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MERC Order Case No. 49 of 2013
MERC, Mumbai Page 1 of 15
Before the
MAHARASHTRA ELECTRICITY REGULATORY COMMISSION
13th Floor, Centre No.1, World Trade Centre, Cuffe Parade, Mumbai- 400 005
Tel: 22163964/65/69 Fax: 22163976
E-mail: mercindia@merc.gov.in
Website: www. merc.gov.in / www.mercindia.org.in
Case No. 49 of 2013
In the matter of
Verification and Compliance of Renewable Purchase Obligation targets by
Captive Users and Open Access Consumers for FY 2010-11 and FY 2011-12 as
specified under MERC (Renewable Purchase Obligation, its compliance and
Implementation of REC framework) Regulations, 2010
Shri V.P. Raja, Chairman
Shri Vijay. L. Sonavane, Member
ORDER (SUO-MOTU)
Dated: 22 July, 2013
In exercise of the powers vested under Sections 61, 66, 86(1)(e) and 181 of the
Electricity Act 2003 (“EA 2003”), the Commission has notified the Maharashtra
Electricity Regulatory Commission (Renewable Purchase Obligation, its compliance
and Implementation of REC framework) Regulations, 2010, (hereinafter referred to as
"MERC RPO-REC Regulations, 2010") on 7 June, 2010.
2. Under the said RPO Regulations, the Commission has specified the Renewable
Purchase Obligation (RPO) targets for Obligated Entities, including Distribution
Licensees, Captive Users and Open Access Consumers within the State of Maharashtra
for F.Y 2010-11 to F.Y 2015-16. The RPO targets, as specified in the Regulation 7.1
of said Regulations, are as given below:
MERC Order Case No. 49 of 2013
MERC, Mumbai Page 2 of 15
Table 1:RPO targets specified under Regulations
Year Minimum Quantum of purchase (in %) from
renewable energy sources (in terms of energy
equivalent in kWh)
Solar Non-Solar (other RE) Total
2010-11 0.25% 5.75% 6.0%
2011-12 0.25% 6.75% 7.0%
2012-13 0.25% 7.75% 8.0%
2013-14 0.50% 8.50% 9.0%
2014-15 0.50% 8.50% 9.0%
2015-16 0.50% 8.50% 9.0%
3. The Commission vide Case No. 99 of 2012, Case No. 100 of 2012, Case No.
101 of 2012 & Case No. 102 of 2012 initiated suo-motu proceedings for the
verification and compliance of RPO target of distribution licensees i.e. TPC-D, BEST,
Rinfra-D and MSEDCL respectively.
4. Further, apart from Distribution Utilities, Captive Users and Open Access
consumers within the State have also been identified as Obligated Entities who should
comply with the RPO targets stipulated by the Commission. Regulation 5.1 under the
MERC (RPO-REC) Regulations, 2010 which specifies obligations of Captive Users
and Open Access consumers has been reproduced as under.
“…
5. Obligated Entities
5.1 The minimum percentage as specified under Regulation 7.1 shall be
applicable to all Distribution Licensees in the State of Maharashtra as
well as to open access consumers and captive users within the State of
Maharashtra, subject to following conditions:
(a) Any person who owns a grid connected Captive Generating Plant
with installed capacity of 1 MW and above (or such other capacity as
may be stipulated from time to time) and consumes electricity generated
from such plant for his own use; shall be subjected to minimum
percentage of RPO to the extent of his consumption met through such
captive source.
(b) Any person having a contract demand of not less than 1 MVA and
who consumes electricity procured from conventional fossil fuel based
MERC Order Case No. 49 of 2013
MERC, Mumbai Page 3 of 15
generation through open access as per Section 42 (2) of the Act shall be
subjected to minimum percentage of RPO to the extent of his
consumption met through such open access source.
Provided that the State Commission may, by order, revise the minimum
capacity referred to under sub-clause (a) and sub-clause (b) above from
time to time.
Provided further that condition under sub-clause (a) above, shall not be
applicable in case of Standby (or Emergency back-up) Captive
Generating Plant facilities.
…”
5. Furthermore, proviso to Regulation 11.3 provides conditions under which
exemption is granted for few categories of Captive users and Regulations 11.1, 11.2,
11.3 and 11.4 of MERC RPO-REC Regulations, 2010, provide guidelines for RPO
compliance by Captive Users and Open Access Consumers, which are reproduced
below:
“…
11.1 Subject to fulfilment of conditions outlined under Regulation 5.1,
every Captive User and Open Access consumer shall submit necessary
details regarding total consumption of electricity and power purchase
from renewable energy sources towards fulfilment of its RPO on
monthly basis to the State Agency.
11.2 Captive User(s) and Open Access Consumer(s) shall purchase
renewable energy as stated in Regulation 7.1 and accordingly shall
enter into long term arrangement to meet its RPO obligations.
11.3 If the Captive User(s) and Open Access consumer(s) are unable to
fulfil their obligation, they shall be liable to pay RPO Regulatory
Charges as specified in Regulation 12.1.
Provided further that captive user(s) consuming power from grid
connected fossil fuel based co-generation plants, are exempted from
applicability of RPO target and other related conditions as specified in
these Regulations.
11.4 Captive/Open Access consumer(s)/User(s) may fulfill their RPO
through procurement of the Renewable Energy Certificate as provided
in Regulation 8.
…”
MERC Order Case No. 49 of 2013
MERC, Mumbai Page 4 of 15
6. Regulation 12 of MERC (RPO-REC) Regulations, 2010 empowers the
Commission to deal with shortfall in compliance of RPO target by Obligated Entities
in manner outlined under said Regulations upon ascertaining such shortfall. The
relevant extract is reproduced below:
“12. RPO Regulatory Charges
12.1 If the Obligated Entity fails to comply with the RPO target as
provided in these Regulations during any year and fails to purchase the
required quantum of RECs, the State Commission may direct the
Obligated Entity to deposit into a separate fund, to be created and
maintained by such Obligated Entity, such amount as the Commission
may determine on the basis of the shortfall in units of RPO, RPO
Regulatory Charges and the Forbearance Price decided by the Central
Commission; separately in respect of solar and non-solar RPO:
Provided that RPO Regulatory Charges shall be equivalent to the
highest applicable preferential tariff during the year for solar or non-
solar RE generating sources, as the case may be, or any other rate as
may be stipulated by the State Commission:
Provided further that the fund so created shall be utilised, as may be
directed by the State Commission."
7. Regulation 9.6 of the MERC (RPO-REC) Regulations, 2010 specifies that the
State Agency appointed by the Commission shall submit quarterly status report of
compliance of RPO targets by the obligated entities. The said Regulation is reproduced
as below.
