PIL In Delhi High Court Challenges DERC Rules Shifting Solar Infrastructure Costs To General Electricity Consumers; Notice Issued
The Delhi High Court has issued notice on a PIL challenging the Delhi Electricity Regulatory Commission's (DERC) framework governing Group Net Metering (GNM) and Virtual Net Metering (VNM) for renewable energy projects.
A division bench comprising Chief Justice DK Upadhyaya and Justice Tejas Karia sought response of the DERC, BSES Rajdhani Power Limited, BSES Yamuna Power Limited, Tata Power Delhi Distribution Limited and New Delhi Municipal Council.
The Court directed the authorities to file their counter affidavits within six weeks and listed the matter for consideration next on December 08.
Moved by lawyer Nishant Jethra, the plea alleges that project-specific infrastructure costs benefiting participating solar consumers are being shifted onto the general body of electricity consumers through tariffs.
The petition challenges Guidelines 3(6) and 13 of the DERC (Group Net Metering and Virtual Net Metering for Renewable Energy) Guidelines, 2019, and subsequent amendments, as well as Regulations 8(5), 8(6) and 10 of the DERC (Net Metering for Renewable Energy) Regulations, 2014.
Jethra has raised the question whether the cost of infrastructure created for and the economic benefit conferred upon one set of electricity consumers can be imposed upon the general body of electricity consumers of the national capital.
He contends that under the impugned framework, Distribution Licensees are required to bear capital expenditure towards Service Line cum Development (SLD) and network augmentation for renewable-energy projects, with such expenditure being permitted to be passed through their Aggregate Revenue Requirement (ARR).
According to the petition, this ultimately results in the financial burden being distributed among electricity consumers generally, including consumers who neither participate in GNM/VNM arrangements nor receive any project-specific benefit.
“The burden does not end with the one-time financing of that infrastructure since upon capitalisation, the same non-participating consumers may also bear depreciation and the regulated return on those assets over their useful life. Further, the waiver allowed for wheeling charges and other charges would also be a recurring feature in the ARR, which all consumers of Delhi would be paying for as a part of their tariff,” the plea states.
Jethra's fundamental grievance is that electricity consumers across Delhi are being compelled, through their monthly tariff, to fund infrastructure which they neither seek nor use and from which they receive no corresponding project-specific benefit, merely because another class of consumers elects to avail the economic advantages of GNM/VNM.
The petitioner has contended that a consumer who cannot install or afford a solar system, or otherwise has no connection with a GNM/VNM project, may nevertheless bear the cost of infrastructure created specifically to facilitate another consumer's renewable-energy arrangement.
The petition seeks a declaration that Regulations 8(5), 8(6) and 10 of the 2014 Regulations are declared as unconstitutional, including directions requiring DERC to disclose the authority under which the impugned Guidelines and amendments were issued.
An independent committee or body of experts has also been sought to examine the issues raised concerning the framing of the parent Regulations and subsequent Guidelines.
Counsel for Petitioner: Mr. Gyanendra Kumar, Senior Advocate with Ms. Tanvi Dubey, Ms.mSugandh Birmani, Mr. Nikhil Bhasin and Mr. Ganesh Reddy Mekala, Advocates
Counsel for Respondents: Mr. Anirudh Dusaj, ASC for DERC; Mr. Anupam Varma, Mr. Rahul Kinra and Mr. Aditya Ajay, Advocates for BSES; Mr. Nitin Kala, Mr. Kunal Singh, Mr. Tanmay Jain and Ms. Kanishka Rawat, Advocates for Tata Power Delhi Distribution Limited; Mr. Aditya Bharat Manubarwala, ASC with Ms. Shaila Arora and Ms. Chavi Virmani, Advocates for NDMC
Title: NISHANT JETHRA v. DELHI ELECTRICITY REGULATORY COMMISSION & ORS