Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

APTEL Rules State Commissions Have Jurisdiction Over UI Disputes of Embedded Consumers

The Appellate Tribunal for Electricity (APTEL) has ruled that embedded consumers sourcing power through collective transactions on power exchanges (PXs) fall under the jurisdiction of State Electricity Regulatory Commissions (SERCs) rather than the Central Electricity Regulatory Commission (CERC). This decision clarifies a long-standing jurisdictional dispute regarding Unscheduled Interchange (UI) charges.

Case Background

The Rajasthan Steel Chambers, representing steel units procuring power from PXs via open access, approached CERC for relief concerning the non-settlement of UI charges. CERC initially assumed jurisdiction, arguing that:

• Transactions through PXs are inter-State and governed by CERC Open Access Regulations, 2008.
• The use of intra-State transmission for inter-State power transfers falls under CERC’s domain.

However, Rajasthan’s distribution companies—Jaipur, Jodhpur, and Ajmer Vidyut Vitran Nigam Ltd.—challenged this claim, asserting that the Rajasthan Electricity Regulatory Commission (RERC) holds exclusive jurisdiction over such matters.

APTEL’s Ruling

APTEL overturned CERC’s decision and ruled in favor of RERC, stating that:

• Steel units sourcing power through PXs remain intra-State consumers and must adhere to State Commission regulations.
• CERC’s interpretation of inter-State transactions was incorrect, as transactions utilizing intra-State transmission lines must comply with State laws.
• RERC has exclusive jurisdiction under Regulation 3 of the RERC Open Access Regulations, 2006, which governs intra-State system usage in conjunction with inter-State transmission.
• The ruling aligns with APTEL’s previous judgment in SLDC vs. GERC (Appeal No. 70 of 2015), which confirmed that intra-State users in collective transactions fall under State Commission jurisdiction.

This verdict provides much-needed clarity for industries using open access, reaffirming that SERCs regulate disputes for embedded consumers drawing power through PXs. However, as open access transactions continue to expand, the risk of overlapping regulatory jurisdiction remains.