“9.6 The State Agency shall submit quarterly status to the State
Commission in respect of compliance of renewable purchase obligation
by the Obligated Entities in the format stipulated by the State
Commission and may suggest appropriate action to the State
Commission if required for compliance of the renewable purchase
obligation.”
8. The Commission, under its Suo-Motu Order dated 1 July, 2010 in Case No. 21
of 2010 designated the Maharashtra Energy Development Agency (MEDA) as the
State Agency to undertake the functions envisaged under MERC (RPO-REC)
MERC Order Case No. 49 of 2013
MERC, Mumbai Page 5 of 15
Regulations, 2010. In accordance with Regulation 9.6 of MERC (RPO-REC)
Regulations, 2010, MEDA, vide its letter dated 30 July, 2012, submitted the RPO
settlement data for Captive Users and Open Access consumers in the Maharashtra
State for FY 2010-11 and FY 2011-12 and vide letter dated 27 November, 2012,
submitted an updated RPO status for the same.
9. In view of above submissions by MEDA, the Commission vide letter dated 1
March, 2013, requested Maharashtra State Electricity Distribution Company Limited
(MSEDCL) to verify and certify the list of 27 numbers of Captive Users and Open
Access consumers about their status since these consumers either were claiming to be
off-grid captive users or having cogeneration facility. However, MSEDCL did not
reply to the above.
10. The Commission vide notice dated 6 March, 2013 issued notices to 79 Captive
Users and Open Access consumers requesting to submit the details of RPO compliance
in line with MERC (RPO-REC) Regulations to the Commission on affidavit by 27
March, 2013. The Commission decided to initiate a Suo-Motu hearing for Verification
and Compliance of Renewable Purchase Obligation targets for FY 2010-11 and FY
2011-12 as specified under MERC (RPO-REC framework) Regulations, 2010 and
scheduled Suo-Motu hearing on 30 April, 2013 in the matter.
11. Furthermore, the Commission, on 10 April, 2013, issued notices to 93 Captive
Users and Open Access consumers (based on updated list of Obligated Entities
provided by MEDA) requesting to submit their RPO compliance status before 29
April, 2013 and to be present during the Suo-Motu hearing scheduled on 30 April,
2013. It was also requested to submit necessary documentary evidence for claiming
exemptions from Renewable Purchase Obligation, if any.
12. In view of the above notices, the office of the Commission has received replies
from several Captive Users and Open Access consumers as on 29 April, 2013, and the
summary of their status is as under:
MERC Order Case No. 49 of 2013
MERC, Mumbai Page 6 of 15
Table 2: Summary of Correspondence received from Captive Users and Open Access
consumers
Sl.
No.
Correspondence Status No. of CPP/OA
Consumer
A) Notice (In case No. 49 of 2013) issued to Captive Users/Open
Access consumers
93 nos.
B) CPP/OA consumers not replied to above notice
(i) Notice returned as company not found = 5
38
C) Reply received in response to notice by Commission 55
C1) CPP Users /OA Consumers having RPO during F.Y 2010-11 &
F.Y 2011-12
(i) CPP having RPO during F.Y 2010-11 & F.Y 2011-12 = 5
(ii) OA Consumers having RPO during F.Y 2010-11 & F.Y 2011-
12 = 7
(iii) OA/CPP having RPO from F.Y 2012-13 onwards = 4
16
C2) CPP/OA Consumers not covered under the RPO regime as
Obligated Entity.
39
13. The hearing in this matter was held on 30 April, 2013. During the hearing, the
Commission directed as follows;
“All Obligated Entities i.e. Captive Power Producers / Open Access
Consumers are directed to fulfil their RPO targets for both Solar and
Non-Solar for all Four years i.e. FY 2010-11, FY 2011-12 , FY 2012-
13 and FY 2013-14 cumulatively before 31st March 2014. The
Commission shall enforce this in letter and in spirit. (emphasis added)
Director General, MEDA is directed to appear before the Commission
along with all necessary documents and reason in writing explaining
the cause of non-compliance and inefficiency while undertaking the
functions in line with Regulation 9 of MERC (RPO-REC) Regulations,
2010, on Wednesday, 22 May, 2013 at 12.30 PM.”
14. The second hearing in the matter was held on 22 May, 2013. During the
hearing the Commission directed MEDA to improve the methodology for timely
collection of data/information from Obligated Entities i.e. Distribution Licensees,
Captive Users and Open Access Consumers, to ensure their RPO compliance and also
directed to constitute a committee with representatives of MEDA, MSLDC, MSEDCL,
MERC Order Case No. 49 of 2013
MERC, Mumbai Page 7 of 15
Electrical Inspector’s Office (PWD) and MERC officials. Accordingly the committee
constituted with the members as below:
i. Shri. Prafulla Varhade, Director (EE), MERC
ii. Dr. J.V. Torne, G.M.(R &D), MEDA
iii. Dr. M.S. Kele, C.E.(Comm.)
iv. Shri. Gujrathi, S.E., SLDC, Airoli, Kalwa,
v. Shri. Hemant Sali, Ex. Engineer (Elect), PWD Div. (GoM),
vi. Shri. Anant Sant, Dy. Director (Tech), MERC
vii. Shri. Ajit Pandit, Idam Infra., Consultant of the Commission in the matter.
The terms of reference of the Committee were as follows:
i. To take review of existing formats for data collection for RPO compliance
of “Obligating Entities” and standardisation of formats for data
collection/verification
ii. To device the methodology for periodical updating details of Captive Users
and Open Access Consumers
iii. To take review of existing mechanism for energy accounting for Captive
Users and Open Access Consumers
iv. Study of Accreditation of Captive Users and Open Access Consumers and
their facilities
v. Feasibility study for developing web based tool for tracking of
Consumption & procurement of power by Captive Users and Open Access
Consumers as obligated entities
vi. Methodology for Verification/Validation of RPO data of Captive Users and
Open Access Consumers
vii. Standard methodology for Energy Accounting for Renewable Energy
Generation for computing RPO compliance of Captive Users and Open
Access Consumers.
viii. Based on the above, submit the Report within two weeks time along with
its findings /observations.
15. First meeting of the Committee was held on 31 May, 2013 at SLDC, Airoli.
During the meeting detailed discussions on the existing formats for data collection for
RPO compliance of obligated entities, standardisation of formats for data collection &
MERC Order Case No. 49 of 2013
MERC, Mumbai Page 8 of 15
verification, methodology for periodical updating of details of Captive Users and Open
Access Consumers, existing mechanism for energy accounting for Captive Users and
Open Access Consumers, accreditation of Captive Users and Open Access Consumers,
Feasibility of development of web based tool for regular tracking of details pertaining
to consumption and procurement of power by Captive Users and Open Access
Consumers, and Methodology for verification & validation of RPO data of Captive
Users and Open Access Consumers were discussed..Further during the meeting,
MEDA was asked to prepare and publish a RPO manual which would enable
Obligated Entities to understand the RPO mechanism and modes to comply with such
requirement.
