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MERC Announce Final Judgement on SWPGL Seeking Directions to MEDCL for Purchase of Additional Power

MERC Announce Final Judgement on SWPGL Seeking Directions to MEDCL for Purchase of Additional Power

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Maharashtra Electricity Regulatory Commission has announced its order on the case of Sai Wardha Power Generation Limited (SWPGL) on May 3, 2021. SWPGL filed a petition to the commission on December 9, 2021 under Section 86(1)(b)(f) of the Electricity Act, 2003.

SWPGL sought directions to Maharashtra Electricity Distribution Company Limited (MEDCL) for purchase or procurement of additional power in terms of the judgment of the Appellate Tribunal for Electricity dated 10 February, 2015.

After analysis, the Commission stated in the official notification that it is not inclined to grant relief as sought by SWPGL in the present matter. The commission stated that considering statutory provision which mandates power procurement through competitive bidding, present demand-supply scenario wherein MSEDCL has surplus contracted capacity and the possibility of procuring cheaper RE Power for the shortfall, directing any additional power procurement that too without competitive bidding is not at all warranted.

The commission also stated that in case MSEDCL wishes to initiate any power procurement which has not been considered in MYT Order 2020, it has to approach the commission.

After a prudency check, MSEDCL can call for bids as per the competitive bidding guidelines notified by the government. SWPGL will also get the opportunity to participate in the competitive bidding process along with other bidders. The commission said that such a process would be more transparent and discover market reflective tariff. Click here to check further details.

Anand Gupta Editor - EQ Int'l Media Network