Hydro Power Developer Wins Case against Maharashtra Transmission Company

The Maharashtra Electricity Regulatory Commission (MERC) has passed an order directing the Maharashtra State Electricity Transmission Co. Ltd. (MSETCL) to pay a total sum of ₹5.5 million (~ $0.075 million) to a hydro power project developer. MSETCL must pay the amount to Mahati Hydro Power Projects Pvt. Ltd. towards the balance payment for the construction of the evacuation arrangement beyond the inter-connection point. The payment has to be made within three months from the date of the order (October 26, 2018).

The commission passed the order in response to the review petition filed by MSETCL, seeking a review of commission’s order dated April 10, 2018.

It should be noted that the original petition was filed by Mahati before the commission, seeking few reliefs. Mahati had requested the commission to direct MSETCL and/or Maharashtra Energy Development Authority to pay ~ ₹14.4 million (~ $0.197 million) towards the balance payment for the construction/creation of the evacuation arrangement beyond the inter-connection point, and to pay interest on the unpaid dues from their respective due dates. To this petition, the commission passed the following ruling on April 10, 2018.

“In view of the foregoing, MSETCL shall reimburse ₹8.998 million (~ $0.123 million), which is the approved cost of the evacuation arrangements (₹ 17.536 million) minus the metering cost (₹ 3.038 million), and minus ₹ 5.5 million (~ $ 0.0752 million) provided by Maharashtra Energy Development Authority to Mahati within two months, along with applicable interest from the date the respective installments were due till the date of payment. MSETCL is entitled to the expenses incurred towards the evacuation arrangements through its aggregate revenue requirement, but not to the interest amount arising from the delay in payment.”

Post the above order, MSETCL had filed a review petition, stating that the developer’s refund request was not processed as it had failed to submit a long-term energy purchase agreement.

Recently, MERC had provided relief to another small hydro project developer of a 10 MW Radhanagari small hydro power project in Maharashtra. MERC had provided this relief due to non-compliance by the Maharashtra State Electricity Distribution Company Limited (MSEDCL).