Petition of Hatsun Agro Product Limited for seeking directions upon MSEDCL to allow Net Metering – EQ

Summary:

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### **1. BACKGROUND & CONTEXT**

HAPL operates a manufacturing plant in Solapur, Maharashtra, and is an MSEDCL consumer (Consumer No. 341629059470). It had installed a **983 kW rooftop solar system** under a **Net Metering Agreement** with MSEDCL (executed August 2022). HAPL also entered into **Power Purchase Agreements (PPAs)** for captive renewable energy supply through open access.

The dispute arose because after availing **Open Access** for its offsite renewable power, MSEDCL **refused to allow Net Metering** for HAPL’s rooftop solar generation, instead treating it on a **Gross Metering basis** from November 2023 onward. This resulted in significant financial loss to HAPL.

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### **2. HAPL’S MAIN PRAYERS**

1. Direct MSEDCL to treat HAPL’s rooftop solar system under **Net Metering** arrangement.
2. Grant **retrospective adjustment** of amounts paid from the start of Open Access (November 2023) based on Net Metering.

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### **3. KEY ARGUMENTS OF HAPL**

– HAPL is eligible under **Regulation 3.2** of the Distribution Open Access (DOA) Regulations (Contract Demand > 1 MVA).
– The **DOA (Second Amendment) Regulations 2023** (effective 10 November 2023) **deleted the 8th proviso** that earlier mandated Gross Metering during Open Access.
– New **Regulation 3.4** explicitly permits simultaneous Open Access and Net Metering for eligible consumers.
– MSEDCL’s continued Gross Metering billing is **contrary to the amended regulations**.
– HAPL had repeatedly requested MSEDCL to allow Net Metering (Jan–July 2025) but received no response.
– MSEDCL’s reliance on its own **Clarification Petition (Case No. 232 of 2024)** is misplaced as the regulation is already in force.

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### **4. MSEDCL’S DEFENSE**

– At the time of commissioning (Nov 2022), the **DOA (First Amendment) Regulations 2019** applied, which required Gross Metering during Open Access.
– The 2023 Amendment is **prospective**, and HAPL did not apply for **Green Energy Open Access (GEOA)** through the proper **Nodal Agency (MSLDC)** as required.
– MSEDCL filed **Case No. 232 of 2024** seeking clarification on the interpretation of Regulations 3.3 and 3.4, which is still pending.
– Until clarity is provided, existing billing (Gross Metering) continues.
– HAPL’s failure to comply with GEOA procedure renders its claim invalid.

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### **5. MERC’S ANALYSIS & RULINGS**

#### **a) Regulatory Framework (Issue a)**
– The **8th proviso of the 2019 Regulations** (requiring Gross Metering during Open Access) was **deleted** in the 2023 Amendment.
– **Regulation 3.4** now explicitly allows **simultaneous Open Access and Net Metering**.
– Since HAPL’s Open Access started in **November 2023**, billing **must follow Net Metering** from 10 November 2023 onward.

#### **b) Compliance with Open Access Procedure (Issue b)**
– MSEDCL delayed implementing the 2023 Amendment until directed by MERC in **Case No. 129 of 2024** (Sept 2024).
– HAPL applied to MSEDCL (as Nodal Agency under earlier rules), and MSEDCL approved monthly Open Access.
– **MSEDCL’s own failure to implement the new system cannot deny HAPL its rightful benefit.**

#### **c) Overlap with MSEDCL’s Clarification Petition (Issue c)**
– In **Case No. 197 of 2024** (July 2025), MSEDCL had already **agreed to provide Net Metering adjustments** subject to the outcome of its clarification petition.
– MERC held that **MSEDCL cannot discriminate** between similarly placed consumers.
– The regulation is **in force**, and MSEDCL must comply.

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