The Rajasthan Electricity Regulatory Commission (RERC) has dismissed a petition filed by Star Cotspin against the imposition of fixed charges amounting to ₹3,281,040 (~$38,838) by Ajmer Vidyut Vitran Nigam (AVVNL) on its 2.185 MW behind-the-meter solar project.

The Commission ruled that the fixed charges were rightly levied under the Rajasthan Electricity Regulatory Commission (Grid Interactive Distributed Renewable Energy Generating Systems) Regulations, 2021.

The Commission emphasized the mandatory obligation of consumers to inform the distribution licensee about solar installations through a prescribed model form within three months of the notification of the 2021 Regulations in respect of existing behind-the-meter installations. Star Cotspin failed to fulfill this requirement, attracting the applicable charges.

Background

Star Cotspin operates a solar project with an installed capacity of 2.185 MW, expanded incrementally between 2017 and 2021. It argued that its expanded 784 kW solar capacity was installed in April 2021, before the regulations became effective on July 1, 2021. Hence, these regulations should not apply.

It contended that its installations were governed by the RERC (Terms and Conditions for Tariff Determination from Renewable Energy Sources) Regulations, 2020, under which no fixed charges were applicable.

AVVNL asserted that the petitioner failed to notify it about the expanded solar project in the prescribed manner, as mandated by the 2021 Regulations. It emphasized that the fixed charges were imposed post-July 2021, under the new regulations, and not retroactively.

AVVNL referred to a similar case, where the Commission held that the consumer was responsible for providing details of their behind-the-meter solar systems.

Commission’s Analysis

The Commission noted that the 2021 Regulations stipulated the obligation of consumers to submit detailed information about solar installations. This obligation applies to all solar installations, including those set up before July 2021. The rules explicitly provided penalties for failing to comply within the specified timeframe, including fixed charges.

Considering these factors, the Commission concluded that Star Cotspin had failed to meet the regulatory requirements, particularly the obligation to provide intimation in the specified format. The levy of fixed charges by AVVNL was deemed justified. Dismissing the petition, it said the penalty of ₹3.28 million (~$38,838) was enforceable.

In September last year, the Commission rejected the compensation claims by a solar developer for losses incurred due to voltage fluctuations. It directed the developer to make arrangements for injecting or withdrawing reactive power per the regulations outlined by the Central Electricity Authority.

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