERC Declines MSEDCL’s Plea To Not Allow Virtual Net Meters

MERC Declines MSEDCL's Plea To Not Allow Virtual Net Meters

The Maharashtra Electricity Regulatory Commission (MERC) in its latest notification decided to stick to its plan to roll out the facility of virtual net-metering for residential consumers especially living in multi-storeyed buildings. The state power regulator in its discussion on a draft regulation on the issue ruled out the pleas of the Maharashtra discom and the power department to now allow virtual net meter in the state.

In the discussion paper related to the draft regulation, MERC said that the Maharashtra State Electricity Distribution Company Limited (MSEDCL) and the State Energy department said that virtual net metering was akin to green energy open access. The local discom and the government entity had reservations against the new proposed regime due to the flexibility given to the virtual net meter consumers to use green energy without paying charges usually levied for open access consumers. 

The Commission, however, said that the exemptions given to the power consumers were temporary in nature. The state commission also amended some of the provisions related to the rolling out of virtual net metering. 

“The Commission is aware of this aspect and has made categoric provision of Open Access Charges and Losses for sourcing RE under Virtual Net Metering modality. However, for initial roll-out phase, it needs to be promoted. Hence, the Commission has exempted these Open Access Charges and Losses till rooftop solar capacity reaches 5000 MW. It is further clarified that the  cap of 5000 MW is irrespective of modality i.e. Net Metering or Net Billing arrangement. After crossing of threshold capacity of 5000 MW, Open Access charges will be applicable to new installations using wheeling facility,” MERC added.

The state commission also said that even the PM Surya Ghar scheme norms also talked about the provision for allowing virtual net metering. 

It also added, “In Virtual Net Metering, the basic principle of energy netting has been used and in order to keep consistency in approach the Commission is not altering any RE sizing stipulations made in Principle Regulations. In case of multiple connections in housing society, who are opting for Virtual Net Metering, total capacity of RE system is restricted up to summation of capacity eligible to each participating consumer. However, to address concerned that RE developer can effectively act as Distribution Licensee by clubbing all residential consumers, the Commission decide to restrict multiple residential consumers within same housing society to come together for setting up of RE generating System at common place. Such restriction will limit the size of RE generating system and will fetch benefits of distributed generation.”