MERC Receives Petition For Dispute Arising Out Of PPA

Maharashtra Electricity Regulatory Commission recently passed an order on  the dispute arising out of Power Sale Agreement / Power Purchase Agreement between  Solar Energy Corporation of India Limited and Maharashtra State Electricity Distribution Company Limited.

Maharashtra State Electricity Distribution Company Limited (MSEDCL) has filed petition on 21 December 2019 seeking compensation as per Power Sale Agreement (PSA) executed between MSEDCL and Solar Energy Corporation of India Limited (SECI) (Intermediary Procurer) under Section 86 (1) (f) of the Electricity Act, 2003 (EA) and  compensation on account of delay in achieving the Scheduled Commercial Operation Date (SCoD) as per Power Purchase Agreement (PPA) executed between SECI and Solar Power Developers (SPD).

MSEDCL’s main prayers are : a) Hold and declare that SECI has been unable to perform its timely commitments under the PSA’s for delivery of the agreed quantum of power: b) Direct SECI to compensate MSEDCL to the tune of Rs. 131.72 Crs. as losses on account of short-supply by SECI thereby forcing MSEDCL to fulfill its RPO targets through other mechanisms/sources: c) Direct SECI to reimburse the payment of Rs.13.74 Crs. towards the amount for reduction of tariff from CoD to 31.03.2019 for the solar projects as mentioned at Sr. No. 3 (viii) of the Petition. d) Direct SECI to raise future invoices with respect to Batch-III and Batch-IV projects at the revised tariff rates as mentioned at Sr. No. 3 (viii) of the Petition. 

PSA was  signed between MSEDCL and SECI for a capacity of 500 MW each. SECI acted as an intermediary facilitator, through back to back PPA and VGFSA with the selected SPDs. 

This Commission stated that  it has jurisdiction to adjudicate on the dispute arising out of Power Sale Agreement / Power Purchase Agreement in the present matter. 

Commission also directed Solar Energy Corporation of India Limited to file its submission on the merits of the Petition, serving a copy to Maharashtra State Electricity Distribution Company Limited, within two weeks from the date of this Order. 

Maharashtra State Electricity Distribution Company Limited also directed to file its Rejoinder within one week.

Further , the Commission secretary  will inform the subsequent date of hearing on the merits of the case.

To know more about the order refer to the document below: