RERC Directs DSM Dues Reconciliation Within 30 Days, Sets 60-Day Payment Deadline In Rajasthan

The Rajasthan Electricity Regulatory Commission (RERC) has directed the Rajasthan State Load Despatch Centre (SLDC), Manikaran Analytics Ltd., and Dhursar Solar Power Pvt. Limited to reconcile outstanding Deviation Settlement Mechanism (DSM) accounts and settle confirmed receivables following a dispute over delays in payments to renewable energy generators. The Commission has also directed SLDC to propose amendments to the existing regulatory framework to establish clear timelines for future settlements.

The case arose from a petition filed by Dhursar Solar Power Pvt. Limited, which operates a 40 MW solar power plant in Jaisalmer, Rajasthan. The company raised concerns about ambiguities in the DSM framework governing payments and refunds between renewable energy generators and the State Pool. It argued that the existing regulations impose strict payment obligations on generators but do not provide equivalent provisions for releasing amounts owed to them.

Under the RERC DSM Regulations, 2017, and the applicable Approved Procedure, generators are required to make payments to the State Pool within specified timelines. Delayed payments attract penal interest at a rate of 0.04% per day. However, according to the petitioner, the framework does not establish corresponding deadlines or interest liabilities for payments due from the State Pool to generators.

This regulatory imbalance resulted in outstanding DSM receivables that reportedly remained unpaid from April 2021. The petitioner sought relief from the Commission, including interest on the delayed payments, arguing that generators should receive similar protection when the settlement process results in refunds or excess-generation receivables.

During the proceedings, SLDC and Qualified Coordinating Agency (QCA) Manikaran Analytics Ltd. presented their positions before the Commission. SLDC maintained that its role was primarily that of a system operator responsible for administering the State Pool. It stated that financial settlements were managed collectively through the QCA rather than being its sole responsibility.

Manikaran Analytics Ltd. submitted that its role was limited to facilitating payments on a back-to-back basis. The QCA explained that it could not distribute receivables to generators until the corresponding funds had been released by the State Pool.

After examining the submissions, RERC acknowledged that the existing Approved Procedure contained a regulatory gap concerning timelines for disbursing DSM receivables. However, the Commission rejected the request for retrospective interest at 0.04% per day on past outstanding amounts, observing that no such statutory liability existed during the relevant period.

To resolve the outstanding dispute, RERC directed SLDC, the QCA, and Dhursar Solar Power to jointly reconcile all pending DSM accounts within 30 days, with SLDC serving as the nodal agency. Any finalized net receivable amount must be paid to the QCA or generator within 60 days after reconciliation.

The Commission also directed SLDC to examine settlement frameworks adopted by the Central Electricity Regulatory Commission (CERC) and other states, consult stakeholders, and submit a proposal to amend the Approved Procedure within 60 days. The proposed changes are intended to establish clear timelines and safeguards for invoice generation and payment settlements, addressing uncertainties affecting renewable energy generators.