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1 | Page BEFORE THE HARYANA ELECTRICITY REGULATORY COMMISSION AT PANCHKULA Case No. HERC/PRO-27 of 2016 Date of Hearing : 06.01.2017 Date of Order : 17.02.2017 In the Matter of Application seeking amendment in Regulation 73 (2) of HERC (Terms and Conditions for determination of tariff from Renewable Energy Sources, Renewable Purchase Obligation and Renewable Energy Certificate) Regulations, 2010 in view of the Orders passed by the Hon’ble APTEL in Appeal no. 90 of 2013 filed by PURI OIL MILLS VS HPPC AND OTHERS dated 09.04.2014 and subsequent order in Appeal No. 183 OF 2015 filed by STAR WIRE (INDIA) VIDYUT LIMITED VS HERC & HPPC dated 15.03.2016. Petitioner Gemco Energy Limited, Faridabad V/s. Respondents Haryana Power Purchase Centre, Panchkula Present On behalf of the Petitioner 1. Sh. R.K. Jain, Counsel On behalf of the Respondent 1. Sh. Naveen S. Bhardwaj, Advocate 2. Sh. H.P. Sharma, SE, Commercial, HPPC. 3. Sh. Rajiv Mishra, Xen, HPPC. 4. Sh. Randhir Singh, AE, HPPC. Quorum Shri Jagjeet Singh, Chairman Shri M.S. Puri, Member Shri Debashish Majumdar, Member ORDER Brief Background of the Case 1. The Petitioner, M/s. Gemco Energy Limited has set up Biomass based power plant in village Dinod, Kausambhi Road, Bhiwani, of 8 MW. The said power plant

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Page 1: BEFORE THE HARYANA ELECTRICITY REGULATORY … · 1 | P a g e BEFORE THE HARYANA ELECTRICITY REGULATORY COMMISSION AT PANCHKULA Case No. HERC/PRO-27 of 2016 Date of Hearing : 06.01.2017

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BEFORE THE HARYANA ELECTRICITY REGULATORY COMMISSION AT PANCHKULA

Case No. HERC/PRO-27 of 2016

Date of Hearing : 06.01.2017

Date of Order : 17.02.2017

In the Matter of Application seeking amendment in Regulation 73 (2) of HERC (Terms and Conditions for

determination of tariff from Renewable Energy Sources, Renewable Purchase Obligation

and Renewable Energy Certificate) Regulations, 2010 in view of the Orders passed by

the Hon’ble APTEL in Appeal no. 90 of 2013 filed by PURI OIL MILLS VS HPPC AND

OTHERS dated 09.04.2014 and subsequent order in Appeal No. 183 OF 2015 filed by

STAR WIRE (INDIA) VIDYUT LIMITED VS HERC & HPPC dated 15.03.2016.

Petitioner Gemco Energy Limited, Faridabad

V/s.

Respondents Haryana Power Purchase Centre, Panchkula

Present

On behalf of the Petitioner

1. Sh. R.K. Jain, Counsel

On behalf of the Respondent

1. Sh. Naveen S. Bhardwaj, Advocate 2. Sh. H.P. Sharma, SE, Commercial, HPPC. 3. Sh. Rajiv Mishra, Xen, HPPC. 4. Sh. Randhir Singh, AE, HPPC.

Quorum

Shri Jagjeet Singh, Chairman

Shri M.S. Puri, Member

Shri Debashish Majumdar, Member

ORDER

Brief Background of the Case

1. The Petitioner, M/s. Gemco Energy Limited has set up Biomass based power

plant in village Dinod, Kausambhi Road, Bhiwani, of 8 MW. The said power plant

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was commissioned on 23.08.2013.

2. The Petitioner in its submissions, has cited the Commission’s Orders/Regulations

on the issue of levy of ‘Wheeling charges’ as under:-

a) That the Commission’s Order dated 15.05.2007 regarding Renewable Energy

Tariff & Other issues for FY 2007-08 to 2012-13 on the issue of ‘wheeling

charges’ provide as under:-

Wheeling Charges:

The wheeling charges shall be levied @ 2% of the energy fed to the grid

irrespective of the distance from the generating stations.

b) The Commission’s Order dated 24.12.2010 referred to its Memo. No.

