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APTEL Ruling: No Banking Relief for Open Access Generators

The Appellate Tribunal for Electricity (APTEL) has ruled that force majeure conditions, such as COVID-19 lockdowns, do not justify relaxing banking limits for Open Access (OA) generators. This decision was based on the Maharashtra Electricity Regulatory Commission (MERC) Distribution Open Access (DOA) Regulations, 2019, which impose a strict 10% monthly banking cap with no exceptions.

The case involved Siddhayu Ayurvedic Research Foundation, a wind power generator supplying electricity to Mahindra CIE Automotive Ltd. During the April 2020 lockdown, Mahindra CIE was unable to consume power, leading to surplus banked energy with Maharashtra Discom (MSEDCL). Siddhayu requested a one-time relaxation of the banking cap to adjust unused energy in July 2020 bills, but MERC denied the request, stating the regulations were clear.

APTEL upheld this decision, stating that banking limits must be applied uniformly to avoid market distortions. It ruled that force majeure does not override explicit regulations, as banking is a facility, not an obligation, for Discoms. Additionally, Discoms are not required to absorb excess energy, and generators must bear commercial risks. APTEL noted that Siddhayu had alternative options, such as selling power through MSEDCL’s online platform, rather than banking it.

This ruling reinforces that banking limits cannot be adjusted arbitrarily, even in exceptional circumstances. It also clarifies that commercial risks in Open Access transactions rest with generators, not Discoms or consumers.