GERC Petition Seeks Clarification On Deviation Charges For Excess Solar Energy Generation

Representational image. Credit: Canva

In a recent petition before the Gujarat Electricity Regulatory Commission (GERC), Enersan Power Pvt. Limited, Iron Triangle Limited, and Jaydeep Cotton Fibres Pvt. Limited sought interpretation and clarification regarding the GERC (Forecasting, Scheduling, Deviation Settlement, and Related Matters of Solar and Wind Generation Sources) Regulations, 2019. This matter pertains to discrepancies in the application of the regulations by the State Load Dispatch Centre (SLDC), specifically concerning the treatment of energy categorized as inadvertent.

The petitioners argued that SLDC’s interpretation of the 2019 regulations was erroneous, necessitating a clarification. They referred to provisions in the regulations and the Central Electricity Regulatory Commission (CERC) guidelines, highlighting the clause requiring deviation charges for under or over-injection of energy by solar generators selling power outside the state. According to their interpretation, over-injected energy should qualify for payment after deducting deviation settlement charges, but they alleged non-payment for excess generation classified as inadvertent energy. They also invoked the Indian Contract Act, 1872, claiming that the respondents benefited from a non-gratuitous act and were therefore obligated to compensate for the additional energy generated.

Representing the petitioners, their legal counsel emphasized the need for clarification rather than an amendment to the regulations, arguing against the retrospective application of amendments. The counsel asserted that payments for over-injected energy were essential to ensure equity and justice, especially since this energy was monetized downstream by the distribution companies (DISCOMs).

The SLDC, represented by its legal counsel, contended that the petitioners were effectively seeking a retrospective amendment to the regulations. They maintained that the 2019 regulations were formulated following due process, with opportunities provided for public comments during the drafting stage, which the petitioners did not utilize. Furthermore, they argued that amendments, if necessary, should be prospective and in line with the Electricity Act, 2003. They emphasized adherence to the detailed procedures approved by GERC and claimed that the petitioners had no grounds to contest the existing framework, especially in the absence of prior objections.

The commission observed that the petitioners had not complied with previous directives requiring a public notice and an affidavit as part of their procedural obligations. The petitioners assured the commission of their intent to verify records and file the required compliance affidavit. In turn, the commission directed the petitioners to file this affidavit within a week and allowed SLDC to submit further responses, ensuring both parties adhere to procedural formalities.

The commission has scheduled the next hearing for December 2, 2024, allowing time for all parties to present their submissions. The outcome will likely hinge on whether the petitioners can substantiate their claims within the regulatory framework and if the SLDC’s interpretations align with the intended purpose of the regulations.

 

  • Related Posts

    Top Stories Of The Day: India Installs 5.28 Cr Smart Meters; GERC Clears 2 MW Solar Dispute and More…

    India Installs 5.28 Crore Smart Meters Under RDSSIndia has installed over 5.28 crore smart meters under the Revamped Distribution Sector Scheme (RDSS), improving billing accuracy, reducing AT&C losses, and strengthening…

    Rolls-Royce SMR and Yokogawa Join Forces to Deliver Data Processing and Control Systems for Small Modular Reactors

    Rolls-Royce SMR and Yokogawa Electric Corporation announce a strategic relationship with the intention of delivering data processing and control systems (DPCS) for the former’s small modular reactor (SMR) program. This…

    Have You Seen?

    Oil Tanker Rates Soar Amid Shipping Shortages and Middle East Tensions

    • February 3, 2026
    Oil Tanker Rates Soar Amid Shipping Shortages and Middle East Tensions

    Libya Signals a New Gas Push as Europe Searches for Supply

    • February 3, 2026
    Libya Signals a New Gas Push as Europe Searches for Supply

    Ørsted to Sell European Onshore Business for $1.7 Billion

    • February 3, 2026
    Ørsted to Sell European Onshore Business for $1.7 Billion

    Kuwait Seeks Foreign Majors’ Help to Develop Offshore Fields

    • February 3, 2026
    Kuwait Seeks Foreign Majors’ Help to Develop Offshore Fields

    Qatar Moves to Reclaim Japan’s LNG Market With Major Jera Deal

    • February 3, 2026
    Qatar Moves to Reclaim Japan’s LNG Market With Major Jera Deal

    Devon, Coterra Sign ‘Blockbuster’ Merger Deal

    • February 3, 2026
    Devon, Coterra Sign ‘Blockbuster’ Merger Deal

    EU set outs carbon removal standards for DACCS and BioCCS

    • February 3, 2026
    EU set outs carbon removal standards for DACCS and BioCCS

    Oil Steadies as Investors Weigh Supply, Possible US-Iran de-Escalation

    • February 3, 2026
    Oil Steadies as Investors Weigh Supply, Possible US-Iran de-Escalation

    COMMENTARY: A $47 Bln Deal Heralds US Oil Boom’s Middle Age

    • February 3, 2026
    COMMENTARY: A $47 Bln Deal Heralds US Oil Boom’s Middle Age

    Marathon Petroleum Profit Beats as Margins Rebound From Multi-Year Lows

    • February 3, 2026
    Marathon Petroleum Profit Beats as Margins Rebound From Multi-Year Lows