16. The second meeting of the Committee was held at the office of the Commission
on 13 June, 2013. During the meeting, MEDA submitted a Draft Manual for Obligated
entities which they had prepared as was discussed in the earlier Committee meeting.
Shri. Hemant Sali, Executive Engineer, Electrical Inspector’s Office (PWD) provided
list of 323 Industrial Generators having generating Capacity more than 1 MVA,
installed in the State of Maharashtra. From the list submitted by PWD, it was observed
that the list does not indicate whether the Captive generator in the list is an obligated
entity as per the Regulations. Dr. Kele, Chief Engineer (Commercial), MSEDCL stated
that the updated information regarding the Open Access consumers is available with
MSEDCL and same will be provided to the MEDA for further processing.
17. It was decided during the meeting that the list of the Industrial generators
having generating capacity more than 1 MVA, provided by Electrical Inspector’s
Office (PWD) should be revised and the revised list updated up to 17 June, 2013 will
be provided to MSEDCL and MEDA. It was also decided that MSEDCL, Reliance
Infrastructure Limited, the Tata Power Company Ltd will provide the updated list of
the entities availing the Open Access and other obligated entities as per RPO
Regulations to MEDA. Further, the Distribution Licensees were asked to verify the list
of Captive Power Plants prepared by Electrical Inspector’s Office (PWD) and to
identify the status of the generator whether it is Captive Power Plant qualified to be an
obligated entity under RPO Regulation, based on the criteria of grid connectivity.
Further, MEDA was asked to verify and modify the list of obligated entities based on
the information received from Electrical Inspector’s Office (PWD) and Distribution
Licensees. After affirmation, MEDA was asked to prepare the final list of the
Obligated Entities under RPO Regulation (for Captive Users and Open Access
consumers) and to submit it to the Commission before the Review meeting of the
Commission. Further, the committee suggested MEDA to prepare the process flow
MERC Order Case No. 49 of 2013
MERC, Mumbai Page 9 of 15
chart for collection and verification data of Obligated Entities and to develop the
methodology for updating the information.
18. Based on the detailed deliberations and analysis carried out, the Committee
submitted its interim report as per its terms of reference on 16 June, 2013. In the said
report, the Committee identified the gaps in the existing process of RPO compliance
and monitoring of obligated entities and gave recommendations for improving the
same.
19. The findings and recommendations of the Committee have been summarized in
the following table:
Table 3: Findings and Recommendations of the Committee
Sl.
No.
Gaps identified in existing
process
Possible Solution
Entities
Responsible
1. Identification of Obligated
Entities and listing:
The list of obligated Captive
Users and Open Access
Consumers in the State with
MEDA is not exhaustive.
Further, there exist no
streamlined process for
identification and registration
of such Obligated Entities
and MEDA would require
considerable support from
DISCOMs and Electrical
Inspector’s Office (PWD)
Accreditation process to be
formulated by MEDA (on
similar lines of REC
accreditation), for various
Captive Users and Open
Access Consumers as
Obligated Entities.
DISCOMs to provide
support to MEDA in
identification and listing of
Open Access consumers
Electrical Inspector’s Office
(PWD) to provide support
to MEDA in identification
and listing of Captive
consumers.
Initial list
Preparation:
MSEDCL and
Electrical
Inspector’s Office
(PWD) to provide
data to MEDA.
MEDA to formulate
accreditation
mechanism for
identification and
listing of all
obligated Captive
Users and Open
Access Consumers
in the State with
continued support
from respective
DISCOMS and the
Electrical
Inspector’s Office
(PWD)
MERC Order Case No. 49 of 2013
MERC, Mumbai Page 10 of 15
Sl.
No.
Gaps identified in existing
process
Possible Solution
Entities
Responsible
2. Verification of Data
submission by Captive Users:
Electrical Inspector’s Office
(PWD) reported that the
energy generation data
submitted by Captive Users is
self certified and may not be
authentic for the purpose of
RPO compliance.
Short term: DISCOMS to
verify and certify initially.
Long term:
Resources of Electrical
Inspector’s Office (PWD),
could be utilized to verify
energy generation data of
Captive Users.
Quarterly reporting &
verification to be insisted
upon for accredited
obligated entities. Processes
to be devised for
exchange/reporting of
energy consumption data of
obligated entity by
Electrical Inspector’s Office
(PWD) to MEDA.
Option of third party
verification through energy
auditors exists.
DISCOMS,
Electrical
Inspector’s Office
(PWD), MEDA
3 Verification of Data
submission by Open Access
consumers:
Data submission by Open
Access consumers for RPO
compliance is currently not
verified.
Since Open Access billing
is done by DISCOMS, they
are rightly placed to verify
the energy consumption
data of Open Access
consumers.
Quarterly reporting &
verification to be insisted
upon for accredited
obligated entities. Processes
to be devised for
exchange/reporting of
energy consumption data of
obligated entity by
concerned DISCOM to
MEDA.
DISCOMs, MEDA
MERC Order Case No. 49 of 2013
MERC, Mumbai Page 11 of 15
Sl.
No.
Gaps identified in existing
process
Possible Solution
Entities
Responsible
4 Practical difficulties in
monthly data submission:
MERC RPO Regulations
(11.1) specifies obligated
Captive Users and Open
Access Consumers to submit
data to the State Agency
(MEDA) on a monthly basis,
which is found to be
practically difficult from data
submission and collection
point of view.
Consensus was evolved for
making data submission on
quarterly basis.
Regulation 11.1 may have
to be suitably amended to
revise the frequency of data
submission from monthly
basis to quarterly basis with
month-wise break-up for the
quarter.
MERC
5 Lack of standard data
Formats:
Though standard format exist
for collection of data from
Captive Users and Open
Access Consumers by
MEDA, there should also be
standard formats for
data submission by
DISCOMs/Electrical
Inspector’s Office (PWD) to
MEDA and MEDA to MERC
for RPO compliance data
submission. The same would
ensure effective data flow
between each entities
involved
MEDA to formulate
standard formats in
consultation with
DISCOMS and Electrical
Inspector’s Office (PWD)
MEDA, DISCOMS,
Electrical
Inspector’s Office
(PWD)
6 Standard methodology for
Energy Accounting for
computing RPO compliance
of
Obligated Entities:
For Captive Users and Open
Access Consumers other than
those having in-situ captive
power plants, the base energy
to be considered for RPO
compliance could be
For the purpose RPO for
Captive Users and Open
Access Consumers,
wheeling case, energy
consumption on gross basis
(after grossing up of
transmission/wheeling loss)
may have to be considered.
In case of in-situ captive
power plants losses are
negligible and this issue
DISCOMS to
provide necessary
consumption details
of wheeling based
Obligated Captive
Users and Open
Access Consumers
MERC Order Case No. 49 of 2013
MERC, Mumbai Page 12 of 15
Sl.
