Resolving Disputes: Hindustan Zinc Limited’s Captive Solar Plant Vs. Ajmer Vidyut Vitran Nigam

A dispute arose between Hindustan Zinc Limited (HZL) and Ajmer Vidyut Vitran Nigam Ltd (AVVNL) regarding the billing for excess power generated by HZL’s captive solar plant. HZL accused AVVNL of unlawfully restricting its power generation, contrary to Rajasthan Electricity Regulatory Commission (RERC) regulations.

The matter was brought before the Commission, with HZL arguing that AVVNL’s billing, based on Regulation 92.2 of the RE Tariff Regulations 2020, was unjustified. HZL contended that its plant, commissioned in February 2019, was categorized as an “Existing Generating Station” and thus not subject to the regulations intended for new plants.

AVVNL, however, justified its billing under Regulation 92.2, which limits the energy consumed from new renewable energy captive generating plants. AVVNL argued that as per the regulations, it had the right to bill HZL for excess power drawn beyond the specified Capacity Utilization Factor (CUF).

The Commission examined the applicability of Regulation 92.2 to HZL’s plant and concluded that it did not apply. The Commission noted that HZL’s plant fell under the category of “Existing Generating Station” and was not subject to the regulations targeting new plants.

Additionally, the Commission found that AVVNL’s reliance on an amendment issued after the billing dates was irrelevant to the dispute at hand. The Commission directed AVVNL to rework HZL’s liability and credit any excess billed amount over the next four billing cycles. The Commission’s ruling favored HZL, stating that AVVNL’s billing based on Regulation 92.2 was not applicable to HZL’s captive solar plant. The dispute underscores the importance of regulatory clarity and adherence to applicable laws in the renewable energy sector.

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