HERC/PPA/Solar/SV/10/1558 dated 20.08.2010 wherein it was clarified as

under:

The metering will be done at generators premises / sub-station (Clause 4.1.4)

and no wheeling charges shall be applicable.

c) Haryana Electricity Regulatory Commission (Terms and Conditions for

determination of Tariff from Renewable Energy Sources, Renewable Purchase

Obligation and Renewable Energy Certificates) Regulations, 2010:

The issue of wheeling charges was not specifically covered under these

Regulations.

d) Haryana Electricity Regulatory Commission (Terms and Conditions for

determination of Tariff from Renewable Energy Sources, Renewable Purchase

Obligation and Renewable Energy Certificates) Regulations, 2010 (1st

Amendment), Regulations, 2011, inserted a new Regulation 73 in the main

Regulations, which read as follows,

“73. Grid connectivity and wheeling charges –

(1) The State Transmission Utility or the transmission licensee other than STU

or the distribution licensee, as the case may be, shall bear the cost of EHV /

HV transmission line up to a distance of 10 KM from the interconnection point.

In case the distance between the interconnection point and point of grid

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connectivity is more than 10 KMs then cost of the transmission line for the

distance beyond the 10 KMs shall be shared equally between the renewable

energy developer and the licensee.

(2) Unless otherwise exempted by the Commission the wheeling charges shall

be levied @ 2% of energy fed to the grid by the renewable energy developer

in case the power is purchased by the distribution licensee. In all other cases

wheeling charges or transmission charges, as the case may be, shall be levied

at the rates determined by the Commission from time to time.

e) That the Haryana Electricity Regulatory Commission (Terms and Conditions

for determination of Tariff from Renewable Energy Sources, Renewable

Purchase Obligation and Renewable Energy Certificates) Regulations, 2010

(3rd Amendment), Regulations, 2014, inserted a proviso below Regulation

72(2), which read as follows:-

Provided that the RE Project Developers shall have the option to pay of the

actual cost of construction of transmission line (as on date of commissioning)

up to a distance of 10 KM from the interconnection point to HVPNL / Discoms,

as the case may be, in full or twelve equal monthly installments without any

interest cost if the re – payment is made in a staggered manner over a period

of 12 months and in the intervening period HVPNL/Discoms shall continue to

deduct 2% of the energy fed into the grid by the RE Generator. Once the

entire amount has been paid off, levy of wheeling charges @ 2% shall be

discontinued. This shall be applicable to the RE Projects already

commissioned as well as the future projects. However, those who do not opt

for this option shall continue to pay 2% of energy fed by them into the grid as

wheeling charge.”

f) That the Commission vide its Order dated 13.08.2014, determined Generic

Tariff for Renewable Energy Projects commissioned during FY2014-15 and

took notice of the order of Hon’ble APTEL dated 09.04.2014 while considering

the issue of wheeling charges. Relevant portion dealing with the subject of

wheeling charges is reproduced hereunder:-

“6.1 Wheeling Charges:

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The wheeling charges shall be as per HERC RE Regulations, 2010 as amended from time to time. The Commission notes that the Hon’ble APTEL, in an appeal filed by Puri Oil Mills, has passed order setting aside the wheeling charges. However, Hon’ble APTEL’s in a number of judgements has held that Regulations notified by Electricity Regulatory Commissions are not a matter of appeal and the same is a subject matter of judicial review in a court of competent jurisdiction. Nonetheless, the Commission shall re-visit the issue of wheeling charges in the case of RE Projects while reviewing the HERC RE Regulations, 2010.”

g) Meanwhile, M/s Star Wire (India) Vidyut Ltd. filed Petition No. HERC/PRO-52

of 2014 seeking amongst other reliefs, the refund of wheeling charges in line

with the order passed by Hon’ble APTEL in the case of Puri Oil Mills in Appeal

No. 90 of 2013. The Commission dismissed the Petition vide order dated

08.12.2014 with the following observations,

“In conclusion, the Commission holds that undoubtedly the wheeling charges recovered by the respondent from the petitioner are valid just and legal keeping in view the provision of regulations 73 (2) of the RE Regulations 1st Amendment, dated 05.09.2011. There is no scope for waiver and hence the same are not liable to be refunded to the petitioner.”

h) Haryana Electricity Regulatory Commission (Terms and Conditions for

determination of Tariff from Renewable Energy Sources, Renewable Purchase

Obligation and Renewable Energy Certificates) (4th Amendment),

Regulations, 2015, introduced certain changes. The relevant extract from this

notification has been reproduced below:

“(2) These Regulations shall extend to all the RE Projects commissioned / to be commissioned in FY 2013-14, 2014-15, 2015-16 and 2016-17 in the State of Haryana. (3) For the existing projects commissioned during FY 2013-14 onwards, the revised norms shall be applicable prospectively from the date of notification of these Regulations unless provided otherwise in these Regulations. For the period prior to the date of notification, existing norms as per Principal Regulations shall be applicable for such projects. 21. Amendment of Regulation 73(2) of the of the Principal Regulations:- The Regulation 73(2) of the Principal Regulations shall be substituted by the following Regulation:- “(2) The Wheeling Charges shall not be leviable on the Renewable Energy Generators from the date of notification of these Regulations, if the entire energy injected into the grid is purchased by the distribution licensee. Provided the delivery point of power is the switchyard of the power plant of the IPP and the metering point is also the inter-connection point i.e. the point where the switchyard of the power plant connects with the power evacuation line of the licensee(s).

Provided further that wheeling charge and transmission charge at the rate determined by the Commission from time to time shall be levied in case the

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power is supplied to a third party i.e. other than the distribution licensee(s) in Haryana.”

i) Commission issued consequential order dated 09.10.2015 arising from

Haryana Electricity Regulatory Commission (Terms and Conditions for

determination of Tariff from Renewable Energy Sources, Renewable Purchase

Obligation and Renewable Energy Certificates) (4th Amendment),

Regulations, 2015, for the projects commissioned / to be commissioned in the

FY 2013-14, FY 2014-15 and FY 2015-16 and relevant extract of the same

regarding wheeling charges to be recovered from Renewable Energy Projects

is given as under:

“Accordingly w.e.f. 12th August, 2015 no wheeling charge shall be levied for the RE Projects fulfilling amended Regulations 73(2) read with first proviso. “

j) The Petitioner submitted that although with the above order, the Commission

stopped recovery of wheeling charges w.e.f. 12.08.2015 but the charges

already recovered prior to that date have not been addressed/refunded.

3. The Petitioner has cited the Hon’ble APTEL’s Orders regarding Wheeling charges

as under:-

a) Hon’ble APTEL vide order dated 09.04.2014 in the case of M/s Puri Oil Mills

(Appeal No. 90 of 2013 dated 24.12.2012) granted relief to the Appellant. The

relevant portion of the said order read as follows,

“… the PPA has provision (Article 11 ) for Wheeling and Banking, if at a later stage there is mutual agreement the parties agree for third party sale by the Appellant subject to the approval of the State Commission and in such case the Appellant and the third party shall enter into a Wheeling and Banking agreement. We feel that the wheeling charges will be payable by the Appellant only when it supplies power to a third party, which is not the case. Thus we hold that wheeling charges are not leviable on the Appellant for the energy supplied to the Respondent No. 1 for utilization by the distribution licensee. Accordingly, the distribution licensee will refund amount wrongly deducted as wheeling charges to the Appellant within 45 days of communication of this order. In case of delay in making payment beyond 45 days simple interest @12% per annum will be payable to the Appellant….”.

The order further read as follows, “ii) The Respondent No. 1 has wrongly levied wheeling charges @ 2% from the Appellant whereas no wheeling charges were leviable for supply of energy by the Appellant to the distribution licensees. Accordingly, the

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Respondent no. 1 has been directed to refund the amount deducted from the bills of the Appellant towards wheeling charges to the Appellant within 45 days of communication of this order. In case of delay in refunding the amount due to the Appellant beyond 45 days simple interest at the rate of 12% per annum will be payable by the Respondent no. 1 to the Appellant”.

HPPC filed Appeal No. 23940/2014 under S.125 of the Electricity Act, 2003

before Hon’ble Supreme Court of India against the above order of Hon’ble

APTEL. The Appeal was dismissed by Hon’ble Supreme Court vide order

dated 08.10.2014.

b) M/s Star Wire (India) Vidyut Ltd., aggrieved by the Order of the Commission

dated 08.12.2014 mentioned at 2.g above, approached Hon’ble APTEL vide

Appeal No. 183 of 2015. Hon’ble APTEL decided the matter vide order dated

15.03.2016 and the operative part of the order reads as follows:-

“(i) We set aside the impugned order.

(ii) In tune with the judgments of this Tribunal in Damodar Valley

Corporation, M/s. Himalaya International Ltd. and M/s.

Rohit Ferro Tech Ltd., we overlook Regulation 73(2) of the

RE Regulations (1st Amendment) and hold that in view of the

judgment of this Tribunal in M/s. Puri Oil Mills Ltd. and in

view of the definition of term “wheeling” incorporated in

Section 2(76) of the said Act, levying wheeling charges on the

Appellant is illegal. We further hold that the Appellant is not

liable to pay wheeling charges.

(iii) We direct HPPC to refund the amount deducted from the bills

of the Appellant towards wheeling charges. The said amount

should be refunded within a period of 60 days from today,

failing which the said amount shall carry simple interest at

12% per annum till payment.

(iv) The above direction be also treated as relaxation from

payment of wheeling charges by exempting the Appellant

under Regulation 69 of the HERC (Terms and Conditions for

determination of Tariff from Renewable Energy Sources,

Renewable Purchase Obligation and Renewable Energy

Certificate) Regulations, 2010.”

That the Hon’ble APTEL deliberated the need for relaxing Regulation 73(2)

of the RE Regulations exercising powers vested with it under Regulations 69 of

these RE Regulations. In this connection relevant extract from the order passed

by Hon’ble APTEL in Appeal No. 183 of 2015 is reproduced below:-

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“26. It is true that power to relax is a discretionary power and has to

be exercised judicially and only when the circumstances call for its

exercise. In our opinion, in this case, the circumstances did call for

its exercise. The State Commission should not have ignored this

Tribunal’s judgment in M/s. Puri Oil Mills Ltd. The State

Commission was not called upon to decide the validity of Regulation

73(2). That would be in teeth of the Supreme Court’s judgment in

PTC India. The State Commission should have merely relaxed

Regulation 73(2) in deference to M/s. Puri Oil Mills Ltd. and having

regard to definition of the term “wheeling” contained in the said Act,

it should have waived the wheeling charges. Such exercise of

discretionary power to relax would have been a judicial exercise. By

not exercising the discretionary power to relax, the State Commission

has caused injustice.”

4. The Petitioner has prayed that in view of the above facts and circumstances; the

Commission may-

a) Direct the Respondent to refund the wheeling charges deducted from the bills

of the Petitioner since the date of commissioning of its Power plants till the

date when the Commission granted exemption from the payment of wheeling

charges by the RE Projects (12.08.2015) vide its order dated 09.10.2015.

b) Direct the Respondent to pay to the Petitioner interest @ 12% p.a. for the

period of illegal withholding of the due amount in line with the order passed by

Hon’ble APTEL.

c) To relax Regulation 73(2) of the RE Regulations in deference to M/s Puri Oil

Mills Ltd., under powers vested under Regulations 69 of these Regulations as

observed by Hon’ble APTEL in its order dated 15.03.2016.