No.
Gaps identified in existing
process
Possible Solution
Entities
Responsible
computed either based on the
net energy or based on the
gross energy at the generation
point after accounting for the
wheeling /transmission losses
Incurred during the wheeling
of power from the source of
generation.
does not arise.
This issue may have to be
clarified upon due
regulatory scrutiny.
7. Lack of check on Double
accounting of RPO
compliance:
No check exist to verify that
RPO compliance by Captive
Users and Open Access
Consumers is not counted
towards RPO
Compliance of the host
Distribution Licensee.
DISCOMs to ensure such
duplication is avoided
during reporting of RPO
compliance of DISCOMs.
MEDA to re-verify the
same. RPO Data submission
formats finalized for data
submission by DISCOM to
include specific
note/declaration on the
same.
Accreditation of obligated
entities and coding of
Renewable Energy
generation facilities/their
transactions would be
necessary to avoid
duplication in the credit of
Renewable Energy towards
RPO compliance
accounting.
DISCOMs, MEDA
8. Lack of streamlined RPO
related data flow between
obligated entities and MEDA.
MEDA to design web portal
based data submission to
enable obligated entities and
other supporting agencies
(DISCOMS and Electrical
Inspector’s Office (PWD))
to make periodic
submissions regarding RPO
compliance
MEDA to design
appropriate web
based tool
9 Lack of awareness among
Obligated Entities:
MEDA should initiate
periodic consultation
MEDA, DISCOMS
and Electrical
MERC Order Case No. 49 of 2013
MERC, Mumbai Page 13 of 15
Sl.
No.
Gaps identified in existing
process
Possible Solution
Entities
Responsible
process for generation
awareness among Captive
Users and Open Access
Consumers.
DISCOMS should intimate
Open Access consumers
about RPO compliance
requirement at the time of
grant of Open Access
permission.
Electrical Inspector’s Office
(PWD), should intimate
Captive Users about RPO
compliance requirement at
the time of registration of
Captive Users.
Inspector’s Office
(PWD)
20. As per the directions of the Commission, MEDA vide its letter dated 14 June
2013 submitted that it had initiated efforts to contact all Captive Users and Open
Access Consumers individually through different modes of communication as per
initial list available with MEDA. MEDA submitted that it exhorted upon all the
Captive Users and Open Access Consumers to attend the meeting at the MEDA office
and 89 out of 96 Captive Users and Open Access Consumers attended the meetings
and submitted data to MEDA. MEDA compiled a list of 111 obligated entities after
comparing it to the data provided by MSEDCL and Electrical Inspector’s Office
(PWD) and submitted the same.
21. MEDA submitted that it obtained the required data from 21 Captive Users in
the prescribed format for the years FY 2010-11, FY 2011-12 & FY 2012-13. MEDA
submitted that data was obtained from 43 Open Access Consumers in the prescribed
format for the years FY 2010-11, FY 2011-12 & FY 2012-13. MEDA also submitted
that a majority of the obligated entities have made a representation on affidavit before
the Commission as well as MEDA that they are not obligated entities for the purpose
of fulfilment of RPO.
22. Based on the findings of the report submitted by the committee and submission
of MEDA, the Commission is of the considered view that in order to ensure
MERC Order Case No. 49 of 2013
MERC, Mumbai Page 14 of 15
compliance of RPO by Captive Users and Open Access Consumers, a comprehensive
mechanism for monitoring and verification of the renewable energy procurement data
of Captive Users and Open Access Consumers is required to be put in place.
Therefore, the Commission directs that a Working Committee be constituted in order
to formulate the mechanism for monitoring, verification and compliance of RPO of
Captive Users and Open Access Consumers. The Working Committee shall consist of
following representatives,
i. General Manager , MEDA,
ii. Superintending Engineer, MSEDCL
iii. Senior level representative from TPC and RInfra
iv. Superintending Engineer, MSLDC,
v. Electrical Inspector (Executive Engineer), PWD, GoM
vi. MERC officials and MERC Consultant
23. Terms of Reference of the Working Committee shall be as follows
(i) Develop mechanism for listing and accreditation of Captive Users and
Open Access Consumers and set rules for accreditation of Captive Users
and Open Access Consumers
(ii) Develop mechanism for establishing data flow and information exchange
between various entities involved (Open Access Consumers to DISCOMs,
Captive Users to Electrical Inspector’s Office (PWD), DISCOMs to MEDA
and Electrical Inspector’s Office (PWD) to MEDA etc.), and to verify RPO
compliance by Captive Users and Open Access Consumers.
(iii) Meet on bi-monthly basis to review and, modify the mechanism, if found
necessary.
(iv) Provide continued assistance to MEDA in verification of RPO compliance
by Captive Users and Open Access Consumers
(v) MEDA shall act as convenor of the Working Committee, it shall arrange for
secretarial support to Working Committee, maintain minutes of Working
Committee meetings and be responsible for co-ordinating and reporting the
developments to Commission on bi-monthly basis.
(vi) The Working Committee shall submit its report to the Commission within
six months from the date of formation of the Committee based on the above
mentioned terms of reference.
24. As per Regulation 18.1 of MERC (RPO-REC) Regulations, 2010, the
Commission has powers to relax or waive any of the provision of the said regulations
MERC Order Case No. 49 of 2013
MERC, Mumbai Page 15 of 15
after giving an opportunity of hearing to the parties likely to be affected. Relevant
extract of said Regulations is as under:
“18.1 The Commission may by general or special order, for reasons to
be recorded in writing, and after giving an opportunity of hearing to the
parties likely to be affected may relax or may waive any of the
provisions of these Regulations on its own motion or on an application
made before it by an interested person.”
25. Pursuant to the above Regulation and in view of difficulties faced owing to lack
of appropriate mechanism in place for monitoring and compliance of RPO of Captive
Users and Open Access Consumers, and further considering the time required for
development of such a mechanism by the Working Committee constituted as per this
Order the Commission, in continuation of its earlier daily order dated 30 April, 2013,
directs all Captive Users and Open Access Consumers to fulfil their RPO targets for
both Solar and Non-Solar for all Four years i.e. FY 2010-11, FY 2011-12, FY 2012-13
and FY 2013-14 cumulatively before 31 March, 2014. Thus, the Commission hereby
relaxes/waives the provisions of Regulation 7 of the MERC (RPO-REC) Regulation
2010 for the year during FY 2010-11, FY 2011-12 and FY 2012-13.
26. The Commission also decides that no regulatory charges shall be applicable on
Captive Users and Open Access Consumers for non fulfilment of RPO targets during
FY 2010-11, FY 2011-12 and FY 2012-13 provided that the same shall be fulfilled on
a cumulative basis as specified in the relevant sections of this order.
