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KERC Directed BESCOM To Compensate Solar Developer On Account Of Delay In Wheeling And Banking Agreement Approval

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In a recent order, Karnataka Electricity Regulatory Commission (KERC) directed Bangalore Electricity Supply Company (BESCOM) to compensate Umiya Holding Energy for the quantum of solar energy injected into the grid from April and May 2018. The compensation amount will be calculated based Average Power Purchase Cost (APPC) for the injected solar energy.

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Further, commission directed BESCOM to treat the injected solar energy as unutilized banked energy for the above mentioned time period, and pay for the same as per the wheeling and banking agreement (WBA).

After approval for installation of 30MW solar power plant to cleanmax solar in tumkur district, commission allowed transfer of 1.5MW capacity out of total 30MW capacity to Umiya Holdings Energy.

Thereafter, Umiya Holdings approached to BESCOM and Karnataka Power Transmission Corporation (KPTCL) along with Rs.20,000 as bank guarantee for wheeling and banking agreement (WBA) of the project. Subsequently, after Chief Electrical Inspector’s approval for the proposal, KPTCL approved temporary interconnection to Umiya Holding. Commencement certificate was also issued by BESCOM and KPTCL both.

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As per petitioner’s claim, BESCOM and KPTCL delayed in approving wheeling and banking agreement. In response, KPTCL clarified about permanent interconnection approval can only be given after submission of WBA agreement by the petitioner. In view of the above context, Umiya holdings requested BESCOM for WBA approval as early as possible. But BESCOM did not respond to their request. After one more month delay, BESCOM gave WBA approval in April 2018.

In the meantime, umiya holding constantly injected solar energy into the grid from the date of provincial interconnection approval to WBA approval date by BESCOM. The amount of the energy injected during the above mentioned time period, was 2.32 million unit, which amounted to RS. 19.91 million.

In the above context, Umiya Holdings claimed for compensation for the unpaid solar energy during Sep 2017 to June 2018.

Commission’s Analysis and Decision:

After analyzing above context, Karnataka Electricity Regulatory Commission (KERC) directed Bangalore Electricity Supply Company (BESCOM) to compensate Umiya Holding Energy for the quantum of solar energy injected into the grid from April and May 2018. The compensation amount will be calculated based Average Power Purchase Cost (APPC) for the injected solar energy. Commission also directed BESCOM to credit the exact amount of injected solar energy for the above mentioned duration, into the wheeling and banking (WBA) account. The commission directed BESCOM to treat the injected solar energy as unutilized banked energy for the above mentioned time period.

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