Maharashtra Electricity Regulatory Commission (MERC) has ruled that a wind power generator was not entitled to an adjustment of banked units from the generating project as the banked units injected into the grid and the open access availed during the same financial year were from different generating stations.

However, the Commission directed the Maharashtra State Electricity Distribution Company (MSEDCL) to refund wheeling and transmission charges recovered from the petitioner in energy bills with interest within one month from the date of the order.

AMJ Land Holdings had filed a petition for the refund of wheeling and transmission charges levied on unaccounted and lapsed banked units and had sought adjustments of banked units from June 2018 to October 2018.

Background

AMJ Land Holdings has two wind-generating units of 1.25 MW each at locations S-68 and S-32 in the Satara district of Maharashtra.

MSEDCL had denied adjustment of banked units (for the period of June 2018 to October 2018) in the open access bill for February 2019.

The wind power generator added that as per the assumption of MSEDCL, the limitation was to be counted from October 2018, and three years expired in September 2021. However, the Supreme Court, in its judgment dated February 10, 2022, considering the Covid-19 pandemic, had excluded the period from March 15, 2020, to February 28, 2022. Therefore, the question of limitation did not arise.

Jehangir Hospital is a consumer of MSEDCL, located in Pune, and had also sought medium-term open access (MTOA) from the wind power generator from April 1, 2018, to March 31, 2019, which MSEDCL approved. After that, Jehangir Hospital requested to cancel open access permission commencing from November 2018, and MSEDCL approved the same.

The wind power generator submitted that 1,782,447 units were injected into the grid from the generating unit S-68 from June 2018 to October 2018. MSEDCL has adjusted 500,012 units in the consumer’s bill of Jehangir Hospital; however, 1,282,435 units were accounted for.

Accordingly, the petitioner sought to adjust 1,282,435 banked units into the monthly bill of February 2019 Jehangir Hospital.

Commission’s analysis

MERC said that in the present case, the cause of action for claims arose when the wind units were not adjusted in the bill of February 2019 by MSEDCL, as surplus units for the same open access transactions were available in the month, and it was eligible for credit adjustment.

The Commission observed that as per the provisions of the Limitation Act, it is required that the affected party should approach the Commission within three years from the date of cause of action. In this case, the wind power generator should have approached the Commission by February 2022, but it approached it only in May 2022.

The Commission noted that the petitioner’s claim for adjustment of banked units was from June 2018 to October 2018. The Supreme Court had exempted the limitation period from March 15, 2020, to February 28, 2022, which covered the period from June 2018 to October 2018. Therefore, the Law of Limitation did not bar the claims of adjustments of banked units from June 2018 to October 2018.

MERC stated that the banked units were injected into the grid from the petitioner’s generating unit S-68 as per the open access arrangement for the period from June 2018 to October 2018, whereas after the break of three months, Jehangir Hospital availed open access for February 2019 from different generating unit S-32 of the same generator.

Even though the wind power generator was the same for both the generating units, the said units were located at different locations. Also, Jehangir Hospital had availed open access from two generating units. Thus, even though the generating company was the same, the two locations must be considered independent open access transactions.

Therefore, the wind power generator was not entitled to an adjustment of banked units.

Also, the Commission directed MSEDCL to refund wheeling and transmission charges recovered from the wind power generator in the energy bills and interest within one month.

Earlier, in an order, the Appellate Tribunal for Electricity had directed MSEDCL to grant open access facility to four wind developers and compensate them for the banked energy until the full quantum of open access was given.

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