APTEL Reverses KSERC's Power Tariff Ruling
POWER & RENEWABLE ENERGY

APTEL Reverses KSERC's Power Tariff Ruling

The Appellate Tribunal for Electricity (APTEL) recently overturned a Kerala State Electricity Regulatory Commission (KSERC) order, ruling that KSERC had overstepped its jurisdiction by intervening in a multi-state electricity dispute. The dispute centered around the generation and sale of solar power, which falls under the Central Electricity Regulatory Commission's (CERC) authority.

The issue began when the Solar Energy Corporation of India (SECI) issued a tender for 300 MW of solar power, structured under a Power Sale Agreement (PSA) with the Kerala State Electricity Board (KSEB). 

The PSA, submitted for KSERC's approval, faced two significant alterations:

KSERC redefined “Appropriate Commission” to include both CERC and KSERC, potentially causing jurisdictional conflicts.

KSERC capped the tariff payable by KSEB at ₹2.44 (~$0.029)/kWh, even if CERC approved a higher rate for the solar power producer, ReNew Power.

SECI argued that the PSA and related agreements involved a composite scheme that required uniform regulation by CERC to avoid inconsistencies. KSERC defended its changes, citing its authority to regulate non-tariff aspects of the PSA under the Electricity Act 2003.

APTEL sided with SECI, ruling that KSERC's tariff cap and jurisdictional claims were inappropriate for inter-state transactions. The Tribunal emphasized that only CERC has the authority to regulate such matters, due to the interconnected nature of the agreements.

As a result, APTEL annulled KSERC’s modifications, reaffirming that CERC is the sole authority for all aspects of the PSA, including non-tariff disputes. This decision ensures consistency and prevents regulatory conflicts in multi-state electricity transactions.

Additionally, the Tribunal recently granted POWERGRID Southern Interconnector Transmission System a 289-day extension to complete a transmission project, acknowledging delays due to "force majeure" events.

The Appellate Tribunal for Electricity (APTEL) recently overturned a Kerala State Electricity Regulatory Commission (KSERC) order, ruling that KSERC had overstepped its jurisdiction by intervening in a multi-state electricity dispute. The dispute centered around the generation and sale of solar power, which falls under the Central Electricity Regulatory Commission's (CERC) authority.The issue began when the Solar Energy Corporation of India (SECI) issued a tender for 300 MW of solar power, structured under a Power Sale Agreement (PSA) with the Kerala State Electricity Board (KSEB). The PSA, submitted for KSERC's approval, faced two significant alterations:KSERC redefined “Appropriate Commission” to include both CERC and KSERC, potentially causing jurisdictional conflicts.KSERC capped the tariff payable by KSEB at ₹2.44 (~$0.029)/kWh, even if CERC approved a higher rate for the solar power producer, ReNew Power.SECI argued that the PSA and related agreements involved a composite scheme that required uniform regulation by CERC to avoid inconsistencies. KSERC defended its changes, citing its authority to regulate non-tariff aspects of the PSA under the Electricity Act 2003.APTEL sided with SECI, ruling that KSERC's tariff cap and jurisdictional claims were inappropriate for inter-state transactions. The Tribunal emphasized that only CERC has the authority to regulate such matters, due to the interconnected nature of the agreements.As a result, APTEL annulled KSERC’s modifications, reaffirming that CERC is the sole authority for all aspects of the PSA, including non-tariff disputes. This decision ensures consistency and prevents regulatory conflicts in multi-state electricity transactions.Additionally, the Tribunal recently granted POWERGRID Southern Interconnector Transmission System a 289-day extension to complete a transmission project, acknowledging delays due to force majeure events.

Next Story
Infrastructure Energy

REC Transfers HVDC Project to Power Grid

REC Limited has successfully handed over the Special Purpose Vehicle (SPV) for a High-Voltage Direct Current (HVDC) transmission project to Power Grid Corporation of India Limited (PGCIL). This strategic move aligns with the nation's objectives to strengthen its power transmission network. Key Highlights: Project Overview: The HVDC project, under the inter-state transmission system (ISTS) initiative, is a critical component of India's push toward robust and efficient electricity transmission. It aims to handle bulk power transfer across long distances while ensuring minimal losses. Role of RE..

Next Story
Infrastructure Transport

NF Railway Collaborates with IIT Guwahati

The Northeast Frontier (NF) Railway has signed strategic Memorandums of Understanding (MoUs) with IIT Guwahati to foster technological advancements and improve railway operations in the region. This partnership focuses on innovative solutions to enhance safety, efficiency, and sustainability in rail infrastructure. Key Highlights: Purpose of MoUs: The collaboration aims to leverage IIT Guwahati's expertise in technology and research for implementing cutting-edge solutions across railway operations. Key areas of focus include: Automation and digitization in maintenance. Sustainability initiati..

Next Story
Infrastructure Transport

Danapur Division Modernization Plans Revealed

The Railway Board has unveiled ambitious plans for the expansion and modernization of the Danapur Division, a critical hub under the East Central Railway. The initiative focuses on infrastructure development, enhanced passenger amenities, and operational efficiency. Key Highlights: Scope of Modernization: The Railway Board's blueprint emphasizes: Upgrading existing infrastructure to accommodate more passenger and freight traffic. Improving station facilities, such as platforms, waiting areas, and connectivity. Introducing advanced signal systems for safer and smoother operations. Freig..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000