Proceedings in the Case

5. The respondent submitted its written reply to the above petition with copy to the

Petitioner and prayed that instant Petition is bad in law and liable to be dismissed,

on the following grounds:-

a) The respondent has been acting strictly in accordance with the Regulations

and Notifications issued by the Commission and there has been no violation or

breach thereof.

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b) The amendments of the Regulations have been made applicable prospectively

and have not been made enforceable retrospectively. Therefore, the

respondent has acted in accordance with the directions of the Commission

and stopped recovering of wheeling charges w.e.f. 12.08.2015 i.e. the date of

notification of 4th amendment to HERC (RE) Regulations, exempting RE

generators from levy of wheeling charges, if the entire energy injected into the

grid is purchased by the distribution licensee.

c) The benefits of charges recovered have already been figured and featured in

the tariff determination. The refund of charges would invariably have a

reflection upon the tariff and also call for recovery from the consumers and it

will also cause augmentation and enrichment of the Petitioner at the cost of

the consumers.

d) HPPC is not a distribution licensee and is merely a procurement agency on

behalf of the distribution licensee.

e) The Order dated 08.10.2014 passed by Hon’ble Supreme Court is a simplicitor

dismissal.

6. The Petitioner filed rejoinder to the reply filed by HPPC on 06.01.2017, denying all

averments/contentions of the Respondent and reiterated the submissions made in

its petition under consideration of the Commission. Additionally, the Petitioner had

submitted as under:-

a) The Respondent is acting on behalf of the Distribution Licensees as covered

under clause 11 of the Haryana Government Notification of 11.04.2008. The

Respondent is responsible for day to day procurement of power and related

issues. All the actions taken by the Respondent is vicarious liability of the

Distribution Licensees as it is acting on behalf of the Distribution Licensees.

The view taken by the Respondent is also negated by its own action in acting

as Appellant or Respondent in various Appeals filed in Hon’ble APTEL and the

Civil Appeal filed in the Hon’ble Supreme Court of India.

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b) The Order sought to be implemented is the Order passed by Hon’ble APTEL

in Appeal No. 183 of 2015 filed by M/s. Star Wire (India) Vidyut Ltd. vs. HPPC

dated 15.03.2016. The Order has attained finality and there is nothing

stopping its implementation. The Hon’ble Supreme Court passed the Order

dated 08.10.2014 dismissing the Civil Appeal filed by the Respondent against

order dated 09.04.2014 passed by Hon’ble APTEL in Appeal no. 90 of 2013 in

the case titled M/s. Puri Oil Mills vs. HPPC.

c) There is no issue of delay as the Order sought to be implemented is that of

Hon’ble APTEL and there is nothing against the Order as such.

7. The case was heard by the Commission as scheduled i.e. on 06.01.2017, wherein

the Ld. Advocate appearing on behalf of the respondent argued that:-

a) The first condition for exemption from levy of Wheeling Charges as provided in

the HERC RE Regulations is that the delivery point of power is the switchyard

of the power plant of the IPP and the metering point is also the inter-

connection point i.e. the point where the switchyard of the power plant

connects with the power evacuation line of the licensee(s). The Petitioner have

nowhere clarified that this condition has been met with.

b) It has preferred an Appeal No. 5345 of 2016 before Hon’ble Supreme Court

against the Order of the Hon’ble APTEL dated 15.03.2016 passed in Appeal

No. 183 of 2015 in the matter of M/s. Star Wire (India) Vidyut Ltd. vs. HPPC.

The date of hearing is not yet communicated by Hon’ble Supreme Court and

till the outcome of the final verdict of the Hon’ble Supreme Court in the matter,

the case may be adjourned sine die. It was further pleaded that, in case any

relief is granted to the Petitioner, then some security against the amount of

relief granted to the Petitioner, be allowed to the Respondent.

