Petition of the CERC (Terms and Conditions of Tariff) Regulations for determination of tariff on installation of various Emission Control Systems in DSTPS Units 1 & 2 of DVC – EQ

Summary:

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### Business Points

1. **Tariff Determination Impact for DVC:** The core issue is the determination of tariff for installing emission control systems. An upward tariff revision would increase DVC’s revenue from affected units. DVC must ensure its rejoinder strongly justifies the capital expenditure (CAPEX) incurred or planned for environmental compliance.

2. **Cost Recovery for Environmental Compliance:** This petition highlights that power generators can seek tariff adjustments for mandated environmental upgrades (e.g., Flue Gas Desulfurization, etc.). DVC’s ability to recover these costs will set a precedent for other thermal power plants facing similar revised emission norms.

3. **Procedural Delay but Certainty:** The matter has been adjourned due to incomplete e-filing by PSPCL and the need for DVC’s rejoinder. While this causes a delay, the new scheduled date (April 29, 2026) provides clarity. Both parties should prepare for a final hearing on that date.

4. **PSPCL’s Position as a Respondent:** As a major power purchaser, PSPCL is likely opposing or seeking moderation of the tariff increase. PSPCL must now formally file its reply, which DVC will need to counter. PSPCL’s stance will affect power purchase costs for Punjab.

5. **Regulatory Compliance Deadline:** The underlying need for emission control systems stems from Revised Emission Standards. Any delay in tariff determination could impact DVC’s timeline for installation and compliance, potentially exposing it to environmental penalties. Expediting this petition is commercially important.

6. **Next Steps for Both Parties:**
– **PSPCL:** Must immediately upload its reply on the CERC portal to avoid further adjournments.
– **DVC:** Must prepare and upload a robust rejoinder addressing PSPCL’s objections. Failure to do so may weaken its tariff claim.

7. **Monitoring Required:** Other power utilities and state discoms (respondents “and Ors.”) should monitor this case closely, as the tariff principle established here could apply to similar emission control investments across the country.

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