CERC Declares Order on Petition Seeking Payment of Change in Law Compensation from SECI
Central Electricity Regulatory Commission (CERC) announced its order in the matter of SBG Cleantech Projectco Five Private seeking payment Change in Law compensation from Solar Energy Corporation of India Limited (SECI). CERC announced its order on May 4, 2021.
SBG Cleantech Projectco Five Private Limited filed a petition to CERC seeking payment of Change in Law compensation from SECI as a consequence of the imposition of Safeguard Duty by the Central Government which is being treated as an event of Change in Law under the terms of the Power Purchase Agreement (PPA).
The commission noted that according to the definition of Commercial Operation Date (COD), it will be the date on which the commissioning certificate is issued on successful commissioning of the full capacity of the project.
Accordingly, CERC stated that the commission holds the liability of payment on account of imposition of Safeguard duty on procurement of Solar PV panels and associated equipment by the Petitioners will lie with the Respondents till COD only.
The commission disposed off the petition directing SECI to pay the petitioner as per the mutually agreed mechanism for payment of such compensation on an annuity basis.