Whereas the Uttar Pradesh
Electricity Regulatory Commission (Merit Order Despatch and Optimization of
Power Purchase) Regulations (herein after referred to as the UPERC MOD
Regulations) were notified on 18th February, 2021; Issue-1: Whereas Regulation 4(2) of the
UPERC MOD regulations provides that the distribution licensee shall draw up the
Merit Order Stack at the State periphery for Intra-State and Inter-State
Generation sources after taking into account the variable cost of each
generating stations as submitted by the generating company along with the
inter-state transmission losses and AC-UBC charges as specified by Central
Electricity Regulatory Commission (Sharing of Inter-State Transmission Charges
and Losses) Regulations, 2020, wherever applicable. And whereas the difficulties have
arisen regarding the calculation of Generator wise AC-UBC Charges, due to
submission of combined bill by PGCIL for all the ISTS generators as per the
provisions of Central Electricity Regulatory Commission (Sharing of Inter-State
Transmission Charges and Losses) Regulations, 2020, wherever applicable. Issue-2: Whereas Regulation 4(2) of the
UPERC MOD regulations provides that the distribution licensee shall draw up the
Merit Order Stack at the State periphery for Intra-State and Inter-State,
Generation sources after taking into account the variable cost of each
generating stations as submitted by the generating company along with the
inter-state transmission losses and AC-UBC charges as specified by Central
Electricity Regulatory Commission (Sharing of Inter-State Transmission Charges
and Losses) Regulations, 2020, wherever applicable. And whereas the difficulties have
arisen regarding the computation of inter-state losses, as whether such losses
shall be computed after including AC-UBC charges or excluding AC-UBC charges. Issue-3: And whereas Regulation 2(20) of
the said UPERC MOD Regulations defines "MOD Stack" means the stack
prepared on the basis of available variable charges for (n-1)th or (n-2)th
month as applicable for dispatch of generation in accordance with UPERC (Merit
Order Despatch and Optimization of Power Purchase) Regulations, 2021 along with
average inter-state transmission losses and AC-UBC charges for (n-1)th month
and if not available for (n-1)th month, then last available. And whereas the difficulties have
arisen in the cases where the SG for any generating company was zero in the
previous month(s) or for more than two months on account of high VC or any
other reason as assigned, therefore leading to a situation where both variable
charge of (n-1)th and (n-2)th is not available for preparation of MOD Stack. Issue-4: And whereas Regulation 4(5)(c) of
the said UPERC MOD regulations provides that the SLDC may revise the MOD Stack
considering the impact of Change in Law in the PPAs as notified by the
Distribution Licensee after approval of the Commission, with the condition that
the revision in variable charges shall be applicable from 1st day of a month,
which falls after thirty (30) days' time from the date of Order of Appropriate
Commission. And whereas the difficulties have
arisen in the cases where any Generator in order to keep its variable charges
on the lower side for the purpose of higher despatch, delays in submission of
change-in-law bills and subsequently claim the same on retrospective basis
along with carrying cost, thus resulting in non-adherence by the Distribution
Licensee of the timelines approved in the UPERC MOD Regulations, for revision
in variable charges. Now therefore, the Commission in
exercise of its power conferred by Regulation 13 of the UPERC MOD Regulations,
2021, hereby issues this order on above issues, being not inconsistent with the
provisions of the Act, to remove difficulties namely: (1)
This Order shall may be called the UPERC (Merit Order Despatch and
Optimization of Power Purchase) Regulations, 2021 (Removal of Difficulty) First
Order, 2021. (2)
It shall come into effect from 15th September, 2021. The distribution licensee shall
draw up the Merit Order Stack at the State periphery for Intra-State and
Inter-State Generation sources after taking into account the variable charges
of each generating station as submitted by the generating company along with
the inter-state transmission losses and common AC-UBC charges as specified by
Central Electricity Regulatory Commission (Sharing of Inter-State Transmission
Charges and Losses) Regulations, 2020, wherever applicable. Provided that the common
inter-state transmission AC-UBC charges for the applicable period shall be
computed on the basis of monthly bills raised by PGCIL and energy drawl
schedule for the month from ISGS, considering the bills for (n-1)th month and
in case the last month's charges are not available, then the last available
charges shall be considered. Provided that the inter-state
transmission loss shall be computed on the sum of Variable Charge of the
generator station and the common AC-UBC Charge, considering the average of
interstate transmission loss for (n-1)th month and in case the last month's
loss are not available, then the last loss shall be considered. The distribution licensee shall
verify and submit the details of variable charges of all generating
stations/units from which they are procuring power for preparing the MOD stack
based on Variable Charge of (n-1)th month and in case the variable charges of
immediately preceding month is not available, the last available variable
charge needs to be considered and submitted to SLDC for preparation of the MOD
Stack by the 7th day and 22nd day of every month with intimation to the seller with
whom it has the PPA. The SLDC may revise the MOD stack
considering the following: (c) Impact of Change in Law in the PPAs as notified
by the Distribution Licensee after approval of the Commission. Provided that the Distribution
Licensee shall submit the orders of the Commission on change in law to SLDC
within 15 days of the date of Order of the Commission. Distribution Licensee as
well as SLDC may seek information from the generator on the revised VC
including such change in law impact. The generator is bound to submit above
information and raise invoices immediately after the order of the Commission.
The generator is also obliged to submit the revision in variable charges due to
generation tariff orders issued by Appropriate Commission immediately after
such an order is passed. In case the generator fails to submit the revised VC
including change in law impact to the licensee within 10 days of the order of
the Commission, the licensee may file a petition against the generator for
non-compliance of UPERC MOD Regulations. If the Commission is satisfied that
such an order/information has been unreasonably withheld by the generator, the
generator may be imposed with a penalty as prescribed under Section 142 without
prejudice to any other action that Commission deems fit in such a situation. Provided that the revision in
variable charges under (b) and (c) above shall be applicable from 1st day of a
month, which falls after thirty (30) days time from the date of Order of
Appropriate Commission.UPERC
(MERIT ORDER DESPATCH AND OPTIMIZATION OF POWER PURCHASE) REGULATIONS, 2021
(REMOVAL OF DIFFICULTY) FIRST ORDER, 2021
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