On June 8, 2023, the Maharashtra Electricity Regulatory Commission brought out a notification bringing amendments in the Maharashtra Electricity Regulatory Commission (Multi Year Tariff) (Second Amendment) Regulations 2023 which led to further amendment of Maharashtra Electricity Regulatory Commission (Multi Year Tariff) Regulations, 2019.
With the advent of time and changes in the technical scenario of the country, various provisions of the act became obsolete or were rendered ineffective. The amendment aims to make major changes in the present statute some of which are as follows:
- The amendment has introduced the definition of “Auxiliary energy consumption for emission control system” or “AUXe” in clause 7(a) of the act. AUXe means the quantum of energy consumed by auxiliary equipment of the emission control system of the coal or lignite based thermal generating station in addition to the auxiliary energy consumption
- In clause 11, an addition in the form of clause 11(a) has been introduced which has added “Bse rate of delayed payment charge” which states the one-year Marginal Cost of Funds-based Lending Rate (‘MCLR’) as declared by the State Bank of India, as applicable on the 1st April of the financial year in which the period lies, plus five percent and in the absence of MCLR, any other arrangement that substitutes it, which the Central Government may, by notification, in the Official Gazette, specify.
- Clause 14(a) has been introduced as an addition to clause 14 which has introduced the concept of “Capital Cost” which, as determined in Regulation 24 of these regulations with respect to generating station or transmission system or distribution system, as the case may be, and Regulation 55 (D) in respect of integrated mine(s).
- In Clause (54), two additions have been made namely Clause (54)(a) and Clause (54)(b). According to Clause (54 a), “Mine Infrastructure” has been added which shall include assets of the integrated mine(s) such as tangible assets used for mining operations, being civil works, workshops, immovable winning equipment, foundations, embankments, pavements, electrical systems etc.
- Clause (54 b) has added “Mining Plan” or “Mine Plan” which in respect of integrated mine(s) means a plan prepared in accordance with the provisions of the Mineral Concession Rules, 1960, as amended from time to time and approved under clause (b) of sub-section (2) of Section 5 of the Mines and Minerals (Development and Rehabilitation) Act, 1957.
- Clause (68) of the Principal Regulation has also been substituted wherein “Plant Load Factor” or “PLF” which refers to the total energy sent out corresponding to scheduled generation during a given period expressed as a percentage of sent out energy corresponding to installed capacity in that period.
The present amendment has not only added various new definitions that were required for proper functioning of the act and ensuring a greater degree of compliance and enforcement but also has reformed those provisions which had reached the stage of redundancy and needed upgradation. Therefore, this amendment is a welcome step towards achieving a better functioning of Maharashtra Electricity Regulatory Commission.
Please note that the provisions mentioned in this document are the significant ones. This summary serves as a general overview and should not be considered a substitute for reviewing the full amendment.