27. The Commission directs MEDA to report the formation of Working Committee
and further developments thereon before 30 September, 2013, and thereafter on a bi-
monthly basis. The Commission further directs MEDA to submit the quarterly status to
the Commission in respect of compliance monitoring of renewable purchase obligation
by the Obligated Entities as per the provision of Regulation 9.6 of MERC (RPO-REC)
Regulations-2010
28. With the above order, the Case No. 49 of 2013 stands disposed of.
Sd/- Sd/-
(Vijay L. Sonavane) (V. P. Raja)
Member Chairman

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Merc order on RPO-REC Compliance by Captive & Open Access consumers

  • 1. MERC Order Case No. 49 of 2013 MERC, Mumbai Page 1 of 15 Before the MAHARASHTRA ELECTRICITY REGULATORY COMMISSION 13th Floor, Centre No.1, World Trade Centre, Cuffe Parade, Mumbai- 400 005 Tel: 22163964/65/69 Fax: 22163976 E-mail: mercindia@merc.gov.in Website: www. merc.gov.in / www.mercindia.org.in Case No. 49 of 2013 In the matter of Verification and Compliance of Renewable Purchase Obligation targets by Captive Users and Open Access Consumers for FY 2010-11 and FY 2011-12 as specified under MERC (Renewable Purchase Obligation, its compliance and Implementation of REC framework) Regulations, 2010 Shri V.P. Raja, Chairman Shri Vijay. L. Sonavane, Member ORDER (SUO-MOTU) Dated: 22 July, 2013 In exercise of the powers vested under Sections 61, 66, 86(1)(e) and 181 of the Electricity Act 2003 (“EA 2003”), the Commission has notified the Maharashtra Electricity Regulatory Commission (Renewable Purchase Obligation, its compliance and Implementation of REC framework) Regulations, 2010, (hereinafter referred to as "MERC RPO-REC Regulations, 2010") on 7 June, 2010. 2. Under the said RPO Regulations, the Commission has specified the Renewable Purchase Obligation (RPO) targets for Obligated Entities, including Distribution Licensees, Captive Users and Open Access Consumers within the State of Maharashtra for F.Y 2010-11 to F.Y 2015-16. The RPO targets, as specified in the Regulation 7.1 of said Regulations, are as given below:
  • 2. MERC Order Case No. 49 of 2013 MERC, Mumbai Page 2 of 15 Table 1:RPO targets specified under Regulations Year Minimum Quantum of purchase (in %) from renewable energy sources (in terms of energy equivalent in kWh) Solar Non-Solar (other RE) Total 2010-11 0.25% 5.75% 6.0% 2011-12 0.25% 6.75% 7.0% 2012-13 0.25% 7.75% 8.0% 2013-14 0.50% 8.50% 9.0% 2014-15 0.50% 8.50% 9.0% 2015-16 0.50% 8.50% 9.0% 3. The Commission vide Case No. 99 of 2012, Case No. 100 of 2012, Case No. 101 of 2012 & Case No. 102 of 2012 initiated suo-motu proceedings for the verification and compliance of RPO target of distribution licensees i.e. TPC-D, BEST, Rinfra-D and MSEDCL respectively. 4. Further, apart from Distribution Utilities, Captive Users and Open Access consumers within the State have also been identified as Obligated Entities who should comply with the RPO targets stipulated by the Commission. Regulation 5.1 under the MERC (RPO-REC) Regulations, 2010 which specifies obligations of Captive Users and Open Access consumers has been reproduced as under. “… 5. Obligated Entities 5.1 The minimum percentage as specified under Regulation 7.1 shall be applicable to all Distribution Licensees in the State of Maharashtra as well as to open access consumers and captive users within the State of Maharashtra, subject to following conditions: (a) Any person who owns a grid connected Captive Generating Plant with installed capacity of 1 MW and above (or such other capacity as may be stipulated from time to time) and consumes electricity generated from such plant for his own use; shall be subjected to minimum percentage of RPO to the extent of his consumption met through such captive source. (b) Any person having a contract demand of not less than 1 MVA and who consumes electricity procured from conventional fossil fuel based
  • 3. MERC Order Case No. 49 of 2013 MERC, Mumbai Page 3 of 15 generation through open access as per Section 42 (2) of the Act shall be subjected to minimum percentage of RPO to the extent of his consumption met through such open access source. Provided that the State Commission may, by order, revise the minimum capacity referred to under sub-clause (a) and sub-clause (b) above from time to time. Provided further that condition under sub-clause (a) above, shall not be applicable in case of Standby (or Emergency back-up) Captive Generating Plant facilities. …” 5. Furthermore, proviso to Regulation 11.3 provides conditions under which exemption is granted for few categories of Captive users and Regulations 11.1, 11.2, 11.3 and 11.4 of MERC RPO-REC Regulations, 2010, provide guidelines for RPO compliance by Captive Users and Open Access Consumers, which are reproduced below: “… 11.1 Subject to fulfilment of conditions outlined under Regulation 5.1, every Captive User and Open Access consumer shall submit necessary details regarding total consumption of electricity and power purchase from renewable energy sources towards fulfilment of its RPO on monthly basis to the State Agency. 11.2 Captive User(s) and Open Access Consumer(s) shall purchase renewable energy as stated in Regulation 7.1 and accordingly shall enter into long term arrangement to meet its RPO obligations. 11.3 If the Captive User(s) and Open Access consumer(s) are unable to fulfil their obligation, they shall be liable to pay RPO Regulatory Charges as specified in Regulation 12.1. Provided further that captive user(s) consuming power from grid connected fossil fuel based co-generation plants, are exempted from applicability of RPO target and other related conditions as specified in these Regulations. 11.4 Captive/Open Access consumer(s)/User(s) may fulfill their RPO through procurement of the Renewable Energy Certificate as provided in Regulation 8. …”
  • 4. MERC Order Case No. 49 of 2013 MERC, Mumbai Page 4 of 15 6. Regulation 12 of MERC (RPO-REC) Regulations, 2010 empowers the Commission to deal with shortfall in compliance of RPO target by Obligated Entities in manner outlined under said Regulations upon ascertaining such shortfall. The relevant extract is reproduced below: “12. RPO Regulatory Charges 12.1 If the Obligated Entity fails to comply with the RPO target as provided in these Regulations during any year and fails to purchase the required quantum of RECs, the State Commission may direct the Obligated Entity to deposit into a separate fund, to be created and maintained by such Obligated Entity, such amount as the Commission may determine on the basis of the shortfall in units of RPO, RPO Regulatory Charges and the Forbearance Price decided by the Central Commission; separately in respect of solar and non-solar RPO: Provided that RPO Regulatory Charges shall be equivalent to the highest applicable preferential tariff during the year for solar or non- solar RE generating sources, as the case may be, or any other rate as may be stipulated by the State Commission: Provided further that the fund so created shall be utilised, as may be directed by the State Commission." 7. Regulation 9.6 of the MERC (RPO-REC) Regulations, 2010 specifies that the State Agency appointed by the Commission shall submit quarterly status report of compliance of RPO targets by the obligated entities. The said Regulation is reproduced as below. “9.6 The State Agency shall submit quarterly status to the State Commission in respect of compliance of renewable purchase obligation by the Obligated Entities in the format stipulated by the State Commission and may suggest appropriate action to the State Commission if required for compliance of the renewable purchase obligation.” 8. The Commission, under its Suo-Motu Order dated 1 July, 2010 in Case No. 21 of 2010 designated the Maharashtra Energy Development Agency (MEDA) as the State Agency to undertake the functions envisaged under MERC (RPO-REC)
