RERC Orders Penalising All Errant Officials Of RUVNL In Late-Payment Case

CERC Uses 'Power To Relax' Provision To Give Relief To RE Generator

The Rajasthan Electricity Regulatory Commission (RERC), in its latest judgment, has ordered penalizing all errant officials of the Rajasthan Urja Vikas Nigam Limited (RUVNL) for delaying payment to a wind power producer in the state. The order came to the fore after the alleged errant state discom failed to pay the third due installment to Mahalaxmi Wind Power timely. 

The wind power producer has four wind energy power plants with a cumulative capacity of 8.4 Megawatt (MW) in different areas of the Jaisalmer district of Rajasthan. The total due amount of the third installment was Rs 11,56,518. While the power producer received the first two payments, RUVNL failed to disburse the third installment despite repeated correspondence from the wind power producer, even after an order from RERC passed in 2020.

Background

RERC, on December 2011, revised the tariff for the sale of electricity from wind power plants for FY 2010-11 and 2011-12 of the control period 2009-14. The Commission also said that the wind power plants should claim the difference regarding the tariff, determined by earlier orders in three installments. These three installments mentioned in the case were related to these pending installations envisioned by the RERC in its 2021 order. In its petition, the power producer told the RERC that it didn’t receive the third installment from RUVNL. 

RUVNL, in its argument, objected disbursement of the third installment citing the lack of submission of an invoice in this regard. However, during the hearing, it became evident that the earlier two installments were disbursed through a single cumulative invoice for all three installments. 

Noticing a non-compliance of the previous order of the RERC in this direction and the prolonged delay, the RERC ordered the RUVNL to make the third installment payment with interest. It also ordered a penalty for the errant officials involved at RUVNL in the matter.

Final order 

“Managing Director of respondent i.e. RUVNL should fix the responsibility over the officer(s) concerned for this delay. A penalty of Rs. 1000/- be imposed on each responsible officer(s) & recovered. The Commission be informed by the MD himself about this recovery of penalty from the officer(s) responsible within 90 days from the date of this order,” the order read. 

The RERC order also said that respondent(s) should be sensible towards the RE power developers and their reasonable dues/payments should be paid timely. “Then only RE sector will develop in the state,” the order said.

“The Commission accept the petition and the respondent RUVNL is directed to pay the pending third installment of Rs. 11,56,518/- (as per submission of the petitioner which is not disputed by the respondent) within 45 days from the date of this order, with LPS as per the prevailing regulations from time to time from the date of invoice till the date of payment,” the order said.