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Ostro Kutch Wind Energy Restricted (Petitioner) has lately filed a petition, looking for decision of a dispute arising from the actions of Energy Grid Company of India (PGCIL). The dispute revolves round PGCIL’s request for the opening of a Letter of Credit score (LC) in favor of PGCIL for Level of Connection (PoC) fees associated to the unutilized Lengthy-Time period Entry (LTA) for a 50 MW capability.
The Petitioner, engaged in organising a 300 MW Wind Farm in Gujarat, utilized for connectivity to the interstate transmission system in 2016. PGCIL granted connectivity and directed the Petitioner to signal essential agreements. The Petitioner additionally secured a Letter of Award in 2017 for a 250 MW wind energy challenge.
Later, the Petitioner utilized for Lengthy-Time period Entry (LTA) to evacuate 300 MW, with 50 MW allotted to the Northern Area and 50 MW to the Western Area. PGCIL operationalized the LTA in phases, with the ultimate 50 MW turning into operational in April 2019.
Nevertheless, PGCIL subsequently requested the Petitioner to furnish an irrevocable Letter of Credit score for PoC charges. The Petitioner, having secured a Letter of Award for an extra 50 MW capability, requested a waiver of PoC fees till the commissioning of this capability. The dispute arose when PGCIL insisted on the Letter of Credit score.
The Petitioner argued for an exemption from transmission fees and LC opening till the commissioning of the extra 50 MW, stating its intention to finish the challenge by December 2022. As a consequence of disruptions brought on by the COVID-19 pandemic, the Scheduled Industrial Operation Date (SCOD) for the extra 50 MW was prolonged to December 2022.
PGCIL, in response, asserted that the Petitioner didn’t qualify for exemption from ISTS transmission fees and LC opening beneath the prevailing laws. PGCIL highlighted the Petitioner’s accountability to comply with the prescribed course of for exemption.
In subsequent developments, the Petitioner sought an modification to the prayer, citing the revision of SCOD to September 2022. The dispute escalated with CTUIL elevating transmission cost payments, prompting the Petitioner to problem the legality of the payments beneath the repealed 2010 Sharing Rules.
The regulatory fee examined the arguments from either side. It emphasised that the Petitioner’s obligation beneath Energy Buy Agreements (PPAs) and Lengthy-Time period Entry (LTA) agreements had been distinct. The fee discovered no benefit within the Petitioner’s request to align LTA operationalization with the prolonged SCOD.
Concerning transmission cost payments, the fee dominated that the Petitioner was liable beneath the 2010 Sharing Rules for the interval as much as October 2020 and beneath the 2020 Sharing Rules from November 2020. It directed the Petitioner to pay the excellent payments.
The fee additionally criticized CTU for delaying invoice issuance and offered a directive for well timed billing sooner or later. Because the Petitioner had already achieved the Industrial Operation Date for the 50 MW capability, the necessity for additional LC opening for normal payments beneath the 2020 Sharing Rules was deemed pointless. The regulatory fee disposed of the petition, emphasizing the Petitioner’s accountability for synchronization between PPAs and LTA agreements. It additionally addressed the delayed billing challenge and confirmed the Petitioner’s legal responsibility for transmission fees beneath relevant laws.
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