HARYANA ELECTRICITY REGULATORY COMMISSION
SCO 180, SECTOR 5, PANCHKULA 134 109, HARYANA   

CASE NO. HERC/PRO-1 & 2 OF 2002

Date of Order:  02.04.2002

In re: Irregular imposition of penalty for operating CPP without valid permission.

Haryana Electricity Regulatory Commission on its own motion

V/s

Sh. V.Uma Shanker and another.

 ORDER

Haryana Electricity Regulatory Commission (hereinafter referred to as Commission) received copy of notice No. 694/98 HM Dated 18.1.2002 & 689/93 Dated 18.1.2002 issued by Sh. D.S.Yadav, Executive Engineer, Suburban Division, Dakshin Haryana Bijli Vitran  Nigam Limited ( DHBVNL), Gurgaon, to captive Power Plant(CPP) owners M/s Ridge Wood Estate Condominium Association,DLF City,  Phase-IV Gurgaon & M/s  Galleria Property Management Services Pvt.Ltd.,Phase-I,Gurgaon respectively who were consumers of DHBVNL and were found operating Captive Power Plant (CPP)  without valid permission from the Commission. The said Executive Engineer also imposed a fine of Rs.1.0 lakh and additional penalty @ Rs. 6000/- per day from the date of operation of CPP till such time the un-authorised D.G. sets were kept in operation to avoid criminal proceedings as per provision of Section-41 of Haryana Electricity Regulatory Act 1997 (hereinafter referred to as HERA).

The Commission also received a copy of sanction accorded by Shri S. S. Sangwan, S.D.O Industrial Area Sub/ Division Gurgaon of DHVBNL vide Memo No.3079 Dated 28.8.2001 to CPP of 380 KVA capacity to M/s Dakshin Car Service (P)Ltd., Sector-8, Gurgaon. 

The Commission issued summons to Sh. V. Uma Shankar, Managing Director of DHBVNL, Executive Engineer Sh. D. S. Yadav, and S.D.O Sh. S. S. Sangwan, both of DHBVNL to appear before the Commission on 19.3.2002 to justify their act of imposing penalty on unauthorised operators of C.P.P & of issuing sanction for operating CPP to the said consumers.

1.0    The representative of the Licensee, i.e. Haryana Vidyut Parsaran Nigam Limited (HVPNL) Sh. R. K. Jain, Director (Tech) explained that as per interpretation of provisions made in Section 21 (3) / 56(3)vi of the HERA, the powers  to sanction CPP are with the Commission.

Sh. R. K. Jain also mentioned that the licensee has power to penalise consumers by way of imposing fines and penalty if they are found operating C.P.P without complying with section-44 of I.E Act 1948.  He however could not support it from the provisions of the I.E Act 1948.

Sh. Uma Shankar, M.D stated that the changes which are required in the working of the field staff after the formation of the Commission have not percolated down below and due to natural inertia such lapses have taken place.  It took time to inform the field staff about the guidelines issued by the Commission in respect of C.P.P which were issued on 11^th May, 2001.  He agreed that power to issue consent to any C.P.P of the consumers and to impose penalty for unauthorised operation of C.P.P are vested with the Commission only.  The above Executive Engineer and S.D.O of DHBVNL also confirmed that after knowing the mistake, they have stopped imposing penalties on consumers who were operating CPP without prior permission from the Commission & issuing sanction for operating CPP. 

2.0    (a) It was clarified to Licensee that power to sanction CPP under section 44 of I.E Act 1948 has been withdrawn from erstwhile HSEB & conferred on the Commission as per provision made in Section 21(3)& 56(3) vi of the HERA.  The powers to impose penalty for breach of any directions of the Commission or of provisions of HERA also lies solely with the Commission under section 31/41 of HERA.

(b) In regard to purchase of power from C.P.P it was brought to the notice HVPNL/DHBVNL that:-

i)     Some C.P.P’s are operating in parallel with the licensee’s net work based on understanding / agreement licensee had with such C.P.P. owners.  This is nothing but purchase of power by the Licensee without any approved PPA.  Licensee is therefore violating a condition of Licence for which it is liable to fine and penalty.

ii)           Licensee shall, with in 15 days of this order submit a list of all such C.P.P owners who are sanctioned to operate C.P.P by the Licensee till date.  This will include cases where the CPP’s are connected with the network of the Licensee with instantaneous reverse power relay to stop flow of power into the licensee’s network.

iii)         All C.P.P. operating in parallel & feeding power into the Grid, except those which are connected but operating in stand-by mode & provided with instantaneous reverse power relay for achieving zero interruption of power, should be disconnected immediately. The Licensee shall send PPA’s with mutually agreed terms between CPP owner and the Licensee for purchase of power if it intends to do so. The list of such CPP’s be intimated to the Commission with details as per format given in Annexure-I.  It will include cases of banking and net billing of power, and sharing of power by sisters concern of the C.P.P owner etc. However power purchase from CPP’s whose PPA’s have already been submitted to Commission for approval may continue subject to the condition that necessary adjustments if made by the Commission shall be binding on CPP owners & the licensee. 

3.0       The Commission, therefore, directs that: -

i)             Licensee shall not sanction any C.P.P installation to the consumers in its licensed area or allow C.P.P to operate in parallel with Grid without prior approval of PPA from the Commission as stated in the Commission’s Guideline dated 11^th May 2001.  This direction be communicated to all concerned field staff for compliance with immediate effect.

ii)          The power to impose penalty / fine for violation of section 21(3) of HERA i.e. setting up of CPP without the permission of the Commission rests with the Commission under section 31 of HERA. Any notice issued for imposing penalty / fine by HVPNL / DHBVNL / UHBVNL shall stand cancelled.

iii)           No power will be received by Licensee from any CPP wIthout approved PPA by the Commission.  Any agreement made so far with any CPP except those whose PPA’s are with the Commission for approval stand null and void. Licensee had not disclosed electric energy received from C.P.P’s owners except from M.U.L in any of its ARR filing.  This amounts to submission of wrong data of power purchases by the Licensee and is liable to fines and penalties. 

iv)         Details of all cases of approvals of C.P.P accorded by Licensee so far be reported to Commission as per format enclosed as Annexure-2. excluding those included in Annexure-1.

v)          Licensee shall act as monitoring agency on behalf of the Commission to check the unauthorised use of C.P.P by consumers and shall immediately report such cases of unauthorised C.P.P’s to the Commission as per format enclosed as Annexure-3. Such notices shall also be issued to CPP owners who are operating with the sanction from HVPNL / DHVBNL / UHBVNL but without permission from the Commission.

vi)         Licensee shall inform consumers about the changed procedure for accord of consent by the Commission & make available the guidelines issued by the Commission at no loss- no profit basis to the consumers. It may also be intimated to consumers that the above guidelines are also available at web site www.herc.nic.in.

Place :  Panchkula
Dated: 02.04.2002