Madhya Pradesh Electricity Regulatory Commission (MPERC) has rejected a petition filed by Madhya Pradesh Power Management Company and state power distribution companies (DISCOMs) seeking levy of grid support charges on all categories of consumers with grid-connected rooftop solar system under net-metering and base load reduction (Category III).

They had also sought the introduction of net billing or net feed-in arrangement for consumers having contract demand/ sanctioned load up to 500 kW.

Background

The petitioners expressed concerns about perceived imbalances in benefits for consumers with rooftop renewable energy systems and proposed changes to address these issues. The key proposals included introducing network or grid support charges for consumers using grid support under net metering or billing arrangements.

They also suggested restricting net metering to consumers with a load of up to 100 kW and imposing grid support charges on all categories of consumers with grid-connected rooftop solar systems under Category III.

Concerned over the potential impact of proposed measures on consumers, the state’s New and Renewable Energy Department suggested a public hearing. It also questioned the retrospective imposition of grid support charges.

Seeking the dismissal of the petition, the department proposed alternative actions, including formalizing plans for rooftop capacity addition, setting capacity targets, amending regulations, and exploring virtual/group net metering.

Madhya Pradesh Urja Vikas Nigam (MPUVNL) suggested that no grid support charges should be imposed until the total installed capacity in the state reaches 1,100 MW. It also requested the issuance of virtual and group net metering guidelines to promote solar rooftop capacity addition, citing the potential for significant positive impacts.

MPUVNL pointed out that the petitioner has consistently failed to meet Renewable Purchase Obligation (RPO) obligations, emphasizing the role of rooftop solar systems in helping meet RPO. It also opposed the retrospective imposition of grid support charges.

In their responses, Oswal Woolen Mills and Pickrenew Energy emphasized that the existing regulations exempt net metered connections from banking charges, wheeling charges, cross-subsidy surcharges, and additional surcharges. They also argued against mid-year revisions without due process.

Imposing additional grid support charges would double the recovery of fixed and minimum charges. They also referred to the Maharashtra Electricity Regulatory Commission, which decided against imposing grid support charges.

Commission’s analysis

The Commission noted that even after notifying Net Metering Regulations in 2015, the state’s growth of distributed energy sources capacities remains insignificant. Only 332 MW capacity could be added from 2015 until now. The state has a huge gap between the required capacity and installed capacity of distributed energy sources. Therefore, the Commission believes the state needs to encourage further capacity enhancement of distributed energy sources.

Considering the submissions made, the Commission said it would not consider the petitioner’s request for a levy of grid support charges.

The Commission said it was also not inclined to reduce the limit of 1 MW fixed for net metering connections to 100 kW and to introduce net billing or net-feed-in arrangements for contract demand/ sanctioned loads up to 500 kW.

Earlier this year, Karnataka DISCOMs proposed revised tariffs for low-tension and high-tension consumers, which include grid support charges for captive open-access power consumers. If approved, consumers will now have to pay an additional grid-support charge in the range of ₹1.57 (~$0.019)/kWh to ₹2.85 (~$0.035)/kWh.

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