  • 5. MERC Order Case No. 49 of 2013 MERC, Mumbai Page 5 of 15 Regulations, 2010. In accordance with Regulation 9.6 of MERC (RPO-REC) Regulations, 2010, MEDA, vide its letter dated 30 July, 2012, submitted the RPO settlement data for Captive Users and Open Access consumers in the Maharashtra State for FY 2010-11 and FY 2011-12 and vide letter dated 27 November, 2012, submitted an updated RPO status for the same. 9. In view of above submissions by MEDA, the Commission vide letter dated 1 March, 2013, requested Maharashtra State Electricity Distribution Company Limited (MSEDCL) to verify and certify the list of 27 numbers of Captive Users and Open Access consumers about their status since these consumers either were claiming to be off-grid captive users or having cogeneration facility. However, MSEDCL did not reply to the above. 10. The Commission vide notice dated 6 March, 2013 issued notices to 79 Captive Users and Open Access consumers requesting to submit the details of RPO compliance in line with MERC (RPO-REC) Regulations to the Commission on affidavit by 27 March, 2013. The Commission decided to initiate a Suo-Motu hearing for Verification and Compliance of Renewable Purchase Obligation targets for FY 2010-11 and FY 2011-12 as specified under MERC (RPO-REC framework) Regulations, 2010 and scheduled Suo-Motu hearing on 30 April, 2013 in the matter. 11. Furthermore, the Commission, on 10 April, 2013, issued notices to 93 Captive Users and Open Access consumers (based on updated list of Obligated Entities provided by MEDA) requesting to submit their RPO compliance status before 29 April, 2013 and to be present during the Suo-Motu hearing scheduled on 30 April, 2013. It was also requested to submit necessary documentary evidence for claiming exemptions from Renewable Purchase Obligation, if any. 12. In view of the above notices, the office of the Commission has received replies from several Captive Users and Open Access consumers as on 29 April, 2013, and the summary of their status is as under:
  • 6. MERC Order Case No. 49 of 2013 MERC, Mumbai Page 6 of 15 Table 2: Summary of Correspondence received from Captive Users and Open Access consumers Sl. No. Correspondence Status No. of CPP/OA Consumer A) Notice (In case No. 49 of 2013) issued to Captive Users/Open Access consumers 93 nos. B) CPP/OA consumers not replied to above notice (i) Notice returned as company not found = 5 38 C) Reply received in response to notice by Commission 55 C1) CPP Users /OA Consumers having RPO during F.Y 2010-11 & F.Y 2011-12 (i) CPP having RPO during F.Y 2010-11 & F.Y 2011-12 = 5 (ii) OA Consumers having RPO during F.Y 2010-11 & F.Y 2011- 12 = 7 (iii) OA/CPP having RPO from F.Y 2012-13 onwards = 4 16 C2) CPP/OA Consumers not covered under the RPO regime as Obligated Entity. 39 13. The hearing in this matter was held on 30 April, 2013. During the hearing, the Commission directed as follows; “All Obligated Entities i.e. Captive Power Producers / Open Access Consumers are directed to fulfil their RPO targets for both Solar and Non-Solar for all Four years i.e. FY 2010-11, FY 2011-12 , FY 2012- 13 and FY 2013-14 cumulatively before 31st March 2014. The Commission shall enforce this in letter and in spirit. (emphasis added) Director General, MEDA is directed to appear before the Commission along with all necessary documents and reason in writing explaining the cause of non-compliance and inefficiency while undertaking the functions in line with Regulation 9 of MERC (RPO-REC) Regulations, 2010, on Wednesday, 22 May, 2013 at 12.30 PM.” 14. The second hearing in the matter was held on 22 May, 2013. During the hearing the Commission directed MEDA to improve the methodology for timely collection of data/information from Obligated Entities i.e. Distribution Licensees, Captive Users and Open Access Consumers, to ensure their RPO compliance and also directed to constitute a committee with representatives of MEDA, MSLDC, MSEDCL,
  • 7. MERC Order Case No. 49 of 2013 MERC, Mumbai Page 7 of 15 Electrical Inspector’s Office (PWD) and MERC officials. Accordingly the committee constituted with the members as below: i. Shri. Prafulla Varhade, Director (EE), MERC ii. Dr. J.V. Torne, G.M.(R &D), MEDA iii. Dr. M.S. Kele, C.E.(Comm.) iv. Shri. Gujrathi, S.E., SLDC, Airoli, Kalwa, v. Shri. Hemant Sali, Ex. Engineer (Elect), PWD Div. (GoM), vi. Shri. Anant Sant, Dy. Director (Tech), MERC vii. Shri. Ajit Pandit, Idam Infra., Consultant of the Commission in the matter. The terms of reference of the Committee were as follows: i. To take review of existing formats for data collection for RPO compliance of “Obligating Entities” and standardisation of formats for data collection/verification ii. To device the methodology for periodical updating details of Captive Users and Open Access Consumers iii. To take review of existing mechanism for energy accounting for Captive Users and Open Access Consumers iv. Study of Accreditation of Captive Users and Open Access Consumers and their facilities v. Feasibility study for developing web based tool for tracking of Consumption & procurement of power by Captive Users and Open Access Consumers as obligated entities vi. Methodology for Verification/Validation of RPO data of Captive Users and Open Access Consumers vii. Standard methodology for Energy Accounting for Renewable Energy Generation for computing RPO compliance of Captive Users and Open Access Consumers. viii. Based on the above, submit the Report within two weeks time along with its findings /observations. 15. First meeting of the Committee was held on 31 May, 2013 at SLDC, Airoli. During the meeting detailed discussions on the existing formats for data collection for RPO compliance of obligated entities, standardisation of formats for data collection &
