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Home News Power Sector News FOR bat for amendments to act for RPO compliance by utilities

FOR bat for amendments to act for RPO compliance by utilities

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Pramod DeoAmidt growing reluctance from the state distribution utilities to comply renewable power obligation (RPO), power regulators have made a strong case for amendments to the Electricity Act, 2003 for empowering them to impose penalty for non compliance. Besides, Forum of Regulators (FOR), a representative body of Central and state regulators, has stressed the need for invoking the existing regulations of imposing non-compliance charge.

Under RPO, state utilities are expected to procure certain % of total annual power purchases from renewable sources. The state wise RPO targets are fixed by the respective state electricity regulatory commissions and they are expected to increase annually. RPO targets were ranged from 2% for Tripura to 8% for Maharashtra during 2012-13.

FOR member, who did not want to be identified said even though some SERCs have taken progressive steps to monitor and enforce RPO, there is a need for specific provisions to be made in the Electricity Act, 2003 for deterrence against non compliance. ''Central Electricity Regulatory Commission (CERC) in its statutory advice to the power ministry had pitched for specific provisions to be incorporated in the Electricity Act for RPO compliance. Punjab is a unique as it has made provisions for separate funds under annual revenue requirement (ARR) for RPO compliance including through purchase of renewable energy certificate.

Comments of KSEBOA on amendments to electricity Act 2003- Letter dtd 13-11-2013 seeking intervention of Kerala Government

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Comments of KSEBOA on amendments to electricity Act 2003- Letter dtd 13-11-2013 seeking intervention of Kerala Government


This could be considered by other states,'' he said.

CERC's former chairman Pramod Deo told Business Standard that state regulators have apprehension that increase in RPO will burden consumers by a large degree.

''To allay this fear, FOR had conducted study which clearly shows that infact, the impact of increased RPO on retail tariff is marginal. Not only that FOR had obtained legal opinion that regulators can prescribe differential RPO so that industrial and commercial consumers who contribute more to environmental damage should be given higher RPO target. Such differential RPO setting will not burden common consumers at all.''

However, MahaViataran official raised doubts over the adhering to the RPO and said that power consumption cannot be doubled from renewable sources but they can be at the margin. ''Besides, renewable power is expensive and not affordable. For doubling consumption and thereby double the growth rate reliable and affordable power is the need of the hour. Therefore, you must have a trajectory which is viable and achievable,'' he opined.

FOR member said most of the SERCs have adopted the provision of model regulations for enforcement of RPOs. However, this provision has not been invoked by the SERCs so far. ? On the other hand, some SERCs have allowed carry forward of RPO compliance in the event of the non-compliance.

Source- Business standard


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