Rooftop solar panel traders voice anguish over grid support charge

R B Goenka, energy expert, representing VIA making submission before MERC during hearing on MSEDCL's MYT petition at

VANAMATI campus on Tuesday (Pic by Anil Futane)

Staff Reporter :

Shaken by demand for grid support charge, traders of rooftop solar panels launched a broadside against multi year tariff petition of MSEDCL. Traders dominated the hearing of Maharashtra Energy Regulatory Commission (MERC) for Nagpur Division held on Tuesday at VANAMATI campus. Of the 181 on-line applications received by MERC, 147 were from persons having interest in solar panel business. MERC Members Mukesh Khullar and I M Bohri and its Secretary Abhijit Deshpande were present at the hearing. In its petition, MSEDCL citing increasing losses due to captive power plants based on solar power has demanded permission to loan grid support charges on the energy generated under Net Metering systems.

Discom in its justification said that the grid charge is necessary to cover balancing, banking and wheeling cost after adjustment of RPO benefits, avoid distribution losses. However, the traders said the tariff proposal is negative and would affect growth of rooftop solar power. Most of them during their submission cited Government of India policy of generating 100 GW of solar power that was echoed by Prime Minister Narendra Modi from time to time. The imposition of grid support charge goes against the frame work of solar power policy and tend to discourage addition of new consumers. One Saket Suri expressed surprise that the draft of MYT earlier did not had any mention about grid support charge for solar rooftop and all of sudden it was mentioned by MSEDCL in its final notification.

When MERC had already ruled out earlier plan of MSEDCL to switch over to net billing from current net metering for solar rooftop power being fed into grid, now the discom has again brought the plan to scuttle the solar business. VIA makes articulate presentation with suggestions Vidarbha Industries Association (VIA) was represented by R B Goenka, Vice-President and energy expert, at MERC hearing and made an articulate presentation and provided concrete suggestions. For net metering the arrangement of inter connection point must be on consumer side of meter. Other as an alternative, if a consumer wants to utilise banked energy the charges would be Rs1/- per unit banking charges in normal slot of tariff. Same should be charged at the rate of Rs 1.5 per unit in evening peak and at the rate of Rs 1.25 in morning peak. however, in night off peak slot, no banking charges should be charged.

Another suggestion offered by Goenka offered was about surplus energy saying same be treated as open access energy and licensee can charge wheeling charges and transmission/distribution losses in slot wise consumption in the same slot in which it is exported or in night of peak slot, instead of banking charges. Initialised energy for the month be carried forward to next month and at the end of settlement period i.e. 31st March any unutilised banked energy shall be purchased by the licensee at generic tariff rates.

Maha Metro seeks special tariff Maharashtra Metro Rail Corporation Limited (MMRCL) too opposed the MSEDCL plans for imposing of grid support charge and urged MERC to exclude the company from its preview. Namdeo Rabde, General Manager (Electrical), in his submission on MYT also demanded concessional tariff for Metro Rail saying they are offering subsdised tickets and performing social duty. As to solar, Rabde said they are generating and consuming entire rooftop generated energy during day time as in night time their operations are limited. So they should be excluded from grid support charge sought by MSEDCL. MMRCL further mentioned that in Maharashtra they are paying 20 per cent above what other metro operators in country are paying as electric tariff. They are being categorised at par with Indian Railways and demanded special tariff at concessional rates keeping in mind MMRCL's social obligation. Rabde also pointed out due to prevailing higher tariff, Indian Railways was forced to opt for open access and MMRCL too could have to redo its calibrations if tariff continues to go Northwards.

‘Form a separate company to supply power to agri sector’

Staff Reporter :

Providing a rational way to ensure industry and household consumers of MSEDCL are not burdened by cross-subsidy, Vidarbha Industries Association (VIA) suggested to MERC that a separate Government owned company be formed to exclusively supply power to agriculture pumps. MERC can determine the tariff to be charged from farm pumps and power to this company be supplied at inter-phase points by all State transmission and distribution licensees at the rate of 10 per cent less then the average cost of power. This 10 per cent cost shall be loaded as agriculture cross subsidy to all other category of consumers by the State distribution licensees as decided by the Commission.

State Government shall provide 10 per cent subsidy on the average pooled cost of this utility. Goenka said VIA is suggesting that Commission should make suggestion to Government of Maharashtra under section 86 & 87 of Electricity Act 2003 to make a separate company for agriculture consumers which shall help in evenly distributing the cross subsidies paid to agriculture consumers to all the licensees in the State. Currently only MSEDCL consumers are burdened with cross subsidy charge while other distribution licensee are exempt and hence able to provide cheaper power tariff. Ajit Prasad Ganguly, representing CREDAI, also batted for the separate agriculture power supply company saying this is in best interest of State. He said in current format only MSEDCL consumers are burdened though benefits of agriculture are enjoyed by entire State.