Commission’s Analysis and Order

8. The Commission has considered the arguments of the Petitioner and the

Respondent as well as their replies/written submissions filed in the matter. The

Commission has further taken note of the directions from Hon’ble APTEL in its

Order dated 15.03.2016 to exercise powers vested with it under Regulations 69 of

HERC RE Regulations for relaxing Regulation 73(2) of the ibid Regulations. As a

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matter of fact the Commission had already relaxed Regulation 73(2) of the ibid

Regulations w.e.f. 12.08.2015, as under:-

“The Wheeling Charges shall not be leviable on the Renewable Energy

Generators from the date of notification of these Regulations, if the entire energy

injected into the grid is purchased by the distribution licensee.”

The Commission has taken note of the contention of the Respondent that they are

not the distribution licensee and merely a procurement agency operating on behalf

of the Distribution Licensees. The Commission finds such assertion strange.

HPPC, which, as per Haryana Government Notification, also cited by the

Petitioner, is a joint forum of Uttar Haryana Bijli Vitran Nigam and Dakshin

Haryana Bijli Vitran Nigam and has been made responsible for procurement /

purchase of power and making payments thereto. Further, in similar matter(s)

HPPC has been filing appeal(s) in the Hon’ble APTEL and well as the Hon’ble

Supreme Court and also before this Commission. Additionally, the Power

Purchase Agreement (PPA) with the Petitioner herein i.e. SJRE dated 29th

October, 2013 has also been signed by the Haryana Power Purchase Centre

(HPPC). Thus, the Commission finds such assertion inappropriate and of no

consequence as far as the present case is concerned.

The Commission has considered the contention of the Respondent that they have

preferred an appeal in the Hon’ble Supreme Court against the judgment of

Hon’ble APTEL dated 15.03.2016 (Appeal No. 183 of 2015) relied upon by the

Petitioner and hence till the outcome of the said Appeal No. 5345 of 2016 pending

before the Apex Court the present matter be adjourned sine die. The Commission

observes that it is well settled law that mere filing of an appeal shall not operate as

a stay of proceedings under a decree or order appealed from except so far as the

Appellate Court may order, nor shall execution of a decree be stayed by reason

only of an appeal having been preferred from the decree; but the Appellate Court

may for sufficient cause order stay of execution of such decree. In the present

case the Appellate Court i.e. the Hon’ble Supreme Court has not stayed the

APTEL’s judgment dated 15.03.2016 appealed against by the HPPC. Hence,

the prayer of the Respondent seeking adjournment sine die cannot be

granted.

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Additionally, the Commission has considered the argument of the Ld. Advocate for

the Respondent that ‘in case any relief is granted to the Petitioner the same

should be subject to some security amount against the amount of relief’. The

Commission is not inclined to accept this as the Petitioner is a small generator

having a capacity of 8 MW and is supplying / selling entire power generated to the

Respondent who represents Distribution Licensee(s) in the State at the tariff

determined by this Commission. Thus, at any point of time, if the situation so

warrants, the Respondent is in a position to recover any amount paid to the

Petitioner from the amount payable by it to the Generator for supply of power.

Thus, in the considered view of the Commission, there is no perceived risk

that needs to be mitigated at this stage.

9. The pertinent issue raised by the Respondent is that exemption / refund of

wheeling charges could be considered provided the delivery point of power is the

switchyard of the power plant of the Petitioner.

The Commission has considered the above submission and observes that the

present petition is similar to the petitions filed by M/s Puri Oil Mill and M/s. Star

Wire (India) Vidyut Ltd and the judgment of the Hon’ble Appellate Tribunal for

Electricity in these cases is also applicable in the instant matter provided that the

Petitioner, so far as wheeling is concerned, is similarly placed. It is observed that

the judgment of Hon’ble APTEL which was upheld by the APEX Court (in Puri Oil

Mills), while concluding that wheeling charges are not payable (except in the case

power is supplied to a third party) had examined and relied upon the definition of

the term “Wheeling” as incorporated in Section 2(76) of the Electricity Act, 2003.

