Petition No. 1179 of 2017

BEFORE

THE UTTAR PRADESH ELECTRICITY REGULATORY COMMISSION

LUCKNOW

Date of Order: 30.05.2017

PRESENT:

1.  Hon’ble Sri Desh Deepak Verma, Chairman

2.  Hon’ble Sri S.K. Agarwal, Member

IN THE MATTER OF: For seeking reduction in fee payable for approval of PPA with UPRVUNL under UPERC( fees and fines) Regulations, 2010.

AND

IN THE MATTER OF

Chief Engineer (PPA),

UP Power Corporation Ltd.,

14th Floor, Shakti Bhawan,

14-Ashok Marg,

Lucknow - 226001

------Petitioner

AND

The Managing Director,

UP Vidyut Utpadan Nigam Ltd.,

Shakti Bhawan Extension,

Ashok Marg,

Lucknow

------Respondents

Following were presents:

1.  Sri V.P. Srivastava, CE, (PPA), UPPCL

2.  Sri Shyam Narain, CE, (Commercial), UPRVUNL

3.  Sri Mahendra Kumar, SE (Commercial), UPRVUNL

4.  Sri Vinod Asthana, SE (PPA), UPPCL

5.  Sri Hari Shyam, EE (Commercial), UPRVUNL

6.  Sri H. Aslam, EE (PPA), UPPCL

7.  Sri Rajeev Jauhari, EE (ABT), UPRVUNL

ORDER

(Date of Hearing 03.05.2017)

1.  The petition is filed by UPPCL for seeking reduction in fee payable for approval of PPA with UPRVUNL under UPERC( fees and fines) Regulations, 2010.

2.  It is submitted by the petitioner that both UPPCL and UPRVUNL are fully owned subsidiary of GoUP engaged in the business of power distribution and generation respectively in the state.

3.  UPPCL and UPRVUNL have entered into PPA for 1x660 MW Panki TPS and 2X660 MW Jawarpur TPS subject to approval of UPERC. 100% power from the aforesaid TPS of UPRVUNL shall be brought by UPPCL.

4.  It is submitted that under UPERC( fees and fines) Regulations, 2010, the petitioner is required to deposit @ Rs. 10,000 per MW totaling Rs. 1.98 crore for aforementioned PPAs. This is stupendous amount that shall be ultimately borne by the consumers.

5.  The petitioner submitted that many other states have put a capping on the maximum fees payable for approval of PPA ranging from Rs. 10 lakhs to Rs. 25 Lakhs.

6.  The petitioner requested the Commission to consider the fact that both UPPCL and UPRVUNL are fully owned by of GoUP and in the larger interest of the consumers, to waive the fee payable for approval of aforementioned PPAs by exercising its authority as provided in Regulation 9, Miscellaneous (1) of UPERC( fees and fines) Regulations, 2010.

7.  Further, the petitioner also prayed that in case the Commission decides to not to waive the fee, in that case the petitioner may be allowed to pay such a fee which may appear reasonable in the interest of the consumers of the state.

8.  The Commission observed that since the issues raised by the petitioner requires amendment in the Regulations which can only be done through due process. In view of the facts that some states have capped the fee in such cases, the Commission considers that it would be examined and process of amendment of Regulations shall be considered, if required. However, in instant case the present Regulations shall be applicable.

9.  The petition is disposed of.

(S.K. Agarwal) (Desh Deepak Verma)

Member Chairman

Place: Lucknow

Dated: 30.05.2017

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