  • 8. MERC Order Case No. 49 of 2013 MERC, Mumbai Page 8 of 15 verification, methodology for periodical updating of details of Captive Users and Open Access Consumers, existing mechanism for energy accounting for Captive Users and Open Access Consumers, accreditation of Captive Users and Open Access Consumers, Feasibility of development of web based tool for regular tracking of details pertaining to consumption and procurement of power by Captive Users and Open Access Consumers, and Methodology for verification & validation of RPO data of Captive Users and Open Access Consumers were discussed..Further during the meeting, MEDA was asked to prepare and publish a RPO manual which would enable Obligated Entities to understand the RPO mechanism and modes to comply with such requirement. 16. The second meeting of the Committee was held at the office of the Commission on 13 June, 2013. During the meeting, MEDA submitted a Draft Manual for Obligated entities which they had prepared as was discussed in the earlier Committee meeting. Shri. Hemant Sali, Executive Engineer, Electrical Inspector’s Office (PWD) provided list of 323 Industrial Generators having generating Capacity more than 1 MVA, installed in the State of Maharashtra. From the list submitted by PWD, it was observed that the list does not indicate whether the Captive generator in the list is an obligated entity as per the Regulations. Dr. Kele, Chief Engineer (Commercial), MSEDCL stated that the updated information regarding the Open Access consumers is available with MSEDCL and same will be provided to the MEDA for further processing. 17. It was decided during the meeting that the list of the Industrial generators having generating capacity more than 1 MVA, provided by Electrical Inspector’s Office (PWD) should be revised and the revised list updated up to 17 June, 2013 will be provided to MSEDCL and MEDA. It was also decided that MSEDCL, Reliance Infrastructure Limited, the Tata Power Company Ltd will provide the updated list of the entities availing the Open Access and other obligated entities as per RPO Regulations to MEDA. Further, the Distribution Licensees were asked to verify the list of Captive Power Plants prepared by Electrical Inspector’s Office (PWD) and to identify the status of the generator whether it is Captive Power Plant qualified to be an obligated entity under RPO Regulation, based on the criteria of grid connectivity. Further, MEDA was asked to verify and modify the list of obligated entities based on the information received from Electrical Inspector’s Office (PWD) and Distribution Licensees. After affirmation, MEDA was asked to prepare the final list of the Obligated Entities under RPO Regulation (for Captive Users and Open Access consumers) and to submit it to the Commission before the Review meeting of the Commission. Further, the committee suggested MEDA to prepare the process flow
  • 9. MERC Order Case No. 49 of 2013 MERC, Mumbai Page 9 of 15 chart for collection and verification data of Obligated Entities and to develop the methodology for updating the information. 18. Based on the detailed deliberations and analysis carried out, the Committee submitted its interim report as per its terms of reference on 16 June, 2013. In the said report, the Committee identified the gaps in the existing process of RPO compliance and monitoring of obligated entities and gave recommendations for improving the same. 19. The findings and recommendations of the Committee have been summarized in the following table: Table 3: Findings and Recommendations of the Committee Sl. No. Gaps identified in existing process Possible Solution Entities Responsible 1. Identification of Obligated Entities and listing: The list of obligated Captive Users and Open Access Consumers in the State with MEDA is not exhaustive. Further, there exist no streamlined process for identification and registration of such Obligated Entities and MEDA would require considerable support from DISCOMs and Electrical Inspector’s Office (PWD) Accreditation process to be formulated by MEDA (on similar lines of REC accreditation), for various Captive Users and Open Access Consumers as Obligated Entities. DISCOMs to provide support to MEDA in identification and listing of Open Access consumers Electrical Inspector’s Office (PWD) to provide support to MEDA in identification and listing of Captive consumers. Initial list Preparation: MSEDCL and Electrical Inspector’s Office (PWD) to provide data to MEDA. MEDA to formulate accreditation mechanism for identification and listing of all obligated Captive Users and Open Access Consumers in the State with continued support from respective DISCOMS and the Electrical Inspector’s Office (PWD)
  • 10. MERC Order Case No. 49 of 2013 MERC, Mumbai Page 10 of 15 Sl. No. Gaps identified in existing process Possible Solution Entities Responsible 2. Verification of Data submission by Captive Users: Electrical Inspector’s Office (PWD) reported that the energy generation data submitted by Captive Users is self certified and may not be authentic for the purpose of RPO compliance. Short term: DISCOMS to verify and certify initially. Long term: Resources of Electrical Inspector’s Office (PWD), could be utilized to verify energy generation data of Captive Users. Quarterly reporting & verification to be insisted upon for accredited obligated entities. Processes to be devised for exchange/reporting of energy consumption data of obligated entity by Electrical Inspector’s Office (PWD) to MEDA. Option of third party verification through energy auditors exists. DISCOMS, Electrical Inspector’s Office (PWD), MEDA 3 Verification of Data submission by Open Access consumers: Data submission by Open Access consumers for RPO compliance is currently not verified. Since Open Access billing is done by DISCOMS, they are rightly placed to verify the energy consumption data of Open Access consumers. Quarterly reporting & verification to be insisted upon for accredited obligated entities. Processes to be devised for exchange/reporting of energy consumption data of obligated entity by concerned DISCOM to MEDA. DISCOMs, MEDA
  • 11. MERC Order Case No. 49 of 2013 MERC, Mumbai Page 11 of 15 Sl. No. Gaps identified in existing process Possible Solution Entities Responsible 4 Practical difficulties in monthly data submission: MERC RPO Regulations (11.1) specifies obligated Captive Users and Open Access Consumers to submit data to the State Agency (MEDA) on a monthly basis, which is found to be practically difficult from data submission and collection point of view. Consensus was evolved for making data submission on quarterly basis. Regulation 11.1 may have to be suitably amended to revise the frequency of data submission from monthly basis to quarterly basis with month-wise break-up for the quarter. MERC 5 Lack of standard data Formats: Though standard format exist for collection of data from Captive Users and Open Access Consumers by MEDA, there should also be standard formats for data submission by DISCOMs/Electrical Inspector’s Office (PWD) to MEDA and MEDA to MERC for RPO compliance data submission. The same would ensure effective data flow between each entities involved MEDA to formulate standard formats in consultation with DISCOMS and Electrical Inspector’s Office (PWD) MEDA, DISCOMS, Electrical Inspector’s Office (PWD) 6 Standard methodology for Energy Accounting for computing RPO compliance of Obligated Entities: For Captive Users and Open Access Consumers other than those having in-situ captive power plants, the base energy to be considered for RPO compliance could be For the purpose RPO for Captive Users and Open Access Consumers, wheeling case, energy consumption on gross basis (after grossing up of transmission/wheeling loss) may have to be considered. In case of in-situ captive power plants losses are negligible and this issue DISCOMS to provide necessary consumption details of wheeling based Obligated Captive Users and Open Access Consumers
