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APTEL Clears NTPC of Meter Sealing Responsibility in Solar Project Dispute

The Appellate Tribunal for Electricity (APTEL) has partially overturned a Central Electricity Regulatory Commission (CERC) ruling, exonerating NTPC from responsibility for the sealing of meters under a solar Power Purchase Agreement (PPA). The case stemmed from a 50 MW solar project by Prayatna Developers (PDPL) under the National Solar Mission's State Specific Bundling Scheme, where NTPC acted as an intermediary trader.

Despite PDPL's readiness for commissioning before the scheduled date, meter sealing was delayed until June 5, 2017, by DVVNL, causing commissioning delays and leading to a dispute over liquidated damages. CERC had previously held NTPC accountable for not coordinating meter sealing, terming it a “buyer” under CEA Metering Regulations, and ordered a refund of the deducted damages.

NTPC challenged this, asserting its role was limited to trading with no legal or contractual duties related to infrastructure or metering. APTEL agreed, clarifying that as a trader under the Electricity Act, 2003, NTPC lacks operational responsibilities like meter sealing, which lie with the generator and transmission/distribution licensees.

The tribunal modified CERC’s order, removing NTPC’s liability for the delay, thus reaffirming the limited operational scope of intermediary traders in power sector agreements. This verdict is a significant clarification on the accountability of trading entities in project execution delays.