The Appellate Tribunal for Electricity (APTEL) has dismissed an appeal filed by NTPC Renewable Energy Limited seeking compensation for an increase in grid connectivity charges for a solar power project in Rajasthan. The tribunal ruled that a claim cannot be introduced for the first time at the appellate stage if it was not raised before the original regulatory forum. It also observed that the company had failed to comply with the contractual requirements for seeking relief under the change-in-law provisions of its Power Purchase Agreement (PPA).
The dispute relates to a 1,070 MW solar power project bidding process managed by the Solar Energy Corporation of India (SECI). The bid submission deadline for the project was October 28, 2020, when the Rajasthan Electricity Regulatory Commission (RERC) Regulations, 2015, were applicable.
On November 2, 2020, RERC notified revised regulations that increased grid connectivity charges from ₹2 lakh per MW to ₹2.5 lakh per MW. Following the revision, NTPC Renewable Energy paid ₹11.75 crore under the new fee structure, compared with ₹9.40 crore under the earlier rates. The company subsequently sought compensation for the additional financial burden resulting from the increased charges.
The matter came before RERC when Rajasthan Urja Vikas Nigam Limited (RUVNL) filed a petition seeking tariff adoption for the project. The successful project developers were impleaded as respondents in the proceedings. During the hearings, other renewable energy generators, including AEW India and Green Infra, formally raised concerns regarding the increased grid connectivity charges and sought relief from the state commission.
However, NTPC Renewable Energy did not file a formal claim or application concerning the additional charges before RERC. The commission rejected the claims submitted by the other developers, observing that the responsibility for obtaining grid connectivity and managing the associated financial risks rested with the developers under the terms of their respective PPAs.
NTPC Renewable Energy subsequently approached APTEL, challenging the outcome and seeking relief for the additional amount paid because of the revised connectivity charges. The tribunal examined the procedural and contractual aspects of the matter before reaching its decision.
APTEL observed that NTPC had not raised the specific claim before the state commission during the original proceedings. Therefore, the company could not introduce the substantive issue for the first time in an appeal. The tribunal’s decision reinforced the importance of presenting relevant claims before the appropriate regulatory authority at the initial stage of proceedings.
The tribunal also considered Article 12.3 of the PPA, which requires an affected party to issue a formal notice detailing a change-in-law event within 60 days of its occurrence. According to the tribunal’s findings, NTPC had not served the mandatory notice on SECI and RUVNL.
In view of these procedural and contractual shortcomings, APTEL dismissed the appeal. The ruling underscores the importance of complying with contractual notification requirements and raising compensation claims before the appropriate forum. For renewable energy developers, the decision highlights the need to follow prescribed procedures when seeking financial relief arising from regulatory changes affecting project costs.
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