The Appellate Tribunal for Electricity (APTEL) has directed the Assam Electricity Regulatory Commission (AERC) to redetermine the tariff of ₹8.78 (~$0.10)/kWh approved by it for Suryataap Energies and Infrastructure’s 5 MW solar project in Sonitpur district, Assam.

This decision aims to rectify the erroneous tariff determination by AERC, which emphasized the need to consider parameters such as capital costs in line with regulatory norms and market benchmarks.

Background

The petitioner, Assam Power Distribution Company (APDCL), appealed against the AERC 2017 order in which the Commission determined the final project-specific tariff for Suryataap Energies’ solar project based on the financial year (FY) 2016 benchmarks.

APDCL challenged the Commission’s order on two grounds:

Tribunal’s Analysis

APTEL reviewed the appellant’s submissions and the Commission’s response. It also examined the judgments cited by both parties.

It noted that Regulation 8 of AERC Tariff Regulations, 2012 mandates the Commission to determine project-specific tariffs for various projects, including solar photovoltaic and solar thermal projects. It noted that the generating company’s capital costs for a project are essential for determining project-specific tariffs.

The Tribunal observed that the Commission had determined an erroneous and unsustainable tariff.

It stated that if unsatisfied with the data, information, or documents furnished by Suryataap Energies, the Commission should have determined the capital costs based on the prevailing market benchmark norms during the power project’s commissioning period.

APTEL remanded the case to the Commission to re-determine the solar project’s tariff.

Recently, APTEL allowed Andhra Pradesh distribution companies to retrospectively deduct the Generation Based Incentive amounts from the wind project tariffs, starting from the petition’s filing date on February 14, 2017, until they were fully credited.

In December, APTEL rejected an appeal by a rooftop solar consumer seeking enforcement of a tariff of ₹9.56 (~$0.11)/kWh for a rooftop solar system, as per an initial Power Purchase Agreement (PPA) signed on December 10, 2015.

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