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CERC Rejected Petition of Renew Sun Waves to transfer Connectivity and LTA

CERC Rejected Petition of Renew Sun Waves to transfer Connectivity and LTA

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Petition under Section 79(1)(c) of the Electricity Act, 2003 read with section 79(1)(k) of the Electricity Act, 2003 along with regulation 111 of the Central Electricity Regulatory Commission (Conduct of Business) Regulations, 1999, seeking appropriate direction(s) and / or order(s) from the Commission in relation to provisions of the Central Electricity Regulatory Commission (Grant of Connectivity, Long-term Access and Medium-term Open Access in inter-State Transmission and related matters) Regulations, 2009 which are preventing the petitioner from exercising its rights under certain provisions of the Power Purchase Agreement entered pursuant to competitive bidding guidelines 2017 with Solar Energy Corporation Of India Limited (SECI) and seeking the Commission to give effect to the detailed procedure as approved by the Commission vide its order dated 15.5.2018 and further seeking the Commission to issue consequential directions to Power Grid Corporation of India Limited in terms of the relief sought in the present petition.

We observe that Regulation 8A of the 2009 Connectivity Regulations is clear about utilisation and transfer of Connectivity and LTA. Thus, transfer/ utilisation of Connectivity/ LTA between two wholly owned subsidiary companies of the same parent company i.e. sister concerns is not permitted. Similar is the case with a company where the parent company exercises its control i.e. where the ownership is
Draft Order in Petition No. 206/MP/2020 Page15 directly or indirectly of more than 50 (fifty) per cent of the voting shares of such
company or right to appoint majority Directors. Thus, prayer (d) of the Petitioner is also rejected

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Anand Gupta Editor - EQ Int'l Media Network