2018

The amendment act propose certain things very interesting no I’m just jumping amendment below 2020
got it could it 23 they had amended section 92 and they said every proceeding before the appropriate
Commission shall we decided expediently and matter pertaining to pass a tariff on account of change in
law duties and taxes will be determined within 30 days so change of law is a aspect of PPA so they
virtually saying about that matter especially determining the tariff it need to be determined within 30
days and the pass through which the application from the date of includIng

Amendment 2020 still it is pending before the parliament they are going to introduce this year but they
are not able to introduce in the parliament here interestingly they had amended certain provision and
most dynamically they want to have the authority to be known as electricity contact enforcement
authority

There is relevancy of having a contact enforcement agency So what they had planned that in the matter
pertaining to power purchase agreement the authority at the power matter

the electricity contract enforcement authorities sell have the sole authority and jurisdiction to
adjudicate upon matter regarding performance of obligation under a contract relating to sale purchase
or transmission of electricity provided it is not have any jurisdiction over any matters relating to
regulation and determination of tariff or any dispute involving tariff so this section 109A (2) is having 2
parts they are providing powers to authority and they are also excluding certain nature of powers which
may not be exercised by authority

sale purchase it might be regulated through power purchase agreement and transmission of elasticity
means they are also covering contract regarding Open Access

the main objective of having this authority is to Bringing under the ambit of this authority the matter
pertaining to power purchase agreement And sale and purchase of electricity and transmission of
electricity this means whenever any parties who are entering into the agreement for seeking Open
Access if there will be any dispute it may be regulated by this contact enforcement authority and they
are also saying they are not having any jurisdiction over any matter related to regulation and
determination of tariff or any dispute involving tariff

They are having intention to segregate the contract from electricity regulatory commission and reducing
their jurisdiction by sending these disputes to contract enforcement agency.

They are also saying that Photo 2nd

which need or required our Attention.

As per section 109A(2) they are giving sole authority to adjudicate upon matters regarding performance of obligation under a contract related to sale, purchase it transmission of

electricity to electricity enforcement authority. So the question is whether it is possible to differentiate or segregate the nature of dispute regarding enforcement and remedies of

tarrif ie

although they are having good plan because they are power producers who are having their concern because their disputes are not being resolved expediently by the regular

Commission so they said that the appropriate Commission within 30 days of said order having shall we conclude. if these disputes are not going to resolve exquisitely the finance
and investments are going to be stuck it is going to affect the investment scenario in the electricity sector so they said they are having the intention of objective to expedite this

particular process in order to do so they are also creating some conflicts and confusion.

although they are having some intentions in their mind that they do not want to take away the regulatory function from the regular Commission and cleared the object for the

same. They are trying to create a quasi-judicial authority and this will definitely create a confusion.

There are certain things which requires our deliberation. The authority is going to have power to adjudicate upon the matter regarding performance of obligation and their

enforcement but they will not have power or authority to approve the PPA and determine the tarrif.

As per Delhi Electricity Regulatory Commission – BSE Rajdhani Power Ltd. V. Aravali Power Company Pvt ltd.(APCPL), it is mentioned that under section 86(1)(b) it is clear that

Regulatory function of the commission includes approval of agreement (PPA) determination of price (tarrif) and adjudication of PPA related dispute. So only PPA related dispute is

going to the new proposed authority and approval of PPA and. Determination of tarrif will be still with regulatory commission.

And these type of segregation of dispute will create confusions in the mind of the complainant and they will be confused to whether to file the complainant

so in order to avoid further litigation we the authority need to provide wider power even if they are taking away the regulatory function of the Regulatory Commission I think they

need to do so because they also getting the chairman another 2 judicial members so I think they are they might be sufficient power or in order to determine the tarrif they need to

have the consultency agency in their wing to determine the tariff petition.

10 Feb

The basic background that why we need a required power purchase agreement so we had covered this particular aspect that now the activity electricity sector has been unbounded

now so there are various segment in this sector now generation is a separate activities transmission and distribution b activities might be separate. distribution utilities need to enter

into various power purchase agreement in order to procure the electricity so it this process is called as power procurement process.

The regular exercise by any distribution licensee in order to maintain the distribution network or in order to provide better services to their consumers but simple agreement or

simple activity is turning out to be very technical not only in terms of finance but in term of service also why I am saying so because we had also learn did the central government in

order to bring transparency they had happy particular app property as per the details so as per the data of the central government the distribution companies are owning much

more amount that required to be paid to the generating companies including the government companies and including the individual power producers so they are having used

responsibility in term of finance 2 give to the generating companies but suppose hypothetically when we read the electricity act or when we read the Indian contract right the cost of

rose whether regulation means changing the term and condition of dpph so kindly do remember or kindly do understand that regulation is wider term so the Regulatory Commission

while determined they in the power purchase agreement although generating activities is not coming under the ambit of the regulations this means if you want to have a power

plant this does not means that you required the approval from the side of the regular Commission but there are certain technical standards which you need to follow even sometime

please mark my word that there are few regular commissions who are having regulation to establish the generating power plant but in that particular regulation they are specifically

saying that if any companies who is generating electricity if they are entering into the PPA then only they are regulating but in order to have the technical standard they need to

follow the detailed guidelines of central electricity authority so they had made clear demarcation of the powers that power purchase agreement when it’s come to power purchase

agreement the Commission is the authority but in term of setting up the power plant the particular authorities having power no power to rewrite the term and condition of PPA

they are not entitled to rewrite the term and condition of PPA because there are certain legal obligations which might be coming vice versa on the Generating companies or on on

the end of the distribution companies because sometime what happened due to fuel surcharges it is a concept whenever there maybe acceleration of price in the coal or any type of

activities it need to be reflected in tarrif.

the distribution company need to submit their annual revenue requirement based on which the regular Commission Is supposed to determine the tariff recently I had also bring to

your kind notice that due to the tariff policy of 2016 the captive owners are having liability responsibility duty 2 contribute in renewable energy sector so they are having they have

to purchase electricity from renewable sources and similarly if you are entering into these power purchase agreement you are not having any type of immunity and privilege you

have to seek the compliance for the same so sometime the stakeholder purchase the energy certificate and this renewable energy certificates are the certificates this are issued by
energy exchange in conformity with the regulations laid down by central electricity authority this activity is being regulated by CRC and the ApTEL. APTEL is having the adjudicatory

functions which has invested by the act so At so power cut so kindly do remember that in order to determine the tariff the generating companies are having responsibility to provide

the power suppose if they are entering into 20 years uptime of PPA then subsequently they are not in a position to comply with the PPA what is going to happen for those contextual

obligations need to be performed by respective stakeholders and if there will be default who is going to resolve the same so these are the aspects which might be taken care by the

respective regular commissions and recently what happened aur kya bataye we had deliberated section 86 one by where the state commissions are having power to regulate the

same but The electricity act is silent on certain terms regarding the long term and short term PPA they are not having any definitionTo describe that what do you mean by long term

and short term and interestingly when you read electricity amendment act a bill 2020 they had also not defined these terms but you will find the reference in the electricity

amendment bill of 2018. I repeat 2018 deliberate the definition of long term PPA under 41A and short term ppa under 42A.

Rather than creating I specific or independent authority according to be what we we possible solution that the electricity act need to be amended and in the Commission some

member awesome additional members need to appointed by the state government to deal only these type of dispute because like the ApTEL act has been amended and ApTEL is

also having provision to hear the dispute from different sectors that ie oil And gas and electricity.