MPERC Revises Tariff Reduction, Green Certification Witnesses 42% Reduction

MPERC Revises Tariff Reduction, Green Certification Witness 42% Reduction

Madhya Pradesh Electricity Regulatory Commission (MPERC) in its recent notification has announced a 42% reduction in its recent tariff revision and also removed the limitation on the minimum consumption for availing of green energy certification.

This revision was made for consumers availing of green energy from distribution licensees only to reduce their carbon footprint and seek certification to this effect. This revision was made for consumers availing green energy from distribution licensees as per MPERC (Co-generation and generation of electricity from renewable sources of energy) under regulations, 2021 and amendments.

The notification mentioned, “MPERC revised the tariff for green energy charges which were over and above the existing fixed and energy charges. Any other charges as approved by the commission in this order are expected to be applicable for respective categories of consumers. The revenue earned by the petitioners from the sale of power from green energy to reduce their carbon footprint and seek certification to this effect is to be considered as tariff income at the time of truing up. Such treatment of revenue is to ensure that the benefit of the same is passed on to other consumers of the State. The revenue earned by the petitioners from the sale of power to consumers under green energy charges.”

It elaborated, “For availing green energy as per MPERC, (co-generation and generation of electricity from Renewable sources of energy Regulations), 2021 and amendments thereof are expected to be considered as revenue from sale of power. The distribution licensee is directed to separately maintain tariff category and sub-category wise accounting of no. of consumers, connected load, sale and revenue from sale under Tariff for green energy.”
It added, “For consumers and same are to be shown separately by the petitioners at the time of truing up. It is to be noted that the above arrangements are optional/voluntary and are to be only provided at the request of the Consumer.
It added, “The green energy charges and tariff for green energy are applicable only if the consumer opts to avail power under the respective above arrangement. Regarding rating for green energy consumption, the petitioners are directed to develop detailed operational and requisite guidelines/procedure for rating of green energy consumption for the consumers of the distribution licensees.”

The notification mentioned, “The guidelines/procedure should be submitted to the Commission for approval within three months from the date of issuance of this order. The commission noted that some of the stakeholders in public hearings and written submissions have requested the commission to direct DISCOMs to develop procedures/mechanisms for obtaining green energy certificates from the DISCOMs for the consumers procuring the green energy.”

Green Energy Charges

It elaborated, “Given this, the petitioners are directed to develop a procedure for issuance of green energy certificate for the consumers availing Green Energy from the distribution licensees within one month from the date of issuance of this order and the same should be made available on the websites of distribution licensees for the consumer access.”