The Telangana Electricity Regulatory Commission (TERC) recently reviewed proposals put forth by the Telangana State Load Despatch Centre (TGSLDC) concerning remuneration and charges under Regulation No. 7 of 2022.
This regulation mandates that obligated entities purchase renewable energy or Renewable Energy Certificates (RECs). The TGSLDC, responsible for collecting fees for its role similar to REC accreditation, proposed charges that included a one-time fee of ₹30,000 and an annual fee of ₹10,000 per obligated entity, plus applicable taxes.
Stakeholder Objections
Following the proposal, stakeholders such as TSDISCOMs and M/s. Penna Cement Industries Limited expressed their objections. They argued against imposing additional financial burdens on obligated entities who are already procuring RECs from power exchanges. Concerns were raised about the fairness and practicality of the proposed charges.
In response, the TGSLDC defended its proposal, contending that the charges were essential to fund its operations under Regulation No. 7 of 2022. They cited similarities with REC accreditation fees established by the Central Electricity Regulatory Commission (CERC) for renewable energy generators.
TERC’s Decision
After a period of public consultation and considering stakeholder feedback, the TERC issued its verdict. The Commission acknowledged the concerns raised, particularly by M/s. Penna Cement Industries Limited, regarding the financial strain on obligated entities. They highlighted that the existing annual fees and operating charges levied on stakeholders adequately met regulatory requirements.
Consequently, the TERC declined to approve the proposed remuneration and charges by the TGSLDC. They concluded that the current fee structure sufficiently supported the state agency’s operational needs, rendering additional charges unnecessary and potentially burdensome for obligated entities.
Regulatory Stance and Balanced Approach
This decision signifies an important regulatory stance on balancing the financial obligations of obligated entities while ensuring the operational sustainability of state agencies involved in renewable energy compliance. The TERC’s ruling reflects a nuanced approach to regulatory compliance in the energy sector, aiming to foster a balanced environment for renewable energy adoption without imposing undue financial burdens.