Petition of the CERC (Conduct of Business) Regulations for MPPMCL – EQ
Summary:
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#### **1. Parties Involved**
– **Petitioner:** Madhya Pradesh Power Management Company Limited (MPPMCL)
– **Respondents:**
1. Solar Energy Corporation of India Limited (SECI)
2. Azure Power Maple Pvt. Ltd.
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#### **2. Nature of the Petition**
– MPPMCL has filed a petition under **Section 79(1)(b) and (f) of the Electricity Act, 2003**, read with **Regulation 65 of the CERC (Conduct of Business) Regulations, 2023**.
– The petitioner seeks:
– A **declaration** that **Azure Power Maple Pvt. Ltd. (Respondent No. 2)** is liable for an **additional penalty** beyond what is specified in the Power Purchase Agreement (PPA).
– The penalty pertains to **generation shortfalls** in **Financial Years 2022–23 and 2023–24**.
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#### **3. Commission’s Directions (6 January 2026)**
– The petition is **admitted**.
– **Notices** are to be issued to both Respondents.
– **Timeline for Submissions:**
– Respondents to file their **replies within six weeks** (copy to petitioner).
– Petitioner may file **rejoinders within six weeks** after receiving replies.
– **Next Hearing Date:** **7 April 2026**.
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#### **4. Key Legal Provisions Invoked**
– **Section 79(1)(b) & (f), Electricity Act, 2003:** Relates to CERC’s jurisdiction over tariff regulation, dispute resolution, and enforcement of standards.
– **Regulation 65, CERC (Conduct of Business) Regulations, 2023:** Pertains to the procedure for filing and hearing petitions.
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#### **5. Next Steps**
– Respondents (SECI and Azure Power) must prepare and submit their replies by **mid-February 2026**.
– MPPMCL will then have until **late March 2026** to file rejoinders.
– The matter will be heard on **7 April 2026** for further proceedings.
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#### **6. Business Implications**
– This is a **regulatory and contractual dispute** concerning renewable energy generation shortfalls and penalty clauses in PPAs.
– Outcome may impact:
– **Penalty liabilities** for generators under PPAs.
– **Contractual risk allocation** between DISCOMs, SECI, and generators.
– Future **drafting and enforcement of penalty mechanisms** in renewable energy contracts.
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