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Comments on CERC Draft Order on ECS Compensation for Sec 63 TPPs

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Author(s): Prayas (Energy Group) Publication Date: April, 2021

The CERC issued a suo-motu draft order on a comepensation mechanism for competitively bid TPPs on account of change in law for compliance with the revised emission standards notified by the MoEFCC. Taking such suo-motu action is essential toward providing regulatory certainty to Section 63 projects on account of change in law due to the revised emission standards, and streamlining their compliance to the same.

Prayas (Energy Group) submitted comments toward ensuring clarity of process, accountability, and effective implementation of the proposed mechanism. This included:

  1. Strenghtening the provision regarding availability linked recovery of supplementary capacity charges, by providing clarity on the process to report and validate the availability of ECS
  2. Ensuring that the computation of additional auxiliary energy consumption due to ECS is linked to the availability of the ECS
  3. Disallowing the penalties on account of non-compliance to Environment (Protection) Amendment Rules, 2021
  4. Extending the dissallowance of cost pass through on account of prolonged shut down period to Section 62 projects
  5. Ensuring that there are measures in place to prevent regulatory delays and ensure prudence
  6. Providing clarity on terminologies used and accounting for alternate methods to meet the revised environmental norms
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