  • 12. MERC Order Case No. 49 of 2013 MERC, Mumbai Page 12 of 15 Sl. No. Gaps identified in existing process Possible Solution Entities Responsible computed either based on the net energy or based on the gross energy at the generation point after accounting for the wheeling /transmission losses Incurred during the wheeling of power from the source of generation. does not arise. This issue may have to be clarified upon due regulatory scrutiny. 7. Lack of check on Double accounting of RPO compliance: No check exist to verify that RPO compliance by Captive Users and Open Access Consumers is not counted towards RPO Compliance of the host Distribution Licensee. DISCOMs to ensure such duplication is avoided during reporting of RPO compliance of DISCOMs. MEDA to re-verify the same. RPO Data submission formats finalized for data submission by DISCOM to include specific note/declaration on the same. Accreditation of obligated entities and coding of Renewable Energy generation facilities/their transactions would be necessary to avoid duplication in the credit of Renewable Energy towards RPO compliance accounting. DISCOMs, MEDA 8. Lack of streamlined RPO related data flow between obligated entities and MEDA. MEDA to design web portal based data submission to enable obligated entities and other supporting agencies (DISCOMS and Electrical Inspector’s Office (PWD)) to make periodic submissions regarding RPO compliance MEDA to design appropriate web based tool 9 Lack of awareness among Obligated Entities: MEDA should initiate periodic consultation MEDA, DISCOMS and Electrical
  • 13. MERC Order Case No. 49 of 2013 MERC, Mumbai Page 13 of 15 Sl. No. Gaps identified in existing process Possible Solution Entities Responsible process for generation awareness among Captive Users and Open Access Consumers. DISCOMS should intimate Open Access consumers about RPO compliance requirement at the time of grant of Open Access permission. Electrical Inspector’s Office (PWD), should intimate Captive Users about RPO compliance requirement at the time of registration of Captive Users. Inspector’s Office (PWD) 20. As per the directions of the Commission, MEDA vide its letter dated 14 June 2013 submitted that it had initiated efforts to contact all Captive Users and Open Access Consumers individually through different modes of communication as per initial list available with MEDA. MEDA submitted that it exhorted upon all the Captive Users and Open Access Consumers to attend the meeting at the MEDA office and 89 out of 96 Captive Users and Open Access Consumers attended the meetings and submitted data to MEDA. MEDA compiled a list of 111 obligated entities after comparing it to the data provided by MSEDCL and Electrical Inspector’s Office (PWD) and submitted the same. 21. MEDA submitted that it obtained the required data from 21 Captive Users in the prescribed format for the years FY 2010-11, FY 2011-12 & FY 2012-13. MEDA submitted that data was obtained from 43 Open Access Consumers in the prescribed format for the years FY 2010-11, FY 2011-12 & FY 2012-13. MEDA also submitted that a majority of the obligated entities have made a representation on affidavit before the Commission as well as MEDA that they are not obligated entities for the purpose of fulfilment of RPO. 22. Based on the findings of the report submitted by the committee and submission of MEDA, the Commission is of the considered view that in order to ensure
  • 14. MERC Order Case No. 49 of 2013 MERC, Mumbai Page 14 of 15 compliance of RPO by Captive Users and Open Access Consumers, a comprehensive mechanism for monitoring and verification of the renewable energy procurement data of Captive Users and Open Access Consumers is required to be put in place. Therefore, the Commission directs that a Working Committee be constituted in order to formulate the mechanism for monitoring, verification and compliance of RPO of Captive Users and Open Access Consumers. The Working Committee shall consist of following representatives, i. General Manager , MEDA, ii. Superintending Engineer, MSEDCL iii. Senior level representative from TPC and RInfra iv. Superintending Engineer, MSLDC, v. Electrical Inspector (Executive Engineer), PWD, GoM vi. MERC officials and MERC Consultant 23. Terms of Reference of the Working Committee shall be as follows (i) Develop mechanism for listing and accreditation of Captive Users and Open Access Consumers and set rules for accreditation of Captive Users and Open Access Consumers (ii) Develop mechanism for establishing data flow and information exchange between various entities involved (Open Access Consumers to DISCOMs, Captive Users to Electrical Inspector’s Office (PWD), DISCOMs to MEDA and Electrical Inspector’s Office (PWD) to MEDA etc.), and to verify RPO compliance by Captive Users and Open Access Consumers. (iii) Meet on bi-monthly basis to review and, modify the mechanism, if found necessary. (iv) Provide continued assistance to MEDA in verification of RPO compliance by Captive Users and Open Access Consumers (v) MEDA shall act as convenor of the Working Committee, it shall arrange for secretarial support to Working Committee, maintain minutes of Working Committee meetings and be responsible for co-ordinating and reporting the developments to Commission on bi-monthly basis. (vi) The Working Committee shall submit its report to the Commission within six months from the date of formation of the Committee based on the above mentioned terms of reference. 24. As per Regulation 18.1 of MERC (RPO-REC) Regulations, 2010, the Commission has powers to relax or waive any of the provision of the said regulations
  • 15. MERC Order Case No. 49 of 2013 MERC, Mumbai Page 15 of 15 after giving an opportunity of hearing to the parties likely to be affected. Relevant extract of said Regulations is as under: “18.1 The Commission may by general or special order, for reasons to be recorded in writing, and after giving an opportunity of hearing to the parties likely to be affected may relax or may waive any of the provisions of these Regulations on its own motion or on an application made before it by an interested person.” 25. Pursuant to the above Regulation and in view of difficulties faced owing to lack of appropriate mechanism in place for monitoring and compliance of RPO of Captive Users and Open Access Consumers, and further considering the time required for development of such a mechanism by the Working Committee constituted as per this Order the Commission, in continuation of its earlier daily order dated 30 April, 2013, directs all Captive Users and Open Access Consumers to fulfil their RPO targets for both Solar and Non-Solar for all Four years i.e. FY 2010-11, FY 2011-12, FY 2012-13 and FY 2013-14 cumulatively before 31 March, 2014. Thus, the Commission hereby relaxes/waives the provisions of Regulation 7 of the MERC (RPO-REC) Regulation 2010 for the year during FY 2010-11, FY 2011-12 and FY 2012-13. 26. The Commission also decides that no regulatory charges shall be applicable on Captive Users and Open Access Consumers for non fulfilment of RPO targets during FY 2010-11, FY 2011-12 and FY 2012-13 provided that the same shall be fulfilled on a cumulative basis as specified in the relevant sections of this order. 27. The Commission directs MEDA to report the formation of Working Committee and further developments thereon before 30 September, 2013, and thereafter on a bi- monthly basis. The Commission further directs MEDA to submit the quarterly status to the Commission in respect of compliance monitoring of renewable purchase obligation by the Obligated Entities as per the provision of Regulation 9.6 of MERC (RPO-REC) Regulations-2010 28. With the above order, the Case No. 49 of 2013 stands disposed of. Sd/- Sd/- (Vijay L. Sonavane) (V. P. Raja) Member Chairman