The said definition is reproduced below:-

“wheeling means the operation whereby the distribution system and associated

facilities of a transmission licensee or distribution licensee, as the case may be,

are used by another person for the conveyance of electricity on payment of

charges to be determined under section 62;”

In the above context the Commission has examined the Power Purchase

Agreement between HPPC (Respondent) and M/s GEMCO (Petitioner) approved

by it vide Memo No. 1059/HERC//Tariff/PPA/SV/biomass / GEMCO/12 dated

04.07.2012. Accordingly, the point at which the ownership of power generated by

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GEMCO changes hand i.e. the ‘delivery point’ has been defined in the PPA as

under:-

11) “Delivery Point” shall be the point or points at which interconnection is made

between the interconnection facilities of the Company and the Grid System of

Nigam / Discoms i.e. 132 kV Bus at switch yard of company at village Dinod,

Tehsil & Distt. Bhiwani”.

The above being the case the ‘delivery point’ of power is the switch yard of

the power plant of the Petitioner as in the case of M/s Puri Oil Mills Ltd. and

Star Wire (India) Vidyut Ltd. Hence, the petitions filed by M/s. GEMCO

seeking refund of wheeling charges deducted from their energy bills by the

Respondent from the date of CoD till the same was waived of by the

Commission w.e.f. 12.08.2015, is allowed by applying the ratio of the

Judgments relied upon by the Petitioner herein .

10. The Commission has considered the prayer of the Petitioner seeking direction to

the Respondent to pay interest @ 12% per annum for the period of illegal

withholding of the amount on account of ‘wheeling charges’. The Commission

observes that the Respondent, till the time judgments(s) to the contrary were

pronounced by the Appellate Courts and upheld by the Hon’ble Supreme Court,

had acted in line with the HERC RE Regulations in Vogue. Further, w.e.f.

12.08.2015 the Respondent had also stopped recovering ‘wheeling charges’ in

accordance with the amendment of the HERC RE Regulations, 2010. Thus, in

the considered view of the Commission there is no illegality in the conduct

of the Respondent as such. Hence, the prayer seeking interest @ 12% p.a. is

rejected.

11. Additionally, the Commission observes that the present petition has been filed

citing the judgment by the Hon’ble Appellate Tribunal for Electricity in two cases

namely M/s Puri Oil Mill Vs HPPC and M/s. Star Wire (India) Vidyut Ltd. vs.

HPPC. The Petitioner has extensively cited from the judgment in the case of M/s.

Star Wire (India) Vidyut Ltd. vs. HPPC wherein the Hon’ble Appellate Tribunal for

Electricity has ordered that the Commission should have merely relaxed

Regulation 73(2) by exercising powers vested with it under Regulation 69 of RE

Regulations. The petitioner has sought similar relaxation. The Commission, as

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observed earlier, has already relaxed Regulation 73(2) w.e.f. 12.08.2015. Hence,

this issue needs no further deliberation at this stage.

12. The Order passed by the Commission is summarized below:-

HPPC/Discoms shall refund the wheeling charges deducted from the

energy bills of the Petitioner w.e.f CoD of the power plant till the time

recovery of wheeling charges was stopped w.e.f 12.08.2015.

The said amount shall be refunded to the Petitioner within 6 month from

the date of communication of this Order, failing which the said amount

shall carry simple interest @ 12% per annum till payment.

13. The Respondent (HPPC) is directed to keep the Commission informed regarding

the outcome of the Appeal No. 5345 of 2016 preferred by them in the Hon’ble

Supreme Court against the judgment dated 15.03.2016 of the Hon’ble APTEL in

Appeal No. 183 of 2015. In case the appeal is allowed by the Apex Court the

Respondent i.e. HPPC / Discoms shall approach this Commission for

consequential Order.

This Order is signed, dated and issued by the Haryana Electricity Regulatory

Commission on 17th February, 2017.

Date: 17.02.2017 (Debashish Majumdar) (M.S. Puri) (Jagjeet Singh)

Place: Panchkula Member Member Chairman