GERC Rejects GUVNL’s Plea On 500 MW Solar Project Clarifications For Late Payment Surcharge And Change In Law Provisions

The Gujarat Electricity Regulatory Commission in Gandhinagar has issued its decision on a petition filed by Gujarat Urja Vikas Nigam Limited seeking clarifications and directions related to a previous order from May 30, 2022. The earlier order had approved the adoption of tariffs discovered under the competitive bidding process for 500 MW of grid-connected solar photovoltaic projects in the state under Phase XIII, with successful bidders being SJVN Limited, SolarXL Alpha Energy Private Limited, AMSA Solar Energy Private Limited, and Hinduja Renewables Energy Private Limited. The tariff discovered was ₹2.29 per unit for the allocated capacities.

In the latest petition, GUVNL requested the Commission to clarify that the petition in 2022 was fully allowed, to approve provisions for late payment surcharge without amendments, and to approve the “Change in Law” clause in the power purchase agreements. GUVNL argued that the surcharge terms in the PPA were consistent with the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, and that changes to include GST on solar PV modules under the “Change in Law” clause were in line with industry requirements discussed during the pre-bid meeting.

The Commission, after reviewing the petition and submissions, rejected GUVNL’s request to reclassify the earlier decision as fully allowed, stating that the original petition was only partly allowed. The adoption of the tariff was approved earlier, but with directives for procedural compliance, such as signing PPAs within guidelines and submitting executed agreements with affidavits confirming compliance.

On the late payment surcharge issue, the Commission noted that the 2022 Rules automatically override PPA terms as they have statutory force, and hence no clarification or modification is needed. The request for further clarification was considered unnecessary and was rejected.

Regarding the “Change in Law” clause, the Commission observed that GUVNL had unilaterally modified provisions by including GST and surcharge on solar modules without prior approval, contrary to earlier directives. It emphasized that any deviation from bidding guidelines or standard bid documents must be approved by the Commission before issuing bid documents, and amendments after bidding completion are not permissible. The Commission held that GUVNL’s request to treat these changes as clarifications was against statutory bidding guidelines and rules under the Electricity Act, 2003.

The Commission directed GUVNL to adhere strictly to the provisions of PPAs as approved earlier and to ensure that any future claims on change in law or late payment surcharge by bidders comply fully with approved terms. After detailed consideration, all prayers in the present petition were rejected, and the matter was disposed of with instructions to follow established procedures and prior approvals for any deviations in future projects.