Central Electricity Regulatory Commission (CERC) while ruling on the petition filed by Bajaj Hindustan Limited (BHL) regarding the issuances of Renewable Energy Certificate (REC) by the National Load Despatch Center (NLDC) has given its order in favor of BHL.
Bajaj Hindusthan (petitioner) had filed a petition before the CERC against NLDC for refusing to issue Renewable Energy Certificate, which it claims to deserve rightfully. The petition filed by BHL requested CERC to pass an order for issuance of RECs and compensate them for the delay in issuance of RECs and for the legal costs incurred by the petitioner.
NLDC, the respondent, justifying its refusal to issue RECs brought out the Government of Uttar Pradesh notification under Section 3 of the UP Electricity Duty Act, 1952 imposing electricity duty on power consumed by an entity from his own source of generation through Bagasse based power plant.
While Govt. of UP subsequently has abolished the electricity duty imposed on power consumed by an entity from his own source of generation, NLDC claims that exemption of payment of electricity duty amounts to waiver of electricity under the second proviso to Regulation 5 of the REC Regulations, and as such, considers that REC may not be issued.
Deliberating over the matter in details during the CERC hearing in August, 2013, the Commission considered that abolishing the electricity duty on consumption from own sources of generation cannot be treated as waiver of electricity duty for the purpose of REC Regulations. Pertinently, the Commission ordered NLDC to process the case of the petitioner for issuance of RECs.
The above mentioned order can be downloaded from here.
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