TERC Rejects Additional Charges For Renewable Energy Compliance In Telangana

In a recent development, the Telangana Electricity Regulatory Commission (TERC) deliberated on proposals put forth by the Telangana State Load Despatch Centre (TGSLDC) regarding remuneration and charges under Regulation No. 7 of 2022. This regulation mandates obligated entities to purchase renewable energy or Renewable Energy Certificates (RECs). The TGSLDC, tasked with collecting fees for its role akin to REC accreditation, proposed charges including a one-time fee of ₹30,000 and an annual fee of ₹10,000 per obligated entity, with taxes applicable as per norms.

Following the proposal, stakeholders, including TSDISCOMs and M/s. Penna Cement Industries Limited submitted objections. They argued against imposing additional financial burdens on obligated entities already purchasing RECs from power exchanges. They highlighted concerns about fairness and the practicality of the proposed charges.

In response, the TGSLDC defended its proposal, asserting that the charges were necessary to fund its operations under Regulation No. 7 of 2022. They cited parallels with REC accreditation fees set by the Central Electricity Regulatory Commission (CERC) for renewable energy generators.

The TERC, after a period of public consultation and considering stakeholder feedback, rendered its decision. The Commission acknowledged the concerns raised, particularly by M/s. Penna Cement Industries Limited, regarding the financial strain on obligated entities. They emphasized that existing annual fees and operating charges already levied on stakeholders fulfilled regulatory requirements.

Consequently, the TERC declined to approve the proposed remuneration and charges by the TGSLDC. They concluded that the current fee structure adequately supported the state agency’s operational needs, making additional charges unnecessary and potentially burdensome for obligated entities.

This decision marks an important regulatory stance on balancing the financial responsibilities of obligated entities while ensuring the operational sustainability of state agencies involved in renewable energy compliance. The TERC’s ruling reflects a nuanced approach toward regulatory compliance in the energy sector, aiming to foster a balanced environment for renewable energy adoption without imposing undue financial burdens.

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