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APTEL Reinstates Higher Tariff for 50 MW Wind Project in Madhya Pradesh

The Appellate Tribunal for Electricity (APTEL) has overturned an order by the Madhya Pradesh Electricity Regulatory Commission (MPERC) that had reduced the tariff for a 50 MW wind project from Rs5.92/kWh to Rs4.78/kWh, citing commissioning delays. APTEL ruled in favor of the project developer, Orange Bercha Wind Power, affirming that the company is entitled to the original tariff of Rs5.92/kWh from the date it began supplying electricity to the grid.

The Tribunal has also instructed the Madhya Pradesh State Power Transmission Company to make the necessary payments, including carrying costs calculated at the late payment surcharge (LPS) rate, within three months from the date of judgment.

Background

Orange Bercha Wind Power had developed the 50 MW wind project in Madhya Pradesh, with an expected commissioning date of March 31, 2016, to secure the higher tariff of Rs5.92/kWh. However, the project faced delays and was commissioned on May 5, 2016, primarily due to pending approvals from state authorities. As a result, MPERC applied a revised tariff order, reducing the applicable rate to Rs4.78/kWh.

Orange Bercha challenged this decision, arguing that the delays were beyond its control, caused by Madhya Pradesh Power Transmission Company and Madhya Pradesh State Load Dispatch Centre, which failed to grant timely charging permissions and establish a functional telemetry data system.

Tribunal’s Analysis

APTEL found that Orange Bercha had fulfilled all requirements for commissioning by the original deadline. The Tribunal attributed the delays to lapses by the state authorities, ruling that such delays should not penalize the project developer. It referenced prior judgments where delays caused by regulatory bodies were not held against developers.

Rejecting the respondents' claim that Orange Bercha had accepted the lower tariff through the Power Purchase Agreement (PPA), APTEL cited legal precedents emphasizing that entities cannot benefit from their own delays or wrongful conduct.

Consequently, the Tribunal annulled MPERC’s order and directed the Madhya Pradesh State Power Transmission Company to compensate Orange Bercha at the original tariff rate, along with carrying costs at the LPS rate, to be settled within three months.