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SEP 19 2014

Rana Sugar gets a favorable judgment in the case related to redetermination of Generation Tariff from its Biomass based Co-Gen Plant

  • Economic Times, ET Bureau / Hyderabad
  • Created: Fri 19th SEP 2014

Rana Sugars Limited had filed an appeal, against the impugned order, dated 24.06.2013 , passed by the Punjab State Electricity Regulatory Commission in Petition No. 46 of 2010 whereby the State Commission has held that petitioner's co-generation project is not entitled for redetermination of tariff as it has not been covered in the New and Renewable Sources of Energy (NRSE) Policy of 2012 which only allows redetermination of tariff in case of Independent Power Producers (IPPs) and Captive Power Producers (CPPs) engaged in generation of Renewable Energy.

APTEL pointed out that it has no hesitation in noting the fact that the Appellant filed a Petition being Petition No. 46 of 2010 on 26.11.2010, before the State Commission for redetermination of tariff for sale of power from its co-generation plant, but the State Commission (for the reasons best known to it) kept the petition pending till the notification of NRSE Policy, 2012 by the Government of Punjab on 26.12.2012.  And after the notification of NRSE Policy, 2012 , the State Commission, vide impugned order, dated 24.6.2013, rejected the said petition of the Appellant holding that the Appellant's cogeneration project is not entitled for redetermination of tariff, as it has not been covered in the NRSE Policy, 2012 issued by the Government of Punjab/Respondent No.2, which only allows redetermination of tariff for Independent Power Producers (IPPs) engaged in the generation of renewable energy. There appears to be no justification in record for keeping the Petition No. 46 of 2010, filed by Rana Sugars, pending for more than two and a half years.

The APTEL finally ruled that this Appeal of Rana Sugars succeeds and is allowed. The impugned order, dated 24.06.2013, passed by PSERC has thus been set-aside. The matter has thus been remanded back to the State Commission for reconsideration of the bagasse/biomass fuel price of the Rana Sugar’s co-generation project and re-determine the tariff after due consideration of the fuel cost of its biomass/bagasse based co-generation project and decide the case in accordance with the observations made by APTEL, within four months from the date of communication of the judgment.


Punjab Captive Bombay Electricity Supply and Transport Independent Power Producers Captive Power Producers Renewable Energy Tariff Fuel price Energy Electricity Regulatory Commission Appellate Tribunal for Electricity Punjab State Electricity Regulatory Commission Power Electricity CAPTIVE

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