The Gujarat Electricity Regulatory Commission (GERC) has reaffirmed its tariff framework for the procurement of power by distribution licensees and others from wind projects from June 6, 2022, to March 31, 2027.

The decision follows the Appellate Tribunal for Electricity (APTEL) remanding the matter to the Commission for a fresh hearing on the limited issue of retrospective applicability.

Background

The GERC had originally issued the order in August 2024, determining the tariff framework for procuring power from wind projects in Gujarat and aligning it with the Ministry of Power’s Green Energy Open Access Rules, 2022.

However, several developers challenged the retrospective application before APTEL, contending that the order imposed new and financially burdensome conditions on projects commissioned after that date.

On July 3, 2025, APTEL set aside the order only to the extent of its retrospective effect and directed GERC to reconsider the issue after hearing all parties.

Following the remand, a public hearing was held in September 2025, with written submissions from Shree Giriraj Cotspin, Indian Wind Energy Association (IWEA), Jay Bharat Energy, Sachin Infra Environment, Palsana Enviro Protection, Gujarat Urja Vikas Nigam (GUVNL), Torrent Power, and others.

Those filing objections uniformly opposed the retrospective effect, arguing that applying the 2024 tariff framework from June 2022 was legally untenable, violated contractual certainty, and imposed significant unanticipated financial obligations.

Developers contended that the retrospective operation of the 2024 order resulted in additional levies, including banking charges of ₹1.10 (~$0.012)/kWh, a cap limiting banked energy to 30% of the power consumed from the distribution licensee, and provisions treating excess banked units as inadvertent flow without any payment by the discom.

A comparative table submitted by one of thm highlighted that under the GERC 2020 order, most open access and banking charges were exempt, while under the 2024 order, new levies were introduced.

Under the earlier order, cross-subsidy surcharge (CSS) and additional surcharge (AS) were exempted, wheeling charges were 2% on energy injected, and banking was free.

The new order made CSS and AS applicable, determined a wheeling charge of ₹0.85 (~$0.095)/kWh, and imposed ₹1.10 (~$0.012)/kWh as banking charges, ₹0.05 (~$0.00056)/kWh as scheduling and system operation charges, and ₹0.15 (~$0.0016)/kWh as reactive power charges, with only 30% of consumed power permitted for banking and no payment for excess energy treated as inadvertent flow.

Commission’s Analysis

The Commission held that, as a quasi-legislative body, it has the jurisdiction to determine the effective date of a tariff order retrospectively, citing judicial precedents that support this principle.

The Commission noted that the Wind Tariff Order 2020 had expired on March 31, 2022, creating a regulatory vacuum between April 1 and June 5, 2022, during which no tariff framework was in effect.

Since the Ministry of Power’s (MoP) Green Energy Open Access Rules, 2022, came into force on June 6, 2022, the GERC determined that aligning the new framework’s effective date with the central rules was essential to ensure continuity and compliance with statutory requirements.

GERC further clarified that the MoP Rules, being statutory delegated legislation, take precedence over executive policy instruments, such as the Gujarat Wind Power Policy, 2016.

Therefore, the effective date of June 6, 2022, was justified as it corresponded with the enforcement of the national rules. The Commission also stated that wind power projects commissioned during the short period between April 1 and June 5, 2022, would continue to be governed by the earlier order, ensuring no regulatory ambiguity for that interval.

The Commission reasoned that new charges and operational norms under the 2024 Order were necessary to align Gujarat’s regulatory regime with the national framework on renewable energy open access.

It rejected the argument that prior concessions in a tariff order could create vested rights, asserting that regulatory decisions must evolve with statutory mandates. It also ruled that private contracts, such as power purchase agreements or transmission arrangements, cannot override or exempt parties from compliance with new statutory frameworks notified by the Commission.

The GERC reaffirmed that the tariff framework for procurement of power by distribution licensees and others from wind power projects in Gujarat will remain effective from June 6, 2022, to March 31, 2027.

In October this year, GERC rejected a petition by a solar power developer seeking to extend the commissioning deadline for its 3.94 MW ground-mounted systems.

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