Telangana Electricity Regulatory Commission Cancels DSM Charges Based On Faulty Solar Meter Data

The Telangana Electricity Regulatory Commission has delivered a major relief to M/s Sprng Transform Sun Energy Private Limited by ruling that deviation charges calculated on the basis of faulty meter data cannot be sustained. The dispute was related to a Deviation Settlement Mechanism (DSM) invoice issued by the Telangana State Load Despatch Centre on August 3, 2024, for the month of April 2023.

The company operates a 100 MW solar power project in Mahbubnagar district and supplies electricity to the state distribution utility. Under existing DSM regulations, renewable energy generators are penalized if the actual power supplied to the grid deviates beyond the permitted limits from the scheduled forecast. During verification of the billing data, the developer noticed an unusual issue in the system records which showed the solar plant generating electricity during night hours, something physically impossible for a solar project.

Further investigation revealed that the plant’s energy meters had developed a severe 15-hour “time drift” error. Due to this technical problem, the electricity generated during the daytime was incorrectly recorded in night-time blocks. As a result, the grid management software treated the plant’s generation pattern as a major deviation from its approved schedule.

Although the company identified the issue and replaced the faulty equipment on April 16, 2023, the TGSLDC still proceeded with the billing process. The solar developer was charged nearly ₹79.45 lakh at the project level and around ₹5.12 crore under state periphery pool deviation accounts for April 2023. Facing the possibility of grid disconnection, the company paid the disputed amount under protest and later approached the state commission seeking relief.

During the proceedings, grid authorities argued that the responsibility for meter maintenance, calibration, and monitoring lies entirely with the generator. They also claimed that revising the billing for one generator could affect DSM calculations for 157 other renewable energy projects in the state. However, the authorities later admitted that at least eight renewable energy companies were facing similar meter-related technical issues that had impacted DSM accounting across the state.

The commission observed that proper time synchronization is essential for accurate deviation calculations. It stated that data showing solar generation during midnight hours was clearly unreliable and could not be used as a legal basis for imposing penalties. The regulator concluded that the error was technical in nature and not caused by negligence or intentional action by the developer.

Accordingly, the commission set aside the disputed invoice to the extent of the incorrect meter data and directed TGSLDC to prepare a detailed rectification methodology for such time-drift errors. The framework must be published for stakeholder comments within one month. After approval, the revised methodology will be used to recalculate bills and refund or adjust excess amounts collected from all affected renewable energy generators. The commission also barred authorities from taking coercive recovery action against impacted projects until the correction process is completed.