KERC Grants Extension for RPO Compliance By 3 Months

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Karnataka Electricity Regulatory Commission has recently issued an order regarding RPO Compliance for FY20- Regulations.

The commission stated that “ “Keeping in view the prevailing COVID-19 pandemic situation and the consequent lockdown, the Commission hereby extends the time for complying with the RPO for FY20 by three months. Thus, the obligated entities namely, Distribution Licensees, Grid-connected Captive Consumers, and Open Access Consumers may meet their RPO for FY20 by 31.08.2020. Any obligated entity failing to meet the RPO or any part of it(or FY20 within the time specified above, shall purchase RECs to the extent of 110% of quantum of the shortfall in meeting RPO by 30.09.2020, failing which the obligated entity shall be liable for action under Section 142 of the Electricity Act, 2003.”

In exercise of its powers under ‘Clause 12 of KERC (Procurement of Energy from Renewable Sources Regulations,2011, the Commission hereby orders as follows:

This Commission has been monitoring the compliance of Renewable Purchase Obligation (RPO) by obligated entities, in terms of KERC (Procurement of Energy from Renewable Sources Regulations),2011, as amended from time to time.

The relevant provisions on RPO compliance, as per the above Regulations, as

reproduced below:

” A distribution licensee or other consumer specified in clause 3 shall comply with the

renewable purchase obligation for any financial year as specified in these regulations, on or before 31st May of the immediate following financial year.

Provided that any distribution licensee or other consumer specified in clause 3 failing to meet the RPO or any part of it for any financial year shall purchase RECs to the extent of 110% of quantum of the shortfall in meeting RPO, by 30th June of thot immediate following financial year, failing which he shall be liable for action under Section 142 of the Electricity Act, 2008.

Provided further, if a distribution licensee has purchased RECS to meet the RPO specified within the time frame specified above based on provisional data for any year and finalization of accounts if RECs purchased are in excess of the RPO specified. then such excess RECs purchased shall be allowed to be accounted for meeting the RPO of the immediately following year.

Provided also that the quarterly data of the RPO compliance otter validation shall be hosted on the website of the nodal agency”

As per the above provisions, the obligated entities have to comply with the RPO for FY20, by 31st May 2020 without any penalty and by 30.06.2020 with 10% excess REC purchase, failing which the Commission is empowered to initiate action. However, due to the prevailing COVID-19 pandemic situation, the world over there were lockdowns, which has affected the economies of all the countries in the world. Most of the industries in India also in Karnataka were shut down due to lockdown, which has resulted in the loss of revenue to the obligated entities. Keeping in view the above-unprecedented condition, the Commission decides to extend the time or compliance of RPO for FY20 by three months.

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