GERC Upholds Banking Charges For Solar Project Commissioned After Policy Cut-Off Date In Gujarat

Sekhani Industries Private Limited filed a petition before the Gujarat Electricity Regulatory Commission (GERC) against Uttar Gujarat Vij Company Limited (UGVCL) over the levy of banking charges on electricity bills. The petitioner manufactures hygiene and textile products and has set up a 450 kW (DC) rooftop solar power plant at its premises in Sanand, Ahmedabad, to meet its energy needs. It registered the plant under the Gujarat Solar Power Policy, 2015, in July 2019, and after obtaining various approvals, the plant was inspected and granted energization permission by the Chief Electrical Inspector (CEI) on 25 March 2021.

Sekhani Industries claimed that despite completing all formalities, UGVCL delayed installing the meter and commissioning the plant until 28 June 2021. According to them, the delay was deliberate, and due to this, they were being wrongly charged banking fees under the Gujarat Solar Power Policy, 2021, which applied to projects commissioned after 11 June 2021. They argued that since their plant was ready and approved in March 2021, they should benefit from the 2015 policy and be exempt from these charges. They sought a refund or adjustment of banking charges collected since June 2021 and requested the commission to stop UGVCL from levying further charges.

UGVCL countered that the project was commissioned only on 28 June 2021, as confirmed by the Gujarat Energy Development Agency (GEDA) portal, and therefore the 2021 policy applied. They denied any delay on their part, stating that the petitioner approached them to sign the Interconnection Agreement only on 8 June 2021, submitted the necessary documents on 10 June 2021, and meters were installed afterward. They argued that commissioning requires grid connection and meter installation, and mere readiness of the plant does not qualify. UGVCL also pointed out that the petitioner’s earlier registration under the 2015 policy had been canceled due to non-payment, and the new registration issued in January 2021 was under the 2021 policy.

During hearings, Sekhani Industries maintained that the delay was due to UGVCL’s inaction and that the 11 June 2021 order on banking charges should not apply to them. UGVCL reiterated that the plant’s commissioning date is what determines policy applicability, not the date of readiness or inspection.

After reviewing the evidence, GERC found no proof that UGVCL delayed signing the agreement or installing the meter. It held that UGVCL required a reasonable time to verify documents before installation, and the petitioner’s claim of pre-11 June readiness could not be substantiated. Since the plant was commissioned on 28 June 2021, GERC ruled that the order dated 11 June 2021 applied, and banking charges were valid. However, the commission noted the need to examine the interconnection agreement and applicable net metering regulations to ensure alignment with policy provisions.

Thus, the petition to quash banking charges was not accepted on the grounds raised, as the actual commissioning date fell after the cut-off date set by the commission’s earlier order.