The Chhattisgarh State Electricity Regulatory Commission (CSERC) has modified its current regulations pertaining to the determination of generation tariff and associated issues for electricity produced from clean sources of energy. The suggested revisions, named “Chhattisgarh State Electricity Regulatory Commission (Terms and Conditions for Determination of Generation Tariff and Related Matters for Electricity Generated by Plants Based on Renewable Energy Sources) (First Amendment) Regulations, 2023,” strive to synchronise with the changing dynamics of clean energy policies and practices.
Leveraging the provisions outlined in the Electricity Act of 2003, the CSERC has commenced the formulation of these amendments, exercising its jurisdiction in accordance with sections 61, 86, and 181. This recent action comes in the wake of the implementation of the Chhattisgarh State Electricity Regulatory Commission (Terms and Conditions for Determination of Generation Tariff and Related Matters for Electricity Generated by Plants Based on Renewable Energy Sources) Regulations, 2022. These regulations established the tariff conditions for diverse renewable energy projects. Subsequently, on June 3, 2022, Ministry of Power introduced the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 (LPS Rules 2022), which outlined the procedures for late payment surcharge. In accordance with these regulations, the CSERC issued a directive on October 18, 2022, underscoring the necessity to synchronise prevailing regulations with the stipulations of the LPS Rules 2022.
The proposed CSERC amendments for 2023 are set to be enacted upon publication and will be valid until March 31, 2025. All established generating units based on renewable energy sources will be subject to the restrictions in Chattisgarh. The primary elements of the suggested amendments involve modifications to the working capital prerequisites for various categories of renewable energy projects. The proposed changes also outline computation criteria for a range of projects, including wind energy, small hydro power, solar PV, solar thermal power, biomass power, biogas-based power, non-fossil fuel-based co-generation, municipal solid waste, and refuse-derived fuel projects.
Furthermore, the proposed amendments suggest modifications to the late payment surcharge mechanism. It is outlined that if payment is delayed beyond 45 days from the billing date, the generating company will levy a late payment surcharge as per the applicable orders or regulations issued by the commission.