The Appellate Tribunal for Electricity (Aptel) has ruled that Tangedco can only be entrusted with the task of collecting and checking data for verification of captive generation plant status and cannot take coercive action against such players.
Such action needs to be done through appropriate proceedings initiated before the Tamil Nadu Electricity Regulatory Commission (TNERC).
In January 2020, the TNERC had issued an order, which laid down the procedure to be followed for verification of the status of captive generating plant, as per the directions of the Madras High Court. The order was challenged by the Tamil Nadu Power Producers’ Association before Aptel.
The Centre and the State governments promoted the captive power model to ensure more competition. Under the model, a group of consumers come together and set up plants to meet power requirements, without depending on the State utility or grid.
As per norms, the owners of captive power plants need to consume 51% of the power and the remaining can be sold to other industrial users, who are required to own 26% in the captive power plant.
Non-compliance with the procedures would result in loss of captive power status, and they would have to pay the requisite charges.
The TNERC’s order gave powers to Tangedco to take coercive action against the captive power generators and users for non-compliance.
Aptel noted that any action taken by a quasi-judicial body, which includes delegation of power by the Commission to any authority, should not wither away the underlying foundation of transparency, unbiasedness and fair play.
It clarified that any action to be initiated against captive generating plant/captive users for non-compliance and recovery of cross subsidy charges as per law, should be done through appropriate proceedings initiated before TNERC
Aptel also set aside some of the other provisions in TNERC’s order.
