The Gujarat Electricity Regulatory Commission (GERC) recently heard a petition filed by Abellon Cogen Ltd. and Goodwatts WTE Botad Pvt. Ltd. against the State Load Despatch Centre (SLDC) – Gujarat and Uttar Gujarat Vij Company Ltd. (UGVCL). The petition challenges the retrospective revision of the State Energy Account (SEA) reports by SLDC from 2016 to 2020 and the subsequent recovery actions taken by UGVCL based on these revised reports.
The petitioners argued that revising SEA reports for past years violates the Grid Code and principles of natural justice. They contended that SLDC did not provide a valid justification for these revisions and failed to follow the mandatory review process through a designated committee. The petitioners claimed that these actions have caused financial uncertainty and burdened both generators and consumers. They also pointed out that the Gujarat High Court had previously granted a stay on such recovery notices in an interim order dated September 17, 2021, directing the Commission to resolve the issue. However, despite the stay, distribution companies (DISCOMs) have continued to take coercive actions, including sending demand notices and filing civil suits. The petitioners requested the Commission to restrain DISCOMs from proceeding with these actions until a final decision is made.
In response, SLDC stated that the revisions to the SEA reports were made following Commission orders and were necessary to address issues like energy schedule manipulation. The regulatory authority maintained that the discrepancies claimed by the petitioners were not substantiated. SLDC further emphasized that its actions were within its regulatory jurisdiction and intended to correct anomalies in energy accounting.
UGVCL, representing the DISCOMs, argued that they are legally required to act following the SEA reports, including any revisions. They stated that issuing demand notices and filing recovery suits were necessary steps to protect their financial interests.
The petitioners further argued that the financial burden resulting from the revised reports would ultimately impact their agreements with consumers under the Power Purchase Agreements (PPA) and Power Sale Agreements (PSA). They claimed that recovery demands for transactions dating back to 2017 were unfair to consumers, as they should not be held liable for disputes between generators and DISCOMs.
After hearing the arguments from all parties, the Commission directed SLDC to provide details on the specific regulations that allow it to revise SEA reports. SLDC was given two weeks to submit this information with copies to other parties. UGVCL was also given one week to provide more details regarding the notices issued. Additionally, the petitioners were granted two weeks to file their written submissions.
The Commission stated that the next hearing date would be announced separately and ordered all parties to comply with the deadlines. The case remains under review, with further developments expected once the required submissions are made. The outcome of this case will have significant implications for power generators, DISCOMs, and consumers in Gujarat.
