According to reports, Madhya Pradesh electricity regulatory commission, in a fresh directive, has directed Discoms to ensure RPO (renewable purchase obligation) compliance as per the RPO regulations and has confirmed that any variation in power purchase costs will be considered during true-up exercise.
The directives were given in the recent order released in the matter of determination of aggregate revenue requirement (ARR) and tariff for the financial year 2013-14, based on application filed by the Madhya Pradesh Audyogik Kendra Vikas Nigam (Indore) Limited (MPAKVN) for special economic zone ( SEZ) at Pithampur area,(Dhar district).
A public hearing on this matter was called by the commission on September 2, where an Indore-based solar energy firm, Ujaas Energy Limited (UEL), represented and submitted its point, urging the commission to issue directives to the Discom to consider the expense towards compliance of their RPOs in the tariff petitions itself.
The commission accepting the request issued these fresh directives in the recent order released on September 10. Commenting on it, joint managing director of UEL, Vikalp Mundra, said that this will prove to be one of the major steps towards the promotion of RE power and will set precedence for other Discoms too. He added that the passing of the impact of procurement of RE Power/RECs in the tariff is a logical step.