Petition No. 12 of 2006

In the matter of:

Petition for Approval of the long term PPA to be entered between M/s Utility Powertech Ltd., Noida and Punjab State Electricity Board for 1.95 MW Micro Hydel Project at Gurdittiwala
In the matter of:
Punjab State Electricity Board, The Mall, Patiala.
M/s Utility Powertech Ltd., Noida

Shri Jai Singh Gill, Chairman
Smt. Baljit Bains, Member
Shri Satpal Singh Pall, Member


This petition has been filed by PSEB for approval of the Power Purchase Agreement to be signed by PSEB with M/s Utility Powertech Ltd., Noida (UPL) for a 1.95 MW Micro Hydel Project at Gurdittiwalam, Distt. Ferozepur.

The brief history of the case is that UPL filed Petition No.15 of 2002 in respect of signing of PPA between UPL and PSEB for a power project being set up by UPL. The Commission in its Order dated April 8, 2003 decided as under:-

“The Commission accordingly decides that PPAs in all cases be approved as per the directions of the Government dated October 28, 2002 as amended vide their reference dated February 18, 2003 except that the clause pertaining to 5% losses be amended to state that each year only assessed transmission losses be allowed to the PSEB subject to adjustment based on actuals. PEDA & PSEB may also ensure that during the period PPAs are valid, the private parties will produce power using only non-conventional sources for which the projects have been approved. Also in order to protect the interests of the PSEB and consumers in general, PEDA and State Govt. may take suitable steps to ensure that the developers continue to supply power at prescribed rates during the entire period of contract and NRSE policy is implemented. The PSEB will also ensure that there is uniformity in respect of all clauses of PPA for all parties falling under same categories under NRSE policy of the Government.”

In pursuance of Order dated April 8, 2003 referred to above, PSEB filed this petition on May 18, 2006 for approval of the PPA. During the pendency of this petition, the State Govt. issued the new NRSE Policy, 2006 which interalia provides higher tariff for power from such sources. Thereafter, UPL submitted its reply to the petition in which they have sought amendment of some of the clauses of the PPA, in addition to a plea for approving the PPA with tariff rates even higher than those provided in the NRSE Policy, 2006. PSEB and PEDA have filed submissions in respect of the reply filed by UPL.

The Commission observes that PSEB filed this petition for approval of a PPA based on an earlier order of the Commission of April 8, 2003. Besides the fact that PSEB has taken almost 3 years to do so, it is evident that the basis on which the earlier order of the Commission was passed no longer exists. The plea of UPL in its reply that the PPA should now be approved at tariff rates even higher than in the NRSE Policy, 2006 also can not be accepted as this would amount to a substantive revision of the petition itself which can only be considered at the instance of the petitioner. Moreover, it is evident from the comments of PSEB and PEDA that the concerned parties need to take a fresh look at the PPA keeping in mind the new NRSE Policy, before the same can be considered by the Commission. In the light of above discussion, it is clear that the plea of UPL for approval of the PPA at enhanced rates can not be accepted while the instant petition has in the light of the new NRSE Policy itself become infructuous and is dismissed as such.

Sd/- Sd/- Sd/-
(Satpal Singh Pall) (Baljit Bains) (Jai Singh Gill)
Member Member Chairman

Dated: June 1, 2007