Solar Companies’ Claim for Late Payment Surcharge and Rebate Dismissed by UPERC
The late payment surcharge on bills raised before the adoption of a new tariff on November 21, 2017, has not been allowed
The Uttar Pradesh Electricity Regulatory Commission (UPERC) has rejected the pleas submitted by two renewable energy generating companies seeking late payment surcharge on bills raised before the adoption of a new tariff on November 21, 2017.
For both the petitions, the respondents were Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) and Uttar Pradesh Power Corporation Limited (UPPCL).
Two companies, PSPN Synergy Pvt. Ltd. and Salasar Synergy Private Limited had petitioned the UPERC seeking directions against UPPCL. The companies had alleged that UPPCL amended the power purchase agreement (PPA) entered between them.
The two renewable generators had also requested the commission to direct UPPCL to pay the late payment surcharge due to a delay in the payment of bills raised by it and to refund the rebate illegally deducted by UPPCL.
PSPN Synergy had submitted that a late payment surcharge amounting to ₹4,796,180 (~$68,916.57), calculated at the rate of 1.25% per month, and illegally deducted rebate amounting to ₹612,579.24 (~$8,801.5095) should be paid back to it. The company had entered PPA at a tariff of ₹8.60 (~$0.1235)/kWh with UPPCL, which was reduced to ₹7.02 (~$0.11)/kWh.
On the other hand, Salasar Synergy Pvt. Ltd. had submitted that a late payment surcharge amounting to ₹1,353,074 (~$19,440.90), calculated at the rate of 1.25% per month, and illegally deducted rebate amounting to ₹251,446 (~$3,613.19) should be paid back to it. The company had entered PPA at a tariff of ₹8.496 (~$0.1220)/kWh which was reduced to ₹7.02 (~$0.11)/kWh.
In November 2017, the UPERC had adopted a renegotiated tariff of ₹7.02 (~$0.11)/kWh as the new tariff for solar projects tendered in the financial year 2015-16. This affected 215 MW of grid-connected solar photovoltaic projects in the state.
After going through submissions made by the parties in both the cases, the commission opined that in both the cases the petitioners (PSPN Synergy Pvt. Ltd. and Salasar Synergy Pvt. Ltd.) are not eligible to receive the late payment surcharge on bills raised prior to the adoption of new tariff on November 21, 2017.
The commission further noted that the change in PPA and the documents were according to the orders issued by it.
Regarding the rebate, the commission stated that for bills raised before the tariff revision of November 2017, no rebate would be admissible as no surcharge was allowed for that period. If any excess rebate has been deducted by UPPCL, the same will be refunded, the commission ordered.
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.