MERC Orders MSEDCL to Refund Faulty Open Access Charges

MERC Orders MSEDCL to Refund Faulty Open Access Charges

The Maharashtra Electricity Regulatory Commission (MERC) has directed MSEDCL to refund charges incorrectly levied on three solar power generators. The order came to the limelight after three SPVs of Tata Power approached the state power regulator. The petitioners blamed the Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) for incorrectly levying charges for open-access connections.

The case was filed by the three Special Purpose Vehicles (SPVs) of Tata Power-TP Solapur Saurya Ltd, TP Arya Saurya Ltd and TP Ekadash Ltd. The companies had blamed MSEDCL levied wheeling and banking charges incorrectly for their open-access consumers. The petitioners argued that their open-access consumers procured solar power from these three solar plants from Maharashtra, without using the distribution network services of MSEDCL.

MSEDCL Responds 

MSEDCL on the other hand argued that the definition of the distribution system is not limited to the system of wires (or network) but also includes associated facilities. It also said that the banking facility applies to the distribution system as per the Distribution Open Access Regulation (First Amendment) Regulations of 2016. It also said that the generating station or the consumer in the open-access transition is not directly connected to the transmission system.

The MERC, however, rejected the submissions of the MSEDCL. The main contention in the row was the non-utility of the distribution network of MSEDCL for supplying solar power from Tata Power SPVs to open access consumers.

Final MERC Judgement 

“Considering the foregoing, the Commission concludes that MSEDCL is not entitled to levy wheeling Charges and wheeling losses on the power sourced through Open Access in the present case. Accordingly, the Commission think it fit to direct MSEDCL to refund the wheeling charges recovered from Petitioners/OA Consumers as prayed in these cases, along with applicable interest, within one month of this Order. Accordingly, the prayer of the Petitioners for setting aside the Impugned Invoices issued by MSEDCL to the extent of imposition of wheeling charges and wheeling losses are hereby set aside,” the MERC judgeement said.

It also added, “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 towards wheeling losses.”